Tag Heuer Reducing Prices

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TemerityB
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Tag Heuer Reducing Prices

Post by TemerityB » March 19th 2015, 7:35pm

At the onset of the Baselworld 2015 watch trade show, TAG Heuer made the interesting announcement that in light of the increased value of the Swiss Franc, the brand would not only decline the temptation to increase prices of their watches, but would actually be reducing prices.

http://www.ablogtowatch.com/interview-j ... ead.com%29
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Re: Tag Heuer Reducing Prices

Post by Horse Feathers » March 19th 2015, 9:07pm

Smart move if increased sales can offset profit loss but in this case it's currency driven.

Works well if a manufacturer isn't sitting on a ton of inventory which overnight would cause at least a significant accounting hit. Ever wonder why some companies are always offering rebates? Same story, can keep inventory values high for lending purposes and sales projections and then adjust as a gain or loss on sale.
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