AP CPO program?

[gregouille]

Originally Posted by messikens

IMO this can never really work well and the customer will always feel screwed.

You have such a wide discrepancy between offerings where a Code (QP or otherwise) trades at ~40% discount while a CE skeleton trades at a 150% premium of MSRP.

The only way you solve it consistently is to either screw the seller by offering cents on the dollar OR pricing your pre-owned desired pieces above MSRP, which is basically telling a new client "you'll never get this piece period".

CPO buy-backs are terrible for in-house management because of the customer perception

100%
I’m curious to know how is the recent CPO program from Rolex doing.
It’s been already few months that is running and I remember the prices where funky as shit (much higher than market which of course was already premium).

[messikens]

Originally Posted by Gandor

No customer is walking into an AP boutique not understanding the market value of the watches vs MSRP.

That's exactly what I mean...!

So how so you buy back a code? Tell your MSRP customer you totally screwed him out of $25k since that's what the market is willing to pay?

Or do you tell your other customer that you're willing to sell him a ceramic skeleton only for 100% markup because there is is literally no frigging way he'll ever get it for $100k MSRP?

Both are terrible experiences if you ARE the point of sale AND the manufacturer

[Whichwwtch]

My expectation is that the fair market value (with prob a slight discount) will be able to be converted into $ for new AP purchases. I don't think they'll outright give you cash back for the pieces. This seems to make sense relative to the above. The above is also no different than gray market dealers. But I could see AP saying "Hey you wanna buy this $100k MSRP piece - we'll take your RO for $50k and you pay balance"

[RiRi]

Originally Posted by messikens

CPO buy-backs are terrible for in-house management because of the customer perception

I am not sure - people are obviously aware of the market value of APs, and anyone who drops 10s of thousands on a watch knows how the game works ...

If it is similar to the Rolex CPO, then you'll get a bit less for your watch in exchange for a shorter wait time - which may be a fair deal to many.

This could be especially interesting regarding discontinued pieces, since the MSRP does not apply anymore

[ackby]

Originally Posted by Gandor

I feel like the only way AP can implement this without tanking the market is offering to buy back at MSRP or some kind of store credit type deal. A big portion of an APs resale value is in the blacklist.

How would they be able to do this when the 41mm RO (exceot blue and green dials) is just around 10% over msrp at greys

[VogelPhoenix]

Originally Posted by ackby

How would they be able to do this when the 41mm RO (exceot blue and green dials) is just around 10% over msrp at greys

I'm sure AP CPO watches would command a premium over even the most reputable greys (although I hope they don't go as far as the absurd pricing on many Rolex CPO offerings), while a promise of consideration for future allocations would allow them to acquire the watches at favorable (for AP) cost. They should be able to figure this out.

[Zazzles]

I'm wondering if anyone has heard any updates on this program? Sounds really interesting

[Vivalas]

Originally Posted by Zazzles

I'm wondering if anyone has heard any updates on this program? Sounds really interesting

Well I was told at AP last week that it was coming next year. That same person also told me that it’s been coming since 2014

[knorz]

Apparently, from sources whithin the brand, the director of the CPO program who did create the concept during the last year has resigned before summer.
Being the second director of CPO who leaves before launching the program, I guess that someone inside AP, or maybe the owners do not want to go "live"