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  1. Hduck Jan 26, 2020

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    I was going through my watch boxes this evening and found the purchase receipt from my Speedy Moonwatch.

    It was purchased from Bailey Banks and Biddle Oct 2004

    The list price was 2595

    They gave me a 20% discount.

    Walked out the door with a 2387 sale

    So in a bit over 15 years the prices have doubled for the basic watch. I understand inflation but double? I’m lucky I bought it when I did. If that’s the case what will watches run for in 15-16 years from now? I’ve bought more watches over the years but am realizing now how much they have increased in prices.

    I wonder if it’s the story of boiling a frog. If you turn the heat up slowly, will the frog know what’s happening?
    .
     
  2. Evitzee Jan 26, 2020

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    That $2,595 list price with inflation is $3,512 in Dec 2019. So the real extra cost is $1,838. ($5,350 - $3,512). You do now get a full FIVE year warranty and a much better presentation box with accessories. Don't know how much that is worth but it costs Omega something.

    People have been predicting that prices can't go much higher for decades, but they still go up. New people become customers and it expands the pool of buyers. Overall I don't think Omega is too far out of line, I've seen a lot worse examples of excessive price increases.
     
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  3. Hduck Jan 26, 2020

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    Thanks for the insight. True on the accessories and warranty. When they came out with the new goodies I was half tempted to trade it in and turn around and get a new one.

    I still wonder about the future though. How soon will it be before the average price runs around 10k!
     
  4. CanberraOmega Rabbitohs and Whisky Supporter Jan 26, 2020

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    My grandfather’s receipt for his Patek in 1973 for $535! Just with inflation, that would be $5210 (google tells me). A recent Bonhams sale puts the value at not much more than $6k (all values in Aussie dollars). So not a great return. Lesson? Who knows what will happen to future values
    5B718799-F566-420C-B0F8-C37A14777B54.jpeg
     
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  5. Evitzee Jan 26, 2020

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    When they start using the 3861 movement as the standard the price will increase, I predict they would like to get to the $7,000 to $7,500 area for the standard Speedmaster. We should find out soon enough.
     
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  6. Hduck Jan 26, 2020

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    True. And I haven’t even figured in the three services that i had. One included a broken mainspring
     
  7. Hduck Jan 26, 2020

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    This year seems like a pivotal year for Omega with the possible movement transition
     
  8. verithingeoff Jan 27, 2020

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    Interesting thread but it needs more pics:D
    Here's my Bailey Banks and Biddle Patek Philippe from 1909
    IMG_2769.JPG
     
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  9. Strangedream Jan 27, 2020

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    I assume the demand for luxury watches increased significantly in the past 15 years. Financial crisis aside, the markets have been doing amazingly well lately, capital is easier to come by than ever, and more people can afford such items. With the introduction of the more expensive cal. 3861 it's fair to assume most moon watches will increase in value.
     
  10. Hduck Jan 27, 2020

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    Point taken. I guess it is a Cardinal sin to not show what I was referring to :)

    Here’s the $2500 special
     
    8B63A9BB-CD35-477F-8935-9D3760B4CC01.jpeg
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  11. CanberraOmega Rabbitohs and Whisky Supporter Jan 27, 2020

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  12. verithingeoff Jan 27, 2020

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    Nice:cool:
     
  13. janice&fred Jan 27, 2020

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    yes that does help ease the sting of the $1800 price increase :D
     
  14. Hduck Jan 27, 2020

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    I’m not a math major but your right. Even after inflation that is still close to 60-70%. The box is nice but...
     
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  15. flw history nerd Jan 27, 2020

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    I'm not sure what the local sales tax was in 2004 wherever you live, but it seems that it must have been awfully high. A 20% discount on your list price would give you $2076, which means that you paid $311 in tax. That's a rate of nearly 15%. Either that, or your discount wasn't as good as you thought.

    Either way, though, your overall point is absolutely right. Prices have risen steadily, and it looks like they'll go right on doing so.
     
  16. Hduck Jan 27, 2020

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    From the receipt

    MSRP 2795
    Discount 589.25
    Subtotal 2205.75
    Tax 181.97
    Total 2387.72

    My mistake on the original post of the MSRP. BB and B used one of those heat sensitive printers. The original receipt is almost faded white. I have to hold up to a light to read.

    Sorry about that. We do agree about price above and beyond inflation. Will there be a tipping point?
     
    Edited Jan 27, 2020
  17. flw history nerd Jan 27, 2020

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    Didn't mean to call you out - I was just curious (I teach history, not math!).

    I don't see a tipping point in the near future, TBH. The introduction of the 3861 will probably push Moonwatch prices to the $7K or $7.5K range. So hang onto what you've got and enjoy it! Grab some popcorn while you're at it ... it's going to be interesting. ::popcorn::
     
  18. Hduck Jan 27, 2020

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    No worries. This is literally what I have to work with. It reminds me of the invisible ink things we used to do as kids.

    I keep telling myself that I’m through buying watches. Then this past year I bought the Breitling 806 1959 and the SS Apollo 11 50th.
    I have an order request on a Submariner and keep eyeing the Apollo 8 when I got visit the AD.

    As I mentioned in another post it really is an addiction. I wonder if I’m looking for that feeling I had when I bought my first one
     
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  19. Evitzee Jan 27, 2020

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    A $2,795 price in 2004 means $3,783 in 2019. So a real increase of $5,350 - $3,783 = $1,567, not quite as bad.
     
  20. cgaites Jan 27, 2020

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    The “rule of 72” suggests that a doubling of price over 15 years requires an annual growth rate 4.8%. I strongly suspect that if you look at the annual growth in personal earnings for the top 10% or so of the population in the industrialized world, that you’d see faster growth than 4.8%. So for Omega’s target market, who if we are honest are the upper crust when talking about new watches, these have probably gotten relatively more affordable over time. For everyone else, who’ve seen very little real income growth, not so much. I’ll not speculate as to the sustainability of the situation though, as that would very quickly become an overtly political conversation.
     
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