AD'S falling like 9 pins

[Dream99]

2012 definately seems the year Omega will be implementing their No discount policy by taking away Omega watches from established AD's in favour of the Omega run Boutiques, which, as we know give no discounts. Within 100yds of a recently refurbished "MINI" Omega Boutique (section dedicated to Omega only watches but in the same premises that other brands are being sold") 2 massive AD's Goldsmiths and Frazer Hart have lost their Omega AD status in weeks of each other, leaving only the mini boutique to sell Omega watches locally. Needless to say the AD's are selling their stocks at really good prices to clear windows/stocks within a month or so, (I will be purchasing 2) which is all notice Omega gave them.......What away to treat loyal dealers who sold your goods for 16 years. Omega you should be a shamed.

[bodybump]

Im not surprised....it will happen soon to every single Luxury brands...

[dddrees]

Unfortunately Rolex is doing the same. Stinks when you have a good raport already established with a dealer you know near you.

I'm just hoping my Rolex dealer survives. I have a feeling if anyone can they will. Their not located in a real gigantic market, and they have a pretty good business going.

[Dan2010]

The AD closest to me is done as of April 1. They are actually happy. Tired of the way Rolex dictates to them about EVERYTHING whether it has anything to do with Rolex or not.

[AAMD11]

Im glad I got my Omega. In fact the reason why I got it now was because of the fact that this was imminent.

[FeelingTheBlues]

Shameful indeed, I think they're pushing it way too far!

[sprtrlx]

im not sure i get this?the consumer will determine the price of the watch.if it is overpriced and a discount is not obtainable then the ad will have limited sales.in the past with all the discounting that went on an omega was only worth a fraction of msrp on the used market.could take a while for this price struggle to work its way out.will be interesting to watch from the sidelines.

[alam]

I wonder how this will affect the Army and Air Force Exchange Services (AAFES) as they carry a limited selection of Omega watches, BTW at great discount prices! I got my Speedy Pro from them a couple of months ago... does anyone know?

[GradyPhilpott]

I had a talk with an AAFES agent about a year ago regarding their Omegas. AAFES is not an authorized dealer. The watches come from overseas and they do not come with a manufacturer's warranty.

They are in effect a gray dealer.

I'm reluctant to buy from them.

[experimentjon]

Since we only have four Omega ADs in Hawaii and no boutiques, it looks like they'll be here to stay. So hopefully, the discounts can still be had at these ADs...

[capote]

Part of their strategy to compete with Rolex I guess. AD's in small cities (and countries) will probably survive though.

[Dream99]

Originally Posted by FeelingTheBlues

Shameful indeed, I think they're pushing it way too far!

I found out today that Fraser Hart has had to clear all Omegas from their window display and store them in the safe ready for moving to another branch that can still sell Omega's .
Omega gave them 4 days notice Friday-Monday to clear everything. I am disgusted with them, I really cannot believe how ruthless they have been.

[Kringkily]

shessh what a cut throat move....guess this leaves more money to be made in the second hand now... 0_0

[alam]

Originally Posted by GradyPhilpott

I had a talk with an AAFES agent about a year ago regarding their Omegas. AAFES is not an authorized dealer. The watches come from overseas and they do not come with a manufacturer's warranty.

They are in effect a gray dealer.

I'm reluctant to buy from them.

Incorrect - both my SMP 2254 and Speedy came directly from Omega in NY, with stamped/dated warranty cards. I wonder about the knowledge of the agent you spoke with....

[Dream99]

Originally Posted by Kringkily

shessh what a cut throat move....guess this leaves more money to be made in the second hand now... 0_0

Hi George. Yes I guess thats a possiblity, but in my experience, the customer always loses out when things like this happens. Hope you are right though.

[FeelingTheBlues]

Originally Posted by Dream99

I found out today that Fraser Hart has had to clear all Omegas from their window display and store them in the safe ready for moving to another branch that can still sell Omega's .
Omega gave them 4 days notice Friday-Monday to clear everything. I am disgusted with them, I really cannot believe how ruthless they have been.

This is disgusting, don't they think they will lose money by doing such things?

