Interesting Rumour ... Omega
Discussion
I don't know whether this is common knowledge or just nth hand rumour, but whilst speaking to a knowledgeable salesman of a large nationwide jewellery chain, he mentioned that Omega might cease production of their quartz powered models, in an additional push towards aligning the brand with the likes of Rolex.
It was also mentioned that Omega may decrease the size of their AD network and concentrate on opening boutiques instead, along with a select number of AD's. Has anyone heard similar? It sounds possible ... I suppose you can only increase prices so much! Would you be sad to see the quartz SMP disappear?
It was also mentioned that Omega may decrease the size of their AD network and concentrate on opening boutiques instead, along with a select number of AD's. Has anyone heard similar? It sounds possible ... I suppose you can only increase prices so much! Would you be sad to see the quartz SMP disappear?
Classic watch economics.
Just hike up the prices to "align the brand" with others that hiked their prices up a few years earlier. It's nothing to do with R&D or cost of production or materials it's simply making the watches more expensive in order to appeal to people that want more expensive watches. It cost more it must be better right?
Just hike up the prices to "align the brand" with others that hiked their prices up a few years earlier. It's nothing to do with R&D or cost of production or materials it's simply making the watches more expensive in order to appeal to people that want more expensive watches. It cost more it must be better right?
It's odd isn't it, the whole concept of brand and luxury goods and how often people's perception of the worth of something based largely on image and price.
Advertising people love this stuff, especially on a product where spending more doesn't actually get you a watch that tells the time better just one that is more complicated or made by someone with a reputation for being expensive.
Omega appear to be suggesting that having a quartz movement cheapens their brand, people might not want a more expensive watch (that might not tell the time as well) from them if they sell quartz watches. Breitling even felt they had to call their quartz movements 'super quartz'. "Oh no it's not quartz that for cheaper brands".
It works though, look at Rolex. Average movement steel sports watches, some have a date wheel. Every time their price goes up demand increases with it. Once you're known for making expensive watches, people who just want to own an expensive watch are your bitches.
Advertising people love this stuff, especially on a product where spending more doesn't actually get you a watch that tells the time better just one that is more complicated or made by someone with a reputation for being expensive.
Omega appear to be suggesting that having a quartz movement cheapens their brand, people might not want a more expensive watch (that might not tell the time as well) from them if they sell quartz watches. Breitling even felt they had to call their quartz movements 'super quartz'. "Oh no it's not quartz that for cheaper brands".
It works though, look at Rolex. Average movement steel sports watches, some have a date wheel. Every time their price goes up demand increases with it. Once you're known for making expensive watches, people who just want to own an expensive watch are your bitches.
It's a classic "Giffin good" - something where demand INCREASES as price goes up.
bizarrely where I live (Singapore) despite the ridiculous price of sports and luxury cars :$1m for a Lamborghini ....there is a big demand for such precisely because they are so expensive and say "look at me I can afford a his n hers black Lamborghini and white Lamborghini "
bizarrely where I live (Singapore) despite the ridiculous price of sports and luxury cars :$1m for a Lamborghini ....there is a big demand for such precisely because they are so expensive and say "look at me I can afford a his n hers black Lamborghini and white Lamborghini "
Edited by alfaman on Tuesday 6th March 15:03
Podie said:
They've been heading towards the Boutique thing for a while, and prices have continued to creep upwards - take the latest PO for example. Certainly creeping towards the door of Rolex.
IMO the latest PO is a vastly better watch than it's closest competitor from Rolex (the 116610 Submariner), it's too overpriced, but it's a positive bargain in comparison to the Submariner. The SMP Quartz has now been discontinued as far as I'm aware, I'm sure someone on TZ mentioned that it was just any stock that was left. There will be no new SMP quartz (with the Ceramic bezel).
Cybertronian said:
The Goldsmiths and Ernest Jones in the Birmingham Bullring no longer stock Omega, the former as of a week ago. Watches of Switzerland still do, though I wonder for how much longer.
Isn't that mainly due to the Omega boutique now opened in the BullRing? Let's hope the quartz Omegas go up in value, as my Gen2 X-33 might appreciate a little
Mercedes Benz did the same thing with the dealer network around 2000.
All the family owned franchises went out of the window and the big groups muscled in creating super dealerships. Bigger, less of them.
Omega need to pull something out of the bag now. They aren't Rolex, they can't pull another special edition Speedie out of the bag, having a cardboard cut out of James Bond gurning in the duty free is old hat now too.
Get ready for the London Olympics special edition, it'll be s
t, limited to 20,012 pieces (not a typo) and every mug will buy one.
I'm in the wrong game, I really am.
Am I bitter I can't afford a Railmaster XL, and even if I could it'd look ridiculous on me ?
Yes.
All the family owned franchises went out of the window and the big groups muscled in creating super dealerships. Bigger, less of them.
Omega need to pull something out of the bag now. They aren't Rolex, they can't pull another special edition Speedie out of the bag, having a cardboard cut out of James Bond gurning in the duty free is old hat now too.
Get ready for the London Olympics special edition, it'll be s
t, limited to 20,012 pieces (not a typo) and every mug will buy one.I'm in the wrong game, I really am.
Am I bitter I can't afford a Railmaster XL, and even if I could it'd look ridiculous on me ?
Yes.
al1991 said:
Sadly, second hand prices will follow I suspect.
I've only been following them for around a year but Quartz SMPs seem to have gone from £5-600, to £7-900 in no time at all.
I've been watching 2254 prices, they've gone up by a similar percentage.I've only been following them for around a year but Quartz SMPs seem to have gone from £5-600, to £7-900 in no time at all.
I wonder what people will be saying about Omega in 5-10 years from now and how they're perceived against Rolex?
I've had an order in for a new PO at an AD since early Feb, he rang yesterday to say he will "Gee them up".
I hope it arrives and they don't cut my AD out after taking the order!
I think that now Omega make their own movements in house, this restricted/controlled selling is an obvious tactic to control supply and thus price.
Harley Davidson have been doing this for a long, long time now.
Forcing the price up all the time (which helps residuals).
They even control the price around the world, so that their bikes cost the same everywhere.
But there is little comparable to Harley when you consider their image. If your into that image!
I hope it arrives and they don't cut my AD out after taking the order!
I think that now Omega make their own movements in house, this restricted/controlled selling is an obvious tactic to control supply and thus price.
Harley Davidson have been doing this for a long, long time now.
Forcing the price up all the time (which helps residuals).
They even control the price around the world, so that their bikes cost the same everywhere.
But there is little comparable to Harley when you consider their image. If your into that image!
When I was looking for a new watch earlier in the year, I asked why the number of Omega stockists had decreased in town, as I used to pop into a few shops and see who would do the best deal. I was told that it is now Omega policy to have only one stockist per city. Presumably to stop people taking the approach I did, and play one shop off against another.
Well I am kind of glad i got my 2254 now. I kind of monitor the prices even though I have no intention to sell. I don't think that the price has changed that much. it rises and falls a £100 or so and condition obviously is the key differentiator. I have not seen them go for much more than £1200 or less thatn £1000. Perhaps that will change though if the brand goes through further "gentrification" shall I say...
CardShark said:
I've been watching 2254 prices, they've gone up by a similar percentage.
I wonder what people will be saying about Omega in 5-10 years from now and how they're perceived against Rolex?
If you talk to any old school watchmakers they will tell you that Omega were considered higher than Rolex, quality wise, in the 60s and 70s. I wonder what people will be saying about Omega in 5-10 years from now and how they're perceived against Rolex?
Open an Explorer and contemporary Connie, for instance..
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