Chapter 18: Sales Promotion and Personal Selling

Advertising is the key to introducing and exposing a product to the public, and while sales promotion can do the same, though its goal is short-term and direct - sell now!

We all open up the paper Sunday morning and see tons of coupons inside. We see coupons for cereal, electronics, and supplies. What is scarcely available are coupons for luxury items, especially luxury timepieces. The fact is, stores such as Saks Fifth Ave, Bloomingdales, and Lord & Taylor have sales, almost on a weekly basis. Inventory turnover is crucial to stores, such as those, whose inventory is completely different from one season to the next. Of course, there are always those "exceptions". The fine print below excluding exclusive designers and ultra high-end product, almost always including luxury timepieces.

Walk into a TAG Heuer or any other watch boutique and they all have one thing in common(besides watches) - They do NOT discount. Most high-end companies believe discounting de-values their product. The belief is that the consumer has no reason to believe they are buying a product priced at $5,000, if the watch is consistently being discounted for 50% off. The consumer feels the product is $2,500 and not $5,000, tarnishing the integrity of the product.

Only a year ago, you would see a TAG Heuer selling for up to 40% off - that is until TAG Heuer lowered their discounts to dealers and implemented a new rule stating that dealers are forbidden to sell any of their active product for more than 25% off.

TAG Heuer watches, depending on the model, can generally be purchased for 20% off at a local Authorized Dealer. While TAG might prefer 0%, I am sure they have come to accept the fact that discounts are a part of the shopping experience and generally a help in exposing their product to consumers who might not have bought a timepiece from their company otherwise.

While there are no venues that offer timepiece personal shopping, I highly recommend stores such as Tourneau to view over 100 brands on display. While their salespersons have a bad reputation, they have a couple of veterans willing to help out a new consumer. Most look for the quick commission, but some believe in relationship selling. They not only look to make the sale, but make you into a client of theirs for the future. They will guide you throughout the store in helping you pick the right timepiece.