Oris Regional Director Rolf Struder explains how his brand are able to keep prices lower than their competitors, “Our small approach also means customers know they are paying just for the product, not for George Clooney’s villa. It’s why, when we launched our new Oris Col Moschin diving watch, we didn’t front it by an actor who looks like a secret agent, but actually had it trialled by Italian special forces.”

Happy to help out George

 

I expect the build quality and movements used have far more to do with the price difference between Oris and Omega than paid ambassadors do...

 

And I have heard about abysmal service from Oris, Canada, if you have warranty problems! Whether that applies elsewhere, I don't know.

 

"Italian Special Forces"

 

Someone else can pay George, I'll reimburse whomever subsidizes George in a few years on the used market

 

That is the party line I heard when I went to browse Oris at a local Tourneau last week. When I go to the San Diego OB, I usually stop inside the Tourneau to look at the used (and over priced) watches. This last time I looked specifically at Oris, and the sales girl went on and on on how they don't have brand ambassadors, and that they are not part of a large conglomerate and therefore can make the watches they want and keep prices low.

I did try one on, and they are okay, but clearly not close to Omega. On top of that the one I tried was $2400, which seemed way too much money, but not sure if it was Tourneau's inflated price or if that was the going rate for an Oris.

 

So Carlos Coste let Oris use his name for free? If so, very generous of him...

http://www.oris.ch/en/watches/oris-...aph-limited-edition-ceno/01-674-7655-7184-set

 

He even has a one piece only unique special whatever watch that was offered on a charity raffle.

 

Nearly all major watch companies have brand ambassadors.

 

hard to say, but I have doubt ...

it goes like this: you put an a$$load of marketing spending on your product ... which makes it desirable for a certain target group and generates demand. Having a strong demand allows you to up your prices (and more-than-recoup your marketing expense = increase your profit margin).


just look at prices for new watches over the past 20 years ... and "new" up-and-runners - by that I mean non technically driven companies, but companies that got big because they are "cool" (Breitling/Panarai/B&R/Bremont/Hublot/jaddajaddajadda) and people are willing to pay a premium. Why - because marketing works ;-)

I think the average movement cost (as percentage of the watches retail price) is today way lower than it was 30-40 years ago ... after all up until a couple of years ago half the industry used 2824 or 2892 who have not changed much since the 70ies. That leaves you with the following delta: marketing expense and profit margin.

Besides the degree of automatization has increased no end since the 60ies/70ies (replacing skilled and extremely expensive swiss workers), so better build quality today is nearly "free" - or at least skales very favourable with output numbers.

so, imo - the difference in price between Oris and Omega has mostly to do with the fact that Omega is a "luxury article", whereas Oris not ... with different pricing and positionig (there's that Marketing again ;-)... and up until a couple of years ago they might have cased the same movement.

Other good example for the marketing espense / margin situation: Tudors at $2.5-3k with the same caliber as Hamiltons or Tissot at $299

cheers, Al

 

Oris is the biggest mover pushing for company's service only.

Several watchmakers in Australia will not touch them anymore due to not able to get parts. Dealers have even stopped stocking them or taking them in. Nick Hacko even sold all he had at cost price a while ago in protest.

 

Another thing from the same article that stood out was this;
Omega has doubled its average price to around $7,000 over the last year simply as a consequence of moves toward increased quality.

And then, from the mouth of Stephen Urquhart, “We’re an ‘industrial brand’, of course, and have to make and sell 2,000 watches every day,” adds Omega’s Urquhart. “And yet, with the likes of our Co-Axial escapement, that gives us products that, in technical advancement and performance terms at least, put us on a par with any in the business. But, it has to be said, perception of brand is more complicated than that.”

 

I still get promotional emails from Oris naming race car drivers and other celebrities as 'brand ambassadors'.

 

Bit of a straw man, because you are arguing against a point I wasn't making. Let me make it simple for you...

The impact of the cost of brand ambassadors specifically (not the overall marketing budget - just what I actually said in my post) spread across all the watches Omega makes in a year is likely not that much. A greater impact on the per piece cost is that of materials and labour of the actual watch.

 

Is that German for "yaddayaddayadda", j/k