why did tiffany prices go up?

[biblobaggins23]

can someone tell me non-biasedly why the prices of tiffany & co. went up? is this a national increase in diamond prices or just tiffany?

 

[FireGoddess]

Are you talking about diamonds specifically? Having perused my Tiff catalogs the prices tend to go up every other catalog cycle or so. Sort of a steady creep.

 

[biblobaggins23]

i was looking at the prices and i have always loved the etoile and by golly, it went up! i swear!

whats the economical reason for that? what''s their basis?

 

[Sundial]

I shopped there earlier this month and they told me that they had a standard across the board price increase sometime after the first of the year. As FG says I think it is just their regular procedure to make periodic price increases much like other designer brands such as Louis Vuitton.

 

[biblobaggins23]

why though?

 

[diagem]

Date: 2/28/2007 5:56:43 PM
Author:biblobaggins23
can someone tell me non-biasedly why the prices of tiffany & co. went up? is this a national increase in diamond prices or just tiffany?

It seems like commodities in general are on the up-swing...
If you are talking specifically Diamonds..., I seem to feel that prices for high quality material did not end its price-hike route it started a few years back...!

Its not just Tiffany...

 

[ebonykawai]

To make more money.

 

[decodelighted]

Date: 2/28/2007 6:37:49 PM
Author: biblobaggins23
why though?

are you kidding? they are in business to MAKE A PROFIT ... the idea is to charge the highest possible price that people are willing to pay for items.

 

[diamondseeker2006]

Doesn''t just about everything go up? I mean, you don''t expect prices to stay the same forever. Wages go up, supplies go up, overall costs go up, and the cost increases are passed on to the consumer.

 

[FireGoddess]

Date: 2/28/2007 6:37:49 PM
Author: biblobaggins23
why though?

Because they''re Tiffany and you''ll pay. Oh yes, yes you will.

 

[Miranda]

Date: 2/28/2007 6:37:49 PM
Author: biblobaggins23
why though?

Why? Because they can...

 

[diagem]

Why? Because they earned it...

 

[JulieN]

I remember when those silver bracelets/necklaces/keychains were $50!

 

[decodelighted]

Date: 2/28/2007 7:05:36 PM
Author: JulieN
I remember when those silver bracelets/necklaces/keychains were $50!

Ditto ...

When I bought my Tiffany stainless bracelet watch 9 years ago it was $750 ... they start at about $1500 now.

 

[sdunlap10]

I read an article a month or so ago that the Tiffany image is suffering because young kids are buying their cheaper pieces. The new strategy is to do away with the cheaper stuff and to target only the more affluent customer base. I'll see if I can dig up the article.

 

[Sundial]

Date: 2/28/2007 6:59:57 PM
Author: FireGoddess

Date: 2/28/2007 6:37:49 PM
Author: biblobaggins23
why though?

Because they're Tiffany and you'll pay. Oh yes, yes you will.

Oh yes, yes I did! It hurt so bad, but it felt so good!!!

 

[Gypsy]

Well... From a simplistic supply chain perpective: Raw materials are up, especially precious metals. Rents are up (property prices are dropping rent increases) other overhead like energy costs are up... and all of that eats into thier margin. Advertising and all of the other expenses that factor in, healthcare coverage, etc are also up. So they raise prices. They're Tiffany. You'll pay if you want it.

 

[CaptAubrey]

Date: 2/28/2007 7:08:25 PM
Author: sdunlap10
I read an article a month or so ago that the Tiffany image is suffering because young kids are buying their cheaper pieces. The new strategy is to do away with the cheaper stuff and to target only the more affluent customer base. I''ll see if I can dig up the article.

http://www.diamonds.net/news/NewsItem.aspx?ArticleID=16723

They''re in the midst of a deliberate campaign to drive out the riff-raff and looky-loos. Sorry.

 

[gailrmv]

Strange, I just looked up the prices of some of the silver pieces I have and the price was only nominally up (like maybe $5 if at all). These are silver pieces under $200. If they are trying to go more upmarket, wouldn't they raise prices on their cheaper stuff? Weird.

ETA the prices on my particular items seem the same from 2-3-4 years ago.

 

[jaz464]

Date: 2/28/2007 7:35:43 PM
Author: CaptAubrey

Date: 2/28/2007 7:08:25 PM
Author: sdunlap10
I read an article a month or so ago that the Tiffany image is suffering because young kids are buying their cheaper pieces. The new strategy is to do away with the cheaper stuff and to target only the more affluent customer base. I''ll see if I can dig up the article.

http://www.diamonds.net/news/NewsItem.aspx?ArticleID=16723

They''re in the midst of a deliberate campaign to drive out the riff-raff and looky-loos. Sorry.

That link didn''t work but I would really like to read the article. Could you repost please?

 

[sdunlap10]

Here's a cut and paste of the Wall Street Journal article. You should be able to find it on WSJ's website if you're a member.

Fashion Victim: To Refurbish Its Image, Tiffany Risks Profits; After Silver Took Off, Jeweler Raises Prices To Discourage Teens


EDIT: took out article for copyright reasons.

 

[UCLABelle]

That just makes me sad. It sounds so sick that they are trying to make it so the younger audience cannot afford their pieces. I ALWAYS loved T&Co over places like Cartier because they had merchandise for a wide audience...The diamonds, platinum and gold for their conservative, wealthy customers, and the silver for the younger "less wealthy" customers. I do not think the silver charm bracelet phase in the late 1990s hurt their reputation (that is just my opinion). But perhaps they want to revert back to the days of Breakfast at Tiffany's were Holly and Jack could only afford the "silver telephone dial" or an engraved cracker jack ring...

