SDC Weekly 47; Timeless Principles; Pursuit of Status
Uncover a hidden Rolex Perpetual Calendar, Pragnell's inventory dump, Massena's collaborations, Greubel's new CEO, the launch of Horocraft, and the latest watch industry news.
Any idea what the next Rolex bracelet upgrade will be? Where did the Comblemine CEO go? How can watches save us from the status-seeking game?
Can you believe it’s already May?! It’s time to unwind with the SDC Weekly; Your weekly dose of horological insights, industry intel, and thought-provoking perspectives from the ever-evolving world of watch collecting. Today, you’ll find answers to the questions posed above, and you can catch up on the older editions of SDC Weekly here.
Admin note: There was some content in SDC Weekly 45 which I included, and planned to remove before unlocking, as I wanted it to remain behind a paywall (legal ish reasons). On reflection, I decided to leave it unedited and therefore edition 45 which was supposed to be sent to free subs today, will remain paywalled and not distributed to free subs. This decision would ordinarily cause free subs to get nothing this week… Instead, today’s edition is free for all1
Small stuff
Pragnell and the great inventory dump
When you look at discounts like these on the Pragnell website, what do you think is happening?
This is, supposedly, not a pre-owned watch. This is Pragnell dumping new Bulgari stock at 47% off, because they can’t discount these watches by 47% when sold as new. Sound insane? That’s because it is!
This isn’t a new tactic of course. Back in the day, pre-2018 or so, they would do this sort of thing with brands like Patek. A common practice was to backdate the warranty card to around the time the store received the watch as stock, from the brand. I can’t be sure how they did the accounting on their own books, and how this was reconciled with the brand themselves. As a result, the customer would buy a brand new watch as a ‘pre-owned’ watch, but lose time on their warranty. However, when saving between 15% and 50% off the retail price, who’s going to complain about losing a few months off the warranty?
Of course, the exact discount % they are willing to offer will depend on a few things; how much inventory they need to dump, how important you are as a client, and how long they have been holding the stock.
We will probably be seeing a lot more of this going on in the coming months, since the websites typically list only a fraction of what’s actually in stock. Remember the recent market reports I have shared from FH and MS all point towards growing inventory and slowing sales. Coupled with the fact that brands are pushing retailers to order large volumes (which inflates the Swiss export numbers)… How are retailers supposed to shift this stock in a dead market? Now you know how.
This does make sense, and I wouldn’t be surprised if brands are complicit too, which helps with the paperwork. By selling unworn pieces at a large discount but calling them pre-owned, there is a reduced impact on the brand’s value and they needn’t adjust the retail price. If you’re looking for a deal, be sure to keep this in mind, and keep an eye on pre-owned stock from authorised dealers when you’re searching.
Massena and his lab
It still amuses me how the same topics emerge in a sort of recurring news cycle - this time I am talking about William Massena. First, some overdue context…
“William Massena is one of the few men in this industry that has seen many sides of watches – from journalism to retail, to consulting, to auctions – and his influence on watches is tough to overstate.”
Hate him or love him - and you better believe he is divisive to say the least - William Massena is undoubtedly a prominent figure in the watch collector scene; He’s got extensive experience in the industry as a collector, Managing Director of the watch forum Timezone (back when it was a bigger deal), and former C-suite executive of the auction house Antiquorum. Massena’s passion for watches, he says, developed gradually over time. His early days of collecting were marked by a search for the ultimate watch that would fulfill his criteria of sturdiness, reliability, and precision. His first significant purchase was a Rolex Oysterquartz Datejust, which he acquired while in Switzerland. As his interest in watches grew, Massena found himself delving deeper into the world of horology, particularly with the launch of Timezone in 1995.
Massena’s involvement with Timezone played a significant role in his career trajectory. He transitioned from being an active contributor to the forum to eventually becoming its Managing Director when Antiquorum acquired the platform in 2005. His experience at Antiquorum provided him with unique insights into the auction world and the evolving landscape of the watch industry.
