Roff, that was a fantastic post. (Sorry for the late reply...have been traveling). You are a big part of what make this forum great, and I always appreciate the opportunity to read your missives here.
First off, let me say that I basically agree with you and most of what has been said so far. So I won't bother repeating that bit.
I also agree with one of Fiery's points, though, about Breiting's heritage being in the "Instruments for Professionals" concept. What distinguished Breitling in former half of the 20th century was their innovation for useful, practical, and robust designs that were easily regulated and repairable. I think a lot of the design elements that draw us to the brand now are embodiments of this philosophy. The build quality, robustness, and attention to detail is what makes Breitling such a compelling value at its price point.
However, although for most of Breitling's history their innovation has been to offer movements and other functionality that are not seen in other brands, Breitling has had little innovation in movements today. Sure, there are some great exceptions like the Emergency, the Seawolf Chrono, and they also did (I believe) contribute to the development of the ETA thermoline (i.e. "superquartz") line of movements. But what would be truly practical things to have in an automatic are instant date changes, quick-set hour changes for changing time zones, no worrying about when it's safe to set the date on your watch (thankfully the B01 does not have this problem), alarms, extended power reserves, power reserve indicators. Granted, the B01 does have some of these features, and it was clear that they were thinking along these lines when designing it. However, all of the thing I mentioned can be found in in-house movement of other brands. Blancpain, for example, has the Leman GMT Alarm which was specifically designed for travelers. They also have instant date changes on some of their models. JLC and other have quick-set hour hands. Or how about GO's Senator Chronometer that has a second hand that jumps to 0-seconds when the crown is pulled out and the minute hand jumps to the next minute marker (how cool is
that?!). This is the kind of thing that Breitling should be incorporating, and perhaps coming up with new, innovative ideas.
These are
also features that a non-WIS person would appreciate. Sure, moonphases, equations of time, tourbillons, rattrapantes, perpetual calendars, these are all things that WIS people go ga ga over (myself included

) but nobody else cares about. But to the average person I think that functionality like I described will still be a big hit. The B01 does go part of the way there, but I think they really should push the utility concept way further.

(Sorry...been dying to use that graphic...)
Furthermore, what about some innovation on the quartz front in the professional line. The Emergency is cool, but as a pilot, I have to say that the overall functionality of the timepiece itself is lacking. The co-pilot was an attempt to give the model and actual utility as a chronograph, but really the whole thing falls way short of what could be done for a genuinely useful modern pilot's watch. The Japanese are way ahead of Breitling when it comes to designing truly useful aviation watches by modern standards. Breitling, get a freakin' pilot on your design team and design a freakin' watch for an actual freakin' pilot (you certainly have enough pilots on your jet team).
Roffensian wrote:
Consider also the following logic.......
We know that ADs buy from distributors for 55% (just increased in US, but let's stay there for this example).
Let's therefore assume that Breitling sells to distributors for 40% of retail - that may be wrong, but a 15% gross margin for the distributor isn't excessive.
Now suppose that Breitling decided that it would sell to distributors for 50% of retail.
That would push distributors to sell to ADs for (say) 65%, and would likely limit max discounts to 20%.
Who suffers from that? Well, North American buyers immediately pay more - only getting an average of 15% or so discount, Howver that loss would be mitigated by an increased resale value - the reason that resale drops so quickly is (in part) because of the low prices available on new models. There's little impact to European buyers, there are few discounts available there anyway. It's possible that the AD numbers would drop in Europe, because some people can't make money with those margins, but I would suggest that they were the badly run operations anyway.
It certainly wouldn't be a pain free change, but it wouldn't be the end of the world - and my model hasn't changed list price at all.
Now look at it from Breitling's perspective - with no change in list price their revenue just increased by 25% (40% of list to 50% of list). There likely would be a short term hit in sales which would reduce that benefit somewhat, but I don't believe that it would be dramatic.
It's a fun debate though isn't it

In the spirit of fun debating, I have to respectfully disagree with you here. You can't get somethin' for nothin', and you cannot increase the distributors' prices without consequences. The reason that there are large discounts in the U.S. is that lower prices sell bigger volumes, and some ADs find it advantageous to go for the bigger volume. It's an economic force that I think you can't fight. You raise the price and volume will go down. When volume goes down, ADs need more margin to compensate, which means MSRP needs to go up, which means volume goes down even more, et cetera until a new stable price-volume relationship is established. Basic economics dictates that the average net amount of profit (Breitling's + distributor + AD) per watch is fixed for a given supply volume. If supply is held constant, you cannot increase Breitling's profits without reducing the distributor or AD profits. This is just another way of saying that you cannot create demand (i.e. money) out of nothing.
The only way for Breitling to affect AD pricing is to reduce supply, or to penalize ADs that sell too many watches. When the marginal cost to an AD of acquiring an additional watch becomes larger than the previous watch, then the AD finally has incentive for keeping prices high. This is the whole point behind limited editions. If each AD knows they can only ever get 1 LE, then they will not reduce the price on that. The problem is that Breiting rewards high-volume behavior and punishes low-volume behavior (if you can't have a certain number of Breitlings in your store, then you cannot be a Breitling AD). Therefore, there will always be an incentive for lowering profit margin to increase volume.
///M