At what point would price be an issue?

[Houston]

Greetings Larry

Omega has placed themselves into the "luxury watch" arena.. As such, inflation or any other factors have no plaly in the determination of price. It becomes a supply to demand product.

Omega are already in the prestige and luxury market but its' wide price and model range has attracted buyers from the well-heeled end of society and those willing to save up to be able to afford the watch of their dreams. I think you'll find that as a brand, it still appeals to a very wide audience.

INtroducing a new movement or a new bracelet is never a reason to raise prices.. R&D and tooling is not a large cost burdon in the watch business....marketing is the biggest player.

Surely R&D and tooling are not the only costs faced by watch companies. I dare say they are not immune to inflationary pressures, rising operational and establishment costs, the continuous training of staff, both current and new. In meeting the growing costs on a company, at least Omega has chosen to offer the consumer something new for an increased price as opposed to merely raising the MSRP on an annual basis without offering anything more to a product.


Omega has jumped into that with both feet, sponsoring prestigeous events, and placing themselves as the latest 007 watch....

It's advertising and marketing. Which corporation doesn't do that? You make it sound like some grand confidence trick being played on the general public.

Prices will continue to go up as the product continues it's latest robust sales....

Well I cannot think of prices of any manufactured product or indeed service that stand still, can you? At least with Omega, the price increases as I have illustrated and with no less than three examples show that the increases are not exorbitant.

Those unwilling to pay the price will need to find another brand name..

Indeed since it's the way of the world and the consumer's right of choice.

This is exactly the model Rolex has provided for the watch industry...

Only thing is that Omega's history has not shown signs of the company moving up their prices because the calendar happens to read plus one in the manner that Rolex has. They may but if I assume correctly, since neither you nor I are in possession of a crystal ball, we won't know just yet. What we do know however, as I've already illustrated is that MSRP increases by Omega have not been excessive and when a larger increase is announced on a minority of models, there is something offered to the consumer in respect of the increase. Whether the price rise is commensurate with what is offered is a decision for the consumer but at least something is offered.


Enjoy your weekend


ZIN
Not usually shaken nor stirred ;D ;D ;D

[timefinder]

For the record, I am still amazed at all the great debate between the parties before voting. Congress is in full session!!!!

;D ;D ;D

[Houston]

LOL Mr Time

But my friend, isn't it the idea to send one's representatives to Washington to engage in debate? ;D ;D


I voted 50%, knowing that I'd never have to stand at those crossroads, given Omega's pricing policy.


Be well now pal


ZIN
Not usually shaken nor stirred ;D ;D ;D

[boscoe]

The beauty of Omega is that the brand offered superior quality at a relatively moderate price - especially compared to the Coronet IMHO. But as Omega pushes prices higher into the stratosphre, it losses a bit of that bang-for-the-buck charm.

For me, other brands, particularly Bedat, IWC, Jaeger and Clerc, have better-made offerings in the higher price points. Omega then becomes just another pricey watch. Still well made, but it has more competition.

[talktime]

I think that sums it up for me too- bang for the buck. I look at all that you get for your money, not just the brand name (but that does carry some clout as well- a well established and trusted company is a good thing to buy from).

I have always been intrigued by the mystique created by the coronet brand, and for what? I don't know either. Their bragging rights as the first diving watch- though true- have no real bearing in the 21st century. You want diving watch bragging rights, check the B&R diver out...

Resting on tradition, which is a tradition of steadily increasing prices (although equal to inflation for the most part), for nothing more than the turn of the calendar as Zin pointed out, is not bad per se, but with no increase in R&D or tooling since the case hasn't changed since the middle of the 20th century doesn't seem fair to hard working guys like me and you.

Exotic materials aside (904L? why?), I think even at the current pricing, the available discounts on a new Planet Ocean place it at about 1/2 the Submariner cost, as the sub is lucky to get 10% and often is sold at MSRP. Many Rolex fans will argue that they have changed the inner bezel inscription to include the repetitive ROLEX, among other small changes, but honestly that is purely for the benefit of Rolex, trying to stop counterfeiters, more than to offer the consumer more bang for the buck- at least the way I see it... The Sub has not changed significantly, which is good for recognition, but bad from my point of view. Why was a new case material not chosen ten years ago? what about the blue hairspring that is so fantastic? I think these are reactions to the Co-Axial, as Rolex had absolutely no intention to change their movement at all prior to the release of the C-A. Just my observation, but doesn't the timing of these changes seem a bit coincidental to you??

I voted with my wallet, and I got the Planet Ocean rather than the Submariner. I still think it represents a fantastic value, but my next watch is likely to be a Sinn or something like that, which, though not well known outside our little world, are taking the place of Omega as the brand offering serious bang for the buck. Great technology, great materials, great fit and finish, styles that evolve with the current trends and desires of the public are all good reasons to buy what is essentially a fashion accessory. I think the torch has been passed to Sinn to fill the void left by Omega going more up-market. Nothing against Omega at all- I love them and commend them for being recognized as the superior brand we have all know and loved for so many years, but they should have kept a lower-end line with non co-axial movements available as a mid line.

Quartz
Standard movement automatic
Co-Axial movement automatic

If I was in charge, this is how it would go down.

BUT, to their credit, they are embracing a new technology and commercializing it- I doubt any other company has the balls or the financial power to undertake that. Imagine if that movement wasn't so good- who else could burden the cost of warranty repairs? Ulysse Nardin is the exception on the new technology front, but the prices reflect the purchaser supporting the entire R&D department for a month or so... Not great in the "bang for the buck" department, but fantastic nonetheless.

So, in summary, you must go with your heart and your wallet. What is the watch you want to spend your money on (no matter how hard you work for it) and what are you going to wear? Only you can make those decisions, and if the latest offerings from any manufacturer are not to your taste or wallet restrictions, get a pre-owned one, and take the [significant other] out to dinner with the savings. SOMEPLACE NICE for crying out loud!