Czapek

[deuxani]

Originally Posted by mikemargolis

OK, here's the deal.

When the order books reopen on April 1, the Antarctique regular editions (L or S) will be priced at CHF22,000 or USD25,000, a raise from CHF20k and USD22k.

Hi Mike. Will prices also increase for watches that were ordered a year ago or longer and haven’t been delivered yet?

[mikemargolis]

Originally Posted by deuxani

Hi Mike. Will prices also increase for watches that were ordered a year ago or longer and haven’t been delivered yet?

Unless there is a wild swing in exchange rates from CHF <-> your local currency, the open orders will stay at the ordered price.

[mikemargolis]

Originally Posted by Armis

Mike, is the Ti version limited edition of 100 and done, or limited production with another batch planned in future?
Thanks.

From Switzerland:

"Limited production, about 100 pieces per year. We plan to keep that one as continuative model."

[deuxani]

Thanks for letting us know Mike. Much appreciated.

[Heinb]

Looks like a skeletonized Antarctique is also in the works. Can’t wait to see it.

[enjoythemusic]

Great news! The order book is reopening :)

[rag5178]

That’s great news. I will be very curious to see how quickly the order book fills up given the higher price point as well as the generally softer market.

[PT_91]

Originally Posted by enjoythemusic

Great news! The order book is reopening :)

What's not to love about this guy!

[Schweinwerfer]

Originally Posted by rag5178

That’s great news. I will be very curious to see how quickly the order book fills up given the higher price point as well as the generally softer market.

Dare I say it won't fill up at all.
At the price point right now it became just a little less desirable in my opinion.

[charger_vital]

Originally Posted by Schweinwerfer

Dare I say it won't fill up at all.
At the price point right now it became just a little less desirable in my opinion.

You could be totally right. I am very curious to see myself.

[Bug04]

With a high single digit inflation of 2022 and the watch that will be paid (70%) in 2025, in real terms this may not even be considered a price increase …

[rag5178]

Does anyone else have any concerns about Czapek re-opening the order book despite facing significant delays on existing orders? Over the past few months, my feelings have transformed from being very excited about my order to very frustrated with the confusing and contradictory updates that the manufacturer has been providing me regarding my delayed order.

[ndrs63]

Originally Posted by rag5178

Does anyone else have any concerns about Czapek re-opening the order book despite facing significant delays on existing orders? Over the past few months, my feelings have transformed from being very excited about my order to very frustrated with the confusing and contradictory updates that the manufacturer has been providing me regarding my delayed order.

They mentioned that any new orders will be fulfilled only in 2025. Not sure it’s a good strategy, though


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[ap1]

My thoughts are currently this on the topic. some are general to the new product release period for watches around the fairs, let’s call it March and some are specific to how czapek is choosing to market and operate. Omega etc had been getting new products out around august/september. I felt that was crazy and needed to shrink. Tudor seemed to be more ready with immediate delivery of at least a few units shrinking that lag materially. When czapek announced the titanium beauty I was literally shocked that a few AD websites said for 2025 delivery. So that’s not only later the same year, but say 24 months later for the first delivery. Why even bother to start talking about the titanium version. Just delay it to 2024 March or even better, 2025 then have zero lag to market. Of course, on the corporate side, they are trying to expand capacity, increase production, seek partners to help with supply, and most importantly capitalize/profit from their early success. But I do feel a major risk to that model is making end customers mad. They can’t forget, it’s one thing for their ADs to have to play that game and press can say that czapek is sold out and oversubscribed etc. but if enough lag happens and failed promises on delivery happen, it could cause the entire thing to crumble regardless of how nice the watches are. And they are! Also, another major risk is all these companies projecting demand around the ABNORMAl Covid era when folks had nothing to do but buy materialistic stuff from their homes rather than travel, tourism etc. is it accurate to just assume a straight line up on demand? I don’t think so at all. The last comment I’d make is, I love these smaller brands and have had plenty of their watches. But I can tell you this, They are a lot less liquid on the secondary market then people think when they shell out 25k for these unnecessary machines we all love so much. Trends/tastes can change quick and those end users can have a lot of things happen to their personal finances during the next 24 months to when the product is actually available. Btw, I have a czapek and love it and I’m pretty sure I’m gonna commit to another and wait the 24 months lol. So maybe they are right after all…….

[JR16]

Originally Posted by Bug04

With a high single digit inflation of 2022 and the watch that will be paid (70%) in 2025, in real terms this may not even be considered a price increase …

Agreed. It’s trivial. If you put down 30% deposit ($7500) and stick the other $17500 in a two year fixed income product (eg CD) at 5% , the extra $ you are paying compared to current msrp is only around $1200.


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[rag5178]

Originally Posted by JR16

Agreed. It’s trivial. If you put down 30% deposit ($7500) and stick the other $17500 in a two year fixed income product (eg CD) at 5% , the extra $ you are paying compared to current msrp is only around $1200.


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I feel like this way of looking at it ignores the fact that many people will be taking delivery of their orders throughout 2024 at the old MSRP, so the price hike isn’t really in relation to the price at today, time zero, but actually end of 2024, time 2.

Regardless, I doubt most buyers are doing a time value analysis in their purchase decision. I think most people just look at the sticker price and determine affordability/value based on the price.

