Reply With QuoteIt costs a great deal of loss in respect and reputation
I recently bought my wife one of the Rotary "Revelation" (Reverso type) watches, recommended retail price £299, I paid £80. Not a bad watch for £80 but never a £299 watch.
Today I opened the latest Makro Mail and there they are at £49.99 for the same model. Now Makro is making a profit and I'm sure Rotary isn't selling them at a loss. I can't see Makro paying more than £30 for them and probably less, so what does this £299 watch actually cost to manufacture?
Eddie
Whole chunks of my life come under the heading "it seemed like a good idea at the time".
It costs a great deal of loss in respect and reputation
I wont be filed, stamped, indexed, briefed, debriefed, I am not a number, I am a free man, my life is my own!!!
Be seeing you
Toodle pip
Griff.
Hummmm
I once worked for a small jeweller, instructions were to price up everything up 300% from cost to us. To be fair, similar watches we sold to say a Goldsmiths or similar had similar prices, give or take a few pounds, so 300% is at least the norm..... makes you think !!!
You have to add Vat to Makro prices - but that is still a good deal.
I guess they buy them by them in rather large quantities...
Cheers
Mark
Just wondering if anything changes at 100 posts
Only one way to find out
Well here it is post 100,
Thank you to all who participate in these discussions, You can tell from this that I read more than I post, but good fun all the same.
Best regards
Mark
I've no idea but once the watch is made production cost is irrelevant. When you sell it and how much for are the only variables that you can control.Originally Posted by swanbourne
Every day you hold it as stock it costs more in interest, so if they could shift the lot to Makro to fund some faster selling and more profitable lines it would be worth selling at a loss.
Hmmmmm. Mark-up is always an interesting concept. Often it is simply determined by 'what the market will stand'.
I've seen those watches in an AD at the recommended price. Don't know what discount, (if any), would be available there though at watches in that price range.
I guess the questions have to be......
Are they genuine?
Are they seconds/refurbs?
Are they the older 'discontinued' model?
Do you get the full Manufacturers Warranty?
And if you think that that the mark-up on Rotarys is high then it'd be interesting to know what the manufacturing costs and mark-up for the likes of Rolex, Omega, Breitling etc are.
I don't see Rotary paying superstars lots of money to be 'ambassadors' for their products. Or sponsoring major events to gain publicity. Same with lots of other good brands, Timefactors included. That MUST be reflected heavily in the mark-up and purchase price. It's also why I never buy big name brands, who PAY people to wear their watches, new. :wink: :) :) :)
Best Regards - Peter
I'd hate to be with you when you're on your own.
Hmmm nice to see some help going to a minority sport and people who really need it.
Its all about a infinite variety of business models.
If you compare the USSR watch industry to that in the capitalist world it would seem that its a case of the more the merrier.
There is room for anyone who can market a watch people want to buy.
Rolex, for instance. is a charity, so at least their grasping and theiving is in a good cause!
I am constantly amazed when people ask 'How can Seiko/Citizen do it for the money' when they should be asking 'Why does any sane person pay thousands for something that costs less than £100 to make!' We all know how the vast majority of watches are manufactured and put together, and people don't figure much in the process. All the rest is marketing and brand name clout.
Whenever there is a photo-tour of any of the Swiss big-brand factories, the main production area is conspicious by its absence. Can't imagine why... :wink:
To put things in context, what Rotary have done with the pricing on this model is the equivalent of being able to pick up a Rolex Sub in Walmart for £300. Can anyone see this happening?
I really think Rotary should support their brand better; how would you feel if you'd bought one for £299 and then seen it on offer at £49.99? What represents a fair and realistic price is a different argument altogether.:wink:
Eddie
Whole chunks of my life come under the heading "it seemed like a good idea at the time".
That you never do see a Rolex in Wal Mart is a tribute their ruthless management of the supply chain.
Sounds strange but by maintaining their margins Rolex seem to benefit everyone. Themselves, charity, the dealers, buyers when they come to re-sell and Roger Federer.
It's enough to make you believe in god :wink:
My guess is less than most would guess. Whilst it is a different commodity a mate had a radio in his new Nissan Micra go duff on him. Local dealer replaced it under warranty but is was slightly different (improved, according to the dealer!). His wife preferred the first one so he asked if the dealer could get it repaired & re-fit it - No sir, we throw them away came the reply, cost Nissan less than £5 to make.........
When you look long into an abyss, the abyss looks long into you.........
Absolutely. But that presupposes that Makro got them from Rotary direct. Now that may well be the case, but I know that all the big named brands insist on a minimum order level from their ADs to retain AD status. Many ADs simply can't afford that amount of stock on their shelves so sell them, often at cost, to the 'grey' sellers. So they appear on the internet at significantly reduced prices but with no manufacturers warranty. Which is why one of my questions to Makro would be, does it have a manufacturers warranty.
This may be the case with the Rotarys you've seen, then again, it may not.
Best Regards - Peter
I'd hate to be with you when you're on your own.
This is all good and fun, and yes, mostly you are right. I however have a huge problem with being robbed blind. The Micra Radio is an example. Just how much would it cost to buy ? I mean, as a customer if you went in and asked for one the answer would be at least £120, but costs them under £5 to make.....
A few years ago my at the time fave Navitimer went bad. Took to a few jewellers who all claimed £££ to repair, one went as far as to suggest £900, all good and well till I discovered cousins, that a 7750 can be had for 200 new, and that fitting took my trusted jeweller half a day of carefull work and to include changing all the relevant breitling marked parts. watch still works today perfectly....when I worked for volvo the then cassete players we used to sell to customers cost the dealership £18 each....duly sold to a customer for £150, with inside knowladge, it is no surprise that those in the know are a little sceptical of the total lack of correct warranty's and over inflated prices on most new things. I have become a great fan of Lidl in spain. Quality is excellent considering the prices paid for most things, and if they do go wrong in 3 years...hey, I paid peanuts.
A friend of mine just paid £750 to Rolex for an extended service on his submariner....the fact that the watch returned with a loose machine that moved about when he pulled out the crown is ...a joke....the fact that the watch is less then 5 years old is even worse....gee if they dont last 5 years without that kind of expense / daylight robbery then what is the point?
My 2c as they say, geeee, I talk too much
Cheers
There's a hose job round' every corner. :evil3:
No you don't. It's all good stuff.
john
Every watch a story.
I remember about 15 years ago you could buy a Swiss made quartz Rotary on the high street while Argos sold a near identical version for "half price". The Argos one was made in Japan. It was almost impossible to tell the 2 apart - mainly the cheaper one didn't say Swiss Made on the dial.
You are just "constantly amazed" :lol:
As for your "main production area conspicuous by it's absence" conspiracy theory here is one of GP.
I think I posted the Omega production facility after your last "constantly amazed " post. :wink:
Plenty of other stuff in this vein at TimeZone.
Take a look.
http://www.timezone.com/library/extras/200612124561
Cheers,
Neil.
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