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PostPosted: Tue Jan 18, 2011 4:59 pm 
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FEAR wrote:
boutiques almost never make money, they are almost always operated at a loss, but they are considered advertising, so its an expense.

I can see the advertising perspective, but if they're opening more boutiques, while shutting down a lot of ADs, that seems like a potentially dangerous combination. Then again, my understanding is the US counts for very little of Omega's total sales worldwide, so maybe they aren't as concerned with sales volume as they are with brand prestige. The changes they've been implementing of late seem oriented toward trying to spruce up the brand's perceived value and placing them on a more even footing with Rolex.


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PostPosted: Tue Jan 18, 2011 5:00 pm 
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FEAR wrote:
fact is most jewelry stores make their money on jewelry, watches are supplemental. tourneu is the only all watch store i know, and they sell some accessories too. average dealer markup is 40 point to list, so after a 20 to 25 percent deal, its closer to 15. thats crap. take into account the stores overhead and expense for a good staff, you need to sell a TON of watches to make any money. you sell the watches to get the guy in who buys diamonds and gold for the wife, its where all the money is made.



Same here in Canada. The only reason the main (watches only) chain makes money is because they are owned by the distributor.


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PostPosted: Tue Jan 18, 2011 5:01 pm 
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JacksonStone wrote:
FEAR wrote:
boutiques almost never make money, they are almost always operated at a loss, but they are considered advertising, so its an expense.

I can see the advertising perspective, but if they're opening more boutiques, while shutting down a lot of ADs, that seems like a potentially dangerous combination. Then again, my understanding is the US counts for very little of Omega's total sales worldwide, so maybe they aren't as concerned with sales volume as they are with brand prestige. The changes they've been implementing of late seem oriented toward trying to spruce up the brand's perceived value and placing them on a more even footing with Rolex.

the us is only about 20 percent of ANYONES sales for watches.


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PostPosted: Tue Jan 18, 2011 5:49 pm 
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FEAR wrote:
you sell the watches to get the guy in who buys diamonds and gold for the wife, its where all the money is made.

Isn't that the truth. I don't know how many times I've been asked about jewelry for my wife, especially the diamond type. One AD went as far as asking for my wife's first name and birthday! :wowzers

I only know of one other AD that sells only watches other than Tourneau.

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PostPosted: Tue Jan 18, 2011 6:50 pm 
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Fleetlord wrote:
I'm starting to wish people didn't discuss discounting on this forum.....

Quite honestly dealers shouldn't discount at all (unless you are a repeat loyal buyer). They should SELL and CLOSE. Properly trained and compensated sales staff will make sure dealers don't leave money on the table. Whoreing out the brand because the dealer is lazy and his sales staff are incompetent is bad for Breitling. Most sales staff in AD's are pathetic. They don't qualify the buyer, meet their needs, and CLOSE. They just stand there like zombies and throw up a discounted price the first chance they get. That's real bad for Breilting as the brand starts to take a beating....


I agree in theory, but not practicality. They "whore" the watches because there is an unlimited supply of most modern Breitling models, so the AD also has to compete with the used market. I love my BlackBird, but it's been in production for years and can easily be found at 50% off MSRP in excellent pre-owned condition.

When supply is unlimited, you can only get what people are willing to pay.

I also agree with an earlier poster - Breitling is getting away from it's roots and introducing too many gimmicky watches. The SuperOcean II is a joke as a dive watch - a rubber coated bezel, too small, red, blue, black colors and no lume on the bezel or hour markers? Why would anyone pay $2,700 for a "dive" watch that doesn't have the most basic functions of a dive watch?

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PostPosted: Tue Jan 18, 2011 6:54 pm 
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Fleetlord wrote:

Rolex and Panerai don't need to discount because people will pay full list for them. Why? Because they have promoted and mangaged their brand to that degree. People who WANT those brands will PAY whatever the cost is to own one.



I don't really know if I agree with your logic here. People pay full list for PAMs and Rolex because they have no other choice. People will pay whatever they have to to get anything that they want, if Breitling stopped discounting altogether I'm sure there'd be a lot of bitching around here, but they'd still sell a bunch of watches and be OK after a while, as long as they stop adding rubber to everything that is.