[The GMT Master]

I thought I would add my two cents to the discussion from a bit of a different point of view

From Omega's point of view, there are far too many Omega agents in the UK right now, it devalues the brand. By having three or four agents in any one city, all it does is encourage unsustainable price wars. Omega are introducing two new concepts: the first is the dedicated boutique, the second is the shop-in-shop/Omega wall. The first is proving to be good both for sales and for the brand - one recently opened in Manchester where there had previously been three separate ADs competing. That one boutique is already making more sales than the three ADs combined, and offers a much better selection. Surely it's better to have one boutique showing a big representation of the range rather than three showing identical bog-standard models? I should note that Omega is not intending to just go to an all-boutique formula

The second concept is one that will visually enhance an AD and increase display space, yet will not have (as far as I know) the restrictions on pricing that the boutiques reportedly have. Again, it'll be a case of fewer agents having bigger selections of watches. All that Omega is doing is getting rid of the worst performing agencies and helping to promote the better ones - I personally won't be losing much sleep over the big multiples being cut down to size, far too often the service and knowledge is well below what one would expect

In the long term, this will be very good for Omega, and will help restore their reputation and prestige back up to the levels it deserves. For far too long it's been regarded as very middle of the road brand, but with the direction they're going in, they're back to compete with the big boys

Chris

[Wineman]

Just last Friday I was at an AD in Orange County, California and I asked them if they will be discontinuing Omega (thinking perhaps they would have some good deals). I was told they will still be carrying Omega. There is a new boutique maybe ten miles away in another major mall, but the salesperson told me only that Mall was affected, but that they would still carry Omega. I dont know if this is the truth or they just have a store policy against revealing if they are losing Omega....

[Dream99]

Originally Posted by The GMT Master

I thought I would add my two cents to the discussion from a bit of a different point of view

From Omega's point of view, there are far too many Omega agents in the UK right now, it devalues the brand. By having three or four agents in any one city, all it does is encourage unsustainable price wars. Omega are introducing two new concepts: the first is the dedicated boutique, the second is the shop-in-shop/Omega wall. The first is proving to be good both for sales and for the brand - one recently opened in Manchester where there had previously been three separate ADs competing. That one boutique is already making more sales than the three ADs combined, and offers a much better selection. Surely it's better to have one boutique showing a big representation of the range rather than three showing identical bog-standard models? I should note that Omega is not intending to just go to an all-boutique formula

The second concept is one that will visually enhance an AD and increase display space, yet will not have (as far as I know) the restrictions on pricing that the boutiques reportedly have. Again, it'll be a case of fewer agents having bigger selections of watches. All that Omega is doing is getting rid of the worst performing agencies and helping to promote the better ones - I personally won't be losing much sleep over the big multiples being cut down to size, far too often the service and knowledge is well below what one would expect

In the long term, this will be very good for Omega, and will help restore their reputation and prestige back up to the levels it deserves. For far too long it's been regarded as very middle of the road brand, but with the direction they're going in, they're back to compete with the big boys

Chris

Hi Chris, Reading your post I feel I agree and disagree with some of the things you say. Yes I feel the Omega brand will ultimately restore their reputation and regain their Prestige as a serious watch brand by cutting back on the AD's in the high street, But as far as price wars are concerned, Omega to my knowledge do not lose any money because of the price the AD sells their watches for, as the dealer actually buys the watches from Omega to sell and so the AD is the only person losing some of their profit by discounting. The ADs are still making money and Omega still selling lots of watches. Will this change now ? I suspect it will. I for one am going over to Rolex. Partly because of this situation and Omegas attitude towards ADs (and customers) who have sold Omegas for over 16 years and then given them 4 days offical notice to stop selling their brand, clear their windows and get rid of Omega stock and then partly because I Personnally think Omega prices are getting to high and Rolex are better investment pieces, I know this because I have sold both brands and lost heavily on my Omega sells, not much on my Rolex, so to me Rolex are better value overall, plus they are actaully quite nice too!!!!

