Quote:
Originally Posted by JacksonStone
I don't think the ideas are mutually exclusive. You're right about discounting. Look at Breitling: they price a new Chronomat at more than $9k, but nobody is willing to pay more than 80% of that, because they know that by the time it hits the pre-owned market, the value is half. It makes their pricing structure look delusional, and that's not good for brand image. Rolex fared better before all this, but yeah, $1000 off MSRP still isn't good for the appearance of luxury.
However, this situation isn't great, either. ADs look like ghost towns, and grays have plentiful stock offered for extortionate prices. That makes the brand look to be in high demand, but it has a "Wild West" feel to it. When people feel compelled either to kiss the boots of authorized dealers to be granted the "privilege" of paying MSRP, or to play ball with unauthorized sellers who charge and arm and a leg, some of the prestige of the brand is tarnished. I can't read Rolex's mind, but I have to think this wasn't the situation they had in mind if their goal was to solve oversupply and discounting.
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Your Breitling point is also valid with Omega. When a boutique tries hard to convince you a Speedy is worth $5500 when you know the entire world outside their door is paying $3900 or less that is a tough position.
I spoke with well respected TS that told me if he has an item listed online he ha
S at least three in the hole, usually 5.