Panerai Mark-up?

[drtooth73]

What is the Panerai mark-up?
I know for Rolex, the dealer gets the watch from Rolex at 60% of the retail.
It seems to me that AD's get the Panerais at 45% of the retail.
For example, watch retails at $10000, Panerai AD pays $4500.
Is it about right?

[Trurolexer]

Who's told you 'bout tht info?

[drtooth73]

I have known that about Rolex for many years
Ferrari by Panerai that are not too popular can be seen at some stores with 40% off, and I was told at 55% off at watch shows.

[Bebot]

I think it depends on the model. It ranges from 44%-52%. At least this is what I was told.

[argee1977]

To be fair, i think as with everything it will depend on the amount of stock, the movement of stock, the type of stock and so on.

With Rolex, there is no fixed percentage, if a company with 100 ADs buys in 500 rolexes a month then they will get a better deal than the local AD that buys in 3 or 4. You've also got to add the popularity of the models, rolex are popular in the sports brands and stainless steel, but when it comes to bi-metal and gold watches they're not shifting for anywhere near MRSP, same as the not so popular models as well.

The same thing happens with Panerai, infact it happens with nearly every brand, remember Panerai are part of Richemont, who also own Jaeger LeCoultre, IWC, Vacheron Constantin, Lange & Sohne, Cartier and others, and they all take their orders with pricing and stock levels from Richemont.

[chu88y]

Originally Posted by argee1977

To be fair, i think as with everything it will depend on the amount of stock, the movement of stock, the type of stock and so on.

With Rolex, there is no fixed percentage, if a company with 100 ADs buys in 500 rolexes a month then they will get a better deal than the local AD that buys in 3 or 4. You've also got to add the popularity of the models, rolex are popular in the sports brands and stainless steel, but when it comes to bi-metal and gold watches they're not shifting for anywhere near MRSP, same as the not so popular models as well.

The same thing happens with Panerai, infact it happens with nearly every brand, remember Panerai are part of Richemont, who also own Jaeger LeCoultre, IWC, Vacheron Constantin, Lange & Sohne, Cartier and others, and they all take their orders with pricing and stock levels from Richemont.

agreed with bove,its basic selling really,if you sell a lot of products you expect a good margin,if you don't then your margins from the supplier will suffer.I once worked for Canon and the sales guys were not allowed to sell below a set price,even if a grey dealer was about to steal a Canon direct customer.At the end of the day they are still buying Canon

[Trurolexer]

Thanks for the info, Guys!!!

[jns1201]

thank for the info. next time buying new watch will use this guide.
cheers

[VazLube]

Well if ADs sold watches at cost price, they'd close up shop. ADs have overhead operating costs, so many many variables come in play with retail price and discount.

A question. have anyone actually bought watches at full retail price (besides Panerais obviously!)

[emagni]

Originally Posted by VazLube

Well if ADs sold watches at cost price, they'd close up shop. ADs have overhead operating costs, so many many variables come in play with retail price and discount.

A question. have anyone actually bought watches at full retail price (besides Panerais obviously!)

Yep, black face stainless steel Daytona two years ago and GMT IIc TT when it first came out. Market conditions were different back then plus the SS Daytona was almost out-of-reach for most of us. Plus I could of sold the daytona and make a quick $2,400 back then unlike today.

[B. Doggy]

Originally Posted by VazLube

Well if ADs sold watches at cost price, they'd close up shop. ADs have overhead operating costs, so many many variables come in play with retail price and discount.

A question. have anyone actually bought watches at full retail price (besides Panerais obviously!)

So very true, well said. Yes, I bought my SUB at retail in Las Vegas when I was on my honeymoon. They won't ever discount in Vegas. What I do have is a piece that I love and was from a very special occasion....only to be handed down to later generations with that very story. Well worth the retail price.

[VazLube]

That would very special Sub you got there!

Would we dare to haggle the discount at local supermarket like we do at watch AD?

[Nica64]

Good information guys....... but let's don't forget the AD has the last word or depending how good a customer you are.

[drtooth73]

Originally Posted by VazLube

That would very special Sub you got there!

Would we dare to haggle the discount at local supermarket like we do at watch AD?

Wait, lets compare apples to apples.
AD's markup on a single item is 1000 times more than an item at a supermarket.
Luxury watches, houses, cars, other luxury items - bargaining is acceptable.
There is nothing wrong with getting a discount.
I offer discounts at my practice. Whats the big deal? Especially in this economy.
My local Rolex salesperson says Rolex allows them to discount up to 20 % with no problem, and if you are existing customer and pay cash, you get better deal.
My original question was just for information, not to figure out what kind of discount I can get. I can get watches at cost as a favor, but I dont want to use the favor just yet.
I prefer pre-owned watches, because they cost less and are already pre-scratched.

[VazLube]

It's just that I'm saying that practice of discounting/bargaining is accepted in certain sectors and not in others. You got a point there drtooth.

Getting discount on anything is great, if we can get it, no matter how small it is.

Nice64, totally true on that.

[akrapovic]

About 40%

[bodybump]

maybe at 40% too...not sure just a guess..