ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX
|
17 August 2016, 11:15 PM | #1 |
Banned
Join Date: Nov 2015
Real Name: Karl
Location: Kuwait
Posts: 5,228
|
Patek Updates
Just picked up the 5711 and thought I should probe a bit about sales and how much softening they were seeing:
a). Production will reduce to about 50000; B). They have been asked to provide purchasers names on most preorders. C). Attempt to clamp down on grey market and certain models will have the warranty cars produced by PP with the buyers name in it D). Possibly holding warranty cards for 5 years on certain models - not sure how that will work?? E). Nautilus 40th will be underwhelming. PP just had 175 and 40 not that important. They trying to do nothing but consumers expect a lot so will be 2 models but expect to be underwhelmed. A request for a 5711P as an anniversary piece declined by Geneva already. F). PP is reducing dealers (guess on lower production cake slices need to be maintained) therefore AD will be reluctant to offer discounts that could cause them to lose favor or their franchise. Mentioned they rather lose a deal if someone can getter better elsewhere! |
17 August 2016, 11:41 PM | #2 |
"TRF" Member
Join Date: May 2007
Location: .
Posts: 17,898
|
Just picked up the 5711 and thought I should probe a bit about sales and how much softening they were seeing:
a). Production will reduce to about 50000;<< From what number--did they say? B). They have been asked to provide purchasers names on most preorders. <<What good will that do--can give any name C). Attempt to clamp down on grey market and certain models will have the warranty cars produced by PP with the buyers name in it<<Logistical nightmare D). Possibly holding warranty cards for 5 years on certain models - not sure how that will work??<< Never happen E). Nautilus 40th will be underwhelming. PP just had 175 and 40 not that important. They trying to do nothing but consumers expect a lot so will be 2 models but expect to be underwhelmed. A request for a 5711P as an anniversary piece declined by Geneva already. << Not surprised F). PP is reducing dealers (guess on lower production cake slices need to be maintained) therefore AD will be reluctant to offer discounts that could cause them to lose favor or their franchise. Mentioned they rather lose a deal if someone can getter better elsewhere!<< Hear this every year |
18 August 2016, 01:24 AM | #3 |
2024 Pledge Member
Join Date: May 2016
Location: UK
Posts: 4,191
|
|
18 August 2016, 01:41 AM | #4 |
"TRF" Member
Join Date: Mar 2009
Location: USA
Posts: 4,343
|
Very nice update. I think some of the changes are quite reasonable.
I wonder what kind of pre-orders they want client information on. For LE and application pieces (like the 5131), they already have the clients information from the AD. Are they going to track owners of common pieces like the 5711/1A or 5712 if someone pre-orders them? BTW, isn't Sandrine Stern the head of design at Patek or does she only head the ladies' collection? How can an AD logistically hold the Certificate for two years? Are they holding the certificate on application pieces? What if the watch needs servicing and the service center asks for a copy of the Certificate? What happens if the AD loses their Patek dealership license during that time period, especially since Karl mentioned that they are reducing AD numbers? I also heard that the 40 year Nautilus Anniversary will be limited to a couple of pieces. |
18 August 2016, 04:36 AM | #5 | |
2024 Pledge Member
Join Date: May 2016
Location: UK
Posts: 4,191
|
Quote:
The AD doesn't hold them, they are retained by Patek. The owner and watch are registered so no issue with servicing. Sent from my iPad using Tapatalk |
|
18 August 2016, 04:51 AM | #6 | |
2024 Pledge Member
Join Date: Nov 2012
Real Name: Steven
Location: Glocal
Posts: 19,743
|
Quote:
Added benefit: Even so-called 'rare and/or application' pieces are easy to buy in NYC and other places (sealed/as new) on the secondary market. This might reduce that as well. Sure, let the experiment begin.
__________________
__________________ “Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming 'Wow! What a Ride!'” -- Hunter S. Thompson Sent from my Etch A Sketch using String Theory. |
|
18 August 2016, 01:51 AM | #7 |
"TRF" Member
Join Date: May 2007
Location: .
Posts: 17,898
|
|
18 August 2016, 02:10 AM | #8 |
"TRF" Member
Join Date: Feb 2012
Location: USA
Posts: 229
|
It seems like you're going to have to "lease" the watch for a 5 year period and at the end of the 5 years you own it.
They did say that "You never actually own a Patek" Do all these unusual/strange ideals seem like a desperate attempt to keep prices artificially high? |
18 August 2016, 02:21 AM | #9 |
2024 Pledge Member
Join Date: Nov 2012
Real Name: Steven
Location: Glocal
Posts: 19,743
|
Scorched Earth policy? Not good. Truly saddens me to see what's going on with Patek. Let us hope this is all just speculation, because if indeed that's their best plan....... time to hire some competent consultants.
__________________
__________________ “Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming 'Wow! What a Ride!'” -- Hunter S. Thompson Sent from my Etch A Sketch using String Theory. |
18 August 2016, 07:59 AM | #10 |
2024 Pledge Member
Join Date: Sep 2015
Real Name: Mike
Location: 35000ft
Posts: 3,754
|
|
24 August 2016, 10:20 AM | #11 |
Banned
Join Date: Jul 2016
Location: Princeton
Watch: PP 5204
Posts: 53
|
|
18 August 2016, 12:06 AM | #12 |
Banned
Join Date: Nov 2015
Real Name: Karl
Location: Kuwait
Posts: 5,228
|
I think 60000 is the number mentioned. On the warranty cards he did mention certain models so I am going to guess it will be those hard to get pieces which are flipped. In particular the 5131 where there is huge disparity between retail and secondary market which encourages flipping. I don't believe you can eliminate the grey market when you operate an allocation system and have huge retail margins. Inventory you paid for sitting idle costs money. They are a small dealer and they have to maintain a minimum stock of 130 Rolexes. Never allowed to drop below that. Some larger AD have to keep 300 and Rolex allocates good models along with a pile of models that just don't move.
|
18 August 2016, 12:18 AM | #13 |
"TRF" Member
Join Date: Jan 2013
Location: California
Posts: 3,099
|
Thierry Stern is a nice guy and a great rep for the brand but they need a real CEO. The grey market and warranty cards are the least of their problems in my opinion.
|
18 August 2016, 12:59 AM | #14 |
2024 Pledge Member
Join Date: Nov 2012
Location: USA
Watch: addiction issues
Posts: 36,963
|
|
18 August 2016, 01:08 AM | #15 |
"TRF" Member
Join Date: May 2007
Location: .