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PostPosted: Tue Jan 18, 2011 8:08 pm 
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My privately owned AD only sells watches and they carry more brands than anywhere else I know besides the big guys. Based on what im reading here, im not sure how they do it but they seem to be doing fine.

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PostPosted: Tue Jan 18, 2011 8:29 pm 
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RJRJRJ wrote:
My privately owned AD only sells watches and they carry more brands than anywhere else I know besides the big guys. Based on what im reading here, im not sure how they do it but they seem to be doing fine.

low overhead, and the places that survive that sell watches only, i know a couple now that i think about it, participate A LOT in grey market and overseas transhipping. somebody has to be selling authenticwatches.com all that shit for 10 over and thereis a big market selling to russia and stuff if you have the lines and connections


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PostPosted: Tue Jan 18, 2011 8:38 pm 
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Fleetlord wrote:
FEAR wrote:
There is another school of thought on this, why dont i own a single panerai? because im not paying list, or anywhere near it for a watch, and im not buying it used unless its 40 off at least. same with rolex, when i get the deal i want i'll buy it, but not till im getting a deal to make it worth my while.


Based upon your reasons, you will never own a Rolex or a Panerai.

Rolex and Panerai don't need to discount because people will pay full list for them. Why? Because they have promoted and mangaged their brand to that degree. People who WANT those brands will PAY whatever the cost is to own one.

Breitling is not there yet. It must be very frustrating for Omega and Breitling to see Panerai come along as a player in the 2000's (I realize they've been around for YEARS, but not the force they are now) and SURPASS them in brand cache in less than a decade. How did they do this? By controlling production, not allowing discounts, and price increases.

IF there is a price increase, it's a good move for Breitling. Now they need to clean up their dealers and stop this nonsense discounting. If they want to turn Breitling into Rolex or Panerai, its a step they must take...



But the "no discount" isn't true in my experience and others on this site. Particularly if you are a customer of the store, but often even if not, you will get a discount. Maybe only 10% on a Rolex and 15% on a Panerai, but they can, and are, purchased every day at discount.

Most manufacturer contracts with distributors have a clause that the contracts between Distributors and dealers call for no discounts. But you are right that Rolex and Panerai distributors make a greater effort to strong arm the dealers than doBreitling or Omega. Still dealer discounts are available. No discounts on Rolex and Panerai is a myth. I know it for a fact.

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PostPosted: Tue Jan 18, 2011 8:42 pm 
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sharkman wrote:
Fleetlord wrote:
FEAR wrote:
There is another school of thought on this, why dont i own a single panerai? because im not paying list, or anywhere near it for a watch, and im not buying it used unless its 40 off at least. same with rolex, when i get the deal i want i'll buy it, but not till im getting a deal to make it worth my while.


Based upon your reasons, you will never own a Rolex or a Panerai.

Rolex and Panerai don't need to discount because people will pay full list for them. Why? Because they have promoted and mangaged their brand to that degree. People who WANT those brands will PAY whatever the cost is to own one.

Breitling is not there yet. It must be very frustrating for Omega and Breitling to see Panerai come along as a player in the 2000's (I realize they've been around for YEARS, but not the force they are now) and SURPASS them in brand cache in less than a decade. How did they do this? By controlling production, not allowing discounts, and price increases.

IF there is a price increase, it's a good move for Breitling. Now they need to clean up their dealers and stop this nonsense discounting. If they want to turn Breitling into Rolex or Panerai, its a step they must take...



But the "no discount" isn't true in my experience and others on this site. Particularly if you are a customer of the store, but often even if not, you will get a discount. Maybe only 10% on a Rolex and 15% on a Panerai, but they can, and are, purchased every day at discount.

Most manufacturer contracts with distributors have a clause that the contracts between Distributors and dealers call for no discounts. But you are right that Rolex and Panerai distributors make a greater effort to strong arm the dealers than doBreitling or Omega. Still dealer discounts are available. No discounts on Rolex and Panerai is a myth. I know it for a fact.

of course, i can buy just about any rolex or panerai for 15 off, but i will never buy a new rolex, i dont like how they do business, i buy and sell pre owned ones all the time. i like the panerais,but they arent worth to me what they are getting now.


