Can't Argue With Success

https://www.bloomberg.com/news/articles/2022-07-08/omega-moonwatch-sales-surge-after-cheap-swatch-version-goes-wild

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Let me guess. People are buying Speedys because they can’t get moonswatches?  The world is a truly amazing place. 

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thekris

Let me guess. People are buying Speedys because they can’t get moonswatches?  The world is a truly amazing place. 

Or maybe they are buying both?

I didn't read the article, but the fact that sales went up means the MoonSwatch has been a success no matter how some of us have soured on it. 

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The secondary market prices for these don't seem to reflect that success. I had purchased the Sapphire Sandwich version in May of 2021, and was able to negotiate a discount from list. If I were to sell it now based on the asking prices on Chrono 24, I'd end up losing somewhere between 20-25%. At the start of the year, that loss would have been closer to 10%. I realize that prices are down across the board, but this model seems to have taken a bigger hit that most (aside from the over hyped pieces that were up into crazy train territory in terms of secondary market pricing).

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tempus

The secondary market prices for these don't seem to reflect that success. I had purchased the Sapphire Sandwich version in May of 2021, and was able to negotiate a discount from list. If I were to sell it now based on the asking prices on Chrono 24, I'd end up losing somewhere between 20-25%. At the start of the year, that loss would have been closer to 10%. I realize that prices are down across the board, but this model seems to have taken a bigger hit that most (aside from the over hyped pieces that were up into crazy train territory in terms of secondary market pricing).

Omega doesn’t have the cache of Rolex so their watch prices are based more on what you’re getting, and they depreciate like most other items do. So I don’t know that this is a Speedmaster problem so much as a problem of us starting to think Rolex and Patek price increases are normal. 

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OMG...

This is absolutely GENIUS and something I never would have predicted in a million years.

In your "death of the Moonswatch" thread, I'd assumed that Swatch simply not being able to ramp up production enough to meet demand and constraints associated with contractual obligations with their ADs and franchisees was the primary reason they weren't selling them online.  

But, this article sheds new light on the whole affair.  One could imagine the following series of events:

  • Swatch goes to sell the Moonswatch, and is totally caught off guard by the crazy demand
  • They fumble and bumble about over the course of the launch
  • They both unofficially (back channel conversations with reporters and industry insiders) and officially say, "Yo, don't worry.  You'll be able to buy these online soon enough"
  • Then...  Omega Boutiques start to report sales trends...  "Uh...   Mr. Hayek, sir, it looks like sales of our 3861 models is skyrocketing!  50% increase in sales!  And all other Speedmaster models are selling like hotcakes too!"
  • Mr. Hayek then does some simple math...  actually, I'm looking at photos of him right now, and he doesn't look like the sort who can do simple arithmetic, so probably, he says, "Jones!  What does '50% increase in sales' mean?"  Jones says, "Uh...  that means more watches were sold, sir.  Like, um, it's like the jelly beans you like to eat in the morning.  Instead of 10 jelly beans, 50% more means...  15 jelly beans, sir"
  • "Oh, more jelly beans!" he exclaims.  They escort him out of the office, and then the management team gets to work
  • "Okay, guys, we would need to sell 30 Moonswatches to generate the same revenue as 1 3861.  The Moonswatch was the best thing to have ever happened to the 3861!  So, let's keep the Moonswatch in the limelight.  No online sales.  We'll talk a big game about 'in person experience' and all that BS, but all we're doing is goosing sales of the 3861!"

Amazing.  Totally unforeseen.  I mean, the predominant narrative that we've all been concerned with is "Swatch is purposefully reducing supply of the Moonswatch in order to generate hype for the Moonswatch!"

That narrative makes no sense whatsoever and has no merit in the context of selling more Moonswatches.  Executives don't care about hype.  Executives care about hitting their quarterly numbers, and if they don't hit the quarterly numbers, they get fired.

But, the genius and unforeseen part of all of this is that they are limiting supply and limiting outlets in order to create hype...  for the 3861 and all other models of the Speedmaster!!!  

Bravo to the Swatch Group!  They have my undying respect.

Well Played Sir GIFs | Tenor
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Mr.Dee.Bater

OMG...

This is absolutely GENIUS and something I never would have predicted in a million years.

In your "death of the Moonswatch" thread, I'd assumed that Swatch simply not being able to ramp up production enough to meet demand and constraints associated with contractual obligations with their ADs and franchisees was the primary reason they weren't selling them online.  