 

[ForteKitty]

Most girls in my brother''s high school 3 years ago had multiple Tiffany''s pieces. It was common for their bfs to give necklaces, earrings, bracelets, and especially the peretti rings for their monthly anniversaries. My sister''s best friend had 15 pieces by the time she graduated high school. She started collecting in Jr. High.

I thought it was pretty ridiculous for kids to spend that kind of money, but I can see how that would damage Tiffany''s "elite" reputation if a bunch of high school girls are running around wearing circle and heart Tiffany''s pendants and dangling bracelets.

 

[Adylon]

I''ll tell you why...
http://www.kitco.com/charts/livegold.html

(scroll to bottom)

All indicators point up up up

All commodities are increasing nearly the same percentage-wise, even diamonds are rising but not at nearly the same pace. With wages not keeping up with inflation I wonder at what point the jewelry consumer will stop buying? That''s the million dollar question. I wouldn''t be surprised if we see $750 gold by April.

 

[diagem]

Date: 2/28/2007 11:46:53 PM
Author: Adylon
I''ll tell you why...
http://www.kitco.com/charts/livegold.html

(scroll to bottom)

All indicators point up up up

All commodities are increasing nearly the same percentage-wise, even diamonds are rising but not at nearly the same pace. With wages not keeping up with inflation I wonder at what point the jewelry consumer will stop buying? That''s the million dollar question. I wouldn''t be surprised if we see $750 gold by April.

Good point,

Meaning that Diamonds still have a way to go to match the other comodities...

 

[sdunlap10]

Date: 2/28/2007 10:02:55 PM
Author: UCLABelle
That just makes me sad. It sounds so sick that they are trying to make it so the younger audience cannot afford their pieces. I ALWAYS loved T&Co over places like Cartier because they had merchandise for a wide audience...The diamonds, platinum and gold for their conservative, wealthy customers, and the silver for the younger 'less wealthy' customers. I do not think the silver charm bracelet phase in the late 1990s hurt their reputation (that is just my opinion). But perhaps they want to revert back to the days of Breakfast at Tiffany's were Holly and Jack could only afford the 'silver telephone dial' or an engraved cracker jack ring...

well, part of the allure of Tiffany is that not everyone can afford it. It's the same type of thing that drives Lexus and Acura. They're not much different from Toyota or Honda, but the economy appeal of those lines would tarnish the luxury perception of those brands. It's not a strategy that everyone can pull off.

 

[Garry H (Cut Nut)]

The US $ is falling, and Tiffany''s CEO has decided he is loosing exclusive cache'' and needs to raise prices on ''afordable jewels'' to keep a level of exclusivity (clear out of our stores you riff raff).

After all they only make about 120% mark up and this is hardly enough to sustain the advertising and rentals.

 

[winternight]

Date: 2/28/2007 10:02:55 PM
Author: UCLABelle
That just makes me sad. It sounds so sick that they are trying to make it so the younger audience cannot afford their pieces. I ALWAYS loved T&Co over places like Cartier because they had merchandise for a wide audience...The diamonds, platinum and gold for their conservative, wealthy customers, and the silver for the younger ''less wealthy'' customers. I do not think the silver charm bracelet phase in the late 1990s hurt their reputation (that is just my opinion). But perhaps they want to revert back to the days of Breakfast at Tiffany''s were Holly and Jack could only afford the ''silver telephone dial'' or an engraved cracker jack ring...

Actually that is part of the reason I prefer Cartier. I''m soooo tired of seeing those return to Tiffany dog collar necklaces and bracelets. I think it did hurt Tiffany''s reputation. Also when I''m buying a nice piece of jewelry I don''t want to be mobbed by teens. I''ve noticed sometimes the front of Tiffany where the expensive stuff is is totally dead while the back with the sterling is full of people. I do prefer some Tiffany designs to those of Cartier or HW though.

Look at it this way its not like you seen affordable items at Gucci or LV or Prada, part of the appeal is the exclusivity.

 

[CaptAubrey]

Date: 3/1/2007 1:06:10 PM
Author: winternight

Actually that is part of the reason I prefer Cartier. I''m soooo tired of seeing those return to Tiffany dog collar necklaces and bracelets. I think it did hurt Tiffany''s reputation. Also when I''m buying a nice piece of jewelry I don''t want to be mobbed by teens. I''ve noticed sometimes the front of Tiffany where the expensive stuff is is totally dead while the back with the sterling is full of people. I do prefer some Tiffany designs to those of Cartier or HW though.

Look at it this way its not like you seen affordable items at Gucci or LV or Prada, part of the appeal is the exclusivity.

This is exactly why they''re doing it.

Right now, the "affordable" market in retail jewelry is flat at best. The biggest growth and the highest profits are with the high-end stuff. Tiffany has lost a lot of that business to companies like Cartier, Winston, etc.

One of the most popular jewelers in the world with celebrities and the super-rich is one I suspect 90% of you have never heard of: JAR, in Paris. You can''t even get your foot in the door unless they already know who you are and you have an appointment ahead of time. His established customers can''t get enough of him, and the ultra-exclusivity surely has much to do with it.

Seriously, when was the last time you saw a celebrity wearing one of those silver Tiffany charms?

 

[winternight]

^^^
Very true. I went to the Garrard shop in NYC and had to make an appointment - but it was a totally different shopping experience. I got to try on tons of high-end stuff for fun, the salesgirl gave me all of her attention and served me drinks. Loved it. If you''re spending some money they experience counts too.