Zenith

Marcus Hanke
[PuristSPro Moderator]
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I thought long about deleting your post ....

... since the one thing we do not want a company to learn about is that its products are underpriced ...

Well, price levels are a difficult issue, since there is no absolute and objective defintiion of "value". Of course you can reduce "value" to a set of technical specifications, and compare various products with each other then. However, this would exclude the emotional aspect of "value", and there is barely any other business segment less dictated by this very emotional aspect than that of luxury business. Brands like Rolex, Patek Philippe etc. have "values" of their own, which means that they can charge prices that would be met with purchase refusal by most customers of other brands, in spite of similar material or technical standards.

In Germany, Lexus never had a chance against Audi or BMW. Was it overpriced? On this market, yes, but not because of worse performance or material qualities; because of lacking emotional brand perception.

Additionally, market dynamics are difficult. We have examples of watch brands lowering prices after the initial launch of specific models, because it became clear that the market would not accept that price level. The same model might easily bear a later price increase, though.

In my personal opinion, comparing the Zenith prices of fifteen years ago, taking into account inflation and enhanced material and finishing quality, I think the Zenith prices are exactly where they should be.

Regards,
Marcus