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I have given some thought to the gray market channel with regards to whether a company like OMEGA views this channel as
beneficial or detrimental .
It seems apparent that Omega doesnt try to deter gray dealers. They deal openly and they should not be hard to find. They are not outlaw companies.... no doubt they employ people, pay taxes and exist under the laws
just like any other company.
Could be the laws in certain states (california) do not protect copyrights/patents/etc. I'm not a lawyer so I dont know/
Could be Omega figures it would be chasing its tail.... shut one down and 2 more spring up.
Could be they benefit from the extra volume that is sold thru the gray channel. Think about this.... the watch you buy from a Authorized Dealer carries a lengthy warranty.
That warranty must have a cost to Omega.
So, for every watch they sell thru regular channel, in theory it creates a future liability. I am not a CPA so I dont know the accounting treatment of warranty obligations.
So , how much is the warranty worth to Omega. How many people ,,, how much does it cost to pay for the small percentage of watches that need re-work ?
I just bought a seamaster and paid 2700 vs 3200-3400 from an authorized dealer. Omega
got its share but they also didnt get the warranty obligation. (actually turns out to be a better deal for Omega ! ! !- I think.)
No doubt, the internet allows companies to access huge market potential. My guess is Omega has some control over this
channel and has benefitted from it , all the while , protecting the name and product
value.
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