Luxury watches, homes, cars, boats and other jewelry - all major purchases. Although the definition of what a luxury watch may differ from, it is safe to say that watches ranging from $ 5000.00 and up are a luxury for most people. It is interesting to note that in comparison with such things as houses and cars, watches are much more controlled goods, even when the price for these watches can cost significantly less than your home or car.
So what is it? Well, luxury watch makers often have rules against selling their products online to their authorized dealers. Not only that, but if you visit the site of many watch manufacturers, the first thing you will see is “DO NOT BUY OUR PRODUCTS ON THE INTERNET”.
"So what?" you can ask. Well, in the eyes of this author, this rule throws into the face some of the main practices that are part of the world of commerce and capitalism in most other industries.
For example, take the example of cars. According to the Federal Trade Commission, the average price of a new car in 2009 was about thirty thousand dollars. The typical price for the famous Swiss diver’s watch starts at about $ 1,500 or so and comes to $ 5000.00 and up. You might think that a luxury car would be harder to buy online than the cost of hours, considering less, right? However, at the time of this writing, more than 2,600 new cars were sold at a popular online auction site, with prices starting at $ 30,000 or more.
In the first part of our series “Luxury Watches - Why You Should Buy Your Next Online” We will consider the following question:
1) Why do many watch manufacturers prohibit their authorized dealers to sell online?
So why do many watch manufacturers prohibit their authorized dealers from selling online?
1) There may be several reasons for this rule, but certainly the most obvious one is ... a drum, please ... you guessed it, price controls! What causes the number one hate for manufacturers to sell online products? Price competition. In the end, which of the following scenarios will lead to a better deal for you, the consumer?
a) You get one local dealer to choose who sells your product at the lowest manufacturer price and with limited choice,
OR
b) You can choose from 10 dealers from around the country who compete with each other to offer you the best price, choice and service. (However, if the manufacturers of luxury watches allowed this practice, the monetary value of their product may decrease.)
2) Manufacturers can declare that they want only the most qualified official dealers who sell and service your watches. This rule helps you get good service from a knowledgeable professional watch dealer.
3) Replica, or Fake watches abound on the Internet. Perhaps you might think that buying a genuine article and get a fake. (Ocassionaly, you will see fake watches that were listed as real on this popular auction website mentioned above). In addition, buying an invisible spectacle means that you will not know that you are receiving a fake until it is delivered to your home.
4) Support local chat dealer. Out of the kindness of their hearts, manufacturers want to support local watch dealers, with whom they have long trusted relationships. (Yes, right.)
Are these rules what stands between you, the buyer of the desktop clock and the ability to find the clock you want at the best price?
In our next article, we will consider whether this policy is reasonable and fair, or simply an unjust conspiracy against unwitting masses.