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PostPosted: Wed Jan 19, 2011 12:48 am 
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roman4405 wrote:
Fleetlord wrote:

Rolex and Panerai don't need to discount because people will pay full list for them. Why? Because they have promoted and mangaged their brand to that degree. People who WANT those brands will PAY whatever the cost is to own one.



I don't really know if I agree with your logic here. People pay full list for PAMs and Rolex because they have no other choice. People will pay whatever they have to to get anything that they want, if Breitling stopped discounting altogether I'm sure there'd be a lot of bitching around here, but they'd still sell a bunch of watches and be OK after a while, as long as they stop adding rubber to everything that is.



But people do have a choice...nobody is forcing them to buy the watch. They may be forced to pay the MSRP, but they can decide if they want to pay that and own the watch, or walk. Plenty of other brands have lofty retail prices, but they have no prayer of selling them for that. The brand name just isn't strong enough. The discounts are to entice the buyer to get into a watch that isn't as well known. It's a vicious circle. Dealers discount to move the products, the brand gets tarnished and then discounts HAVE to be given to sell the product at all. Look at GP or Maurice Lacroix...So you think there is any chance someone would pay retail for those brands? Not a chance. It's too late. The brand has been so damaged you have to give them away to sell them. Breitling isn't that bad...yet....but Omega was getting close until they decided to clean up the mess they got themselves into..


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PostPosted: Wed Jan 19, 2011 1:00 am 
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sharkman wrote:
Fleetlord wrote:
FEAR wrote:
There is another school of thought on this, why dont i own a single panerai? because im not paying list, or anywhere near it for a watch, and im not buying it used unless its 40 off at least. same with rolex, when i get the deal i want i'll buy it, but not till im getting a deal to make it worth my while.


Based upon your reasons, you will never own a Rolex or a Panerai.

Rolex and Panerai don't need to discount because people will pay full list for them. Why? Because they have promoted and mangaged their brand to that degree. People who WANT those brands will PAY whatever the cost is to own one.

Breitling is not there yet. It must be very frustrating for Omega and Breitling to see Panerai come along as a player in the 2000's (I realize they've been around for YEARS, but not the force they are now) and SURPASS them in brand cache in less than a decade. How did they do this? By controlling production, not allowing discounts, and price increases.

IF there is a price increase, it's a good move for Breitling. Now they need to clean up their dealers and stop this nonsense discounting. If they want to turn Breitling into Rolex or Panerai, its a step they must take...



But the "no discount" isn't true in my experience and others on this site. Particularly if you are a customer of the store, but often even if not, you will get a discount. Maybe only 10% on a Rolex and 15% on a Panerai, but they can, and are, purchased every day at discount.

Most manufacturer contracts with distributors have a clause that the contracts between Distributors and dealers call for no discounts. But you are right that Rolex and Panerai distributors make a greater effort to strong arm the dealers than doBreitling or Omega. Still dealer discounts are available. No discounts on Rolex and Panerai is a myth. I know it for a fact.



I hate to harp on this, but here we go again. These "discounts" are all relative. Relationships and Location determine these discounts.

If you go into a Rolex AD in Orlando, off the street (cold customer no relationship) you will NOT get a discount on stainless Rolex sport model or A Panerai. You may get 5points off a two tone and 10 off a gold. Panerai. 0% off. Take it or leave it. Why? Because tourists will buy all they can take home. Why should the dealer sell at a discount when the next person in the door will pay full price and love it.

Guess what, there was an AD in Orlando that discounted Rolex. They are OUT OF BUSINESS. POOF. The dealer who doesn't discount, just opened a Rolex boutique in the same mall they have a full line store that also sells Rolex. Neither store has any stainless subs, GMTS or Milgauss in stock. All gone. Sold out. At full retail. While the store that used to discount is a label scar....

