Are Omega getting too expensive

W wristwretch

I think the challenge for Omega is eroding the gray market “discount.” Obviously there are many advantages for buying from a boutique or AD, but how many additional thousands are those advantages worth to cost-conscious buyers? Rolex’s tight supply chain control, tied with assiduous brand and catalog management is the gold standard when it comes to value retention. Omega is easily the “number two” in the U.S. when it comes to what average people think of (and therefore, aspire to) as a luxury watch, but the disparity between retail and gray market prices is significant - literally thousands, even for in-demand models. Anecdotally, I think this gap is narrowing but while it is still frequently in the four figure range it’s hard to see how they can push prices without meaningfully addressing these other market pressure.

R richiv

IMO Omega is a great brand if you're shopping in the $5k-10k (USD) range. Which Omega(s) do you consider a good comparison to the explorer II?

scapa

I do think Omega are heading for "think long, hard and carefully" pricing territory, here in Canada at least.

When I bought my first modern Omega, in 2018, I paid under CAD 5k for a new SMP Diver on steel, from an AD. It was a lot of money, and it caused me some pangs, but even at that price it seemed a decent, even good, value. Now that same watch is CAD 7k, and AD discounts on it are a lot harder to find. Still a great piece, but if I were looking for a sturdy, well-made diver with history and strong value, there are more places I'd look first.

Similar story with the Speedies, of all kinds, which have gone up substantially over that timeframe, and will rise even more with the 3861-based models coming down the line. The Speedy Racings and ceramics are all well north of 10k here now, with the LEs closer to 15k, and the 321 at over 20k after taxes. If you're after a Railmaster, or an older model, you can still spend a bit less and walk away with an excellent watch, or buy a Longines, Oris, Sinn, IWC or Tudor. Still great watches, but there's a lot more competition at those prices, and perhaps less incentive to "collect" the brand and be An Omega Person rather than own that one iconic piece.

I'm reminded of some years ago, when many well-known high-end audio companies pushed upmarket in an effort to wrest more pennies out of an ever-shrinking pool of buyers. It worked, for a while, and the buyers aged out or looked to other cheaper, more interesting gear. And now only a handful of those companies are left.

Won't happen to Omega, of course. But who knows how much longer people will be willing to drop thousands and thousands on watches? There's something to be said for making a serious, technically superb product at an price point that is still accessible to many. I'll always love my Omegas, but I'm not sure I'll be buying many more. At least, not new models.

scapa

I do think Omega are heading for "think long, hard and carefully" pricing territory, here in Canada at least.

When I bought my first modern Omega, in 2018, I paid under CAD 5k for a new SMP Diver on steel, from an AD. It was a lot of money, and it caused me some pangs, but even at that price it seemed a decent, even good, value. Now that same watch is CAD 7k, and AD discounts on it are a lot harder to find. Still a great piece, but if I were looking for a sturdy, well-made diver with history and strong value, there are more places I'd look first.

Similar story with the Speedies, of all kinds, which have gone up substantially over that timeframe, and will rise even more with the 3861-based models coming down the line. The Speedy Racings and ceramics are all well north of 10k here now, with the LEs closer to 15k, and the 321 at over 20k after taxes. If you're after a Railmaster, or an older model, you can still spend a bit less and walk away with an excellent watch, or buy a Longines, Oris, Sinn, IWC or Tudor. Still great watches, but there's a lot more competition at those prices, and perhaps less incentive to "collect" the brand and be An Omega Person rather than own that one iconic piece.

I'm reminded of some years ago, when many well-known high-end audio companies pushed upmarket in an effort to wrest more pennies out of an ever-shrinking pool of buyers. It worked, for a while, and the buyers aged out or looked to other cheaper, more interesting gear. And now only a handful of those companies are left.

Won't happen to Omega, of course. But who knows how much longer people will be willing to drop thousands and thousands on watches? There's something to be said for making a serious, technically superb product at an price point that is still accessible to many. I'll always love my Omegas, but I'm not sure I'll be buying many more. At least, not new models.

C Cod Holliday

+1. Thank you for saving me time 😁

I am in Canada as well and while US counterparts may have access to gray online dealers with a little steeper discounts, we don't. I am now starting to see used SMPs for over 5K.

I used to really love Omega for being a very high price/value brand. It had the styling, the brand cache, the innovate tech behind it. Not to mention I was a huge Brosnan fan growing up in the 90s.

That value proposition is now gone. After tax most of their watches are nearing 10K mark, which IMO is pretty hefty price tag for most who earn their living by waking up and going to work.

Having said that, the growth of wealth in Asia far outpaces that in Europe/North America. In major Canadian cities, most high dollar items are purchase by wealthy immigrants and tourists and most desirable luxury items are often OOS. Check Mercedes dealerships, LV boutiques and the Rolex ADs.

So while Omega is becoming unafforable for average folks, I think they know they can start to charge more because of the above demand and a large vaccum left by Rolex due to their unattainable watches. Heck there is a waitiling list for OP and Datejusts now. That tells you all you need to know.

Chef40

A friend of mine has a jewellers and showed me today that he was offered a 2020 unworn solid gold omega with all box and papers that retails at around the £34,000 mark for £14,000. Thats crazy