Patek Philippe

whit
558

• Show profile
• Show other posts

There is not anything that I recall about discounting

although there was encouragement for everyone to "look at your margins".  I sold pieces at list, not below and certainly not above.  I felt the prices were fair (the April '08 increase was a bit strong but given the frenzy, the thought was probably that folks would pay it) and they allowed us to service clients properly and hopefully replace inventory and continue.  Selling at an inflated price crossed the boundaries for me. Would not and never did.  I did hear about an AD who had a platinum 3960 (this is in 1989 with the 150th anniversary pieces) who was asking something like $90,000 which created a lot of talk in the office.  The 18k yellow gold version listed at $9150 and I suspect the platinum version was $8-10,000 more so $18-20,000 list.  I never got one because there were only 50 made.  Be aware that this is on the heels of the Hapsberg-Feldman auction when record prices just started to be talked about and publicized.  This seemed to be the mark of the beginning of Patek's international rise and popularity.

What is an AD supposed to do after the watch is sold?  Simply, nothing he can do.  But, knowing your client is the key.  I know my clients and the watches they have purchased and what they can afford to purchase.  Selling via phone or internet removes that knowledge and can make for a lot of headaches.  I was made aware that when unusual situations occurred, that Patek would call an AD and wanted to see the sales ticket, copy of the COO to figure out what had happened.  I never experienced that so I don't know if it was a scare tactic or if it really happened to any AD's (Since I didn't solicit or accept business outside my area, that was never an issue)

I do believe that many AD's consider out of town (primarily by phone, fax, email, etc.) business as free business meaning that they have one opportunity to make a sale and that is determined by price.  If they have an opportunity to capture a sale at a lower margin, it's been with minimal effort and will not affect their own local business, even though it has effects on other dealers.  Here again, movement of money.

How many folks spend $50,000 on a piece and within a short period find themselves in a position that they have to sell it to raise cash?  Most people just don't do that.  I can understand if someone has had a piece for some time and decides he'd rather have something else, but to bail after a few weeks or months?  There are always circumstances, but if it looks like a duck, walks like a duck..... I think you know what I'm talking about.  Excuses can be made for anything to make them appear perfectly innocent when our gut says something else.

You're right about the ordering process, it makes you have movement of money and in many instances, selling another brand or a piece of jewelry pays the freight for others.  When you are not allowed the time to sell the product correctly, all sorts of things are forced to happen. Are other brands essential to take care of Patek?  I don't think so.  The brand must be able to stand on its own and not rely on just a few models to take care of the rest.  My loyalty was to Patek and I wouldn't entertain any other brand of similar price to compete, I had lower end luxury  brands but none which competed with Patek directly. 

These questions and statements are hard to answer because it's not just yes or no, but requires a careful response so there are no misinterpretations so please forgive me if I ramble.  It's far easier for me to speak than to write.  I'm sure my English teacher would have a heyday. And my experience(s) could certainly have differed from others, but I hope this sheds some light on what the other side of the fence is like.