Showing posts with label swiss watch monopoly. Show all posts
Showing posts with label swiss watch monopoly. Show all posts

Thursday, March 16, 2017

Your New Smile

***Your new smile


About 10 years ago, at the time when our shop was located in Mosman, I went to see a local dentist for a minor 'dental repair'.
“Really a minor problem”, he said, “painful never the less, but while you here, I would like to share some good news”, he said.
Good news in a dental chair? “Have they finally invented a painless drill”, I naively asked.
“Well, the good news is, that in just a week or so, you can leave this practice with a brand new smile!”
It was obvious that I didn't need a new smile but I couldn't resist asking how much that new smile would cost.
“Only $32,000” he said cheerfully. “We will start with the lower jaw then move up, left, right and centre - and you will have the smile of a news presenter!”
Needless to say, I got the tooth fixed for $120 across the road.


You see, there are plenty of idiots out there happy to take advantage of you. Watchmakers are as bad as everyone else, so keep reading. 

About once a week I receive a service report from a subscriber who just submitted their watch to a "reputable" Swiss brand service centre. And most of them appear to be prepared by the “you'll have a new smile” watchmaker: your watch needs a battery replacement, but it is also scratched. We recommend case polishing. While we are polishing the case, we will also do a complete movement overhaul (your watch is due for one!). We also noticed that your dial is oxidised, as well as hands, so we will replace them. The total repair cost is $1,100.

So you took the watch for battery replacement only to find out that your watch is a piece of crap which can be brought to former glory for a mere $1,100.

Before I go any further: please do not send me your service report estimates! All of them come with a disclaimer clearly stipulating that you are NOT ALLOWED to share this information with anyone. So legally, you are breaking confidentiality law. (Sorry legal people, you know what I mean).
Equally I am not allowed to comment on reports or to mention names. Also, even if your watch does not need any of above, it would take lots of money and time to fight such reports. Now, it goes without saying that since 'the reputable brand' is not going to supply any spare parts to me, in most cases, I won’t be able to help you. This is the beauty of a monopoly: it kicks you in the guts and then robs you of the opportunity to source a service from a non-authorized third party. 


One of the trademarks of sophisticated thieving is the use of scary terms which are not commonly understood. Oxidation is a perfect example. Your apple turns brown in matter of minutes when sliced; steel rusts in rain in a matter of days and a silver watch dial does the same - coated or not, protected or not - over the period of a few years. In other words, oxidation is just a very natural process, and the end result - as on the watch dial and hands - is more of a cosmetic nature than of any functional concern. And here is my punch line: if you magnify any surface enough, you will see that discoloration, so technically and legally, it's there. But if you are happy with your smile and with your micro-oxidized dial, which you cannot even notice with a naked eye, then you should tell your Swiss brand that you don't want them replaced. This is your consumer's RIGHT and don't let it be taken away from you.

The final question is the one in relation to servicing. Does your watch needs a complete overhaul when in reality you just want a battery replacement? Well this one is easy to work out.

If your car runs out of petrol and you take it to the "brand" car maker service (without telling them that you've just run out of petrol!), then you can bet your last dollar that the service report would take the opportunity to list a number of parts which would require immediate replacement: filters, maybe a clutch, surely brake pads, right down to the rubber wipers. They will have no problem claiming that your 10 year old car is no longer performing "as when it was brand new" (which is obviously true) so legally, they are not breaking any law trying to sell you that new smile. The only reason why such reports are rare is because your Government knows that you need your car to get to work (so you can pay your tax) and therefore protects you from predators and monopolists.

But your government could not care less about your fancy watch so your only protection is to stand up and rebel against unwanted and unnecessary watch repairs yourself. Tell them to go to hell and just replace the darn battery or otherwise you'll take it to someone else who will.

Happy collecting,
Nick

Thursday, July 28, 2016

Swiss Not Happy

***Export of Swiss Watches in Decline

Swiss watch corporations are freaking out: the latest data shows that the export of Swiss watches has declined for 11 consecutive months. The reason apparently is the high Swiss Franc and the price of gold. Richemont Group just fired 350 people and Omega is apparently contemplating doing the same.

While this explanation may sound plausible to shareholders, the problem is far more complex. The price of gold is on the rise, but gold is still 30% cheaper than it was in 2012/13 when export was booming.

In May, Richemont CEO Richard Lepeu said Swiss watchmakers "should never be arrogant" and shouldn’t rule anything out. "Technology's progressing very fast, and we never know what might happen."

Lepeu is referring to smart phones. Once again, it appears that Swiss underestimated the impact of new technology: except for TAG, no major Swiss watchmaker is interested in getting into the smart watch business.




However, in my opinion the real reason for a decline in export and sales is a more obvious one: the price of Swiss watches went through the roof. The product is simply too expensive and there are only so many watch buyers who can afford to spend $10,000 on a new timepiece every few months. The other even more obvious reason is the crazy idea that Swiss watches should be sold exclusively throughout 'brand boutiques'. Getting rid of independent retailers who were able to sell volumes of watches at somehow discounted prices is now firing back. Just a few years ago, one could have bought a new Omega watch from a number of dealers located from North Shore to Parramata. Today, there is just one independent AD who still has an Omega account.

The solution is simple: lower the prices, open more independent retail accounts, make the spare parts available to independent watchmakers and watch your export sales go through the roof.


Happy collecting,
Nick