Swarovski price reductions from Monday 1st July? (3 Viewers)

[ticl2184]

Hi Tim,

In relation to 6x30 Swarovski's . . .

During WWII, Swarovski KG (the crystal company) commenced binocular production, and made around 183,000
standard pattern 6x30 Dienstglas (i.e. the Zeiss IF 6x30 Silvamar).

In 1948, Swarovski KG commenced commercial binocular production with a 6x30 model, based on the WWII production.
There were both CF and IF versions, along with lens coating (the then unique DV/ dual layer coating).
A 7x42 model, with the same eyepiece and prisms but with a larger objective, was introduced later in the year.

In 1949, both the company Swarovski Optik KG and the Habicht brand were registered, with 6x30 and 7x42 production continuing.
The 6x30 made until 1995, and the 7x42 is still made today!
(The 8x30W and 10x40W models with a new eyepiece were introduced in 1952 and 1954.)


Commercial production 6x30's:
a) The earliest Swarovski 6x30 that I’ve seen #20,182 (numbering started from 20k); from a 2021 listing on the Swiss sales site ricardo.ch.
b) The latest Swarovski Optik 6x30 that I’ve seen #A6540 28519 (so from October 1995); from a 2022 eBay listing by ewt1984.

View attachment 1588576


For more on the early history and production, see the posts and links at: Early Swarovski Post War Models
And contrary to what I said in the thread, the 6x30 Dienstglas was the military version of the Zeiss IF 6x30 Silvamar - not the Silvarem, the CF version.


John

Thanks John

 

[Dennis Mau]

I think Swarovski is discounting their binoculars because of slow sales. With all the bad press about the armor issues, I think it is hurting their sales. I know I use to be able to sell almost any Swarovski binocular in a week, but not anymore. They take forever to sell, and it is partly because they are getting a bad reputation for quality issues.

 

[dries1]

I think Swarovski is discounting their binoculars because of slow sales. With all the bad press about the armor issues, I think it is hurting their sales. I know I use to be able to sell almost any Swarovski binocular in a week, but not anymore. They take forever to sell, and it is partly because they are getting a bad reputation for quality issues.

I think it is also what is really going on with the economy.

 

[OrangeO]

I think Swarovski is discounting their binoculars because of slow sales. With all the bad press about the armor issues, I think it is hurting their sales. I know I use to be able to sell almost any Swarovski binocular in a week, but not anymore. They take forever to sell, and it is partly because they are getting a bad reputation for quality issues.

How are the other brands doing? On sites that let you sort by best sellers like BH and EuroOptic Swarovski are some of the best sellers in the $2000 and up range. If the top seller is doing bad I hate to think how bad the rest are doing. Zeiss and Leica also have some great discounts at the moment so they might also be experiencing slow sales. Possibly the only brands doing well are Vortex and Nikon because of their price point.

 

[jan van daalen]

How are the other brands doing? On sites that let you sort by best sellers like BH and EuroOptic Swarovski are some of the best sellers in the $2000 and up range. If the top seller is doing bad I hate to think how bad the rest are doing. Zeiss and Leica also have some great discounts at the moment so they might also be experiencing slow sales. Possibly the only brands doing well are Vortex and Nikon because of their price point.

The problem is not bad sales.
The problem is the beancounters as ceo.
It is simply impossible to continue the sales like we had the Covid period.
If we take the statistics from 2000 to 2019 en take that line to 2024, sales are far above that line, but lower compared to sales in 2019-2022.
Without Covid everybody would have been satisfied with the current sales results (beancounters excepted).
So, is there a decline in sales? Yes.
Are we satisfied with the current sales? Absolutely!

 

[John A Roberts]

In relation to the detail that we know about Swarovski Optik's sales . . .

Swarovski Optik is part of the privately owned Swarovski Group (comprising Swarovski Crystal, Tyrolit abrasives and SO).
And typically the only financial information published by SO is annual turnover in millions of euros *

The information for the most recently available year along with the previous one, is often in a standard paragraph
included at the end of SO press releases. But conveniently back in 2021, the page Facts & Figures on the SO website
included a graph of the annual turnover for the period 2009 to 2020.


a) Turnover 2009 to 2020


b) Turnover 2021 and 2022

(From the AX Visio 10x32 press release of the 8th of January 2024.)


