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PostPosted: Wed Apr 25, 2012 11:16 am 
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grenhall wrote:
Well in this case there were talks about lack of discount. So as I interpreted it was that the dealer couldn't sell Breitling watches with a discount or a very small discount. How would they even brake even if they're not allowed to sell discounted watches?

I think you're confusing legitimate sales with grey market sales. The alleged crackdown Shark reported has to do with how much an AD can discount on a legitimate sale to a customer. Sales to the grey market are something else again. They're done under the radar, in derogation of an AD's retail agreement with the manufacturer. A crackdown affecting legitimate sales wouldn't have any bearing on what an AD charges a grey market seller for a watch, since the AD isn't supposed to be doing it in the first place.

Beyond that, it didn't sound like Breitling was increasing the wholesale prices of their watches. They're just (possibly) cracking down on the discounts offered by ADs on legitimate sales. Thus, the break-even point would remain the same either way.


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PostPosted: Wed Apr 25, 2012 11:22 am 
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JacksonStone wrote:
grenhall wrote:
Well in this case there were talks about lack of discount. So as I interpreted it was that the dealer couldn't sell Breitling watches with a discount or a very small discount. How would they even brake even if they're not allowed to sell discounted watches?

I think you're confusing legitimate sales with grey market sales. The alleged crackdown Shark reported has to do with how much an AD can discount on a legitimate sale to a customer. Sales to the grey market are something else again. They're done under the radar, in derogation of an AD's retail agreement with the manufacturer. A crackdown affecting legitimate sales wouldn't have any bearing on what an AD charges a grey market seller for a watch, since the AD isn't supposed to be doing it in the first place.

Beyond that, it didn't sound like Breitling was increasing the wholesale prices of their watches. They're just (possibly) cracking down on the discounts offered by ADs on legitimate sales. Thus, the break-even point would remain the same either way.


Yeah but that would be quite a different story then.

But my point was that if Breitling increases their prices for wholesale to about say 5% of the RRP then all sales will decrease dramatically. But I guess that won't ever happen so it's just my crazy idea.


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PostPosted: Wed Apr 25, 2012 12:29 pm 
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grenhall wrote:
JacksonStone wrote:
grenhall wrote:
Well in this case there were talks about lack of discount. So as I interpreted it was that the dealer couldn't sell Breitling watches with a discount or a very small discount. How would they even brake even if they're not allowed to sell discounted watches?

I think you're confusing legitimate sales with grey market sales. The alleged crackdown Shark reported has to do with how much an AD can discount on a legitimate sale to a customer. Sales to the grey market are something else again. They're done under the radar, in derogation of an AD's retail agreement with the manufacturer. A crackdown affecting legitimate sales wouldn't have any bearing on what an AD charges a grey market seller for a watch, since the AD isn't supposed to be doing it in the first place.

Beyond that, it didn't sound like Breitling was increasing the wholesale prices of their watches. They're just (possibly) cracking down on the discounts offered by ADs on legitimate sales. Thus, the break-even point would remain the same either way.


Yeah but that would be quite a different story then.

But my point was that if Breitling increases their prices for wholesale to about say 5% of the RRP then all sales will decrease dramatically. But I guess that won't ever happen so it's just my crazy idea.



If dealer cost becomes 95% of list price Breitling will only sell watches in their own stores - no one else will carry them. No retailer (business) can survive on a maximum gross margin of 5%.


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PostPosted: Wed Apr 25, 2012 8:36 pm 
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Maybe this whole thing was produced to shake down Sharkman??


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PostPosted: Wed Apr 25, 2012 8:55 pm 
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JustinFournier wrote:
Maybe this whole thing was produced to shake down Sharkman??


:uplaugh: :uplaugh: :uplaugh: :uplaugh:

shark has already beeen warned by the powers that be over at Breitling to stop his fire sales.


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PostPosted: Wed Apr 25, 2012 8:59 pm 
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Everything Sharkman mentioned in his initial post is very true. The biggest dog at BUSA is traveling the country with reps visiting stores that have been known to excessively discount. Sucks for sure as there are a couple of pieces on my wish list. :(

My AD has always taken great care of me, but I know he is less than reluctant to give me my usual deals than before. He has heard about the visits and secret shoppers first hand and he's not willing to do what he would do in the past. I guess I somewhat understand him not wanting to risk losing the Breitling brand by discounting, but it would be really hard to pay list or close to it after many years of great discounts.

I do love the Breitling brand, but my pockets aren't as deep as many folks and some other brands make become more attractive.

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PostPosted: Wed Apr 25, 2012 9:03 pm 
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Coasterkid wrote:
He has heard about the visits and secret shoppers first hand and he's not willing to do what he would do in the past.

