After Beverly Hills closing, what's next?

[gregdolley]

Originally Posted by timetravel125

With the new world order, everything is possible in this day and age. I never thought that the Big Three, will suffer financial blows, like what we're seeing.

If WalMart and McDonald's will go under, then, I could definitely say, we are in deep trouble.

But, then again, there is always, hope!

Cheers.

Walmart yes, but McDonald's wouldn't be a surprise. If McD's went under, it'd be because finally everybody quit eating their artery clogging, "give me a heart attack" food. Actually, McD's sales have been in a downtrend for the last eight years - this is why you've seen them try to offer "healthier" food, like salads and stuff.

-Greg

[diablojota]

Originally Posted by gregdolley

Walmart yes, but McDonald's wouldn't be a surprise. If McD's went under, it'd be because finally everybody quit eating their artery clogging, "give me a heart attack" food. Actually, McD's sales have been in a downtrend for the last eight years - this is why you've seen them try to offer "healthier" food, like salads and stuff.

-Greg

Actually, if you look, MCD has been on an upward trend, and are one of the few companies that released positive news in the midst of the recession. They have showed upward growth for at least 3 years, if not longer, and the driver is the fat burger with fries...

[gregdolley]

Originally Posted by diablojota

Actually, if you look, MCD has been on an upward trend, and are one of the few companies that released positive news in the midst of the recession. They have showed upward growth for at least 3 years, if not longer, and the driver is the fat burger with fries...

Sure, but their sales are still lower than what they were 10 years ago.

[chicagowatchman]

Originally Posted by astcell

I talked to a Rolex dealer today who owns several jewelry stores and does high volume in second hand Rolexes. He told me that he is not surprised by the BH store closing, although the employees are not supposed to be talking about it.

He also said he has been in the business long enough to see what is next. He says that there is talk that Rolex USA will declare bankruptcy and then Rolex Geneva will stop production of watches for about four months to get the demand back up where it belongs. Sales are off 40% and no one is happy.

No idea if he is right or not but from the way the economy is, anything can happen. I wanted to get his comments written down so we can look back at them later and laugh, or cry.

i have heard sales are off in the US more like 65%

[GinGinD]

There's no reliable way to know how much sales are down since Rolex doesn't release that information.

I don't know about bankruptcy, but Carlyle & Co is definitely hurting. The one here still carries Rolex though. One of my clients works there and he says they are willing to do pretty deep discounts on diamonds and stuff. I didn't ask him about watches.

Walmart is doing quite well right now. My husband works at one of their distribution centers and business is brisk. He's getting all his hours.

I have no idea about McDonalds.

Jeannie

[Omega_Precision]

I think McDonald's would be doing fantastic in today's economy!

People are looking for cheaper alternatives for food. I am sure you can feed a whole family at Mcdonald's for cheap.

Also, there are people that are depressed and drinking more and Mcdonald's is comfort food.

[GOGO]

Really?!?

[Tcat55]

I heard that rolex lost about 900 million with bernie madoff anyone else heard about this

[txbikerdude]

MMmmmmm McDonalds.. :)

[chicagowatchman]

Originally Posted by Tcat55

I heard that rolex lost about 900 million with bernie madoff anyone else heard about this

http://www.melrosejewelers.com/rolex...-common-thief/

[eb641]

Rolex is now on a slide for one major reason: They have priced themselves out of the reach of their customer base.. Sounds trite and simplistic? It's anything but. What the big thinkers at Rolex Corporate have always failed to recognize is this: Rolex has NEVER been the choice of the wealthy. The truly rich scorn Rolex as mass manufactured toys for the great unwashed.. It's Patek, Vacheron, Cartier etc for them. People who seem to enjoy paying prices that don't in any way reflect intrinsic value. Rolex has always been the choice of those who have been successful and yet still prefer a little value for their money. So what does Rolex do.? Doubles and triples prices in a few years while at the same time creating a bunch of Nouvelle-Bling that none of their loyal customers want and the truly wealthy would not touch. Coupled with a world-wide recession it's a formula for disaster. I'm a believer in Rolex and the oyster case, but they need a road map to regain their followers. It just may be too late.

[Omega_Precision]

Originally Posted by chicagowatchman

http://www.melrosejewelers.com/rolex...-common-thief/

If 900 million was lost that is scary.

How can you invest away $900 million? That is just too much money to be floating around on investments. If it's true, they should have just cashed out every year on their return.

It's crazy!

[Omega_Precision]

Originally Posted by eb641

Rolex is now on a slide for one major reason: They have priced themselves out of the reach of their customer base.. Sounds trite and simplistic? It's anything but. What the big thinkers at Rolex Corporate have always failed to recognize is this: Rolex has NEVER been the choice of the wealthy. The truly rich scorn Rolex as mass manufactured toys for the great unwashed.. It's Patek, Vacheron, Cartier etc for them. People who seem to enjoy paying prices that don't in any way reflect intrinsic value. Rolex has always been the choice of those who have been successful and yet still prefer a little value for their money. So what does Rolex do.? Doubles and triples prices in a few years while at the same time creating a bunch of Nouvelle-Bling that none of their loyal customers want and the truly wealthy would not touch. Coupled with a world-wide recession it's a formula for disaster. I'm a believer in Rolex and the oyster case, but they need a road map to regain their followers. It just may be too late.