As a member of the jury for the circus that is the Grand Prix d'Horlogerie de Genève (GPHG), Massena says he has a keen understanding of the importance of promoting and celebrating exceptional watchmaking - I mean, sure, that’s one way to look at it. Massena’s passion for watches does observably extend beyond established brands, as he has shown a keen interest in independent watchmakers for a long time, and has even backed Kickstarter projects (Laventure)! You can read more about him via ACM here, and the Hodinkee link above - or even just a quick Google search to find plenty of material. That’s not the crux of today’s discussion. No, today we’re talking about this piece:
From his website (emphasis mine):
Phillips in Association with Bacs & Russo is delighted to introduce its latest collaborative horological creation: the 1952 Observatory Dial Limited Edition. This exquisite vintage-inspired wristwatch is the result of a creative partnership between Phillips Watches leadership, William Massena of Massena LAB, and the masterful touch of award-winning independent watchmaker Raúl Pagès.
The result is the all-new 1952 Observatory Dial Limited Edition, featuring a 38.5mm × 10mm case made of 316L stainless steel, and with the manual-wind, proprietary caliber M690 ticking inside. The impressive caliber M690 is an iteration of Massena LAB’s first movement—but here with small seconds at 9 o’clock—and features an impressive level of traditional hand-decoration, which is achieved by a network of Swiss craftsmen whose work is overseen by Pagès himself. Pagès also designed and conceived the overall architecture of the movement, but he does not personally handle the production or decoration of the movement like he would in one of his own watches.
As I have discussed before, the copy above preys on people’s beliefs; It tries very hard to strengthen and amplify the link between a watchmaker and a watch which he has little to do with. That said, let’s rewind to last year when Massena and Wei Koh launched a different homage watch and Wei Koh threatened to power slap the people who ‘didn’t get it.’ I said it back then, and it remains true now: Massena is shameless when it comes to copying and regurgitating others’ designs… and hey, if it works for him and he finds willing buyers, good for him!
Regarding this new watch, note this is not the first time Massena and Pages have collaborated - they did a watch prior to this which contained what appears to be the same movement to the new one, but with a different reference - they say so too: “is an iteration of Massena LAB’s first movement”. According to Massena’s site the newer one has 17 jewels while the older one has 21. Per below, this jewel variance may even be a typo, but the movement is basically the same:
Massena claims these are both a “Massena LAB proprietary caliber … Designed by Massena LAB in collaboration with Raúl Pagès.” This is code for “modified Sellita.”
Sellita has a ‘higher end’ department where they do better finishing and use higher quality components - Raúl helped with the design of this movement, yes - but he was constrained by the fact that they were working with a Sellita ‘base’ which he couldn’t significantly modify.
Why would Raúl Pagès, a respected watchmaker, want to work with Massena who bangs out homage shitters as quickly as a hooker in the Red Light District turns around sessions with their clients? Simple; he was an independent watchmaker who was struggling like many others. This opportunity to make some money actually meant a lot to him, because it presented itself before he won the LVMH prize. Besides, he didn’t have to put his name on the movement, just allow his name to be associated with the watch is some way. Everyone’s got to eat, right? And again, hate him or love him; Massena does actually help independent watchmakers with publicity and reach.
Sure, not all watchmakers will accept doing simple work for decent money, and perhaps tarnish their reputation by being associated with a lesser watch. Take this piece, also supported by Massena but created by Luca Soprana:
This is five times the price of the other watch - still a time-only - which can confuse people. The key thing is, this has his name on the movement. Here’s a review if you’re interested. This significant price variance exists because Luca Soprana felt too much pride to ‘compromise’, and therefore decided to do it all himself - mostly by hand - which isn’t cheap. So, I asked Soprana whether it was worthwhile - and even after the fact, he believes it was good for his brand and image. Objectively, given the time and ‘hand crafting’ effort to create this time only watch, it is actually a good deal at 40k - despite Massena’s reputation for cash grabbing. The fundamental problem here is poor education among collectors, coupled with poor transparency from brands and sellers about what they are selling - this is evidenced by the Sellita watch discussed above - why not call it a Sellita? Because then, 8k seems too expensive!
