WatchProSite|Market|Digest
WatchProSite|Market|Digest

Horological Meandering

I am afraid I m with omega on this one

 


The copyright holder AND manufacturer should have direct control of the pricing of their goods. This is not a case of a copyright holder outsourcing to some manufacturer who could manufacture on a cheaper scale elsewhere and re-import similar goods. This is a firm that owns the brand, the technology and the manufacturing, as such, given the scale of their investment, they should have the basic right of pricing. Can they handle the situation better is a separate debate.

However, if a mere copyright holder in the US or swtizerland outsources the manufacturing to some third party contractor, to find the very goods they sold is re- imported to their domicile country, that's a different case....that's pure economics and international free trade and arbitrage at work, and should be encouraged.

I hope that distinction is made on that front.

That's my only 5 cents(Retail list price) of opinion on this matter, after discount 1.5cents.

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15 Comments view entire thread 

I think the responsibility is on Omega. How did they end up with such difference in pricin

 
By: patrickmaniac : November 8th, 2010-06:29
? Exchange rates aside but 33% of the RRP difference is a huge amount. They should have better pricing allocation. On another note, it also goes to show how much discount (at least) Omega is able to give to the retailers/distributors and how certain folks... 

I think the report glosses over the price differential, which is largely the same

 
By: SJX : November 8th, 2010-06:32
in terms of dealer cost in relation of discount to retail price, generally speaking. There cost differences are minimal, perhaps 40-50% below retail rather than 40 vs 70% as the report implies. The differences arise due to exchange rates, different dealer... 

If Omega wins, they may regret it.

 
By: mkvc : November 8th, 2010-08:48
They're trying to raise the effective price of their watches, but if they succeed, they may find that they won't sell at the higher prices.

luxury goods inelastic

 
By: Patrick  : November 8th, 2010-11:30
Generally, luxury goods are seen as price inelastic. In some instances price increases can actually lead to increased demand, the perception being that the goods are more exclusive and therefore more desirable. I suspect that the Swatch group believes tha... 

I am afraid I m with omega on this one

 
By: Hororgasm : November 8th, 2010-11:35
The copyright holder AND manufacturer should have direct control of the pricing of their goods. This is not a case of a copyright holder outsourcing to some manufacturer who could manufacture on a cheaper scale elsewhere and re-import similar goods. This ... 

don't forget

 
By: sancerre : November 8th, 2010-11:46
Omega is fully responsible for flooding the market with (overstock) watches in the first place. --Sancerre

this confuses me slightly for the following reason

 
By: G99 : November 8th, 2010-13:05
i presume Omega have already sold these watches to dealers worldwide for the price they wanted. the fact that they have effectively forced dealers to buy more than they can sell is their problem. the only way the dealers can offload this unsold stock is t... 

But there is no mention

 
By: Hororgasm : November 8th, 2010-13:13
Of whether these watches are sold to non US ADs who bought them 1)for their domestic consumption solely, then re export them because there is a price arbitrage 2) whther these were forced down the throats of overseas ADs which result in a overstocked situ... 

A Policy Perspective

 
By: CaliforniaJed : November 8th, 2010-20:58
Please for a moment forget about territorial pricing, though of course that appears to be behind the dispute at hand. An arguably legitimate policy perspective behind the position taken by Omega in this dispute is this: If a copyright (or trademark) holde... 

Another perspective....

 
By: SJX : November 8th, 2010-22:55
The regulation of domestic policy should be one for governments. If Omega exports direct to a foreign market, then it is its responsibility to ensure foreign requirements are met. If a middleman exports and neglects to meet these requirements, then it is ... 

Yesss!

 
By: cen@jkt : November 9th, 2010-05:57
Absolutely agreed with you. As long as Costco legally bought those watches, let it sells them at whatever price it deems reasonable. cen@jkt

Interesting.

 
By: CaliforniaJed : November 9th, 2010-06:57
SJX, thanks. I've made a few notes below. I don't think we're fully engaging, though. Your arguments seem largely in favor of the free market. I'm not necessarily opposed. I merely wanted to present, in the abstract, potential public policy rationale in f... 

now...what if Costco decides to sell ABOVE list price?

 
By: Hororgasm : November 9th, 2010-13:16
and they sell a product that is exactly from Omega's international catalogue and/or website that states its available in all/most countries. would that lawsuit be relevent?