Very interesting. Maybe we will see return of the discounts on standard models.
OK. I could care less about value retention though. This always seems to be the dominant and pile on driven discussion about Rolex vs. any other watch maker. The only value I’m concerned about is the ownership experience. Do I enjoy wearing it, do I stare at it often and occasionally drool, am I happy with the movements performance, does it fit well and is it comfortable. Also does it have a way to time mattress polo so I can track performance as I age.
All the joy of ownership would be sucked out of me if I was thinking about what it’s worth today vs. the acquisition cost. Not trying to be mean…but how boring to have this be a primary view and opinion shaper of these mechanical marvels.
OK. I could care less about value retention though. This always seems to be the dominant and pile on driven discussion about Rolex vs. any other watch maker. The only value I’m concerned about is the ownership experience. Do I enjoy wearing it, do I stare at it often and occasionally drool, am I happy with the movements performance, does it fit well and is it comfortable. Also does it have a way to time mattress polo so I can track performance as I age.
All the joy of ownership would be sucked out of me if I was thinking about what it’s worth today vs. the acquisition cost. Not trying to be mean…but how boring to have this be a primary view and opinion shaper of these mechanical marvels.
Nope just an investor magazine fluffy article that happens every time prices go up …
I love this bit
“The price increases may reduce Omega’s sales volumes, especially since the brand isn’t actively trying to keep its bestselling models scarce, the Morgan Stanley analysts said.”
M M.AlessaRolex is more refined, they have been more constant in their watch making in the last 40 years, and their watches generally fit better (case dimensions and bracelets).
L labwatchI stand corrected. I cannot get that on a snoopy or ed white. every other model i can and some I can even get north of 25%
Omega has cut the margins for dealers to about 35 to 38% from around 40% They have tightened regular discounting from 10% to about 5% or even zero discounting. You're not suggesting that Omega will offer 18 to 25% discounts to anyone who is persistent enough? That leaves a very tight margin to every dealer. If you are suggesting that Omega will consistently offer 18% on all their products to all customers, then this is a difficult statement to accept. You, as one customer may regularly get 18%, but that can't extrapolate to the entire market.
L labwatchI hear you and don't disagree with some of your points. However, there is a difference between Omega boutiques and Omega AD's. Spend a little time and it should be easy to find 10-15-20-25% off at least in the US. And after a frank discussion with my AD as to why he does this is market dictates it. He has a quota to sell and his area doesn't produce enough buyers so he is forced to discount to meet his quota. To quote him, he would sell every single one at full msrp if he could get it. He can't so he doesn't. He is not the only one. He is stuck between a rock and a hard place as are others. Of course Omega wants to limit discounting but then watches go unsold. I could tell you a particular funny story about an Omega AD 20 years ago and what they did 😀 But the forum is not the place for this...
M M.AlessaTrue but your AD is risking his relationship with Omega, in the past few years, Omega has shut down many ADs as part of their strategy to have more control over their product.
By the way, what are you saying was also true for Rolex until 2016, I remember the day when grey dealers, ADs and online shopping sites used to sell new Rolexes with 15-20% off msrp, this was less than 10 years ago, it took customers few years to accept the current Rolex scarcity game. By the way, if your AD does not sell Rolex, he will be in big trouble if Omega pulls out.
Omega is trying very hard to retain a certain status, I hope they do not follow the Rolex playbook and limit the production of their hot selling pieces, if you think about it Omega has come along way in the last 15 years, this has to count for something, they are not gonna sit and watch other companies take their place they need to be head to head with Rolex because this is part of swiss watch game same like Mercedes Vs BMW.
L labwatchOmega will not and cannot copy Rolex scarcity game. Omega is part of a publicly traded company that answers to share holders. Omega needs to move product. Plain and simple. And yes Omega has tried to cut down on discounting but even their reps give a wink and a nod to their ADs in this regard. At the end of the day, all of these AD's have sales quotas that come from Omega. How do you sell a watch that sits in your case for a year? That you are paying on or already PIF? You discount it. Company owned boutiques don't have to worry about this. AD's do and Omega knows it. It's about to get a lot worse for all brands. And agreed Omega has come a long way in 15 years. Soon Rolex will be in cases again and discounts on hard to sell models will again be the norm. This will be dependent on multiple factors such as geo location, AD size etc. it's simple economics. And FYI Rolex did not limit production of hot selling pieces. My AD has gotten more SS Daytonas year after year the past 7 years running. Same with other hot references. His YOY sales are up 10-20% each of the last 5 years including the pandemic. Crazy I know but it is what it is.
Rolex is Porsche using your example.They have pricing power, margin, and recognition of being a step above vs BMW and MB.
M M.AlessaOmega is actually is playing the scarcity game but diffently, go ask your AD if he can get you a snoopy, ED white, or Bond anniversary watch, he won't and if he can he will sell it at full price.
I'm not saying that Omega should or it will follow Rolex playbook, but they are following their footsteps even some of their releases and dial configurations are direct response to Rolex.
I agree that Omega is part of a publicly listed company and they need to make profit but they can do so in many ways not just by production volumes, but if you think Rolex is a charity that do not seek profit, then you are mistaken.
By the way Rolex did in fact reduce their production from 2017 until late 2020, their sudden scarcity was not due to the sudden demand increase, but due to sales techniques and market strategy on how to position their brand and create HYPE, and your AD is making more money because 1- they are selling more watches due to increased hype / demand 2- and because they do not offer any discounts even on ladies watches.
How long the watch market will continue to be strong no one knows, but watch companies will try to benefit from current situation as much as possible and as long as they can, all what they see and care about is $$$