Another example of unclear value is the collaboration with Sylvain Pinaud. At 130k, it’s a hefty price tag, but as far as small independents go, other such highly finished chronographs are all much higher, right? Only people in the know will be able to see this for the deal it is, and that’s a real shame.
I have never met Massena myself, but what I have observed is everyone who has ever had a negative description of the man, is basically a ‘nobody’ in the watch industry. In contrast, nearly all the ‘big personalities’ only ever say positive things about him. There are several examples I found online in the old forums, but here’s one which captures the essence of Massena quite well:
This post frames what seems to be the consensus public view on the man. That view in a nutshell: He is feared and/or loathed by many… his words are often barbed and he is often too direct to the point of being offensive… but when he’s with big personalities or on camera, he’s an affable chap!
You might think “Classic ‘red personality’, the sort who are insanely good at upward-management, but can always be relied upon to talk down to service staff”. Maybe. Or, he may be the nicest man in the world. Most people don’t know for sure, but talk (sh*t) about him anyway.
I felt this context was useful for collectors - including myself, honestly - as I for one have always wondered why anyone would want to deal with Massena or collaborate with him. Turns out, when it comes to watchmakers, he is indeed helping them, regardless of how it looks to us from the peanut gallery. Sure, he may be printing money for himself too, but like I said earlier, everyone’s got to eat, and he seems to be doing his bit for independents so fair play to him.
Water Resistance - follow up
In a recent SDC, I covered water resistance in relation to Patek Philippe’s recent announcement regarding a unified 30m rating. Soon after this, a reader shared this old article by
which I failed to reference. More interesting than Jack’s article for me - as rare an occurrence as that may be - was this link he shared within it. It is an old forum post; a deep-dive (lol) into the measurement of static and dynamic pressure on a watch. There’s also another article by Jack on deciphering ISO ratings in relation to water resistance. With that, I shall leave you to decide how much you care about this topic - submerge yourself as much as you feel like2.Greubel Forsey
I told you to keep an eye on Greubel last week - and on Monday, GF announced Michel Knydegger will be taking over as CEO from Antonio Calce. He was previously the Marketing and Communications Director, but anyone who knows him will already know he was responsible for much more than that.
SJX writes, “One rumoured scenario is that a consortium led by a well-known industry personality is taking over Greubel Forsey, something that may be announced in fall 2024.” That may have been the plan pre-Calce, but you can rest assured this is not happening!
Horocraft // Voutilainen
The CEO of Comblemine (Kari’s dial manufacturer), Christophe Beuchat, has parted ways with the company. As of writing, there is no press release, but a replacement CEO has already been found, and the rationale for his departure is supposedly strategic in nature (he and Kari couldn’t see eye-to-eye on future plans).
That said, he has joined forces with Sylvain Pinaud and Armand Billard to lead a new company, Horocraft SA. The company’s first two clients are, of course, Pinaud and Billard - but they plan to make parts for other companies in the watch industry. They don’t even have a website yet, but if you have any queries, email the new CEO: christophe@horocraft.ch
Sotheby’s follow up
Quick follow up to last week’s note on Sotheby’s… We know Drahi is having debt problems, and I have heard from 3 different sources he is preparing Sotheby’s for an IPO - i.e. going public again. As a result of this, their books need to be in order, and their potential future investors need to have clarity on fees. This is possibly why they are avoiding ranges, and being more strict about ‘not waiving fees’ and so on.
Another contrasting perspective, is to remember watches are usually chump change if you compare the value to high end art - so perhaps this fee structure seems daft for watches, but works really well for art collectors (over $5m has lower fees) and they made a decision to pursue art over watches.
