What does the journey to an Aquanaut look like?

[HMHM]

Originally Posted by Bmats

I dunno. I just saw a 5924G from a trusted seller for about 64k. It’s over 75k retail. If someone sold to the trusted seller it probably was a bunch less than 64k. Once you count tax, you’re down what 20k on one piece. And I would have thought that’s a high demand new watch.

I think the issue is that Patek might have gotten ahead of themselves and priced the watch too high at release. The strategy will work during a bull market, but suspect if things continue to trend downwards, a lot of brands including Patek and AP may have to go back to giving discounts. That is why Rolex was probably a little wiser by not raising prices too quickly and drastically to try and capture the grey market revenue.

I know a lot of watches are still waitlisted. However, if the watches starts taking a beating on the secondary market like the 5924 used as an example, it will be a downward spiral where people see the % losses incurred from the brand new purchase, avoids it, then the AD will have to give discounts and subsequently the buyer will take a further hit when selling to grey.

[lawyerdude]

Originally Posted by HMHM

I think the issue is that Patek might have gotten ahead of themselves and priced the watch too high at release. The strategy will work during a bull market, but suspect if things continue to trend downwards, a lot of brands including Patek and AP may have to go back to giving discounts. That is why Rolex was probably a little wiser by not raising prices too quickly and drastically to try and capture the grey market revenue.

I know a lot of watches are still waitlisted. However, if the watches starts taking a beating on the secondary market like the 5924 used as an example, it will be a downward spiral where people see the % losses incurred from the brand new purchase, avoids it, then the AD will have to give discounts and subsequently the buyer will take a further hit when selling to grey.

Isn’t AP all boutique? Do boutiques have the ability to give discounts? I feel like that is why having AD’s works for Rolex and PP in that they can force the AD to take whatever they hide them and they have the back door way of dumping those items.

[Bartolo]

For many people, gray market makes a A LOT more sense.

IMHO, if you have the funds and want to work up to a grand comp, which also requires a purchase history, that's one thing.

But if your only "real" goal is to acquire an Aquanaut or a Nautilus, do you REALLY want to spend what's required to "get there??" You'll end up buying pieces that sell below BNIB on the gray market; you'll be under-water in those. You'll end up buying jewelry perhaps that otherwise you'd not buy.

So I think it only makes sense if you have 'other reasons' to spend that much at the AD, whereby qualifying for the sports piece comes along for the ride.

[Bartolo]

Originally Posted by lawyerdude

Isn’t AP all boutique? Do boutiques have the ability to give discounts? I feel like that is why having AD’s works for Rolex and PP in that they can force the AD to take whatever they hide them and they have the back door way of dumping those items.

Very few AP boutiques are 100% owned by AP. They are effectively ADs operating a single-brand storefront. That said, there are provisions in their contracts . . . and I have never seen one of those contracts to know the details.

[Bartolo]

Originally Posted by tenementhall

You’ll probably get blacklisted for flipping if you do that though

Correct. This absolutely happens.

[MILGAUSS88]

I believe it looks something like this:

[AEV]

Deleted as I posted it on the wrong forum.

[Watchguynyc8300]

So who owns the company boutiques? Thought all the AP houses are owned by them? Or are the boutiques separate?

[kaiserphoenix]

The thing with Patek in particular that is different to other brands like Rolex and AP is that with Patek if you get it from the Salon/AD your name is on the certificate. Rolex and AP ditched personal details on certificates which i think is a good move for privacy reasons but with Patek if you go grey you get some random persons name. This may or may not bother people but for me, i want my name on the paperwork.

[PP&AP]

I'm not sure the above poster was correct. There are a handful of JV boutiques, but I think AP owns like 70% of them. Material Good is the JV partner for Boston, Dallas, Aspen and AP House NY. I think Manhasset is a JV with someone else.

Originally Posted by Watchguynyc8300

So who owns the company boutiques? Thought all the AP houses are owned by them? Or are the boutiques separate?

[mickyd329]

Originally Posted by PP&AP

I'm not sure the above poster was correct. There are a handful of JV boutiques, but I think AP owns like 70% of them. Material Good is the JV partner for Boston, Dallas, Aspen and AP House NY. I think Manhasset is a JV with someone else.

I agree. My understanding is most boutiques are corporate owned.