Purchase history lesson!

Hduck · Jan 26, 2020

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?
.

Evitzee · Jan 26, 2020

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.

Hduck · Jan 26, 2020

Evitzee
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. Overall I don't think Omega is too far out of line, I've seen a lot worse examples of excessive price increases.

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!

CanberraOmega · Jan 26, 2020

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

Evitzee · Jan 26, 2020

Hduck
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!

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.

Hduck · Jan 26, 2020

CanberraOmega
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

True. And I haven’t even figured in the three services that i had. One included a broken mainspring

Hduck · Jan 26, 2020

Evitzee
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.

This year seems like a pivotal year for Omega with the possible movement transition

verithingeoff · Jan 27, 2020

Interesting thread but it needs more pics😁
Here's my Bailey Banks and Biddle Patek Philippe from 1909

Strangedream · Jan 27, 2020

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.

Hduck · Jan 27, 2020

verithingeoff
Interesting thread but it needs more pics😁
Here's my Bailey Banks and Biddle Patek Philippe from 1909

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

Here’s the $2500 special

CanberraOmega · Jan 27, 2020

Hduck
Cardinal sin

Has taken on a whole new meaning in Australia
https://www.theguardian.com/austral...reasurer-found-guilty-of-child-sexual-assault

verithingeoff · Jan 27, 2020

Nice😎

janice&fred · Jan 27, 2020

Evitzee
a much better presentation box with accessories

yes that does help ease the sting of the $1800 price increase 😁

Hduck · Jan 27, 2020

janice&fred
yes that does help ease the sting of the $1800 price increase 😁

I’m not a math major but your right. Even after inflation that is still close to 60-70%. The box is nice but...

flw · Jan 27, 2020

Hduck
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?
.

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.

Hduck · Jan 27, 2020

flw
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.

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?

flw · Jan 27, 2020

Hduck
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?

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. 🍿

Hduck · Jan 27, 2020

flw
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. 🍿

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

Evitzee · Jan 27, 2020

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.

cgaites · Jan 27, 2020

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.

Purchase history lesson!

Hduck

Evitzee

Hduck

CanberraOmega

Evitzee

Hduck

Hduck

verithingeoff

Strangedream

Hduck

CanberraOmega

verithingeoff

janice&fred

Hduck

flw

Hduck

flw

Hduck

Evitzee

cgaites

Similar threads

Input Requested: Ref. 2852/2853 SC 18K - "CHRONOMETRE" Dial & Family History

New Book: Longines Watches That Made History Review

Connery Rolex 6538 Submariner Strap History Explained

Brand new to the hobby help with first major watch purchase please!

Purchased an used PO 8900 with No Service History, WR Testing?

Heuer Autavia 7763C from circa 1969 with interesting history