The Breitling Watch Source Forums

Just because I get as much as possible out of my customers doesn't mean that I am not providing an excellent service and product. You are implying that my customers are somehow "losing" because I can get away with charging them top dollar. I charge them the maximum because I provide the maximum relative to the rest of the marketplace. If someone else can provide an equal product and level of service at a lower price, then the marketplace will dictate who is right and who is wrong.

Look at Breitling's closest competitors and read the remarks on these forums. Many of those of us "in the know" have all conceded to the fact that, no, I am not going to pay more money for a Breitling in the future. Childish gimmicks and a lack of in-house movements, combined with terrible service from BUSA does not warrant a price increase. However, if Breitling has figured out a way to appeal to the non-enthusiasts, then who am I to judge?

Time will tell, but if Breitling continues down this road, my bet is on the competition. If someone is crazy enough to pay $5k for a Breitling Galactic over a new Rolex Explorer, then so be it. I don't agree with it, but hey, to each his own.

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PAM359, Omega PO Big Size, 1951 Omega Seamaster, Rolex Sea Dweller

Breitling has made a mess of their brand and now it's time to clean it up...ala Omega and Montblanc...

You soon will see higher prices (some driven by the the weak dollar and in house movement costing), fewer AD's with little to no discounting, and more boutiques. The focus will be in ASIA where the market isn't blown to hell..

This theory is spreading across the luxury market from pens to watches. The US market has turned luxury goods into commodities by their AD's poor sales techiques and rampant discounting.

The customers they will focus on will be those who will respond to their marketing campaigns, go into a store and BE SOLD on a model through a professional sales process...

Enthusiasts like us are along for the ride....

Get ready to either pay more or get out...

That's easy. I'm already out. Motivations for pricing, frequency of price increases, my market demographic, etc., really is all academic. The bottom line is, does Breitling currently put out a product I want to buy for the money they're asking? Answer: no. Every person will have to make that decision for him or herself. Obviously if enough people answer yes, Breitling will do well. But in the end, I don't care. For my own acquisitions, mine is the only opinion that matters.

Breitling will be in for surprise as Asians on the whole LOVE TO BARGAIN. I worked as an expat in Hongkong for many years and for many Asians shopping is incomplete without bargaining. Shoppers there try their very best to convince owners or store managers to reduce the prices below the advertised retail price. Just like here in the US, rampant discounting on luxury watches in Asia is very common. The high end luxury watch business there is very cutthroat so whoever gives the best service and the best discounts gets the business.

Breitling is not a very desirable popular brand in Asia compared to Rolex or Panerai so I don't know if they will do well there unless they lower their prices or let the AD's there employ the same marketing strategy like what they did here in the US by giving 20-25% discounts on their products.

Completely agree that companies are in business to make money - no arguments at all there. However, the dictionary definition of greed is "excessive or rapacious desire, especially for wealth", and in this instance I think the word "excessive" is the important one. In my opinion (and it is just my opinon), 10 - 15% prices rises every 6 or 9 months is excessive as it in no way equates to any developed country's inflation in terms of cost of materials or labour. It's just pure profiteering, plain and simple. It's not like Breitling weren't making a nice heathly profit last week before the latest price rise : you just need to look at the massive discounts that (primarily US) bricks-and-mortar AD's can offer and yet still turn a profit themselves after all their costs are taken care of, to see that.

I have no issue at all with company's making a healthy profit, and we all know that on a materials only basis ALL luxury watches are vastly overpriced, but again I can accept that. What I can't accept is the same old ETA based pieces suddenly going up by 10% every few months for no apparent or discernible reason, other than to squeeze the consumer dry. It comes down to each individual's perception of value, and this current rise breaches that limit for me.

Fortunately these are just luxury (and hence largely unnecessary) goods so I'm able to vote with my feet...... but that doesn't alter the fact that I find it a shame to be priced out (either voluntarily or enforced) of something I enjoy by nothing more than corporate greed.

On the basis of your statement about it not being greed, how would we feel if the price of fuel or foodstuffs (or other more essential and non-luxury goods) increased by 10% every few months for no reason other than to line to the pockets of the producers? Would we applaud them for their business acumen by turning an already healthy profit into an excessive profit, or would we moan about corporate fat-cats laughing in the face of the consumer in order to feather their own nests? The difference is that watches are luxury goods, while food is an essential good........ but the principle is the same : inflation-busting price rises equals greed.

(JMO of course)

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Driver8

Site Moderator

Sorry, but I have to chime in. I do understand the subjective feeling of being taken for a ride, especially with those less than stellar new watches at rising prices. But a short reality check might change that picture (not regarding the designs, of course).

Breitling, as many have mentioned in this and other threads, pays wages and locally manufactured components in Swiss Franc.
I knew the rate had changed, but did not realize by how much.

