Has AP dealer margin hurt the brand

[Randy]

Hey Guys, Have heard a few Ad's dropping AP from their stores due to AP cutting dealer margins. Do you think this will hurt AP in long run or slow sales? Your thoughts.

[el1125]

It will push people to buy more from the boutiques directly. More money to AP directly

[diver2012]

I think it's better for the brand personally.

[texex91]

I don't know how much of it is AD dropping AP, as AP dropping AD's.

We all know brands want to drive margin through boutiques and increase branding. I personally like a more exclusive brand, which will help us all down the road.

[RUK]

I think it's a bit of both. ADs have to think of staffing and floor space. Why hold a brand with a smaller margin when other brands offer more for your resources.

I think it does hurt the brand. I probably would have an AP in the collection if Ireland had an AD. ( the AD sadly dropped AP as apparently there wasn't a large enough demand for it)


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[benlee]

I don't think it will hurt the brand in the long run. Short term yes as distribution channel is more constricted. Long term those who love and collect AP watches will just seek out the boutiques to purchase their timepiece. The boutique model is a plus and minus. Of course it translate to higher purchase price. But even secondary market supply can be controlled, it should also mean an improvement in re-sale value. These two are related.

[bayerische]

Originally Posted by diver2012

I think it's better for the brand personally.

I think so too!

AP is definitely trying to (if slowly) move up to a Patek type of sell. Very strict outlets, no discount to speak of, very high second hand value.

Rolex is a mass-market watch compared to AP, however even being mass-market Rolex has a very good s/h value, and a Rolex is almost comparable to cash in hand.

Patek has an incredible s/h value, has a very strong brand.

While it might hurt us the consumer of AP's a bit right now, I do think it's ultimately better to make AP less of a discounted brand.

Heavy discounts might encourage a buy, but at the same time heavy discounts will make you wonder if the price is inflated to start with.

[GB-man]

Controlling your retail distribution to the customer is almost always a good thing in high end luxury goods imho. Maybe a little choppy while they establish their boutiques etc but long term, I see it being the right move.

[Speed]

Not sure...The AP AD nearest me has just a smattering of models. They say they get 15400's in but they sell right away. No Blue dial of course...Stocking AP seems almost an afterthought. No real brand presence unlike other Local Ads who feature Patek, Vacheron and others.

This AD has a couple Chronos, but really can't count on them now to have anything I want to see. It might do AP a better turn to go to Boutiques.

[HL65]

Originally Posted by benlee

I don't think it will hurt the brand in the long run. Short term yes as distribution channel is more constricted. Long term those who love and collect AP watches will just seek out the boutiques to purchase their timepiece. The boutique model is a plus and minus. Of course it translate to higher purchase price. But even secondary market supply can be controlled, it should also mean an improvement in re-sale value. These two are related.

Agree

[singe89]

I think it's good for the brand. It will help resale in the secondary market, increase perceived value with less discounts available and better allow AP to control the customer experience.

[FightOnSC!]

in So. California I have no AP Boutiques nearby. Which is why I go to the AP boutique in Tokyo when there on business. Being that Miami and NY are both on the east coast and i rarely go that way I do wish they'd make an LA boutique (I'd settle for San Fran if i HAD to).

I feel like most AD's I've been to have shit for selection though.

[AK797]

If it gets rid of large discounts and drops on used prices then it will help protect and preserve the integrity of the brand, and it wouldn't hurt to reduce the number of LE/SEs as well.

[masterserg]

Originally Posted by AK797

and it wouldn't hurt to reduce the number of LE/SEs as well.

Yeah, that and improving quality control a little bit ... At least customer service is second to none.

[texex91]

Originally Posted by FightOnSC!

I do wish they'd make an LA boutique (I'd settle for San Fran if i HAD to).

.

Would you settle for AP Vegas

[FightOnSC!]

Originally Posted by texex91

Would you settle for AP Vegas

I'd prefer it!!!


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[Marciano490]

I just got back from Vegas, and saw a ton of AP's for sale, especially in the Venetian, where i stayed.

[rolepam312]

Originally Posted by bayerische

I think so too!

AP is definitely trying to (if slowly) move up to a Patek type of sell. Very strict outlets, no discount to speak of, very high second hand value.

Rolex is a mass-market watch compared to AP, however even being mass-market Rolex has a very good s/h value, and a Rolex is almost comparable to cash in hand.

Patek has an incredible s/h value, has a very strong brand.

While it might hurt us the consumer of AP's a bit right now, I do think it's ultimately better to make AP less of a discounted brand.

Heavy discounts might encourage a buy, but at the same time heavy discounts will make you wonder if the price is inflated to start with.

I'm certain AP and other luxury watch brand price is inflated ...it's just a number you are willing to pay to play.... Nothing more, nothing less,

[mmancari]

AP creates 30,000 pieces world wide a year. They only have 25 Boutiques. Seems to me, they can control quality, price and margin by offering select pieces available through specific Boutiques, which they do, while limiting the amount of available pieces through authorized dealers.

I went into the New York Boutique yesterday, yes yesterday, and Goly was willing to work with me on price...except boutique editions. I tried on all three divers and will attend the opening in a few weeks and try on the new 42mm's. I'm not sure how they are handling margins but, my feeling is that they are willing to move merchandise.