: I have a 3220.50.00 myself and bought it at Jareds. Retail was the
: same and they took 600 off of that price without me even asking.
: It seems to me that they will discount about 17 percent off of
: the retail. So, they must be making a ton from the sales. If I
: remember correctly from lectures or a class back in the early
: 80s, retailers basically just double the cost they pay for an
: item when they sell it to you. I may be wrong on that, but it is
: what I remember. So, using that info tells me that the watch
: must cost 1750 to create. That's a complete guess. Even if they
: were to discount 20 percent they would still make a killing!
: Enjoy the watch---I certainly enjoy mine---well worth the cost--
: Chris
Your statement regarding retailers doubling their cost to reach retail is far too broad a statement to make, Im afraid. In fact, many industries work on very short margins under 10% such as grocery stores and gas stations, believe it or not! (IE-anywhere where there is very rapid, constant turnover of ALL inventory) Perhaps in the jewelry retail environment 50% gross margin (GM=selling price minus cost divided by selling price) may be true since their overhead (fancy high-end stores in malls with high rent, plush displays, etc.) is very high as is the cost of their inventory which usually has payment terms from the manufacturers of 30 days despite the fact they may "sit" on this inventory for up to 6 months before selling it. Watch manufacturers require their dealers to display/stock a "broad representation" of their lineup which is very costly. If a jewelry store doesn't want to or is unwilling to do that, then they may lose their franchise to another local merchant who will.
I do not work in the watch/jewelry industry but I do work for a consumer electroncis manufacturer. Our authorized retailers must average an overall 32% gross margin (IE-pay $68 for an item and you sell it for $100, which is $100-$68 = $32/$100 = 32% GM) in order to pay the bills such as rent, electricity, security and salaries and make a small profit(!). That's one reason so many CE dealers sell extended warranties, surge protectors and better cables. Those higher margin accessories help increase the gross margin, enabling said retailer to discount the main item in this very competitive industry. Just take a trip down memory lane and you'll recall dozens of discount consumer electronic companies who are no longer in business today simply because they did not maintain a decent gross margin . That is also the main reason brick and mortar retailers are so discouraged by today's internet only renegades who have very, very little overhead, no inventory commitment to a manufacturer who they probably aren't authorized to sell anyhow, no service department, no ability to fit the metal band to your wrist, etc. So please, support your local retailers (like you did, Chris) who have a commitment to service the products they sell and are in the biz for the long term. For those consumers who go into a local store to try out a product or become educated on it and then go to the internet to buy it, shame on them! That practice is unscrupulous and morally wrong in my opinion and unfortunately it happens every day!
When I first graduated from college, I worked for a short period in a metro Wash DC hi fi store. I spent hours with one customer over a two week period educating him on turntables and phono cartridges. We always set up the turntables and cartridges for our purchasing customers as nice, free service (adjusted the turntable suspension, installed cartridge, adjusted vertical tracking angle, tracking force, anti-skating, etc., using a 'scope and stereo microscope) no easy task. Imagine my surprise a week later when that customer came back into the store with the same model turntable and cartridge I had recommended and demonstrated several times previously. He wanted me to install the delicate cartridge and adjust the suspension of the turntable at no cost (and at our risk if the stylus broke during installation) despite the fact he had gone to a discount retailer and bought these items despite the fact said dealer was not an authorized dealer for said product. He was furious when the store manager informed him that this service cost $50 if the purchased goods came from another retailer, instead of us. The customer screamed that the dealer he bought the goods from didn't have the ability to provide this service so we should do it for him, at no cost. It was at this time I learned the saying "and your point is"? Please support your local bricks and mortar retailers, they do provide services that are valuable.
Sorry about this rant! It is NOT directed towards you, Chris. Afterall, you bought from a "real" store(bricks and mortar store). The internet is a wonderful source of information and a great place to purchase goods you may not be able to find locally, or in fact, anywhere else. I just get discouraged when I see my own accounts having to work on dangerously low margins in order to close a sale based on a price quote from an unauthorized source. You folks wouldn't believe how many renegade companies on the internet quote prices below my direct dealer's actual cost (LCD TV's). Most customers think their dealer is lying when they tell them something is below their cost. Most such price quotes are bogus too as the offending dealer (usually internet) will invariably call the customer back later (after they have your money) and tell you there is a delay obtaining the goods and that "but we do have XYZ's model XXX which is better which we'd like to substitute".