To a certain extent, every brand wants to increase prices if only to make their products seem artificially higher quality. It's called the Veblen Rule. Personally, I don't seen any Omegas that interest me other than the Moonwatch - and you can find a great vintage one of those for less than MSRP. If you want to spend more, I think there are other brands, like Rolex for example, that offer better products.
I was looking at the latest omega catalogue as thinking about my next purchase. I really liked the look of the dark side of moon and was quite shocked when I saw the price of nearly £10,000 for the one I liked. The moonwatch with all its history is only £5,000. Some of omegas watches are getting very expensive. I know they are completely different watches but I could buy a 2020 rolex explorer ii for £8000 and that would never go down in value. I think that some of omegas watches are very food value for money like moonwatch and seamaster smp but others are just becoming to expensive. Nearly £50,000 for a platinum moonphase chronograph on leather strap seems crazy money to me. Your into Patek philippe, vacheron Constantin and A lange & sohne. Is it just me or does anyone feel the same
Forgive me, but your point is to me unclear. Are you saying your sub was NOT attractive and beautifully made, and did NOT feel good ok your wrist/keep remarkable time?
Or are you instead merely saying that, because the average modern SS Rolex can appreciate while the average modern SS Omega depreciates, you feel more emotionally comfortable wearing the depreciating Omega?
Forgive me, but your point is to me unclear. Are you saying your sub was NOT attractive and beautifully made, and did NOT feel good ok your wrist/keep remarkable tim
Or are you instead merely saying that, because the average modern SS Rolex can appreciate while the average modern SS Omega depreciates, you feel more emotionally comfortable wearing the depreciating Omega?
Hi. I put a post on Rolex forum earlier in the year as I stupidly thought that I could go in and buy a new oyster perpetual as no one would want them as everyone would be after subs and GMT’s. How wrong I was and the dealerships I approached wanted me to have an interview to see if I could go and n a waiting list. It was insane. They could not even show me any models as they had not received them yet. The demand for any new men’s Rolex is crazy. When it comes to marketing Rolex are the best of the best at it.
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.
I would not suggest to know the inner workings of the Rolex financial department. But, I try and be skeptical (if only for self improvement’s sake) at off-cuff suggestions that certain products are wildly bloated in their pricing.
Above someone mentioned new Nike’s as being another example, like Rolex, of such boated pricing. This might prove a good test case for testing our skepticism, because here is an actual breakdown of Nike’s profitability on sneakers:
The biggest takeaway here is to remember that the retailers are in many cases fully 50% of the take-home on a sticker price. I have seen many others suggest/confirm the same is true of retailers of luxury watches (ie, about a 50% retailer cushion in MSRP).
Again, this is not to say I know the inner financials of Rolex in particular, but instead only that I try and be skeptical of my assumptions in the apparent margins for certain products - particularly those that are (1) global, and (2) increasingly inundated with competition.
Taking a $8,100 Submariner as example, if the retailer has a 50% margin, then cash to Rolex is approx $4K, and seeing a financial anatomy from there - like with the Nike example above - would be INCREDIBLY Internet-breaking.
Maybe the problem is in Canadian taxes?
Canadian sales taxes are provincial. Quebec has a sales 5% tax, lower than many U.S. states. Income tax-wise, Canadians now pay less tax than Americans.
https://www.huffingtonpost.ca/2018/05/03/income-taxes-canada-lower-us-oecd_a_23426460/