Personally, I think the price hike is a good idea for Czapek. They need to slow down the flow of orders so that they can catch up on production and a higher price is as good a way as any to accomplish that.

[swaini3]

Originally Posted by rag5178

Does anyone else have any concerns about Czapek re-opening the order book despite facing significant delays on existing orders? Over the past few months, my feelings have transformed from being very excited about my order to very frustrated with the confusing and contradictory updates that the manufacturer has been providing me regarding my delayed order.

I've been waiting a while for my piece to arrive and I agree it's annoying. However, I'll give them credit for giving the reason as per the video for the priority going to existing orders (like me and you).

[swaini3]

2025 deliveries maybe a stretch for current buyers but kudos to them for being straight. BetteR this way than announce 2024 deliveries and then later delay it a year, which many other businesses will do.

[ndrs63]

Originally Posted by swaini3

2025 deliveries maybe a stretch for current buyers but kudos to them for being straight. BetteR this way than announce 2024 deliveries and then later delay it a year, which many other businesses will do.

It’s not going to play out well. 24 month wait plus an economy downturn will keep the list open for a very long time


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[dchang81]

Originally Posted by rag5178

Does anyone else have any concerns about Czapek re-opening the order book despite facing significant delays on existing orders? Over the past few months, my feelings have transformed from being very excited about my order to very frustrated with the confusing and contradictory updates that the manufacturer has been providing me regarding my delayed order.

I was concerned that I ended up canceling my order after being delayed then delayed some more maybe I made a mistake. but reopening the books and announcing releases that won't be ready for two years kind of makes me fine with my decision. oh well, was initially super excited but that turned to meh.

[ricky64]

Good discussion. I talked to an insider who feels the folks at Czapek prioritize transparency, have a good business plan, and understand the customer's expectations for the experience of purchasing a luxury product. I suspect their production dates and marketing are well thought out. Only time will tell whether they are successful.
I believe the main question is whether, in a softer watch market, there will be enough customers who truly want to buy and wear regardless of resale value. It seems a number of deliveries these days go directly to Chrono24 where they sit unsold with an unrealistic price tag. With more deliveries ahead, I suspect resale will tank, but then will rise again as the brand achieves some cred over time.
I also feel they need to be able to go to the new major watch shows with strong new designs. I think they have to do this in spite of production limitations. So, releasing now with later delivery dates makes sense to me....

[ricky64]

Originally Posted by dchang81

I was concerned that I ended up canceling my order after being delayed then delayed some more maybe I made a mistake. but reopening the books and announcing releases that won't be ready for two years kind of makes me fine with my decision. oh well, was initially super excited but that turned to meh.

My interest was waning with the wait. But after finally receiving an Antarticque and having the in person wrist experience..yowsa. I love it. And now I want more Czapek....

[rag5178]

Originally Posted by ricky64

understand the customer's expectations for the experience of purchasing a luxury product.

I felt this way for a while and found the accessibility of being able to speak directly to Czapek to be a differentiator from the experience of buying from the bigger brands. Over the past couple of months, however, my experience has changed. Mike has been helping as a liaison between me and the manufacturer regarding the status of my watch and he has been very responsive. Unfortunately, the updates that we have been receiving from the manufacturer have been consistently poor.

[ap1]

Skeleton !

[enjoythemusic]

Sketch of the new model coming out tomorrow.

[justcruisin]

Oh my...depending on the price point of this one...and assuming there is availability, I wonder if they will allow swap of an existing deposit to these newly announced ones...

[deuxani]

Originally Posted by enjoythemusic

Sketch of the new model coming out tomorrow.

Attachment 1356607

I saw photos of the real deal a couple of months ago. It's impressive! Very different from what you normally see with skeleton watches. It basically looks like this sketch, but in reality it's much more subdued and legible.

[MostlyCloudy]

cancelled my order a while back, puzzling to see them release new models AND fulfilling those vs the orderbook of the normal antarctique from a year ago. granted the normal antarctique may fetch them lower margins vs the frozen star or the new skeleton variant, so from a commercial standpoint it makes sense for them

nevertheless its still a nice looking piece - for those who have their orders fulfilled alr wear them in good health!

[mikemargolis]

I will not make any comments until tomorrow on the new releases, but today I'll say this:

We should manufacture in 2023 somewhere around 800 watches. 2022 was about 600.

We have open orders for more than twice the 800, before we open books on 1 April.

So, 2023 and 2024 will be the years to fulfill the orders that we already have in house.

2025 will be the year to deliver the Dark Sector, the skeleton, the new 38.5's that will announce tomorrow, etc....

While we recognize and apologize for the long delay, ultimately we are still a small company who has huge demand, and we don't want to, nor could we even if we did want to, triple capacity and make 2000 watches in 2023.

We do have to release new products at Watches & Wonders (and at Geneva Watch Week too <winking emoji>), but we're being honest and saying there will be a long wait for these new pieces.

We are working on a FIFO basis, and trying to fulfill our oldest orders first, depending on parts availability.

Hope this explains a little for the person who is about to say "YOU HAVEN'T DELIVERED MY ORDER FROM LATE 2021, WHY ARE YOU RELEASING NEW STUFF????"

[FrugalGreubel]

Originally Posted by enjoythemusic

Sketch of the new model coming out tomorrow.

Attachment 1356607

I want this. Well depending on the price and availability lol.