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AperolSpritz · 7 January 2022, 10:27 PM

This is total nonsense.

First, this "suggested price" mention or whatever it is people read into as such a major change in AP's way of doing business, has been there for ever (at least in Europe). And you see this absolutely everywhere. Probably a legal thing.

Just checked Patek - under the price it says : " *Suggested retail price taxes included. Prices may be subject to alteration at any time and do not constitute a contract."

In any case, doing this would be suicidal for AP. There might be a short term upside but then what? This price increase is a kind of self-fulfilling prophecy. People buy them because they increase in value and as they increase in value more people buy them and because of that even more people buy them. But what if there stops to be a reference price? What happens next?

The hype will fall. No one is going to bother buying codes or offshores. People (much fewer) will focus on only desirable pieces. I have 6 APs but would never a single second in my life consider buying grey at current prices.

From a business perspective, AP is now certain to offload its production for say at least the next 10y (and increasing prices by 10% each year). Which business can say that? And with 80% gross margins. Sure they leak some grey premium but that is the cost of fueling this incredible machine of desirability that keeps them running and creates the effect I mentioned above. They would be absolute fools to break this momentum.

On top of that, Chrono24 is not a stock exchange. Who is going to set the price. Do we have any idea of how many of these grey transactions are real B2C trades and not just flippers or greys moving stock between each others. What is the real price? vs. Marketed price. etc.

Mattt · 7 January 2022, 10:36 PM

This has been happening for years. Can't find the link right now, but they are 1000% allowed to do this already. There are several AD's in which you go you see the product displayed, at market price.

Benzsiam · 7 January 2022, 11:00 PM

I think AP will eliminate all ADs. All ADs will become secondary market dealers, they can sell at market price and at the same time AP will sell to ADs at the higher price than it used to be. This way AP make a lot more profit than before, this is win-win situation for AP.

AP boutiques still sell at MSRP.

VogelPhoenix · 8 January 2022, 12:59 AM

Quote:

Originally Posted by THWatch

One of these days AP is going to post on their Website under each model:

"We will have 100pcs of Model xxxxxx available in June, please place your bid by May 31"

A transparent auction-model would be ideal for finding the true market value of each piece and selling at that price. That is the LAST thing AP and other luxury makes would want to happen, when it comes to their less popular models. Giving up control over their pricing would be suicidal.

erik12300 · 11 January 2022, 08:34 AM

Oh god no. Would hate for watch buying to more resemble car dealerships. Buying a Tesla direct was so much more pleasant that I don't think I can ever go back to a dealership.

mickyd329 · 11 January 2022, 08:58 AM

Quote:

Originally Posted by erik12300

Oh god no. Would hate for watch buying to more resemble car dealerships. Buying a Tesla direct was so much more pleasant that I don't think I can ever go back to a dealership.

If you paid a car dealership full price like you do with Tesla, the buying experience will be the same if not better. lol.

VogelPhoenix · 11 January 2022, 10:11 AM

Quote:

Originally Posted by mickyd329

If you paid a car dealership full price like you do with Tesla, the buying experience will be the same if not better. lol.

Not lately, for quite a few cars MSRP is the new discount (or at least that's what the dealers tell you).

7 January 2022, 11:00 PM	#33
Benzsiam 2024 Pledge Member Join Date: Mar 2015 Location: USA Watch: Rolex/AP/PP/ALS Posts: 5,922	I think AP will eliminate all ADs. All ADs will become secondary market dealers, they can sell at market price and at the same time AP will sell to ADs at the higher price than it used to be. This way AP make a lot more profit than before, this is win-win situation for AP. AP boutiques still sell at MSRP. __________________ Rolex: 116621, 126333, 126711CHNR, 114060, 116500LN White, 126660 JC, 126710BLNR, 126710BLRO, 116610LV, 126610LN, 126610LV, 116508 YG Green Dial, 124300 Turquoise, 126719BLRO Meteorite dial, 228235 Olive dial ,126755SARU, 116505 RG Black dial, 326934 Blue Sky D. Audemars Piguet: 15451ST Blue, 15500OR w/Bracelet, 14790SA, 14790BA, 26022BC(Salmon) Patek Philippe: 5524R, 5712G, ALS: Time Zone 136.032, Cartier: WGSA0030, WSSA0061, YG Oct. 2965, Breguet: 7137BA, MontBlanc: 109996", Seiko: SRPA21,

7 January 2022, 10:27 PM	#31
AperolSpritz "TRF" Member Join Date: Aug 2020 Location: Around the World Posts: 349	This is total nonsense. First, this "suggested price" mention or whatever it is people read into as such a major change in AP's way of doing business, has been there for ever (at least in Europe). And you see this absolutely everywhere. Probably a legal thing. Just checked Patek - under the price it says : " *Suggested retail price taxes included. Prices may be subject to alteration at any time and do not constitute a contract." In any case, doing this would be suicidal for AP. There might be a short term upside but then what? This price increase is a kind of self-fulfilling prophecy. People buy them because they increase in value and as they increase in value more people buy them and because of that even more people buy them. But what if there stops to be a reference price? What happens next? The hype will fall. No one is going to bother buying codes or offshores. People (much fewer) will focus on only desirable pieces. I have 6 APs but would never a single second in my life consider buying grey at current prices. From a business perspective, AP is now certain to offload its production for say at least the next 10y (and increasing prices by 10% each year). Which business can say that? And with 80% gross margins. Sure they leak some grey premium but that is the cost of fueling this incredible machine of desirability that keeps them running and creates the effect I mentioned above. They would be absolute fools to break this momentum. On top of that, Chrono24 is not a stock exchange. Who is going to set the price. Do we have any idea of how many of these grey transactions are real B2C trades and not just flippers or greys moving stock between each others. What is the real price? vs. Marketed price. etc.

7 January 2022, 10:36 PM	#32
Mattt "TRF" Member Join Date: Apr 2017 Location: N/A Posts: 258	This has been happening for years. Can't find the link right now, but they are 1000% allowed to do this already. There are several AD's in which you go you see the product displayed, at market price.

11 January 2022, 08:34 AM	#35
erik12300 "TRF" Member Join Date: May 2021 Location: San Jose Posts: 15	Oh god no. Would hate for watch buying to more resemble car dealerships. Buying a Tesla direct was so much more pleasant that I don't think I can ever go back to a dealership.

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