Bulgari will be increasing the price of its jewellery pieces for 2008, as reported by Reuters. This is for the second consecutive increase in its prices, although the company is not anticipating a drop in its sales, rather the increase is to meet the scaling raw material costs and high exchange rates. He company seemed to have earned a stable gross margin as costs were reduced and prices raised, but this was absorbed by the increase in raw materials and the exchange rate. Although Bulgari has not indicated any reduce in its sales, the industry analysts predict a slowdown in the high luxury segment due to unstable economies.