Omega is "heading that direction" since I don't know when. A few days ago, a close friend got a SMP with a 25% in Spain.
The only way for Omega to achive it is by closing ADs and cutting down their trade margins, that is what I think will happen.
In my city there is just one AD, how far may they go? They have even a worse problem as of what i think. Capacity has to be utilized and thus they keep on manufacturing a great surplus of what market may absorb. And assume they start cutting down from capacity, they will be forced to substantially increase prices and sales will tumble down. Not an easy game.
On other forums I frequent, recent buyers have reported zero to a very small discount at the AD. Rumour has it that they stop discounting October 1st. I am not sure if that is only for Seamaster and Speedmasters. Only time will tell.
I think Omega is prepared to deal with loss of sales that might come with it. Sometimes that is better with increased margins.
These are painful decisions that every manufacturer has to make. It takes time to reset your sales strategy and requires discipline. About 20 years ago Audemars Piguet was in a position where there were way too many AD's and discounting was rampant, often up to 50%. AP liquidated most of the sales outlets, went to boutique concept and rationalized production and prices. Today they have solid sales with little discounting and wait lists for many models. AP is a private company so no pesky shareholders had to be mollified, but it can be done and that is where the Swatch Group is headed. The old way of flooding the market with product and then having to discount it to move it off the shelves is over.
I just called an AD in the Dallas area. As per the AD, Omega has told them that discounts are essentially no longer allowed. They said the best they can do on any Omega now is MAYBE 10%, which basically just gets rid of taxes and a bit more.
Looks like Omega is going to make grey market even more "exciting" as I can still find NiB Omegas with full box and intact warranties for 30% off MSRP
These are painful decisions that every manufacturer has to make. It takes time to reset your sales strategy and requires discipline. About 20 years ago Audemars Piguet was in a position where there were way too many AD's and discounting was rampant, often up to 50%. AP liquidated most of the sales outlets, went to boutique concept and rationalized production and prices. Today they have solid sales with little discounting and wait lists for many models. AP is a private company so no pesky shareholders had to be mollified, but it can be done and that is where the Swatch Group is headed. The old way of flooding the market with product and then having to discount it to move it off the shelves is over.
I believe its gonna take 3-6 months for it to trickle down as inventories move and new ones become available to gray dealers. Grays are in it to make money so I think the 30% days might be numbered. There will still discounts to be had but won't be as extensive as they were some years back.
I'm in Toppers all the time. I stay in Burlingame when I can't get home from a late flight. I absolutely will see what he can do next week. I was told by another associate that he felt comfortable he could do 15%, but I never thought in a million years to offer him 30%.
I spoke to my AD and was promised a 10% loyalty discount and the first service for free on a new 3861.
For folks posting discounts it would be nice to post location etc.
I disagree, in an environment where discounts are becoming harder to score because of Omega policy I would protect my source if they were willing to extend a courtesy discount for me because of past purchases.