Finally, as a friend (Thanks Rich!) pointed out, this new structure may sometimes be better. A watch hammers for $100k, and in the old structure the buyer pays 26% premium, so $126k is the cost. The seller will receive between $100k and $88k (0-12% fees).
With the buyers premium reduced to 20%, the lot could hammer at $105k, to result in the same ‘cost’ as before: $126k. With a 10% fixed seller’s fee, the seller will get $94,500.
So depending on how well the seller negotiated before Sotheby’s change - only the VIP sellers who were getting 6% or below, will be worse off with the new fee structure. That also assumes, that the hammer prices will adjust to reflect the reduced buyer premium - according to behavioural economics, I have my doubts - but the mathematics are straightforward and logical. I still stand by my prior statements, that this change alienates VIPs who are more likely to bring in the most attractive lots.
The key thing to keep an eye on at this point, is what the other auction houses do. I suspect nothing will happen until after the May auction season is over.
Christie’s Watches Online: The Dubai Edit
This Christie’s auction ended yesterday, and there was some interesting results to say the least. A Journe TN Tourbillon sold for $240k in a rare rose/rose configuration, a Patek 5101R Tourbillon went for $100k, a paid of Patek 3970EG/E went for $138k and $120k respectively and a Journe Octa Lune for $100k. I’d argue those are strong results given the market we’re in, but who knows!
Enough small talk… Let’s dig in.
ScrewDownCrown is a reader-supported guide to the world of watch collecting, behavioural psychology, & other first world problems.
👑 15 Timeless Principles in Our Hobby
Let’s start with something light-hearted, shall we? We often see many rules and razors which apply to general life as it were - the one which comes up a lot on SDC is Occam’s Razor - the simplest explanation is usually the best one. I thought it would be fun to list some which are applicable to watch collectors.
The Collectibility Razor - If a watch is hyped as the “next big thing,” assume its long-term value is overstated. If a piece is underrated by the mainstream, but the signs point to them being wrong, investigate further as it may be a hidden gem.
The Horological Ally Rule - When seeking advice, choose the collector who has the expertise to guide you through the most challenging aspects of the acquisition and ownership; experience trumps prominence or fame.
The Trend-Spotting Principle - If a watch is generating buzz among enthusiasts, you might be onto something. If it’s being heavily promoted by fashion influencers or paid advertorials, you’ve likely missed the boat or it isn’t worth caring about.
The Intrinsic Value Axiom - The worth of a watch is not solely determined by market trends. Its inherent craftsmanship, heritage, and personal significance are the true measures of value, and personal significance should be weighted highest of all.
The Understated Eminence Razor - If a collector boasts about their “high-end” pieces, they likely have a modest collection. Most mega-collectors let their watches speak for themselves.
The Horological Heritage Rule - Reflect on the time, passion, and resources your mentors invested in your growth as a collector. Strive to pay it forward and inspire the next generation.
The Social Media Fallacy - The perfect wrist shot on Instagram belies the dozens of less-than-stellar attempts, and your mind ignores the post-processing. Judge a watch by its real-life presence, not its digital persona.
The Collector’s Perspective Razor - When fretting over others’ opinions of your collection, remember that most are too preoccupied with their own horological journey to give much of a fvck about yours.
The Daily Wrist Time Principle - Wearing a watch daily, rather than reserving it for special occasions, will deepen your appreciation and elevate your ownership experience.
The Legacy Litmus Test - When faced with a collecting dilemma, consider which choice your future self would look back on with pride and fulfillment.
The Possibility Principle - If a watch complication or feature doesn’t defy the laws of physics, assume it’s achievable. The limits of watchmaking are constrained only by our current knowledge and ingenuity. (Side note: Berkus is one watchmaker who embodies this entirely.)
The Acquisition Motivation Matrix - To overcome hesitation when considering a purchase, either amplify the drawbacks of inaction or the rewards of decisive action. Use the Watch Matrix too :)
The Horological Network Effect - Never hesitate to connect fellow collectors who share a mutual passion. The watch community thrives on shared knowledge and camaraderie.
