At least LCDH's are not watch boutiques.

[El Presidente]

Has anyone been to a high end watch boutique of late?

How in hell do these places survive? 3 million dollar fitout, you have a security guy on the door in his Armani suit, you press a button to be let in, they eventually look at you as if they are very busy and you are an inconvenience, there are no customers in the building, three staff, two tapping on their phone, it's an imposing space :Rolex/Patek/Omega/VC/IWC/AP  etc etc. Cold, unwelcoming, as if the intention is to make you feel that they are doing you a favour by letting you in. 

Eff that. 

I know the high end market for watches is saturated and doing poorly right now. It is not hard to see why. 

If they ran their stores like LCDH Hoi Chi Minh run theirs, welcoming, engaging, positivity...they would stand a much better chance of surviving/making a decent profit. 

End of rant 

[Cuban Cigar Smoker]

They sell all the the best models to the VIP customers who spend a lot and tell new customers they have to buy a few things together like jewelery or go on a list for years. 

Meanwhile they have every model in stock in the back. As the grey market models go up in value and Rolex increases prices every year they hang onto the stock, sell a bit to VIP customers and sell the other desirable stock to their friends who sell it on the grey market and split the profit, this is how one of the shops here operates because I'm close with the owner but I wouldn't be surprised if most operate in a similar way.

[El Presidente]

10 hours ago, Cuban Cigar Smoker said:

They sell all the the best models to the VIP customers who spend a lot and tell new customers they have to buy a few things together like jewelery or go on a list for years. 

Meanwhile they have every model in stock in the back. As the grey market models go up in value and Rolex increases prices every year they hang onto the stock, sell a bit to VIP customers and sell the other desirable stock to their friends who sell it on the grey market and split the profit, this is how one of the shops here operates because I'm close with the owner but I wouldn't be surprised if most operate in a similar way.

It worked the same here, albeit they are finding it more difficult in the current climate. Stock is piling up, secondary has fallen. The flip market is not what it was. 

[Cuban Cigar Smoker]

10 hours ago, El Presidente said:

It worked the same here albeit they are finding it more difficult in the current climate. Stock is piling up, secondary has fallen. The flip market is not what it was. 

I agree that the flip market is not what it was, but the most desirable models still have a decent spread. They have to maintain that "rarity" to justify the price increases mean while that rarity is manufactured but the game is the game. 

[Tianyang]

10% VIP generate 80% revenue, I learnt it from buying Hermes for my wife. And I am still on the waiting list for Royal Oak like forever.

[chasy]

It’s all pretty gross.

[BrightonCorgi]

Are the boutiques intended to be profitable? I question it. They're more like showroom and store. Manufactures have great margins when they sell at a boutique. Normally for them it's a wholesale business until manufacture-owned boutiques became a thing.  

Rolex took it one step further with the Bucherer acquisition. Sell them all.  

[Cuban Cigar Smoker]

6 hours ago, BrightonCorgi said:

Are the boutiques intended to be profitable? I question it. They're more like showroom and store. Manufactures have great margins when they sell at a boutique. Normally for them it's a wholesale business until manufacture-owned boutiques became a thing.  

Rolex took it one step further with the Bucherer acquisition.   Sell them all.  

Rolex AD profit margin to retail is 30% to 40%. 

[BrightonCorgi]

17 hours ago, Cuban Cigar Smoker said:

Rolex AD profit margin to retail is 30% to 40%. 

From manufacturer to direct-to-retail must be like ~90%.

[Chitmo]

21 hours ago, Cuban Cigar Smoker said:

They sell all the the best models to the VIP customers who spend a lot and tell new customers they have to buy a few things together like jewelery or go on a list for years. 

Meanwhile they have every model in stock in the back. As the grey market models go up in value and Rolex increases prices every year they hang onto the stock, sell a bit to VIP customers and sell the other desirable stock to their friends who sell it on the grey market and split the profit, this is how one of the shops here operates because I'm close with the owner but I wouldn't be surprised if most operate in a similar way.

I’ve been collecting watches for years. I used to dream about getting myself a Patek someday. In my head it was going to be a 50th birthday present for myself. But my attitude towards any of the big brands like Patek, Rolex, AP and VC has changed completely. It’s a popularity contest now, there’s a very telling video kicking around on YouTube of a guy going into a Rolex dealer looking for a Hulk/Starbucks I think. The dealer told him they didn’t even have one to look at. They then sent in a Johnny Depp look alike who was promptly escorted into the back room to buy the very same watch. I’ve since pivoted to the more affordable options and some of the independents that are doing interesting things. The big boys can eat my shorts. The only way I’ll be getting anything from those brands will be on the secondary market after it all collapses and people finally clue in that watch collecting is a hobby and not a financial investment. Aside from the one of a kind pieces out there, none of it is actually rare. They’re just creating the illusion of rarity by making you dance like a clown to get one. 

[BrightonCorgi]

One of the biggest watch brands are one of my cyber security customers. They let their employees buy a watch an impressive discount every few years. The level of watch they can buy is tied to their salary. If you make like 100K CHF, you cannot buy a 50K watch for instance. Otherwise, the whole company from janitor on up would buy the most exclusive watch to flip. Oddly, a significant percentage of employees do not even own a watch from said manufacturer.

