Saturday, 18 April 2015

ADs and Discounts

A reader wrote in to ask if it was possible to get good discounts for branded Swiss watches at ADs?

Well, from my limited experiences, I would say Yes and No. It all depends on your relationship with the AD.

By right, ADs were supposed to move pieces only at the brand's approved pricing, as part of the brand's price control so that the prices would be largely consistent. However, sometimes, ADs do give higher discounts for showroom pieces, older models, or just to get the necessary cashflow in. It helps, of course, if you have a good relationship with the ADs.

Personally, I have had some good discounts from local ADs- up to 30% on brands such as Bell & Ross, Omega (yes, Omega!), etc.

The Omega at 30% off for all models on display in the AD, was like Christmas came early. The Manager informed me that business was slow and they wanted to generate some inward cashflows. So they were offering selected repeated customers on the deal. Recently, I was at the same AD again and asked if they could give me the same 30% discount that I bought previously; but was informed that the offer was only once-in-a-blue-moon. It was done in a discreet manner as they could risk losing the right to carry the brand if the brand owners come to know about it. That was why the ADs don't issue us official receipts when they allocated higher discounts to us buyers.

Recently, pursuant to the GST, an AD called and asked if I was interested in the 2011-launched Jaegar-LeCoultre Amvox5 Chronograph World Aston Martin Limited Edition 215/250. They wanted to clear off the piece and was prepared to let go at RM51k compared to the RRP : RM73k. That's almost 31% off! They told me that it was the best discount ever for a JLC, what's more a limited edition piece.




I wasn't really a fan of JLC, but I decided to take a look anyway. For sure, it was a beautiful piece and the dial was a piece of art.






For a discontinued limited edition, and if you're a fan of JLC and/or Aston Martin, I would opine that it was a good collectible piece. For me? I'll pass for the interim period, thank you.

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