As can be seen there was a significant jump in turnover for the 2021 and 2022 periods!
A July 2021 press release from SO about its continuing growth noted:
'In May this year, monthly sales exceeded the 20-million-euro mark for the first time. Record figures that continued in June.'
See post #9 at: Swarovski Binoculars - Volume of Production


* In relation to the term 'turnover' see the comments in posts #10 and 12 of the same link.


- - - -
Some factors to consider . . .

A) SO's production capacity:
It was significantly expanded in the third quarter of 2020 with the completion of a €27 million construction and fit out project
(see post #8 in the link).

B) SO branded products/ sources of income:
SO makes a wide range of commercial products, including hand held optics, telescopes, thermal viewers and telescopic sights.
And during 2021-2022 a number of new products were introduced: CL Pocket x25 upgrade, NL Pure x32 and CL Curio 7x21 binoculars;
EL Range TA x42 rangefinder binoculars; tM 35 thermal viewers, and; dS II rangefinder telescopic sight and AFL sight attachment **

C) Other sources of income:
Under the Swarotec brand, SO also offers a full range of technical services for those requiring optical and opto-electronic
components and products (see post #7 in the link).

Products that SO is known to have made for others are binocular loupes for medical use and lenses for archery sights.
And SO currently makes the Helia S 8x42 and 10x42 binoculars for Kahles (a company owned by SO).


The increase in turnover was made possible by the significant increase in production capacity becoming available.
As Jan has noted in the previous post, there was a significant increase in consumer demand during the COVID restrictions period.
And SO also took the opportunity to introduce a number of new branded products which would have further added to sales.
However, SO may have additionally used the new capacity, to increase the components and products that it makes for third parties (?)


John


** Since then SO has introduced:
My Junior 7x28 (not manufactured by SO) and NL Pure x52 binoculars; EL Range x32 rangefinder binoculars and
AX Visio 10x32 electronic guide/ camera binocular, and; Z8i+ sights.

 

[Scott98]

The problem is not bad sales.
The problem is the beancounters as ceo.
It is simply impossible to continue the sales like we had the Covid period.
If we take the statistics from 2000 to 2019 en take that line to 2024, sales are far above that line, but lower compared to sales in 2019-2022.
Without Covid everybody would have been satisfied with the current sales results (beancounters excepted).
So, is there a decline in sales? Yes.
Are we satisfied with the current sales? Absolutely!

interesting....the lockdowns had similar effect w/ telescopes. The sales of astronomy equipment went berserk, with most items becoming totally sold out in a way we've never seen before. Everybody decided to buy a telescope and try astronomy. I'm sure there has been a corresponding lull in sales in the last year or two.

Same thing with dogs. Here in the States, everybody went out a got a dog during the martial law period. Over the last year, many of the people decided they didn't want the dog, and rescue shelters are now overflowing and backlogged in my area. My favorite dog breeder had a 1+ year backlog for several years and now she's barely able to sell the puppies she has - you can get one immediately.

 

[MJ73]

If you look around you may find them well under the new price reductions. I found the 10x42 at a big box store for under 2600.

 

[dries1]

interesting....the lockdowns had similar effect w/ telescopes. The sales of astronomy equipment went berserk, with most items becoming totally sold out in a way we've never seen before. Everybody decided to buy a telescope and try astronomy. I'm sure there has been a corresponding lull in sales in the last year or two.

Same thing with dogs. Here in the States, everybody went out a got a dog during the martial law period. Over the last year, many of the people decided they didn't want the dog, and rescue shelters are now overflowing and backlogged in my area. My favorite dog breeder had a 1+ year backlog for several years and now she's barely able to sell the puppies she has - you can get one immediately.

That is pretty sad, dogs are not a material possession, shows the mentality of some people. My Aussies are part of my family.

 

[SuperDuty]

If you look around you may find them well under the new price reductions. I found the 10x42 at a big box store for under 2600.

Which store ?

 

[jan van daalen]

It depends how the price setup is.
Currently the NL10x42 is priced at 2.970,00 euro.
The streetprice is 2.670,00 euro.
Bought by somebody living out of the EU, there is no VAT so the price is down to 2.200,00 euro.