[zeedubbya]

I have experienced both sides of the spectrum and am convinced it comes down to the Sales Associates and to (maybe) a lesser degree their management.  

On one hand is the AD which treats you as you experienced El Prez., never following up, making the whole thing into a ridiculous charade that’s almost laughable and only offers making you feel like a lesser human.  

On the other hand is the AD who makes you feel welcome any time you come in, follows up relentlessly, even if it’s just to shoot the bull, is transparent about what’s going on (the stupid gatekeeping) and keeps in touch with you about watches they can deliver even if you don’t take them, and still delivers some of your wanted watches when you ask.  

These stores are around 100 miles apart in distance but in customer service they’re millions of miles apart. I think it will be the downfall of their business, and last time I visited the bad one I told them— “don’t be surprised when a kiosk takes your job because it delivers a better experience.” I’m sure I am now firmly on the Do Not Call list, except now I have no false hope.    

[BrightonCorgi]

4 hours ago, zeedubbya said:

I have experienced both sides of the spectrum and am convinced it comes down to the Sales Associates and to (maybe) a lesser degree their management.  

On one hand is the AD which treats you as you experienced El Prez., never following up, making the whole thing into a ridiculous charade that’s almost laughable and only offers making you feel like a lesser human.  

On the other hand is the AD who makes you feel welcome any time you come in, follows up relentlessly, even if it’s just to shoot the bull, is transparent about what’s going on (the stupid gatekeeping) and keeps in touch with you about watches they can deliver even if you don’t take them, and still delivers some of your wanted watches when you ask.  

These stores are around 100 miles apart in distance but in customer service they’re millions of miles apart. I think it will be the downfall of their business, and last time I visited the bad one I told them— “don’t be surprised when a kiosk takes your job because it delivers a better experience.” I’m sure I am now firmly on the Do Not Call list, except now I have no false hope.    

Rolex has plans to drop AD's the offer horrible customer experiences. Someone goes to buy a monument for a life event, and they should experience something that's memorable and pleasant.  

[dicko]

Will always go to a respected grey dealer over an AD. There is ZERO chance of an AD allocation in Australia for a hot watch unless you are dropping $100,000 per year on unwanted pieces. Go to a reputable dealer, pay the reasonable premium (AKA the real market value) and have it on your wrist the next day.

Sent from my SM-S938B using Tapatalk

[Dadof3]

Maybe a few of their very high end brands can act dismissively towards a walk-in customer but it doesn’t sound as if most watch brands are selling well right now. I’d think if you go into an Omega dealer they’d treat you well even if they would tell you they can’t sell you a snoopy model.  

[BrightonCorgi]

9 hours ago, dicko said:

Will always go to a respected grey dealer over an AD. There is ZERO chance of an AD allocation in Australia for a hot watch unless you are dropping $100,000 per year on unwanted pieces. Go to a reputable dealer, pay the reasonable premium (AKA the real market value) and have it on your wrist the next day.

Might as well buy it Chrono24 and not leave the house. Get it in a day or two.

[Watchcigar]

Back in 1998 I walked into a Rolex AD, picked out the watch I wanted and left with it…easy peasy! Went grey to buy my second a couple years ago (mostly because I was looking for a birth year model of my youngest daughter) but the wait times/games you have to play with ADs is ridiculous!

Trying to get a Lady Datejust for my fiancé right now. Luckily we’re not in any hurry. 

[PirelliCndms]

It's so hit or miss on boutiques and store. Fink's Jewelers in Va Beach, for example, are amazing and got me a no date sub in like 6 weeks (getting out of the Navy gift to myself). One in Chicago, that a friend went to, told him that he had to spend 40k minimum on jewelry to get a black daytona.

[El Hoze]

The way I am wired, there is zero shot I am going to chase a watch or try to sweet talk someone at a watch boutique to sell me a watch. I am actually surprised so many people who can drop $70K+ on a watch don’t feel the same way. I remember when the Rolex Pepsi in white gold was released in 2014 (117619BLRO)…that week I spotted one in an AD’s window down in Miami. That was a grail for me. It had gone in the window an hour earlier and I walked out with it in about 8 minutes. I still have never seen that exact model in the wild. 

Post the crazy watch stuff during Covid I have lost a ton of interest in general. If I see another 20 year old with no job in Miami wearing an AP his grandfather bought him I might not ever wear my Royal Oak again. 

[chasy]

It’s funny how quickly I turned on the watch stuff. I’m happy I didn’t get the watches I wanted over the last 5 years because, today, I’m pretty much over it. There are still a few I’d potentially buy, but by and large, I’m no longer that interested.

[BrightonCorgi]

I am almost at 20 years in of "working at home". A cool watch has lost it's appeal. The showoff factor has diminished since the Apple watch. There's much less status to a watch post-Apple watch era.  

Sure, if a pile cash fell on my lap there are a few that I've been eyeing, but they aren't in the "showoff group" beyond a very small circle.