The Breitling Watch Source Forums

I've read quite a few stories that 35% off Breitling is very easily done....on a first time visit..

Makes one wonder...

In the USA??? Dang get me the name of that AD please!!! That would be sweet!

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Coasterkid
Breitling Super Avenger
Breitling Steelfish
Breitling B01
Omega Seamaster
Rolex T/T Yachtmaster
TW Steel TW22

ive read quite a few stories in penthouse forum that haven't quite come true yet either

years ago, breitling gave the dealers a deeper discount than they currently do, and 30 to the occasional 35 did happen from time to time, but breitling has been trying to reel this in, and one way was to decrease the discount given to dealers, and more closely monitor the dealers, they have closed a bunch. 6 years ago it didnt happen, now we dealers cant afford to do it.

rolex, cartier all have very thin dealer margins compared to other lines.

I would expect no more than 25% off a SA at this point...

Quite frankly, I've never believed those 35% off stories....there is always more to the story (like a discontinued model or they've bought 6 watches in the past...).

Newbies hear these stories and charge into an AD thinking they'll get 35% off too because so and so on the forums said he gets it "all the time"..Then they get emabarrassed and leave pissed off because the AD was trying to rip them off by not giving a 35% discount...

We were all getting 32% off with the group buy way back when.. Of course, we all know what happened to the dealer. I actually found another dealer at the time who was willing to give me 32% off as well, and have recently found one who promises 30%+ (please dont PM me. Cant give his info out yet).

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-RJ

Remember that the dealer price increases only happened in the US, for some other locations dealer cost is still 55%. I'm happy with the discount that I now get, but I've "bought" that discount over a number of years.

I wish....

see topic viewtopic.php?f=1&t=30061&start=75 for increases in Switzerland and my post on p.6.

I will concede to you that the increase here was much more "lighter" though. What I do not understand, as I had stated in my post, is why the increase was not the same for all models, some of which saw an increase of only $ 30 or $ 40.

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

I don't see any mention of dealer prices there, just consumer prices which obviously increase globally. In the US in 2010 there was an approximately 5% increase in dealer cost - i.e. squeezing AD margin.

Correct.

However, as my AD told me, their margins here are much tighter than in the US or elsewhere, so there is no question of squeezing their margins further. Any increase received is passed on to the customer. So, I believe that the increases mentioned in my list are those received by the dealers. I maybe mistaken though.

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

Clearly my English is failing me today........

In 2010 there was a dealer price increase in the US that was not passed on to consumers, ergo (perhaps some Latin will help) the dealer margin was reduced.

European gross margins are not particularly different from North America, the challenge is that other costs tend to be higher in Europe and since those costs have to come out of the difference between consumer cost and dealer cost the opportunity for discounting in Europe is less.

Perhaps my English is failing me too. Then again, it's a foreign language for me. So, let me try again:



I do not disagree with you.

I totally agree with your statement. What I tried to say is that that is the reason why dealers here can not absorb any other increase (as they did in the US, for ex.) and they pass every increase they get from the manufacturer on to customers.

On top of that, discounting in Switzerland (I cannot pronounce myself for the rest of Europe) is much less important than in the US, as you've said, but that is not new. To my knowledge, it's always been that way.

Unfortunately, it is not in the mentality of the people here to ask for a discount. And it does not concern watches only. So, we get to pay full list price most of the time because if you ask for a discount they look at you as if you're from outer space.

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

That is categorically not a dealer decision.

Breitling sets dealer cost

Breitling sets list price

Dealers determine final seeling price

US dealers didn't decide to "absorb the increase", Breitling told them that they were increasing dealer cost and holding list prices the same.

Ok, now I understand better.

But if that is so and Breitling sets all of the above, why discounts vary from one US dealer to another (state tax excluded of course)? Are they taking it off their "set" margin? And I'm talking about fresh pieces not those that may have been at the dealer's for some time.

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

Of course - the dealer is negotiating their net margin against a fixed gross margin.

Assume dealer cost is 55% of retail. The AD has 45% of retail list to work with and needs to make some profit to keep the lights on. Some ADs on all models or some models may be willing to discount 30% and and make 15% of retail as their profit. Others may stick at 20% and make $35% of retail as their profit.

Understand Breitling SA has already made their money when they sell to the distributor (BUSA, BUK, etc...) and the distributor has already made their money when they sell to the AD. So each watch sitting in an AD's inventory represents money already spent by the AD.

It's up to the AD to determine as a matter of policy or circumstance (such as they need to make some money NOW or the lights will be shut off!) what they are willing to knock off retail and thus what their profit margin will be.

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SHARKMAN