New Rolex Business Model?

[ras47]

From the Dilbert strip today. Look familiar?

[M45]

I’m a watch collector, and I would have to admit I would have spent a lot more money on Rolex and have a lot more of their watches if their business model didn’t suck as bad as it does.

[Pw92676]

Lol. Fitting. At least he makes you beg instead of going on a wait list :)

[ras47]

I'm not a collector myself so I don't have real skin in this game. I have one Rolex and it's for daily wear. Don't care about collector value or originality. I just have it because I like watches and I love this one. It's a "needful" thing. I sent it to an RSC to get freshened up, replacing the original hands with no lume left, got a new dial to match the new hands, and I'm a happy camper.

I watch the both the true collectors and general enthuiasts struggle to get the pieces they want and it looks absurd. Scarcity and brand protection is one thing, but Rolex seems to have taken it to a level I've not seen before. What galls me is that gray dealers seem to be able to get the models they want, stepping between Rolex and the end consumer. If nobody could get the new hot models I'd say that's just market conditions. But this feels artificial and contrived.

[THC]

So perfect for the Rolex brass... email this to Geneva HQ

[Jojoshop]

Can Rolex really meet demand and maintain quality. I feel if they take that route they might turn into another Omega.

[THC]

Originally Posted by Jojoshop

Can Rolex really meet demand and maintain quality. I feel if they take that route they might turn into another Omega.

I have to believe that a happy medium can coexist. Does not have to be all or nothing

[brandrea]

Funny

[superdog]

Originally Posted by Jojoshop

Can Rolex really meet demand and maintain quality. I feel if they take that route they might turn into another Omega.

You mean a company that produces great watches that people can actually buy?

Oh Lordy, please no.

[ras47]

There is more supply of Rolex watches out there than the consumer is seeing. But it's in the hands of the gray dealers. I don't think supply will ever rise to the level of "plentiful" but there's more than we're seeing.

[M45]

Originally Posted by ras47

There is more supply of Rolex watches out there than the consumer is seeing. But it's in the hands of the gray dealers. I don't think supply will ever rise to the level of "plentiful" but there's more than we're seeing.

Clearly all the steps ADs claim to be taking aren't doing anything from keeping watches out of hands of gray dealers.

[The Libertine]

Originally Posted by ras47

I watch the both the true collectors and general enthuiasts struggle to get the pieces they want and it looks absurd. Scarcity and brand protection is one thing, but Rolex seems to have taken it to a level I've not seen before. What galls me is that gray dealers seem to be able to get the models they want, stepping between Rolex and the end consumer. If nobody could get the new hot models I'd say that's just market conditions. But this feels artificial and contrived.

Well said, and I agree 100%.

[ras47]

Originally Posted by M45

Clearly all the steps ADs claim to be taking aren't doing anything from keeping watches out of hands of gray dealers.

I wonder how hard they're trying or if they're trying at all.

[superdog]

Hypothetical question.

If Rolex just shipped 2,000 each of the LVC, the blue SD, both Daytona’s, the new BLNR and the BLRO, do you think they would sell out quickly? Or would it normalize the situation?

[whattimeyougot]

Originally Posted by superdog

Hypothetical question.

If Rolex just shipped 2,000 each of the LVC, the blue SD, both Daytona’s, the new BLNR and the BLRO, do you think they would sell out quickly? Or would it normalize the situation?

I think it would decrease the grey market value of each piece by 13.29%.


Sent from my iPhone using Tapatalk

[Old Geezer]

Originally Posted by superdog

Hypothetical question.

If Rolex just shipped 2,000 each of the LVC, the blue SD, both Daytona’s, the new BLNR and the BLRO, do you think they would sell out quickly? Or would it normalize the situation?

There would be 12,000 more watches at grey dealers the next day. No change for the consumer looking for the call. So I guess I could say I believe they would sell quickly.

[ras47]

If a quick pop in supply could panic a couple of significant gray dealers, we could see a "follow the leader" rush to market for a lot of others. A good old-fashioned bear raid. Grays holding stock to dribble it onto the market would worry they had missed the premium pricing and have their stockpiles devalued.

I don't know if this price drop would hold, but it would be fun to watch while it did! Make the casual flippers think twice about getting burned.

[yoniman]

Spot on

Cheers

[GB-man]

Originally Posted by superdog

Hypothetical question.

If Rolex just shipped 2,000 each of the LVC, the blue SD, both Daytona’s, the new BLNR and the BLRO, do you think they would sell out quickly? Or would it normalize the situation?

Would a day of rain turn Vegas into Rio de Janeiro

[M45]

Originally Posted by ras47

If a quick pop in supply could panic a couple of significant gray dealers, we could see a "follow the leader" rush to market for a lot of others. A good old-fashioned bear raid. Grays holding stock to dribble it onto the market would worry they had missed the premium pricing and have their stockpiles devalued.

I don't know if this price drop would hold, but it would be fun to watch while it did! Make the casual flippers think twice about getting burned.

The chairman of Porsche produced more rare models when he found out people were flipping them or holding onto them to increase their values, and he pretty much said that if you want to speculate, maybe you should buy art or stocks.

[GB-man]

Originally Posted by M45

The chairman of Porsche produced more rare models when he found out people were flipping them or holding onto them to increase their values, and he pretty much said that if you want to speculate, maybe you should buy art or stocks.

I agree with his strategy. If your product speaks for itself, as does rolex or porsche, then you do not need to foster a secondary market for marketing purposes.

[ras47]

Originally Posted by M45

The chairman of Porsche produced more rare models when he found out people were flipping them or holding onto them to increase their values, and he pretty much said that if you want to speculate, maybe you should buy art or stocks.

Very true. Watches are lousy investments. Folks only remember the models that skyrocket, few as they may be. Once success story sucks in the punters.

[Burlington]

Originally Posted by superdog

Hypothetical question.

If Rolex just shipped 2,000 each of the LVC, the blue SD, both Daytona’s, the new BLNR and the BLRO, do you think they would sell out quickly? Or would it normalize the situation?

If it was 20,000 that may be enough to make a dent.

I think a lot of the ‘demand’ would dissipate though if there was ready availability & no profit (or future promise of) to be made on resale

[tjs00]

Originally Posted by Pw92676

Lol. Fitting. At least he makes you beg instead of going on a wait list :)

There is no inventory, so no need for a wait list