Hey guys, it’s Q&A Tuesday. Hey guys, let’s dive right into it. First question comes from Kevin. Do you have a particular watch that has sentimental value or maybe a watch that’s tied into a crazy story? I do and I put this watch on today. In fact, I wore it in my last episode and I decided to wear it again, just to answer your question. The watch in question—now you’ve seen this watch before. It’s my Royal Oak 39mm Diamond Chronograph, on a strap. Originally, it comes on a leather strap but I put it on the rubber strap. It’s just a little more comfortable this way, especially for the summer. So, let me give you a quick story without taking too much of your time. About, I guess 13 years ago, when I was considered to be small-time. I had just partnered up with Arthur. I don’t know if you saw my last Q&A but I told a quick story of how I got started. I’ve been trying to do business with a gentleman by the name of Bobby, down in South Florida, who’s now a dear, dear friend of mine. And I heard about this guy. I heard I could buy some good stuff from him, some good deals and generally, a good person to know in the business. His familys been in business at the time 20-plus years. His father started it and he kind of took over. And, um, I tried to get a hold a of this guy forever. I’ve been calling him. And back then, without really having a whole lot of funds in the company, you know, I always reached out to guys and said “Listen, Internet is the next great thing.” “Give me some stuff, I’ll sell it online for you. Let’s do business.” Blah, blah, blah, blah, blah. Finally get ahold of this guy. I get down to Florida. I get picked up in a limo from the airport. Very good stuff. Went to one of his stores at the time. I was in Deerfield. And ah, started talking. Now, I’m telling him the whole pitch about the internet and you should give me your stuff and I’ll sell it online and blah, blah, blah, blah, blah, .. and I see this guy’s just like neither here nor there. and I’m not really getting his attention. So finally, I’m like “Okay, I’m losing this guy here.” “How about we buy something from you?” All of a sudden, his eyes raised from his phone and he’s like, “Okay.” “I’ll have this, this and that. I bought about $150,000 worth of stuff from him. Meanwhile, me and Arthur are trying to figure out how we’re gonna pay him for it but that was a different story. And why is this watch sentimental? The time I met the guy he was wearing this very, very watch. Now, this watch retails around $100,000 and at the time, I was never—I was not in a position to wear stuff like this and I really liked diamond watches. As I was sitting there and I’m doing the deal with this guy and talking to him in my—in the back of my head, I said to myself, “You know what? Someday, I’m going to own this watch and it’s going to be all mine.” And I’ve said before I don’t really own any watches, this is the one watch that I’ll probably never, ever sell. So, for all intensive purposes, you can say that this is a watch I actually own. And it’s special to me because actually, it was a recent purchase, about a few months back. I got a smoking deal on this watch. I said, “You know what? I’m not selling. I’m gonna keep it.” I remembered that story that happened about 10 years ago, more about 12 years ago, and it became sentimental. Since then, me and Bobbie had become good friends. We’ve been doing business for years and he’s a great guy. And I think he may still also have one of these in his watch box somewhere. So yeah, this is the one watch that’s kind of sentimental to me because of that story. Let’s see. Next we got Richard Bonanno Great stuff as always. Thank you Possible questions to use for next segment. In your opinion, what brands are not as hot as they used to be? What are you thoughts on brands launching ecommerce sales on their website? Will it help or hurt the brand? Well, let me quickly run through, I guess, some of the recent changes in the market. Very recent. Piaget and Vacheron went from being super hot to super cold Sales in China—I’ve talked about this I think before but sales in Asia particularly boosted the sales of Vacheron and Piaget through-the-roof. Piaget Boutique in Hong Kong alone was doing more business than all the other worldwide boutiques with cheese combined and then something happens. Trends change. Issues in mainland China and the sales just kind of died down 💀 Two years ago, I’d be hot-pressed to pickup a Vacheron or Piaget for 20% off retail and resell it for 10 to 15% off retail. Now those watches are readily available because the sales have dropped. Harry Winston is another one that kind of died down 💀 You know, about six, seven years ago, Harry Winston was pretty hot. Their stuff was selling well. Now you can find those pieces around a half price mark, brand-spanking-new. Their Opus watches were some of the greatest creations in Horology. Where they bring in some of the best watchmakers out in the industry today and they make you super complex watches. Along with the Histoire De Tourbillons and everything else. Those things used to be hot and they used to be hard to get because they only made them in an edition of 20 sometimes. And sometimes more, sometimes less. but Those things you sell like hotcakes, and they sell better now that the hype kind of died down. I think they’re up to Opus 15 at this point and people are kind of starting to forget about them. And mainly because they stopped