The Provenance Paradox - Approach every watch’s backstory with a healthy dose of skepticism. Verify its authenticity through reliable sources and expert opinions, and consider how much value you associate with it’s provenance, versus how much you are expected to pay for it.
The Understated Virtuoso Principle - When evaluating a watchmaker’s skill, prioritise technical mastery over charisma. True artistry shines through the work itself, not the personality behind it. (Side note: Max Busser doesn’t count!)
Any others you’d add?
💡 The Pursuit of Status
It’s Friday as I write this, and I just had lunch with a collector from Austria where we discussed status in the context of watch collecting. I felt inclined to say something in the newsletter following that conversation, despite having covered this topic before!
Status has driven human behaviour since the dawn of civilisation. From ancient rulers adorning themselves in precious jewels to modern collectors pursuing rare watches, the pursuit of status crosses all eras and cultures. For us, our collections can be a reflection of our desired status and identity.
Previously on SDC, we have examined the origins of status and how its markers have evolved over time, to better understand the psychological forces underpinning the watch collecting hobby.
What else is there to say? So much more!
The Emergence of Status Hierarchies
As W. David Marx argues in Status and Culture, “There is no human society without culture, and there is no culture without status.” Status hierarchies appear to be an intrinsic part of the human experience. Even in the most egalitarian hunter-gatherer societies, skillful hunters and respected elders held elevated positions.
As civilisations developed, status markers became increasingly elaborate. In ancient Egypt, only pharaohs were permitted to wear crowns and certain amulets. Purple dye, laboriously extracted from Murex sea snails, was so expensive that it became associated exclusively with royalty - a convention that has carried through to modern times.
The arbitrary nature of status markers is evident throughout history. In medieval Europe, sumptuary laws dictated what clothing different social classes were allowed to wear. As Giorgio Riello explains in The Right to Dress, these laws prescribed the types of fabric, colours, and ornamentation permitted to each tier of society. For example, sumptuary legislation passed in Venice in 1562 forbade women to wear pearls more than 12 years after their marriage. Here’s a fun paper to explore if you as so inclined.
Status and Consumerism
The Industrial Revolution brought factory-made consumer goods to the masses for the first time in history. This unleashed a new era of consumerism and materialism, with products serving as prominent status markers.
If you think about the cost of a luxury watch, relative to what you’re getting for the money, you have to assume its primary function is to ‘project’ its owner into a higher social tier, and we see this play out with certain brands and models being universally recognised symbols of achievement, wealth or success.
That said, Marx also notes status markers are, ultimately, arbitrary: “A convention occurs when humans choose an arbitrary practice over an equally valid alternative.” There is no inherent reason that Rolex should confer status over Timex beyond the shared cultural agreement humanity/society has constructed.
This arbitrariness extends even to domains we assume are guided by immutable biological preferences. Perhaps you’ve heard of Ohaguro - back in the day, Japanese considered blackened teeth a mark of beauty. Upper-class women would dye their teeth black with iron filings and vinegar. The normal aesthetic of white teeth was flipped on its head by a weird cultural convention.
Digital Status Markers
In the digital age, status has become more quantifiable and transient than ever before. Followers, likes, and retweets serve as visible metrics of social capital. The audience for conspicuous consumption has expanded from our neighbours to entire online communities.
This never ending comparison has concerning psychological impacts, and studies suggest that social media may be exacerbating anxiety and depression by constantly reminding us of our perceived deficiencies. Here’s a great piece by
on the subject.Watch collecting serves as an interesting counterpoint to this phenomenon. The value of a mechanical watch is perhaps timeless and intrinsic, when contrasted with the ephemeral markers of the digital realm. Wearing a watch you cherish is an intimate experience first and foremost. Any external status conferred is secondary (at least for some - and I include readers of this blog in this category!).