[Alive]

Originally Posted by Dream99

Hi Chris, Reading your post I feel I agree and disagree with some of the things you say. Yes I feel the Omega brand will ultimately restore their reputation and regain their Prestige as a serious watch brand by cutting back on the AD's in the high street, But as far as price wars are concerned, Omega to my knowledge do not lose any money because of the price the AD sells their watches for, as the dealer actually buys the watches from Omega to sell and so the AD is the only person losing some of their profit by discounting. The ADs are still making money and Omega still selling lots of watches. Will this change now ? I suspect it will. I for one am going over to Rolex. Partly because of this situation and Omegas attitude towards ADs (and customers) who have sold Omegas for over 16 years and then given them 4 days offical notice to stop selling their brand, clear their windows and get rid of Omega stock and then partly because I Personnally think Omega prices are getting to high and Rolex are better investment pieces, I know this because I have sold both brands and lost heavily on my Omega sells, not much on my Rolex, so to me Rolex are better value overall, plus they are actaully quite nice too!!!!

So you have been given some heavy discounts from your favourit local AD that now was given 4 days notice and your buying premium Omegas for cheap are now over,  you think this was a bad move since they got to sell alot of watches but later on you complain about Omegas have a poor re-sale value compared to Rolex, and why do you think the reason for that is?

Ill give it to you; Premium Prices, Boutiqes and Advertising.

Selling watches cheap in everyother street corner is not the way to the stars, not at this stage atleast.

Omega should have taken this step long ago..

Ps. First post from a longtime reader-only, hey all!

[H.W. Frank]

Originally Posted by alam

Incorrect - both my SMP 2254 and Speedy came directly from Omega in NY, with stamped/dated warranty cards. I wonder about the knowledge of the agent you spoke with....

As you state, the original poster was given incorrect information. My AAFES-purchased Speedy arrived direct from the distributor with all tags, boxes etc., including warranty card bearing "AAFES" as the dealer. Question is therefore whether Omega intends to dump AAFES and, in the process, deprive U.S. Servicemembers of a nice perk. Wouldn't make much sense to me, since the AAFES AD thing seems to be an exception from normal practice in the first place.

[Alive]

I did a post in this thread earlier today, where is it?

[warren G.]

Originally Posted by bodybump

Im not surprised....it will happen soon to every single Luxury brands...

This....
My local AD has been in business for almost 120 years just lost their IWC status.

[WJGESQ]

Originally Posted by Dream99

I found out today that Fraser Hart has had to clear all Omegas from their window display and store them in the safe ready for moving to another branch that can still sell Omega's .
Omega gave them 4 days notice Friday-Monday to clear everything. I am disgusted with them, I really cannot believe how ruthless they have been.

If those were my watches and if I had paid for them upon delivery, I would leave them in my window if I felt it was to my advantage.

[Dream99]

Originally Posted by WJGESQ

If those were my watches and if I had paid for them upon delivery, I would leave them in my window if I felt it was to my advantage.

I would feel the same as you, but I guess Fraser Hart have other stores in England that can still sell Omega (for the moment!!) and would not want to upset the fragile relationship they must have with Omega at this present time.

[Kringkily]

unfortunately even though you paid for them you have a contract to oblige by their rules to even carry them...

[moby33]

Originally Posted by Dream99

What away to treat loyal dealers who sold your goods for 16 years. Omega you should be a shamed.

Omega should be shamed? Sorry, I disagree. Omega is a company that is free to do what it believes to be in ITS best interest to make money - period. While I as a consumer (that LOVES discounts) am obviously pretty bummed, I can't hold a grudge against the move.

As a die-hard capitalist, I can't blame Omega. The real world is made up of people & businesses that are out to make money...lets not kid ourselves, do you really think Omega is a charity? Are you telling me you go to work everyday "free of charge"? I bust my butt every day to provide for my family and am always trying to figure out a way to make more (ethically and with honest values of course). I don't see how Omega shifting to a "Reduced AD model" is any different.

If they believe this shift in their business model is in their best interest for increasing profits, then more power to them. If it blows up in their face, then that's a risk they are taking and in due time that beautiful thing called supply vs. demand will dictate what the price should be. They run the risk, and they may (or may not) receive the reward.

And don't think for a minute your local AD for 16 yrs were selling Omega's at a discount as charity work either...they too were making a profit...hence the reason they have been in business for 16+ yrs. Times change and ultimately the power in this case lies with Omega since it is THEIR name on the product being sold...not the AD's.

[moby33]

Originally Posted by Dream99

I for one am going over to Rolex. Partly because of this situation and Omegas attitude towards ADs (and customers)

You do realize Omega's shift is essentially trying to copy Rolex's model - right?