Below I compared the CHF/US$ June 2010 high with monthly lows for the next 12 months, and show a typical June 2010 US$ 4,000 watch price change over time to where it should be now if you only consider the exchange rate and not the - massively rising - costs of raw materials.
My export woes to US$-based economies are not that bad, as the Euro has not risen as sharply, but believe me, it is a tough market for those paying in Euros and Francs and selling in US dollars, probably to get worse.

________CHF/US$__% Delta_____________
06-2010___1.173___________US$ 4,000.00
07-2010___1.036__13.18%___US$ 4,527.00
08-2010___1.014__15.73%___US$ 4,629.00
09-2010___0.971__20.82%___US$ 4,833.00
10-2010___0.947__23.92%___US$ 4,957.00
11-2010___0.955__22.85%___US$ 4,914.00
12-2010___0.930__26.10%___US$ 5,044.00
01-2011___0.932__25.83%___US$ 5,033.00
02-2011___0.923__27.09%___US$ 5,083.00
03-2011___0.897__30.81%___US$ 5,233.00
04-2011___0.862__36.05%___US$ 5,442.00
05-2011___0.846__38.60%___US$ 5,544.00
06-2011___0.838__39.99%___US$ 5,600.00

I'm implying nothing of the sort.

I am simply saying that an easing back from maximum possible short term revenue is generally seen as a good business model for long term success and my experience backs that up in spades. I know nothing about your business and would never be so presumptious as to imply otherwise.



@WatchFred - that post really shows the change, and Breitling is endeavouring to maintainrelatively consistent global pricing (at least in terms of list) to avoid certain markets suffering from the ease of international commerce driving business to lower priced markets. With rising local currency costs there certainly is an easy to explain (if not easy to accept) justification for the short term adjustments, but I suspect that a comparison over (say) 5 years of a Breitling model vs. most other Swiss brands will see a larger average increase for Breitling.

@Driver8 - and more eloquently than I could manage!

You know what the original Gucci leather maker artisan made to increase sales at his shop ? Increase the price exponentially. Then his shop started being flooded with foreign aristocrats being in Italy for their vacation that would buy something of leather from him. I can see that logic being applied to other luxury products like mechanical watches ( cause lets face it , watches are a luxury when the necessity of time keeping is fulfilled by a 50$ quartz seiko much much more accurately than any mechanical watch ) , where demand and supply work in unorthodox ways...

+ cost of developing and producing the new in-house movement explain the majority of the price increases, in my eyes. Remember as well that Breitling is still independent and doesn't have the same financial backing as say the much bigger groups (LVMH or Richemont) therefore I would imagine Breitling is more sensitive to market variations, such as currency changes, and have to align to these variations to ensure their survival.

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Alex
Breitling - Navitimer
Breitling - SuperOcean
Breitling - Chrono SuperOcean

Good to see that some people are more understanding and happy with the constant and inflation-busting price rises than I am.

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Driver8

Site Moderator

I've read your initial post twice D8. It may be another "price increase" thread as you say but this is a different one because it comes out of your guts. You've just felt the need to speak out loud what you were thinking for sometime now. IMO it tells many of the truths that maybe we did not want to really face.

It is however sad to see you part from the SA. But if love is lost...

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- This is Ghost Rider requesting a fly-by. - Negative Ghost Rider. The pattern is full.

Wow Driver GREAT POST! I never really gave much attention to how much I was spending till I looked down on my dresser and added up the dollar amount that I had spent over the last 2 years. Its crazy now that I think about. I guess if you compre what i have spent to most WIS, than its really a drop in the bucket. However if you compare what I have spent to the average person than....well thats a totally different story lol.

As for new pieces and future purchases of Breitling, I think I have been pretty vocal as of late about my thoughts and feelings. Personally (and this is regarding Breitling) I am not a fan of what they are doing and the pricing strategy that has been put in place would sugges that they want to be viewed on par with companies like Panerai and Rolex. IMO they are not these companies and should go back to what made them so popular. Designing watches that were serious bang for the buck. Boy how things can change in such a short period of time

From here out I have to agree with Driver....I am only willing to pull out my wallet on pieces that I actually LOVE. This hobby has started to surpass what I am willing to spend on certain pieces.

Great post Driver, I for one am now confined to the second hand market for sure.

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Breitling navitimer super constellation LE
Omega Ploprof 1200m
Bremont supermarine
Rolex milgauss GV
Olivant and Botsford 40mm Gold edition

Considering that most of the desirable Breitlings have been discontinued, I think a lot of us are confined to the aftermarket, irrespective of price.

Too true.

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Breitling navitimer super constellation LE
Omega Ploprof 1200m
Bremont supermarine
Rolex milgauss GV
Olivant and Botsford 40mm Gold edition