We can draw an analogy to the Japanese tea ceremony, since we’re picking on the Japs today. This elaborate ritual, refined over centuries, is not really ‘a performance for an audience’ - it is an inward exploration of aesthetics and mindfulness. The crockery they use is prized for its subtlety and imperfection rather than ostentatious display. Perhaps watch collecting can serve a similar role? A rejection of the digital in favour of a more analogue and tangible experience?
Games, Gamification and Watches
The rise of gamification in recent years presents both risks and opportunities for watch collectors. Everything is gamified today… Instagram has ‘achievements’ for posting and sharing, Duolingo has ‘streaks’ for learning… even my home energy provider, Octopus, has ‘points’ for submitting gas and electricity meter readings. Everywhere you look, you’ll find levels, progress bars, leader rankings and badges. The ubiquity of this stuff lends credence to their effectiveness, that’s for damn sure.
For some, perhaps watch collecting itself is gamified too - collectors chasing arbitrary metrics like owning every MoonSwatch or every colour combination of the GMT-Master. Fine. I still think watch collecting offers an antidote to the hollow status-seeking foundation of gamification.
A genuine enthusiast appreciates a watch for its inherent merits - the centuries of accumulated expertise required to produce a mechanical watch, the human ingenuity behind its design, and the personal meaning it carries. These qualities, surely, can’t be captured in a points system or leaderboard ranking?
The point is to choose games wisely; favouring those with long-term rewards, hard-earned skill development, immeasurable outcomes, and intrinsic motivation to play. Watch collecting, approached thoughtfully, can tick many of these boxes:
The rewards of building a meaningful collection accrue over a lifetime, not in addictive daily dopamine hits with thoughtless purchases.
Mastering horological knowledge requires diligent study and hands-on experience; without putting in the time, you will be found wanting.
The joy of wearing a watch you love, can’t be quantified or compared across collectors. Just ask anyone about their first serious watch.
The point is, genuine enthusiasm can’t be faked or manufactured through gamification metrics. So really, by collecting watches with true passion and interest, and in doing so for yourself, you can avoid being ensnared by hollow status games, both on and offline.
Conclusion
Watch collecting is clearly susceptible to the same status-seeking impulses as any other human activity, but it is up to each of us to consciously steer the hobby in a direction which enriches our own lives and reflects our genuine passions. The pursuit of status is a fundamental human drive, and because of the digital age, it is too easy to fall prey to gamified status metrics which don’t align with our true values.
When approached thoughtfully, watch collecting offers the potential to keep us grounded - to root our identities in something real, enduring, and meaningful in its own right. If you let them, the watches in your collection can be an anchor of authenticity in an increasingly virtual world of manufactured status.
The next time you’re looking at your own collection, take a moment to reflect on what actually draws you to each piece - think beyond the status it may confer. Let your watches be a tangible connection to the things in life which can’t be measured or gamed.
📌 Links of interest
🆕 According to this Rolex patent, we may soon see a new butterfly deployant clasp! Here’s another recent filing by Rolex, related to bezels if you’re interested.
💡 The story of Paul Perret (1854-1904). “He was famous not for one single accomplishment but for three different ones: he revolutionised watch adjustment, registered the very first Swiss patent, and contributed to the only watchmaking-related discovery to win a Nobel Prize!”
🕝 On time: 10 simple answers to ten simple questions about time.
🚢 Gold pocket watch owned by wealthiest Titanic passenger up for auction - and then sells for £1.2m.
🛳 The Seiko Found In The Wreckage Of A Spy Ship And North Korean Covert Operations.
🗣 WatchPro interviews Teddy Baldassarre. Didn’t realise he has 25 staff!
💬 “How Events Like Watches And Wonders Influence Writers Like Me” via Fratello
🧭 The Mystery Chronographs Part II - LeCoultre, Jaeger & Universal Geneve.
🚗 Rolls-Royce is growing its factory so it can build cars more slowly.
🥽 Disney’s Holotile infinite floor/360 treadmill - first look by MKBHD. (11 min video)
💎 Forget Billions of Years: Scientists Have Grown Diamonds in Just 150 Minutes.