reselling as well. So, people don’t want to invest $400,000 to $500,000 to $600,000 into a watch that they know is going to be worth a third of that after they bought it. And it’s a shame because Harry Winston makes some of the most beautiful watches out there. I love their sports model. Their Ocean line is beautiful. The ladies pieces still sell well because it’s indeed a beautiful piece of jewelry but for the most part, they’re not as hot as they used to be. Ulysse Nardin was a huge one. And this was prior to when stuff in Russia went bust. Ulysse Nardin was probably the number one selling brand in Russia and former Soviet Republics. In countries like Ukraine and a lot of the “stand” Republics. Uzbekistan, Kazakhstan and all those things. And the issue there was money, you know. When shit the fan and the Russian Ruble went from, you know, one to twenty seven, to one to ninety, you know, a lot of the oligarchs and a lot of the rich people out there kind of got scared. and they slowed down on buying. And you know, when you’re the number one selling brand in a huge region and that region completely stops cold turkey, you start to suffer because of that. The Genghis Khan’s. That was impossible to find them. I used to sell them at like 10% off retail, with a retail price of $600,000 some dollars. The Circus Minute Repeater’s. The Jungle Minute Repeater’s. All the high-end, complicated stuff. The Royal Blue Tourbillon’s. That stuff I used to sell at a tiny discount and now you can pick them up at better than half price brand-new. A lot of the Swatch brands: Blancpain Glashütte Breguet Breguet was another one that used to be pretty hot in Russia and other former Soviet Republics. That kind of died down. Blancpain and Glashütte, I feel like they just kind of became less popular because of the trends in the market. People want big, bulky, flashy watches. People want something different like Richard Mille. People still want Audemars Piguet because of its size. And people still buy Rolex. Rolex will never die down. And that kind of put brands like Glashütte and Blancpain on the back burner because they’re not reinventing themselves. They’re still producing the same old thing over and over and over and over. Blancpain tried to do some things with the Fifty Fathoms line, where they made bigger and bulkier watches but I feel like they need to reinvent themselves a little bit. Because.. People want something new. They want something fresh. The market changes. And last but not least, I’m going to talk about Panerai. Panerai used to be the number one collected brand, probably six, seven years ago. It was the hottest thing on the market. Everything was a limited edition. Everything was so coveted. Everything was so hot. Everything was flying off the shelves. You could not get a brand new Panerai for better than 10% off and a lot of them were going over list, especially the limited editions. But these guys once again failed to recreate themselves. You have the Marina. You have the Radiomir. You have the 1950 case and that’s about it. There’s really not much else to go off of. So I feel like Panerai is another one that needs to reinvent themselves. I think they should cut production back down, to sort of create that supply and demand, and I think they need to come up with something new. You know? The hype of, you know, this rugged military divers watch, and a bigger watch, that stuff has died down. Their limited edition hype is over as well. It’s over for all the brands. Nobody cares for limited editions anymore so much. And they just need to make something new, something different, and get it out there. And this is on the way. They’re gonna come back up. And another question you had in here was: What are your thoughts on brands launching ecommerce sales on their website? Will it hurt—help or hurt the brand? Of course, it’s gonna help the brand. Listen, these brands are not stupid. There’s a reason why there’s a slew of websites out there, including my own, that are selling this stuff and we’re not being shot down. Well, theoretically we’re not doing anything illegal. We’re simply reselling a product. The fact that we’re not authorized dealers, nobody cares anymore. So, the companies said to themselves, “Wait a minute.” “There’s a huge potential out there. There’s a huge market out there online.” “We need to take a chunk out of that market.” Are they successful online? Are they selling as much, as let’s say guys like us online? Probably not but it’s the presence online because everybody’s used to shopping on it, number one. And number two, it gives them the opportunity to create models that are not sold through their authorized dealers but only sold through their boutiques or on their online platform. And Jaeger is even doing something where you can actually customize your watch, which is a big deal. That’s something I can never deliver to somebody who’s shopping online but they can because they make the watches. So, it is a good thing for them. They’re moving with the times. They’re taking a chunk out of a humongous online market for watches and it’s going to be a good thing for them. I don’t think it’s hurting the brand in any way shape or form. Hope that makes sense. Well guys, thank you once again for watching. Remember, if you liked this video go ahead and hit the like button. If you’re not subscribed to my channel, go ahead and hit the subscribe button. And I’ll see you guys next Tuesday.