But, this article sheds new light on the whole affair.  One could imagine the following series of events:

  • Swatch goes to sell the Moonswatch, and is totally caught off guard by the crazy demand
  • They fumble and bumble about over the course of the launch
  • They both unofficially (back channel conversations with reporters and industry insiders) and officially say, "Yo, don't worry.  You'll be able to buy these online soon enough"
  • Then...  Omega Boutiques start to report sales trends...  "Uh...   Mr. Hayek, sir, it looks like sales of our 3861 models is skyrocketing!  50% increase in sales!  And all other Speedmaster models are selling like hotcakes too!"
  • Mr. Hayek then does some simple math...  actually, I'm looking at photos of him right now, and he doesn't look like the sort who can do simple arithmetic, so probably, he says, "Jones!  What does '50% increase in sales' mean?"  Jones says, "Uh...  that means more watches were sold, sir.  Like, um, it's like the jelly beans you like to eat in the morning.  Instead of 10 jelly beans, 50% more means...  15 jelly beans, sir"
  • "Oh, more jelly beans!" he exclaims.  They escort him out of the office, and then the management team gets to work
  • "Okay, guys, we would need to sell 30 Moonswatches to generate the same revenue as 1 3861.  The Moonswatch was the best thing to have ever happened to the 3861!  So, let's keep the Moonswatch in the limelight.  No online sales.  We'll talk a big game about 'in person experience' and all that BS, but all we're doing is goosing sales of the 3861!"

Amazing.  Totally unforeseen.  I mean, the predominant narrative that we've all been concerned with is "Swatch is purposefully reducing supply of the Moonswatch in order to generate hype for the Moonswatch!"

That narrative makes no sense whatsoever and has no merit in the context of selling more Moonswatches.  Executives don't care about hype.  Executives care about hitting their quarterly numbers, and if they don't hit the quarterly numbers, they get fired.

But, the genius and unforeseen part of all of this is that they are limiting supply and limiting outlets in order to create hype...  for the 3861 and all other models of the Speedmaster!!!  

Bravo to the Swatch Group!  They have my undying respect.

Well Played Sir GIFs | Tenor

Now if I only had an extra $7-$8K 

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the Swatch/Omega was only ever a promotion for those brands and were never circulated enough to turn a profit. Its a lost leader in advertising terms.

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First man to set foot on the moon did not wear any watch. 2nd man to set foot on the moon wore an omega speedmaster .. When bitcoin goes to the moon again all crypto nerds will be wearing an omega speedmaster  

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OldSnafu

the Swatch/Omega was only ever a promotion for those brands and were never circulated enough to turn a profit. Its a lost leader in advertising terms.

I think the Moonswatch in itself is profitable, it is not all that inexpensive for what you get. I fully agree on the promotion not being cheap. It don't think crowd control is the main business of Swatch stores, only to sell a few watches. 

It will be interesting to see how it pans out in the long run, meaning will elevated sales remain after the promotion? My gut feeling is that it was still the right thing to do, to reach a demographic that hadn't considered Omega before.

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Mr.Dee.Bater

OMG...

This is absolutely GENIUS and something I never would have predicted in a million years.

In your "death of the Moonswatch" thread, I'd assumed that Swatch simply not being able to ramp up production enough to meet demand and constraints associated with contractual obligations with their ADs and franchisees was the primary reason they weren't selling them online.  

But, this article sheds new light on the whole affair.  One could imagine the following series of events:

  • Swatch goes to sell the Moonswatch, and is totally caught off guard by the crazy demand
  • They fumble and bumble about over the course of the launch
  • They both unofficially (back channel conversations with reporters and industry insiders) and officially say, "Yo, don't worry.  You'll be able to buy these online soon enough"
  • Then...  Omega Boutiques start to report sales trends...  "Uh...   Mr. Hayek, sir, it looks like sales of our 3861 models is skyrocketing!  50% increase in sales!  And all other Speedmaster models are selling like hotcakes too!"
  • Mr. Hayek then does some simple math...  actually, I'm looking at photos of him right now, and he doesn't look like the sort who can do simple arithmetic, so probably, he says, "Jones!  What does '50% increase in sales' mean?"  Jones says, "Uh...  that means more watches were sold, sir.  Like, um, it's like the jelly beans you like to eat in the morning.  Instead of 10 jelly beans, 50% more means...  15 jelly beans, sir"
  • "Oh, more jelly beans!" he exclaims.  They escort him out of the office, and then the management team gets to work
  • "Okay, guys, we would need to sell 30 Moonswatches to generate the same revenue as 1 3861.  The Moonswatch was the best thing to have ever happened to the 3861!  So, let's keep the Moonswatch in the limelight.  No online sales.  We'll talk a big game about 'in person experience' and all that BS, but all we're doing is goosing sales of the 3861!"

Amazing.  Totally unforeseen.  I mean, the predominant narrative that we've all been concerned with is "Swatch is purposefully reducing supply of the Moonswatch in order to generate hype for the Moonswatch!"

That narrative makes no sense whatsoever and has no merit in the context of selling more Moonswatches.  Executives don't care about hype.  Executives care about hitting their quarterly numbers, and if they don't hit the quarterly numbers, they get fired.

But, the genius and unforeseen part of all of this is that they are limiting supply and limiting outlets in order to create hype...  for the 3861 and all other models of the Speedmaster!!!  

Bravo to the Swatch Group!  They have my undying respect.

Well Played Sir GIFs | Tenor

Agree with you bro. But the way you put it is hilarious 🤣

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I was all on board with this moonswatch after all this I rather get the real deal just Omega.

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ChadDipps

I was all on board with this moonswatch after all this I rather get the real deal just Omega.

I'd rather get the Speedy too, but I'm about $6k short