The question is..... what are the import/tax/freight costs of the country where this bin goes to.
What we see a lot is the customer who lives outside the EU and visits Holland (holiday or family visit) buy optics here without the VAT and pay no import/tax/freight costs.
A bit like 'the old days' where the Dollar versus Dutch currency rate was so interesting for us that the travelcosts for a long weekend New York was covered by the cheap shopping in the USA.

 

[NDhunter]

John:
Your chart is interesting about Swarovski, and the term, "Turnover", must mean sales, although
I cannot determine that by your post. From what I can tell, those numbers have not kept up with inflation, so
it seems sales are down.
It is hard to sell optics priced over $3K in any currency, the 52 NL is a very small part of things.
Jerry

 

[John A Roberts]

John:
Your chart is interesting about Swarovski, and the term, "Turnover", must mean sales, although
I cannot determine that by your post. From what I can tell, those numbers have not kept up with inflation, so
it seems sales are down.
It is hard to sell optics priced over $3K in any currency, the 52 NL is a very small part of things.
Jerry

As Jan indicated in post #25, and as the most recent information available information from Swarovski shows,
there was a huge surge in demand during the COVID restrictions period.

In terms of Turnover:
2020: 163.5 million € (until then the yearly record)
2021: 210.4 million € (+28.7% on 2020)
2022: 216.4 million € (+32.4% on 2020; +2.9% on 2021)

And as Jan also indicated, since then sales have understandably substantially reduced. Though seemingly the 2023 turnover
remained notably higher than that of 2020, although significantly less than that for the unique period of 2021 and 2022.


John

 

[dries1]

Here in the US inflation is ongoing, so sales will continue to lag. This also goes for used premium glass.

 

[jan van daalen]

Here in the US inflation is ongoing, so sales will continue to lag. This also goes for used premium glass.

Dries,

Is that for the US in general or just in some States?

 

[dries1]

Jan,

Take your pick, all daily consumables are up, food, utilities. Now if you are a government employee in DC- overpaid for being an idiot and accomplishing nothing, that is different.

 

[OrangeO]

Drie,

Is that for the US in general or just in some States?

Everything is more expensive across the US so people have less money for things like binoculars but the economy and the dollar are doing great relative to a lot of other countries so binoculars as an import good are about the same price or cheaper. That's part of why I think we are seeing sales and discounts from all binocular brands. I'm not an economist so take my comments as experiential at best.

 

[Scott98]

That is pretty sad, dogs are not a material possession, shows the mentality of some people. My Aussies are part of my family.

No kidding - when a popular movie about a dog comes out, like a Dalmation - everyone goes out and buys one. Then a year later the shelters are full, because young Dalmations are wild and it's like adding a small child to your family.

It's not all foolishness though, a lot of housing doesn't allow dogs, with all the HOA's we now have - so that forces a lot of people to give up their animal. With the current housing market, even more HOA's and landlords are adopting tighter rules...just because they can

re: the inflation - during the Covid years, the US government basically printed out an additional 10 trillion dollars of currency. 10 trillion! Four times what they printed out in the 2008 "banking crisis". So it's not hard to understand where the inflation is coming from. They do this instead of raising tax rates - it's a way of taxing peoples' savings without politically difficult tax increases.

 

[jan van daalen]

Jan,

Take your pick, all daily consumables are up, food, utilities. Now if you are a government employee in DC- overpaid for being an idiot and accomplishing nothing, that is different.

Hi Dries,

If you can't beat them.....join them👨‍💼👨‍💼

All jokes aside, isn't that of all times. Economy goes up and down.
The target group for the A-brands (Terra, Conquest and Trinovid models excluded) is the birder, hunter and safari group who want the best and can afford it.
In periods of forced non consuming (Covid) a lot more people have money in their pocket and take the opportunity to get what they always wanted,
Otherwise it is business as usual. Up and down. Long term vision rules.
So the question remains, is the decision of Swaro's price reduction driven by their 75 years or by lower (but still more than acceptable) sales.
IMHO it is the latter.

 

[jan van daalen]

Everything is more expensive across the US so people have less money for things like binoculars but the economy and the dollar are doing great relative to a lot of other countries so binoculars as an import good are about the same price or cheaper. That's part of why I think we are seeing sales and discounts from all binocular brands. I'm not an economist so take my comments as experiential at best.

Yes but are these discounts of all binocular brands given by the dealer or the brands?