The article says that TAG hasn't increased their sales volume, that it's basically flat.
There is definitely enjoyment value with the Boutique experience. I can totally understand that.
When you take a step back though, would you pay 4 figures for that Boutique experience, which is what it equates to in lost discount?
I hear you. It sort of depends on how often you buy and what watches you're after.
Many of the LEs, SEs and "limited availability" models are much easier to get via the boutiques. Having a good relationship increase ones chances of getting a hot popular LE model. It's tougher to get discounts on these at ADs, even if they carry them. Plus the more you buy from a boutique, the more royal treatment you get, such as invites to VIP events and dinners etc. Which in turn helps to ensure one keeps buying from them.
OTOH, for the more mainstream models and infrequent buyer, it probably makes a lot more sense to go for the discounts.
Have to agree all round there. Completely depends on what you’re looking to buy and how often.
I hear you. It sort of depends on how often you buy and what watches you're after.
Many of the LEs, SEs and "limited availability" models are much easier to get via the boutiques. Having a good relationship increase ones chances of getting a hot popular LE model. It's tougher to get discounts on these at ADs, even if they carry them. Plus the more you buy from a boutique, the more royal treatment you get, such as invites to VIP events and dinners etc. Which in turn helps to ensure one keeps buying from them.
OTOH, for the more mainstream models and infrequent buyer, it probably makes a lot more sense to go for the discounts.
Up until a few months ago, I couldn't even see at a LE / SE in the metal. Boutique helped solve that problem.
Agreed, that's the present situation but I'm alluding to the strategy going ahead - but then again, this is just a feeling.
I was also wondering if TH ever thought about their own formal pre-owned division, much like what Rolex has. It could be aimed at the Aquaracers, F1s and Cal 16 and 1887 models. It would make sense since TAG already offers 2 years warranty on their full service, which would definitely be an incentive for buyers not looking to fork out retail but still get the security.
I believe even TAG boutiques (Goldsmith owned) will discount models, but only if they have been around a while and the buzz has gone cold. So if you can wait for a regular model you might save yourself some money
Many of the LEs, SEs and "limited availability" models are much easier to get via the boutiques. Having a good relationship increase ones chances of getting a hot popular LE model. It's tougher to get discounts on these at ADs, even if they carry them. Plus the more you buy from a boutique, the more royal treatment you get, such as invites to VIP events and dinners etc. Which in turn helps to ensure one keeps buying from them.
I don't understand the pricing strategy, which means I am not the target customer going forward. Surely there are plenty potential customers out there happy to spend crazy money on luxury items, and luxury in the 21st century means high price and branding. Quality and the actual product has nothing to do with luxury in today's world. A higher price means more exclusive and luxurious in this brand obsessed society of ours.
I really really wish we had someone on the inside at TAG or a similar big Swiss brand. What could the manufacturing cost be for a $9400 Monaco? Qualified guesses anyone? Perhaps $300, or even $450? Of course material and production cost of mass producing a cheap factory made product has nothing to do with luxury (high sales price and brand perception) but it is a curious thought what wonderful margins the luxury groups have for their products.
Anyway, what brand forum should we all move to? 😎 My next purchase might be a German one, German watch prices have gone up too but still reasonable compared to the Swiss madness.
But that makes no sense, the article says TAG has double digit growth thanks to increased prices. Clearly it seems to be a very wise business decision to move into the luxury space and keep increasing the prices.
How long do you think you can (over)compensate declining volumes with ever higher prices? When does the cost of developing new models that sell in ever smaller numbers become prohibitive?
It seems like a no brainer to sell at 15k, except where you can sell significantly more at 5k. It’s those comparison numbers that really matter. By the sounds of it, they appear to have picked the best option from a short term point of view.
I don't know, if long term you want to build a proper luxury brand, perceived as exclusive and expensive, it feels like they are doing the right thing. That doesn't happen quickly but they have to start somewhere. In five to ten years the average sales price of a TAG Heuer could be 20k, only time will tell how it plays out. I don't think moving upmarket to reach luxury buyers is necessarily a short term gain. All over the world we see a dying middle class with weakened purchase power, perhaps it is not sustainable long term to rely on middle class buyers who only buy one or two of your watches per year.
