Joined: Fri Jul 27, 2007 5:09 am
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Location: Ontario, Canada
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That's a very difficult question to answer.
The AD contract with the distributor will state a certain percentage, so technically that is the maximum allowable - generally speaking in the US it's around 28%. However, there is an understanding that this isn't necessarily a hard rule for all buyers and all watches and the 'real' number will therefore tend to be higher, although that's a grey area as there have been some ADs kicked out for excessive discounting.
The discount also varies considerably from market to market as we know, and there are also some markets that really confuse the issue. In Canada for example the distributor and the largest retailer are part of the same corporate entity so the AD / distributor contract is between two divisions of the same company which clouds the whole discounting model.
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