Ive been reading about dealers who contribute watches into the grey market losing AD status and that many believe that this is a concerted effort by Omega to shrink the price gap between MSRP and lowest available price. These people believe that Omega is trying to basically sit where Rolex is in the market. Do you all believe that this is likely or imminent?
Grey market sellers get a discount from the AD they’re buying from. Presumably a retail buyer could get a deal that’s close. I don’t see how shutting down grey market will increase sales prices. People can still sell used watches that they buy. Rolex prices are high because they created a demand. There is a huge Rolex grey market with every model you could desire. The reason the prices are high is because Rolex doesn’t produce enough sport models to supply demand (which increases demand). If Omega only releases 10,000 Speedmasters and Seamasters a year perhaps they can create a demand too but they’d rather sell watches. I used to think that if I owned a luxury brand I’d want to own Louis Vuitton or Hermès or some other high end fashion brand. The truth is that the Kylie Jenner brand at Target and Walmart makes way more money than those high end brands. In the end it’s quantity over quality
All luxury companies are trying to stop grey market http://www.thefashionlaw.com/home/b...ed-destruction-of-luxury-goods-than-you-think
I agree with all your points above but if Omega is not actively trying to stop the sale of new watches sold to the public near wholesale price, then why am I reading stories of Omega pulling AD status from the known biggest suppliers to the grey market? From what I can gather, they want to increase prestige of the brand by limiting the gap between MSRP and sales price. Now whether they can do that or not without limiting overall supply is a different question.
One of the reasons I ask this is that I’m looking at buying my first Omega (the hesalite moon watch) and I want to figure if waiting a while would make it harder to buy one given current prices. On Jomashop, I can get a new hesalite moonwatch with leather strap (do not like the metal bands) for low $3000s. Now combine that with a credit card signup bonus for $3000 spent and I’m looking at mid $2,000s net for a brand new moonwatch. If the grey market discounts dry up then a new Omega doesn’t have the value appeal anymore. Might as well buy a Rolex with their lower depreciation.
It seems to me that is a very American way of thinking. Quantity and short term profit over quality. I know if I was in it for the long haul Louis Vuitton and Hermès would get my money. More than likely nobody will even remember who Kylie Jenner is in 10 years.
I would not be buying a new Omega from anyone who cannot supply the watch with a full international Omega warranty, but it also looks like you want to buy from a brand that offers strong residuals. Good discounts on watches with a strong residual value is not something you see every day.
If Omega wants to be serious, they need to follow Nikons lead. Nikon USA will not service a gray market camera. Even if you pay them.
I could sell the new moon watch I bought in 2013 to a dealer for what I paid for it. @bucksandreds i would be buying that moon watch now. The best time to buy anything was yesterday.
Well, usually, but not always: people who bought houses at the peak of the market in 2006-2007 quickly found their equity worth less than their loan balance, and a lot of people lost those houses and everything they put into them. Of course, A Speedmaster is less risk overall, and is more liquid, but still. Right now the global economy is a little iffy, and it's hard to know how things will play out one way or the other. Omega has a pretty big inventory too, from what I've read. But OP's situation, with a CC deal, bringing the purchase price down to about $2500 sounds pretty good--all things considered.
See that as the people that overextended and bit off more than they could chew. Lived in a small house and paid that off before i moved into the nice house with all the jones,s mortgaged to the hilt. Sorry but buying anything on credit is crazy. PAY LATER / PAY AWAY will see the youth of today in more trouble than Ned Kelly.
A couple of thoughts on this : - First, all watchmakers are taking initiatives to get back in control of their client base, and have been doing so in the past 5-10 years. This means: more direct communication, more own stores, less ADs, less grey market. - Second, I am old enough to remember the time (e.g. 2005) when Rolex subs were not particular rare and were far cheaper. And nobody at that time would have dared to think that modern and vintage subs prices would rise to what they are today. Said differently, all predictions back then proved to be wrong or to quote Mark Twain : "It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." So my piece of advice is : if you like the moonwatch, make sure you buy it from a safe source, and forget about Rolex.
Getting a new moonwatch for mid $2000s net actually is cheaper than what a used one goes for online, most of the time. I’m not well off but want a classic luxury watch. Paying MSRP and thus full warranties at mid $4000s or more for a watch that, in the event of a personal black swan event, that would at best retain 2/3 of its value on the resale market is not a wise proposition for those of us that don’t have $100,000s sitting around. I have the excess money to pay full retail or grey market but full retail is 100% a losing proposition if the need to liquidate presents itself.