🧬 For the first time in one billion years, two lifeforms merged into one organism.
👩👩👧👦 How modern parenting abandons the reliably good for the unattainably perfect.
📓 Why you need a “WTF Notebook” - useful idea, I thought!
💲 The Secrets of Family Empires.
🤑 Asset managers are growing into huge and complex financial supermarkets that mint billionaires by the dozen. Speaking of… Check out which city has the most billionaires in 2024.
🤔 Kant’s (not Cvnt’s) 300th birthday recently... Here’s a short read on his philosophy of thought.
💸 Billions in Dirty Money Flies Under the Radar at World’s Busiest Airports.
🙄 Why do some people always get lost?
😇 The most delightful thing I have seen online in recent memory.
👀 This quiz tests how well you can read emotions in people’s faces.
✉
from The Fourth Wheel is having a sale in May if you’re interested in subscribing.End note
In case you missed it… here’s a fun post from last week:
Thinking about the Pragnell story above, made me recall my days in the Oil & Gas industry. As this FT article states (2009):
BP is setting up meetings with suppliers in the US, Britain and other countries to push for cuts in costs to reflect the fall in the price of oil.
Here (link, link) are a couple of other articles on the subject, but the point is this: In the oil industry, it made sense for International Oil Companies (IOCs) to renegotiate deals with oil services companies, because costs were too high to make their projects commercially viable when global oil prices were too low. The oil services companies exist to serve the (IOCs) and so, if they don’t do projects, the oil services companies won’t either.
This symbiotic relationship exists in the watch industry too. There is no global watch price, but the market is tanking, and the industry cost base has become too high to be sustained in a shrinking market. How can they fix that? The answer is most certainly NOT to hold production steady and force the excess inventory down the throats of the retailers.
The answer is to make drastic changes to rebalance supply and demand, with one goal in mind: protecting brand value. That is the key asset in the world of luxury watches, and as long as supply is drowning demand, they are devaluing the most valuable thing they have, in the pursuit of short-term financial performance goals.
How can this be done? Bring everyone to the negotiating table. To reuse a phrase from above, everyone has to eat - but tough times, require tough conversations. If all the players in the supply chain don’t want to retrench staff, they should all take a pay cut. Leaner operations will allow suppliers to reduce costs, and allow brands to reduce production while still generating sufficient cash flow to maintain operations.
If retailers are selling watches at 50% off, perhaps it is also time to consider reducing the retail price to boost demand, while also reducing production. Somewhere in this mix of options, each brand will find a balance that works for them. In doing so, they will preserve brand value and live to see another boom cycle.
In the oil industry, some of the new contracts were ‘pegged’ to oil price, so while the suppliers agreed to reduce the cost of their rigs and other services, they made sure they would ‘recover lost profits’ once the oil prices up again; and guess what, they did! The oil services companies chose mutually assured survival, rather than short term greed which would ultimately lead to mutually assured destruction.
I am excited to see how the watch industry handles it!
Until next time,
F
🔮Bonus link: A Rolex Perpetual Calendar you’ve never heard of
Starting at around 4:40, James Dowling tells a fantastic story about his prototype Datejust Oysterquartz Perpetual Calendar with jump-hours and a zero-reset seconds hand. The best part about the story is there are believed to be some of these out there… and you can’t really tell what it is unless you know what to look for. Knowledge worth having... right? Here’s an article about the watch by James Dowling himself.
Believe it or not, that “❤️ Like” button is a big deal – it serves as a proxy to new visitors of this publication’s value. If you enjoyed this post, please let others know. Thanks for reading!
Sorry for the sh*t jokes, I’ll stop now.
Man, what set of topics/links this week. Really enjoyed most of this with a couple held in reserve for delayed gratification. I think you posted that face test under a different guise before? Seems I'm a bit better at it now if my memory serves. Be well!
Loved it ty!!!!