A display model watch should be considered used, and a deep discount would be appropriate. I bought a Bulova divers watch that had been a display model, and got it for less than 50% of the asking price (which was already below MSRP). It was absolutely flawless, and came with all of the paperwork and had a factory warranty.

My grail watch is the Sinn T1-B EZM14. At this point, my chances of owning one are slim and none.