1. The cost of metals - Gold, platinum and various base metals like stainless steel all rose in 2009. While 2009 didn't show price increases in many areas, the manufacturers will not carry that extra expense anymore. They, with the retails down-sized their production to meet the lower demand caused by the "Bankers Recession of 2009". The maximum increase I saw so far was 15%, but the average has been 7%.
2. Everyone wants a fatter paycheck - The cost of living continues to increase so employers have to give raises to keep people. Even with high unemployment rates, the employed want a pay raise. In many industries like Watches and Jewelry, these technicians can't be easily replaced like, say, a Customer Service Representative. These technicians are also in demand because more and more people want to fix broken items instead of replacing them. So far, we saw an increase of upwards of 20% in our repair department.
3. Insurance costs are rising - It's not just the medical industry that is raising their rates... it's retail/shipping/storage insurance. The average cost per watch is around $30.00 per $2,000.00 in transportation/insurance fees. Some specialized items require an Armored Service to drop the items to the retailer. These rates are estimated to be $400.00 per $10,000.00.
4. Because they are allowed to - There really wasn't price increases in late 2008/2009 because of the "Bankers Recession of 2009". The manufacturers are allowed to recoup some loss due to fuel and metals increase.
5. Their taxes are increasing too - Need I say more?
These are just a few examples, and no... you don't want prices to fall. Yes some items may need to be adjusted down, but industry wide? Ask any one person with an education in Economics and they will agree with me. Down is bad, steady and up is good.
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