AP 15500 - Market Vs. Retail Price

[tm173]

I have been allocated an AP 15500 by an authorized dealer, but they indicated they are selling the watch at market price (~$44k) vs. retail price. I’m somewhat new to this community but love the model and have been trying to get ahold of one for about a year. It’s brand new (not pre-owned) and I have no prior history so the allocation seems quite rare, but can someone confirm that selling at market price for an AD is normal?

[VogelPhoenix]

Originally Posted by tm173

I have been allocated an AP 15500 by an authorized dealer, but they indicated they are selling the watch at market price (~$44k) vs. retail price. I’m somewhat new to this community but love the model and have been trying to get ahold of one for about a year. It’s brand new (not pre-owned) and I have no prior history so the allocation seems quite rare, but can someone confirm that selling at market price for an AD is normal?

"Normal" is not the word I would use (and neither would I call this an "allocation"). Will the AD give you a receipt for the actual amount paid and all the relevant info (date/location/serial #)?

Price seems middle-of-the-road for a white/black/grey and a bit of a discount vs market for a blue dial - which is it?

Overall, can't fault AP for the move towards a boutique model.

[RyanO]

Can you tell us more? The only authorized dealer I know of left is Material Good. Also, which dial is it?

A few years ago I was hunting for the 15500 and visited an AD in the islands. The retail at that time was around $18k. The dealer pulled out a black dial and offered it to me, but at 22k. Of course the market price hadn’t skyrocketed like it has now, so that seemed like a fair but steel premium at the time but I was just turned off by my first encounter with this tactic. I left without the watch.


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[AshAP]

That’s £10,000 more than retail!! I wouldn’t accept that.

The reality is that if you can get one directly from an AP House/boutique then you’ll only pay retail and I’m sure the buying experience will be far superior.

I’d go to your nearest AP House, tell them the BS that you’ve experienced at one of their approved retailers and they’ll probably sell you a watch within a few months at the correct price.

In the UK it definitely helps if you can get an introduction from an existing AP client, could this be an option for you?


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[AshAP]

I think you’ve been targeted not allocated.


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[m3jasper]

Originally Posted by AshAP

I think you’ve been targeted not allocated.


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Very well said!

[Mini2]

Originally Posted by AshAP

That’s £10,000 more than retail!! I wouldn’t accept that.

The reality is that if you can get one directly from an AP House/boutique then you’ll only pay retail and I’m sure the buying experience will be far superior.

I’d go to your nearest AP House, tell them the BS that you’ve experienced at one of their approved retailers and they’ll probably sell you a watch within a few months at the correct price.

In the UK it definitely helps if you can get an introduction from an existing AP client, could this be an option for you?


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Recommendation from a current AP Client
It’s not what you know it’s who you know
And to think I just thought they wanted money but now they wants your friends to be in the circle too

[KBM]

Originally Posted by AshAP

I think you’ve been targeted not allocated.


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This. Walk away, OP, this ad doesn't seem like a good place to start a relationship with the brand.

[fspfsp]

Originally Posted by AshAP

I think you’ve been targeted not allocated.


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Agree with AshAP, well said!

[Jgives]

Aren’t there some here priced around $35K? Or have those all been gobbled up? Can’t recall seeing any non-blues listed over $36K or so. $44K sounds like a leap.

[HMHM]

The ADs know they will eventually lose their AD status so they try to make their last quick buck before AP calls it quit with them and run solely through boutique and houses. I think you should lodge a complaint officially to AP and let them know about this practice.

[Mini2]

Originally Posted by HMHM

The ADs know they will eventually lose their AD status so they try to make their last quick buck before AP calls it quit with them and run solely through boutique and houses. I think you should lodge a complaint officially to AP and let them know about this practice.

How credible is this strategy? Commitment to rents and fit out of stores rather than letting a company be it WOS here in the UK to sell there product.

[Reign]

Originally Posted by Mini2

How credible is this strategy? Commitment to rents and fit out of stores rather than letting a company be it WOS here in the UK to sell there product.

In theory it should be better since AP can directly liaise with their clients and better shift around pieces globally to calibrate supply/demand.

The trade off is as you mentioned more fixed opex and capex but they’re able to capture more margin by skipping the AD if their watches move so it should mitigate that risk. You can further mitigate risk by doing JVs with local ADs for mono brand boutiques - you capture more margin than just selling via ADs, can still be close to your clients, and split the OPEX/capex risk. You can see this strategy playing out in the UK (AP house and harrods boutique which are fully owned and their JV with Arjie for the Sloan street boutique)

[macrowatch]

Originally Posted by AshAP

I think you’ve been targeted not allocated.


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Another +1 on wise words.

All said though, if I really wanted the watch, I'd actually probably still do the deal there vs gray for 1000% authenticity.

[HMHM]

Originally Posted by Mini2

How credible is this strategy? Commitment to rents and fit out of stores rather than letting a company be it WOS here in the UK to sell there product.