Posts: 17,898
|
|
18 August 2016, 01:17 AM | #16 |
"TRF" Member
Join Date: Apr 2014
Real Name: Jay
Location: East and West
Posts: 1,894
|
|
18 August 2016, 08:45 AM | #17 |
"TRF" Member
Join Date: Apr 2013
Location: U.S.A.
Posts: 2,796
|
|
24 August 2016, 10:18 AM | #18 |
Banned
Join Date: Jul 2016
Location: Princeton
Watch: PP 5204
Posts: 53
|
What makes you think that he's not a real CEO? Your assessment about the grey market and warranty cards are based on what? Just a friendly question. He's the owner and it does appear as if Patek Philippe is doing pretty well.
|
24 August 2016, 08:37 PM | #19 |
"TRF" Member
Join Date: Jun 2013
Real Name: John
Location: Somewhere
Posts: 1,077
|
|
18 August 2016, 12:50 AM | #20 |
"TRF" Member
Join Date: Feb 2013
Real Name: Louis
Location: Bay Area, CA
Watch: PP 5131R
Posts: 4,871
|
Their previous production was 59000 pieces with 9000 Quartz and 50000 mechanical according to Patek during my visit.
|
18 August 2016, 01:17 AM | #21 |
"TRF" Member
Join Date: Jun 2016
Location: US
Watch: Patek 5204P
Posts: 485
|
Great update Karl! Thanks.
|
18 August 2016, 02:19 AM | #22 |
"TRF" Member
Join Date: Jan 2013
Location: California
Posts: 3,099
|
Am I missing something here? First they ramp up production, now they're cutting back, popular models are almost impossible to get for some, they're making it a pain to buy a watch with the certificate being held etc. My AD makes a big deal about not giving all the packaging that comes with the watch, he now has to fill out the registration cards and send them in instead of letting the customer do it, he peels off all the stickers with product numbers. Send in a watch for warranty repair and you get a form letter saying it's been received, no other information. When you get it back is anyone's guess. QC is getting worse by the day and no apparent plan to improve and Patek is worried about flippers? They can't live off their reputation forever.
|
18 August 2016, 03:29 AM | #23 |
"TRF" Member
Join Date: Apr 2012
Location: England
Watch: 5990
Posts: 3,341
|
Thanks for the update Karl. Re point B, I was offered a 5524 earlier this year and Patek wanted to complete the paperwork with my details, had I bought it.
|
18 August 2016, 04:10 AM | #24 | |
"TRF" Member
Join Date: Mar 2009
Location: USA
Posts: 4,343
|
Quote:
I know there are some open papers floating around, but I thought open papers are usually an arrangement that the AD and resellers have when they sell watches through the back door. I certainly don't have all the inside knowledge of how people get open paperwork and maybe if you are a member of the royal family or a billionaire with hundreds of Patek watches in your collection, you can dictate to Patek what the acceptable terms of sale are. But for regular watch enthusiasts like us on this forum, I think this just sounds like business as usual. |
|
18 August 2016, 04:15 AM | #25 | |
"TRF" Member
Join Date: Apr 2012
Location: England
Watch: 5990
Posts: 3,341
|
Quote:
|
|
18 August 2016, 04:15 AM | #26 | |
Banned
Join Date: Nov 2015
Real Name: Karl
Location: Kuwait
Posts: 5,228
|
Quote:
My 5930. To be honest if it means more watches become available to People who get to wear them versus double sealed in the safe, I am for it! Many of us don't have multi million kudos with dealers and be nice if the genuine user got to get one. |
|
18 August 2016, 04:02 AM | #27 |
"TRF" Member
Join Date: Jun 2013
Location: Mars
Watch: 5712
Posts: 11,509
|
If I get this right, they want when you buy a watch to not give you the papers before 5 years??? They are nuts, there is no way if I buy something that I will let the company which sells it to me keep the papers for 5 years.
All this is BS, they are worried about flippers? LOL how about being worried about worse and worse QC, about having the longest service waiting times in the business, seems to me it's a little more important than what they are worried about... |
20 August 2016, 12:11 AM | #28 |
"TRF" Member
Join Date: Sep 2011
Location: End of the World
Watch: PP & Rolex
Posts: 1,970
|
|
20 August 2016, 12:28 AM | #29 |
"TRF" Member
Join Date: Feb 2016
Location: Belgium
Posts: 403
|
Pure nonsense
|
18 August 2016, 04:02 AM | #30 |
"TRF" Member
Join Date: Jun 2013
Location: Mars
Watch: 5712
Posts: 11,509
|
If I get this right, they want when you buy a watch to not give you the papers before 5 years??? They are nuts, there is no way if I buy something that I will let the company which sells it to me keep the papers for 5 years.
All this is BS, they are worried about flippers? LOL how about being worried about worse and worse QC, about having the longest service waiting times in the business, seems to me it's a little more important than what they are worried about... |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
|
|
*Banners
Of The Month*
This space is provided to horological resources.