A dealer where I live had there account pulled for discounting. The other AD is absolutely full price and they are going strong. Why is that? The dealers know their market and their sales staff can overcome price objections and CLOSE. They offer great service and finace plans as carrots. They DON'T LEAVE MONEY ON THE TABLE. They stay in business. O

Now, could it be different in Iowa or Idaho? Sure. They might ease the price some because the market is lame, but that plays a huge role and should be mentioned in the same breath as "discounts are happening all the time"..


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PostPosted: Wed Jan 19, 2011 2:36 am 
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Fleetlord wrote:

But people do have a choice...nobody is forcing them to buy the watch. They may be forced to pay the MSRP, but they can decide if they want to pay that and own the watch, or walk. Plenty of other brands have lofty retail prices, but they have no prayer of selling them for that. The brand name just isn't strong enough. The discounts are to entice the buyer to get into a watch that isn't as well known. It's a vicious circle. Dealers discount to move the products, the brand gets tarnished and then discounts HAVE to be given to sell the product at all. Look at GP or Maurice Lacroix...So you think there is any chance someone would pay retail for those brands? Not a chance. It's too late. The brand has been so damaged you have to give them away to sell them. Breitling isn't that bad...yet....but Omega was getting close until they decided to clean up the mess they got themselves into..


Obviously people have a choice to not buy, that's not what I was talking about, now you're getting all philosophical on me. :poke: If they want a new PAM or a new Rolex (and aren't FEAR or Sharky) they have to pay full retail price. Look at Tourneau, everything about that place sucks and they don't discount ANYTHING, Omega? Nope, Breitling? Nope, IWC? Nope, and they're doing fine somehow. People will pay full retail if they have no other options and really want something. I also think that being part of the WIS community we forget that most of the people who are strolling through the mall and decide to buy a Rolex or a Breitling or an Omega don't know much more than the watch is pretty and the pricetag says $XXXX.

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PostPosted: Wed Jan 19, 2011 3:52 am 
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Very Interesting Topic, and being from a Land Down Under ( Australia ) i can safely say that on Panerai , Rolex and Breitling i know of 3 AD's that sell them all, and i can walk in any day of the week and get 30% off the Bat !

Whilst we dont have the size of the population of the USA or Europe, AD's here still have to compete ! EG: When i wanted my Daytona in Everrose, i walked into Watches of Switzerland in Sydney list was 38,900 AUD less 10% i'm like yeah ok sounds good, so i made a quick call to a guy i delt with in hawaii while on holidays, and he said mate come for a holiday pre xmas and i'll sort you out !

So i walk in get an Everose Daytona, and a Ceramic Sub all up for 28K USD , so all i can say is whilst we can get discounts in AU the USA and Europe are far superior with their deals !

I also find that the more expensive models such as PAM 1950 Regatta and Daytona's and Say B4B's are the ones they rarely give more than 5-10% off the Bat where as a Subby or entry level Ling or PAM you will get much better deals !

I think the last time i actually bought a watch prior to hawaii from an AD was about 5 years ago, as ive got too many contacts that can get Minted Peices at 50% cheaper than and AD, and my thoughts in the end are , " so what if its pre-loved" as long as the boxes and papers are in order i'm good to go.

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PostPosted: Wed Jan 19, 2011 5:59 am 
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Now, could it be different in Iowa or Idaho? Sure. They might ease the price some because the market is lame, but that plays a huge role and should be mentioned in the same breath as "discounts are happening all the time"..


I don't live in a Iowa, Idaho, or a rural area. Phoenix is the 5th largest city in the US by 2009 stats and the greater Phoenix metropolitan area is about 4.5 million.

I'm not doubting what you say - pretty sure I know the name of the Orlando AD Rolex shut down and FEAR likley has more info there. Bretilting also jerked their brand from a slew of North America ADs in 2009 for over discounting. So sure it happens.

If a dealer can sell every piece in the store at full retail, then they should do it. I don't disagree there either. Ih fact a long time ago in a galaxy far away on this thread I noted no dealer EVER offered a discount to me or intitiated discusion of the price of the piece. I'm just sharing my personal experience and knowledge of others experience which is different than a carte blanche rule excepting rural areas. I'm grateful I get to vote with my feet and checkbook and that there are options - among brands AND ADs.

In short, I'm just sayin'.

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