I can see pulling back when it comes to general customers he doesn't know, but what about with established customers he knows aren't going to rat him out?

On a different note, as far as I'm concerned, Breitling can suck it. I've had it with this brand. If they put out watches I love, I might overlook it (which I'm willing to do with the likes of Rolex, and even Omega), but they've got a lot of nerve pulling this crap when their heads are already so far up their own asses they can smell their belches. Screw 'em.


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 Post subject: Breitling Cracking down?
PostPosted: Wed Apr 25, 2012 9:29 pm 
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This "visitor" was from Grenchen, not BUSA. And now I am hearing it is IWC and some other brands bringing the hammer down as well. Perhaps it is a reflection of how insignificant parts of the Western world have become compared to Asia for the Swiss watch brands. Pure speculation on my part.

I can promise this without hesitation - the day will never come when I purchase a $9000 Breitling at a 10% discount. I get the impression I am not alone.


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PostPosted: Wed Apr 25, 2012 11:16 pm 
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sharkman wrote:
I can promise this without hesitation - the day will never come when I purchase a $9000 Breitling at a 10% discount. I get the impression I am not alone.


At the current lineup you're definitely not alone.


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PostPosted: Thu Apr 26, 2012 2:14 am 
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How can Breitling see the current status of the economy and expect people to pay "near" retail for a watch? Sure there are those that will still buy no matter what (i.e. the trendy places like Florida example), but like many have said here, sales would suffer greatly. I think there's a descent sized market of customers like myself who don't have the money to accept a 10% discount on a 5K+ watch, but we'll actually think about it with more "normal" discounts...simply because we prioritize money elsewhere in our lives.

Just today I went into an AD in Hawaii and while she was fitting the new aero classic bracelet I bought (at a 30% discount mind you) she remarked how they hadn't been moving too many Breitlings until they put up a 25% off sale sign and then people starting coming in and sales increased relatively significantly. So if 25% is what it takes to move product at a decent amount, what the hell does Breitling expect from a 5-10% discount cap?


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PostPosted: Thu Apr 26, 2012 2:24 am 
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flyviper wrote:
How can Breitling see the current status of the economy and expect people to pay "near" retail for a watch? Sure there are those that will still buy no matter what (i.e. the trendy places like Florida example), but like many have said here, sales would suffer greatly. I think there's a descent sized market of customers like myself who don't have the money to accept a 10% discount on a 5K+ watch, but we'll actually think about it with more "normal" discounts...simply because we prioritize money elsewhere in our lives.

Just today I went into an AD in Hawaii and while she was fitting the new aero classic bracelet I bought (at a 30% discount mind you) she remarked how they hadn't been moving too many Breitlings until they put up a 25% off sale sign and then people starting coming in and sales increased relatively significantly. So if 25% is what it takes to move product at a decent amount, what the hell does Breitling expect from a 5-10% discount cap?


Regarding the 5-10% discount that was just figuratively when discussing. No one knows where they set the cap. Just so you don't get all mad up in here. :D


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PostPosted: Thu Apr 26, 2012 8:39 am 
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I know, just using it as an example. I'm just assuming if Breitling is truly raising hell on this, they're probably going to make a bigger dent in discount limits than a few percent. Probably won't be a 5% limit, but if they're not happy with ADs giving 25%, I would guess around 10% is a believable number for them to use.


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PostPosted: Thu Apr 26, 2012 12:08 pm 
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grenhall wrote:
Regarding the 5-10% discount that was just figuratively when discussing. No one knows where they set the cap. Just so you don't get all mad up in here. :D

Nobody was talking about a 5% discount cap (except flyviper). That number came from you when you hypothesized Breitling setting its wholesale price at 95% of MSRP (RRP). Shark mentioned not being willing to buy a $9k Breitling at a only 10% discount. Purely hypothetical, as you said, but it seems he might have been imagining Breitling taking a discount stance similar to that of Rolex, since you're actually doing pretty well if you can get a new, authorized-sale Rolex for 10% off list.


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PostPosted: Thu Apr 26, 2012 1:17 pm 
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grenhall wrote:

I know that they do and I've read all the stories about ripped out pages from the warranty booklet and so on.

Well I don't know what to say. $200 when buying a watch for $9 000 is like feeling ripped off because there's only 4 gallons of gas in your brand new car for $80 000. IMHO anyways.



This actually happened to me when I bought my S4. I got the keys and a low fuel light on when I left the dealership. I was... displeased.

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PostPosted: Thu Apr 26, 2012 9:38 pm 
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