Originally Posted by Dream99

...who have sold Omegas for over 16 years and then given them 4 days offical notice to stop selling their brand,

Obviously I have no way of proving anything, but when I read things like this I can't help but thinking something I remember my parents always preaching to me when I was little...that being, "There's always two sides to a story." Somehow I get the feeling if you spoke to an Omega rep familiar with this event, they would have a VERY different take on the poor-little AD ONLY getting 4 days notice. I'm not even an AD and I've been hearing about this shift for months.

Originally Posted by Dream99

Personnally think Omega prices are getting to high and Rolex are better investment pieces, I know this because I have sold both brands and lost heavily on my Omega sells, not much on my Rolex, so to me Rolex are better value overall, plus they are actaully quite nice too!!!!

Again, by Omega doing this shift (which will potentially cut down on heavy discounts) they are going to transition to a Rolex model. One of the major reasons Rolex is such a better investment is because of the fact it's extremely difficult to get the types of discounts Omega buyers get. If Omega eliminates those up-front discounts, the value of your new Omega will be much more secure for resale. Then, Omega will eventually start implementing systematic price increases like Rolex and you'll see your $8200 POC that you thought was SSSSOOOO overpriced actually be "cheap" when less than 5 yrs after you buy Omega is selling the same model for $10K (and not discounting). You are a fan of this new model and don't even realize it yet.

[Dream99]

Originally Posted by moby33

Omega should be shamed? Sorry, I disagree. Omega is a company that is free to do what it believes to be in ITS best interest to make money - period. While I as a consumer (that LOVES discounts) am obviously pretty bummed, I can't hold a grudge against the move.

As a die-hard capitalist, I can't blame Omega. The real world is made up of people & businesses that are out to make money...lets not kid ourselves, do you really think Omega is a charity? Are you telling me you go to work everyday "free of charge"? I bust my butt every day to provide for my family and am always trying to figure out a way to make more (ethically and with honest values of course). I don't see how Omega shifting to a "Reduced AD model" is any different.

If they believe this shift in their business model is in their best interest for increasing profits, then more power to them. If it blows up in their face, then that's a risk they are taking and in due time that beautiful thing called supply vs. demand will dictate what the price should be. They run the risk, and they may (or may not) receive the reward.

And don't think for a minute your local AD for 16 yrs were selling Omega's at a discount as charity work either...they too were making a profit...hence the reason they have been in business for 16+ yrs. Times change and ultimately the power in this case lies with Omega since it is THEIR name on the product being sold...not the AD's.

And you think 4 days notice is good practice and a way to treat people who have been making you money for 16 plus years? . if you truely beilive this then Id hate to be you

[Dream99]

Originally Posted by moby33

You do realize Omega's shift is essentially trying to copy Rolex's model - right?

Obviously I have no way of proving anything, but when I read things like this I can't help but thinking something I remember my parents always preaching to me when I was little...that being, "There's always two sides to a story." Somehow I get the feeling if you spoke to an Omega rep familiar with this event, they would have a VERY different take on the poor-little AD ONLY getting 4 days notice. I'm not even an AD and I've been hearing about this shift for months.

Again, by Omega doing this shift (which will potentially cut down on heavy discounts) they are going to transition to a Rolex model. One of the major reasons Rolex is such a better investment is because of the fact it's extremely difficult to get the types of discounts Omega buyers get. If Omega eliminates those up-front discounts, the value of your new Omega will be much more secure for resale. Then, Omega will eventually start implementing systematic price increases like Rolex and you'll see your $8200 POC that you thought was SSSSOOOO overpriced actually be "cheap" when less than 5 yrs after you buy Omega is selling the same model for $10K (and not discounting). You are a fan of this new model and don't even realize it yet.

But
Yes Talk or rumours is one thing we all heard, hard reality is something totally differant, F. Hart heard rumours it could be coming and when it did they were given actually 3 days notice As the Monday no stock was to be left in the store. Now Theres ruthless business and then theres this unbelieveable behaviour. I for one would rather not be putting anymore of my money in Swatches bank balance. I really do not think Omega if they were OMEGA now would have done this in such a arrogant, burliest way