Brilliantly put.

[chicagowatchman]

Originally Posted by eb641

Rolex is now on a slide for one major reason: They have priced themselves out of the reach of their customer base.. Sounds trite and simplistic? It's anything but. What the big thinkers at Rolex Corporate have always failed to recognize is this: Rolex has NEVER been the choice of the wealthy. The truly rich scorn Rolex as mass manufactured toys for the great unwashed.. It's Patek, Vacheron, Cartier etc for them. People who seem to enjoy paying prices that don't in any way reflect intrinsic value. Rolex has always been the choice of those who have been successful and yet still prefer a little value for their money. So what does Rolex do.? Doubles and triples prices in a few years while at the same time creating a bunch of Nouvelle-Bling that none of their loyal customers want and the truly wealthy would not touch. Coupled with a world-wide recession it's a formula for disaster. I'm a believer in Rolex and the oyster case, but they need a road map to regain their followers. It just may be too late.

You hit the nail right on the head!!!!

[Solo118]

I concur with eb641... Hell a 4k sub is perfect for those who are saving up, but now its 6k thats a little more than ppl want to spend

[Ozzie]

Originally Posted by eb641

Rolex is now on a slide for one major reason: They have priced themselves out of the reach of their customer base.. Sounds trite and simplistic? It's anything but......... It just may be too late.

Very well put, I agree with every word.

[rcher]

Originally Posted by eb641

Rolex is now on a slide for one major reason: They have priced themselves out of the reach of their customer base.. Sounds trite and simplistic? It's anything but. What the big thinkers at Rolex Corporate have always failed to recognize is this: Rolex has NEVER been the choice of the wealthy. The truly rich scorn Rolex as mass manufactured toys for the great unwashed.. It's Patek, Vacheron, Cartier etc for them. People who seem to enjoy paying prices that don't in any way reflect intrinsic value. Rolex has always been the choice of those who have been successful and yet still prefer a little value for their money. So what does Rolex do.? Doubles and triples prices in a few years while at the same time creating a bunch of Nouvelle-Bling that none of their loyal customers want and the truly wealthy would not touch. Coupled with a world-wide recession it's a formula for disaster. I'm a believer in Rolex and the oyster case, but they need a road map to regain their followers. It just may be too late.

An outstanding assessment, sir.

Very eloquently stated and well thought out....and as such, refreshing.

[Beef]

I definitely agree with this assessment. Well spoken!

Originally Posted by eb641

Rolex is now on a slide for one major reason: They have priced themselves out of the reach of their customer base.. Sounds trite and simplistic? It's anything but. What the big thinkers at Rolex Corporate have always failed to recognize is this: Rolex has NEVER been the choice of the wealthy. The truly rich scorn Rolex as mass manufactured toys for the great unwashed.. It's Patek, Vacheron, Cartier etc for them. People who seem to enjoy paying prices that don't in any way reflect intrinsic value. Rolex has always been the choice of those who have been successful and yet still prefer a little value for their money. So what does Rolex do.? Doubles and triples prices in a few years while at the same time creating a bunch of Nouvelle-Bling that none of their loyal customers want and the truly wealthy would not touch. Coupled with a world-wide recession it's a formula for disaster. I'm a believer in Rolex and the oyster case, but they need a road map to regain their followers. It just may be too late.

[Blown Wide Open]

Originally Posted by rcher

oh, well..... at least Porsche hasn't gone down that road.

You gotta dance with the one that brung ya.

Cough...Cayenne Turbo...Cough..

PAtrick

[stusrt]

I am looking at getting the GMTIIC- TT
it's freakin' over $10,000
you have to be crazy to think I'm going to pay anything close to retail on that!

And yes, they did price me out from buying from an AD -
Omega and breitling also - I went looking for a speedmaster last weekend. they are close to $5k now. That's crazy. And the navitimer is over $6k -

[rcher]

Originally Posted by Blown Wide Open

Cough...Cayenne Turbo...Cough..

PAtrick

Touche. I stand corrected.

[Omega_Precision]

That is what's going on with watch prices....they rise faster than income for people.

A 16710 could be bought new back in the days and now a GMT is reaching astronomical prices.

[diablojota]

I agree completely. The prices are really skyrocketing. A 10% increase is starting to add up to a near 1000 increase for most of their watches, if not more...

Hopefully they''ll fix prices and allow the ADs some room to negotiate. That way they can give off the appearance of high MSRP but really not as unreasonable as some of these watches are reaching. 4k was about as much as I was willing to pay for my Sub Date 5 years ago. I would not pay much more then that for a new one now...

[cwru32]

Originally Posted by ijen0311

Well... I bought 5,00 shares of AIG today

Seriously, I did.

you r a smart cookie ;]

[Omega_Precision]

When you reach those high prices, your options are way more open.

There are other lines or brands you can buy and maybe even in precious metals.

The problem is that Rolex is raising their prices more than their initial competitors and now they are almost in the territory of JLC, AP, VC, PP and Lange. An average person would buy Rolex because of it's brand and history but may not buy the top 5's. The top 5's demographics wouldn't buy a Rolex, as it seems too civilian to them.

[ks1117]

the rolex factory may just decrease the production without telling the public. Not necessary to stop production for a while, really bad image if they do that.