What is Omegas mark up?

Posts
183
Likes
206
My AD in Canada told me they make 40% margin on a Speedmaster (well actually all Omega's) and I got a 24% discount off list - I could have received the same discount on the 2018 Seamaster 300M so it has nothing to do with the Speedy being an old design. This was one year ago.
Edited:
 
Posts
2,644
Likes
2,959
When you look at razor blades, freeze dried coffee, Take away fries and Coca-Cola I think for the boutique or AD experience / all the branding and marketing costs, warranty etc watches are not a bad deal in terms of mark up + the supply chain needs a cut. At least you don't get all the car sales flim flam on extras... you want a strap with that.. need any Lume for night work.... a second hand would give you better track of time... Date window package sir (Yes I did try to buy an Audi once :0) Mind you talking branding and marketing after the golden Buzz butt I have no shame asking for discounts.... like most of you I never pay list. Also please don't F....me on service costs and spares if you want long term loyalty.
Biggest markup is the fountain soda drinks. Each large cup to fill costs a few cents but is normally charged over $1. On top of that, the cup is 60% ice.
 
Posts
389
Likes
569
Which Seiko movement has a performance comparable to O8800?
Not sure mate?
I'm not a watch geek, just like what I see and but it!
But the last Seiko I bought runs at +0.08s recorded on an Android app. I'm not sure but think that's pretty good?
 
Posts
5,522
Likes
9,437
Biggest markup is the fountain soda drinks. Each large cup to fill costs a few cents but is normally charged over $1. On top of that, the cup is 60% ice.
Treated water is not free, nor is the electricity needed to make ice. Plus you have to buy the ice making and dispensing machines, keep them operating, etc. And buy the cups, lids and straws. And have a building in which to house them, and paid workers. High-margin items like soft drinks help the business cover all of the much, much lower margin items.
 
Posts
212
Likes
204
According to a blog on Watch Bandit: “Most timepieces have a 700 to 12000 per cent markup” from the actual cost to manufacture. Obviously there’s significant overhead to cover, but still seems like there’s a lot of margin in there.

Yes. Watch blogs are always sources of reliable information. Like watch forums.
 
Posts
360
Likes
367
When it comes to OB verses finding the best grey market price, there’s more to it then bottom line price especially in luxury goods.

Yes I bought a few, but my upside benefits by going OB only has for me certainly outweighed any $$$ I could have saved by going grey.
 
Posts
288
Likes
210
Coming back to the original question: the markup is obscene. If say as part of the Silk Road project we can get the Communist Party of China to put all the Omega workers into blue chairman Mao jackets, we will all be able to buy a Speedmaster for like 120 bucks. That's with a 321, of course. Even less if the PLA decides to sponsor Omega.
 
Posts
531
Likes
1,183
where limited editions are concerned you will find that discounts will be far much harder to be passed - if at all for select models.
 
Posts
360
Likes
367
Coming back to the original question: the markup is obscene. If say as part of the Silk Road project we can get the Communist Party of China to put all the Omega workers into blue chairman Mao jackets, we will all be able to buy a Speedmaster for like 120 bucks. That's with a 321, of course. Even less if the PLA decides to sponsor Omega.
Better still move omega manufacturing to the USA, the FED will print unlimited dollars to subsidise them and they’ll pay you to receive a watch 😀
Sure eventually we’ll all pay for it hey but that’s another story 🙁
 
Posts
403
Likes
357
Margin is around 40%. No wonder ADs will discount 25% on regular production models without too much back and forth.
 
Posts
331
Likes
195
where limited editions are concerned you will find that discounts will be far much harder to be passed - if at all for select models.

Most limited editions are just marketing ploys to have an assumed rarity / exclusivity, charge and buy an additional unit. In the past most ‘Bond’ and ‘Olympic’ edition have only slightly modified colour ways plus box. Hardly expensive to produce. A batch of between 5,000 and 10,000 is not really that limited. 7969, 10,007 , 7007. The collectors assign the rarity and give it the premium. My local AD could barely shift the Bond 300m Commander or several of the Olympic editions and gave massive discounts but sold all of the Apollo Buzz’s Butt- (being the base for the new speedmaster.
 
Posts
360
Likes
367
@stuart70 omega especially of late have really upped the limited edition to the point with say last years moonshine 50th being a comparative bargain with what was put into it.
 
Posts
331
Likes
195
@stuart70 omega especially of late have really upped the limited edition to the point with say last years moonshine 50th being a comparative bargain with what was put into it.

I would tend to disagree. A solid gold chronograph at about £30k would never sell very many anyway at that price you look at Rolex Daytona. In the last 18 months how many limited editions have been released? I lost count at 15. The latest Planet Ocean America’s just has different colours, second hand and box.
Both Apollo 50th’s were introduced to move towards the new 3861 movement. Thus not so much of a shock when the 1861 goes. Do not get me wrong I love the gold speedmaster. Look at the history of the Zenith El Primero models most are made in batches of under 5,000 and you still get a watch where only a 1,000 were made for reasonable money.
 
Posts
299
Likes
378
I've come across situations where ADs were willing to go above 30% off for unpopular models. So this 40% profit margin does make sense.

To me I rationalised it by noting an ADs profit margin is different from omegas. They purchase a lot of watches from a lot of brands in bulk and they need to get rid of them for new stock/ models. So they will want to keep them moving with discounts.
 
Posts
331
Likes
195
Again it would come back to the AD’s contract which in most cases they have to pay for stock 30 days after delivery. So after about two or three years sitting around they just want rid of it.
I managed to get a very healthy discount on an Airking 114234 that had been miss-placed in the safe for five years. Admittedly, it was several years ago before the Rolex steel madness. Having said that bi-colour DJ’S can languish in AD for years.
With brand such Seiko it is more about through put, basically just selling.
 
Posts
16,863
Likes
47,901
Coming back to the original question: the markup is obscene. If say as part of the Silk Road project we can get the Communist Party of China to put all the Omega workers into blue chairman Mao jackets, we will all be able to buy a Speedmaster for like 120 bucks. That's with a 321, of course. Even less if the PLA decides to sponsor Omega.

You do know you already can buy a Speedmaster for $120 from China. Think they can stamp what ever number you want on the movement 321, 861 easy.


On Business.
My father used to say. Simple rule to never going broke.
“You buy it for 33%, you sell it for 33%, you take 33% for doing 1 and 2”
 
Posts
360
Likes
367
I would tend to disagree. A solid gold chronograph at about £30k would never sell very many anyway at that price you look at Rolex Daytona.
You’re joking? In no way shape or form would I take a stock standard solid gold Daytona over the 50th moonshine speedmaster.
Not even on the same page on so many levels. The reason why I said it was a relative bargain was with things like the Daytona in mind.
Also against Omega’s other gold bracelet gold watches the 50th moonshine was a smoking deal.