In Malaysia there’s only one place that sells AP if you search through the website and that’s the Kuala Lumpur boutique. I’m not sure if it’s done in cooperation with a local AD but the experience was amazing. No qualms about it. I think when the economy is good and watches are in demand, AP can probably sustain the system since almost every watch gets sold before it even arrives. I feel it’s more transparent the process and the SA still remember me and asks me how I’m doing me when I called him to register interest for the 15407ST. He was upfront and said that it will be hard which I understand. In that sense I feel that it’s a reciprocal relationship as opposed to ADs where they try to push crap down my throat before even hearing what I want.

[jcdeng]

Are boutiques required to sell you the watch at MSRP?

[tm173]

Thanks, everyone for the incredibly helpful advice! To answer a few of the questions above, it was a RO 15500 white dial. It was not Material Good in NYC either. I also did mention this to my contact at a boutique and their response was that they couldn't get involved in another dealer on product or availability. Essentially just a "not my problem" type of answer, which isn't an issue one way or another.

Based on the info above and after talking to the SA, I decided to pass on the watch. Primary reasons were 1) was prepared to pay $20k - $30k but there was some sticker shock when the price was quoted at $45k, even new and 2) with AP moving away from dealers, it didn't seem like this would foster a long-term relationship with the brand, and I want to leverage this purchase to be able to buy other AP models in the future.

Looks like I will continue to wait and hope for the best!

[VogelPhoenix]

Originally Posted by jcdeng

Are boutiques required to sell you the watch at MSRP?

In particular non-AP owned boutiques may point out the advantages of buying a CODE for "establishing a relationship", but I would be more than surprised if they straight-up sold a hot model above MSRP (even in countries like my current residence, where this happens at Rolex ADs all the time).

[texasmade]

Originally Posted by RyanO

Can you tell us more? The only authorized dealer I know of left is Material Good. Also, which dial is it?

Zadok Jewelers in Houston is still listed as an AD.

[Benzsiam]

Do this AD sell the pre-owned watches also? If they do, they can sell you as pre-owned unworn at the market price. What kind of receipt they will give it to you?

If this AD sell only brand new, I don't think they can sell you as secondary market price, they should sell you as msrp only.

[youthagainsttt]

I'd definitely hold off and just go to the boutique & register your interest in the gold, Steel Chrono models. I've written a post on here (can search in my profile) on my strategy for buying from the boutique & how you may increase your chances

[enjoythemusic]

Try the Bvlgari Octo line... I have the blue dial FS and it is 100m waterproof too. AP games are too much hassle, plus the Bvlgari is more modern too and has a world record movement.

[dauster]

Originally Posted by enjoythemusic

Try the Bvlgari Octo line... I have the blue dial FS and it is 100m waterproof too. AP games are too much hassle, plus the Bvlgari is more modern too and has a world record movement.

that cat plus Bvlgari Octo is starting to creep in my dreams :)

[iamrichard]

I will buy it for $10k more if you get it from your AD :)

[EEpro]

15500 is a beautiful watch and worth what someone is willing to chance a flip on, but in my opinion it is $29,000. It's just not THAT nice.

[de66]

In Switzerland the prices are visible on the AP website (I think this limited by geofencing). Irrespective of dial color the retail price is 21'000CHF (around 19'600CHF tax free).

I can not imagine that AP would allow ANY AD to double the retail price.

If an AD would start making his own price policy he might as well be a grey dealer.
I cannot imagine that AP would allow any AD to do that, and here we are talking about a BOUTIQUE which is supposed to be a kind of "next level AD" and under more scrutiny by AP.

I would investigate the price policy with AP customer service directly without mentioning the AD by name.

[VogelPhoenix]

I can not imagine that AP would allow ANY AD to double the retail price.

I cannot imagine that AP would allow any AD to do that, and here we are talking about a BOUTIQUE which is supposed to be a kind of "next level AD"...

I’m pretty sure the OP is not talking about a boutique trying to charge double.

[de66]

Originally Posted by VogelPhoenix

I’m pretty sure the OP is not talking about a boutique trying to charge double.

Apologies, I believe you are right. Somehow, in my mind, I was presuming the OP was talking about the blue dial.

Regardless, this pricing policy seems off whether its an AD or Boutique this is something I would try and investigate at the source (AP HQ)

[acaixguard]

Wait, I'm confused...you said this is an AD that offered you the 15500 over MSRP, but I am under the impression that any dealer authorized by AP cannot sell a brand new piece over retail?

[karasus]

Originally Posted by tm173

Thanks, everyone for the incredibly helpful advice! To answer a few of the questions above, it was a RO 15500 white dial. It was not Material Good in NYC either. I also did mention this to my contact at a boutique and their response was that they couldn't get involved in another dealer on product or availability. Essentially just a "not my problem" type of answer, which isn't an issue one way or another.

Based on the info above and after talking to the SA, I decided to pass on the watch. Primary reasons were 1) was prepared to pay $20k - $30k but there was some sticker shock when the price was quoted at $45k, even new and 2) with AP moving away from dealers, it didn't seem like this would foster a long-term relationship with the brand, and I want to leverage this purchase to be able to buy other AP models in the future.

Looks like I will continue to wait and hope for the best!

When AP sells a watch to an AD the watch becomes the property of the AD and they can sell it at whatever price.

However if the AD wants to keep their AD status, they have to remain within certain rules such as staying within msrp range.

Sounds like your AD might anyways be losing their AD status soon so they are trying to make a quick buck before it shuts down.