Weekend Discussion: The once-hyped luxury watch market has collapsed. Are their implications for the secondary Cuban cigar market?

[SCgarman]

1 hour ago, Frozen North said:

I sold my 2004 Rolex Sub that I paid $6100.00 for in 04’ for $28,000.00 last summer. Suckers are born everyday. I’m sure the same applies in the CC market. It’s pure insanity in my opinion.

Was that the 50th Ann "Kermit" green bezel/black dial? The Y serial flat 4's that were NOS were fetching 25K+ easily. Absolutely right about "suckers". Happens with watches, vintage guitars, cigars, you name it!

[BrightonCorgi]

One of the perks working at Rolex is that there are buying opportunities for employees to buy a Rolex at a discount.  I think it's 15% off and this is considered a compensation/benefit.  They don't offer this opportunity often and most employees do not own a Rolex.  They also limit which models one can buy based on salary.  Someone making 100k CHF a year cannot buy a gold Presidential for instance.  Otherwise everyone at Rolex would buy a 30K watch, lol.

Does Habanos let employees buy cigars at a discount?   Actually the better question is "can employees of Habanos afford to buy cigars at all"?

[SCgarman]

1 hour ago, BrightonCorgi said:

One of the perks working at Rolex is that there are buying opportunities for employees to buy a Rolex at a discount.  I think it's 15% off and this is considered a compensation/benefit.  They don't offer this opportunity often and most employees do not own a Rolex.  They also limit which models one can buy based on salary.  Someone making 100k CHF a year cannot buy a gold Presidential for instance.  Otherwise everyone at Rolex would buy a 30K watch, lol.

Does Habanos let employees buy cigars at a discount?   Actually the better question is "can employees of Habanos afford to buy cigars at all"?

You and I know the answer. No. Habanos employees can't afford a box of cigars on their salary, and Apple employees who assemble iphones in China can't afford to buy an Apple phone on their salary. Ironic isn't it? I wonder how many other products where this instance holds true?

[BrightonCorgi]

21 minutes ago, chasy said:

I’ve wonder something similar (not if Foxconn employees can afford an iPhone) but rather whenever in a fancy clothing store (Hermes, Gucci, Loro Piana), the full staff is decked out in a uniform made by the label. At Loro Piana it might be a $5k+ uniform at MSRP. I’m sure they either don’t own it, get huge discount, etc.

But is has me wondering - what jobs out there come with the best / most valuable perks?

It depends on the brand and role of the employee.  Many give stipends and massive discounts; other can be more on the "uniform".  There are normally limits on how much one can buy at the employee discount and some further restrict sizing.  Just like as with Rolex, you'd mortgage the house if you could buy as much as you want at a discount.

An interesting perk I heard about is at Bose.  An employee can get a great discount on any new car that has a Bose stereo.  Bose is in many marques from GM to Ferrari.

[Frozen North]

17 hours ago, SCgarman said:

Was that the 50th Ann "Kermit" green bezel/black dial? The Y serial flat 4's that were NOS were fetching 25K+ easily. Absolutely right about "suckers". Happens with watches, vintage guitars, cigars, you name it!

Yes it was a very early F serial number.

[BrightonCorgi]

1 hour ago, chasy said:

Interesting and makes sense regarding limits on the perks, per your Rolex example. One of the benefits of perks (from my perspective) is that they are often valued by the recipient much more highly than what their dollar value is. For example, in a prior life we used to take floor brokers from the Chicago trading floor out to dinner at the end of the year to thank them for their business - more the rank and file guys and not so much the bosses. We'd take them to a dinner that might cost $250 a head and they absolutely loved it - got boozed up, ordered a massive steak, etc. Alternatively, if I had handed these guys (who were all much older than I was) $250 bucks and said happy holidays, they might have broken my nose on the spot. The perk was totally decoupled from its actual value. It's something I've always tried to implement because it's a win win.

For Rolex, the opportunity to buy at a discount is like actual compensation.  Similar to  employer matching on a 401K.

I am totally with guys in your trading floor example.  Money is money, but the party and comradery is worth more than the $250.

[vladdraq]

Not sure what are you talking about guys, but i know a guy In Havana who has a cousin working at the cigar factory and always have good cigars for sale, mostly Cohibas  and he even takes trades with sunglasses and stuff.