ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX
25 April 2024, 12:02 AM | #31 |
"TRF" Member
Join Date: Feb 2021
Location: NY
Posts: 712
|
Assuming 600 watches a year and an average of $5k margin per unit, the AD enjoys $3 million in margin for a product that sells itself.
Understandable that they would protect this product line and not risk their status to support flippers. Also understand that smart business would be to leverage this for their total business results. |
25 April 2024, 12:39 AM | #32 | |
"TRF" Member
Join Date: Aug 2016
Real Name: Chuck
Location: Canada
Watch: Rolex 116610LV
Posts: 2,194
|
Quote:
|
|
25 April 2024, 03:29 AM | #33 |
2024 Pledge Member
Join Date: Jan 2012
Location: Canada
Posts: 121
|
Some interesting things from this thread,
Every AD is going to be different, and seems stand alone boutiques get more then mixed AD's. That also means more pieces that are not so popular they have to carry and try to sell. Not every piece sells itself, many ladies diamond pieces are slow movers. |
25 April 2024, 04:31 AM | #34 |
"TRF" Member
Join Date: Dec 2023
Location: US
Posts: 73
|
Rolex makes over 1.2 million watches a year. There’s one caveat, in your calculations you’re forgetting about grey market, there are getting watches from somewhere as well.
Sent from my iPhone using Tapatalk |
25 April 2024, 08:26 AM | #35 |
2024 Pledge Member
Join Date: Feb 2023
Real Name: Brad
Location: USA
Watch: 126610LV
Posts: 172
|
The 2 ADs I deal with (different states) are both medium-sized, family-owned jewelry stores. Both have just recently undergone Rolex upgrades which also included redoing the entire store.
The manager at the one that just moved to an entirely new location was frank in telling me they get around 300-350 total watches a year - about a dozen or so BLNRs and only 4 BLROs. The other out-of- state store receives about the same from what I’ve gathered. I only deal with the manager at each of the ADs. Sent from my iPhone using Tapatalk |
26 April 2024, 12:11 AM | #36 |
"TRF" Member
Join Date: May 2019
Location: Here
Posts: 1,442
|
ADs and grey were holding Pepsi and telling customers they don't get them or they are rare in 2024 cards, meanwhile stashing them at the back. Now that the Pepsi is not discontinued they are dumping them before the big price fall comes.
|
26 April 2024, 01:58 AM | #37 |
"TRF" Member
Join Date: Aug 2023
Location: Peachtree City
Posts: 274
|
One of the huge AD’s in Atlanta gets around 3600 a year or around 300 a month. At this location, around 80% of their sales comes from Rolex. Yet, it’s still hard to get SS sports models from them bc their waiting lists are so long.
|
26 April 2024, 03:39 AM | #38 |
"TRF" Member
Join Date: Jul 2009
Real Name: Scott
Location: UK
Watch: ^^^ for now
Posts: 5,697
|
There is no true "grey market" as far as Rolex is concerned. There are secondary market dealers selling watches originally supplied and sold by ADs.
__________________
Past: 6239 (yes, I know...), 16610, 16600, 116515, 116613LN, 126600, 126711 CHNR Present: 16600, 116509, Cartier Santos Green. |
26 April 2024, 03:55 AM | #39 | |
2024 Pledge Member
Join Date: Nov 2007
Location: Pacific NW
Posts: 545
|
Quote:
__________________
Rolex Day-Date 118208 YG/Datejust 116139 WG/GMT2 116710 BLNR SS Patek Philippe Calatrava 5096 RG - Omega Speedmaster 3861 Sapphire SS Cartier Tank Louis 1140 YG - Panerai GMT 233 SS - Zenith Chrono 01.0240.410 SS Laine V38 SS - JLC Reverso Duo Q2714910 SS - Grand Seiko SGBA407 SS - Baltic Aquascaphe SS TAG Heuer Formula One - Swatch MoonSwatch Mission to the Moon/Mercury/Jupiter/Neptune |
|
26 April 2024, 04:24 AM | #40 |
"TRF" Member
Join Date: Dec 2023
Location: US
Posts: 73
|
I think you're exactly right! It's ridiculous. It is impossible to get a watch from the AD within a year (if ever at all) and on the same time it takes five minutes to find exactly the same model available online, brand new, with warranty card from the current month. But as long as people will keep feeding "secondary market" scalper dealers this situation will never change.
|
26 April 2024, 04:31 AM | #41 | |
"TRF" Member
Join Date: Jan 2019
Location: USA
Watch: ing my wrist
Posts: 1,019
|
Quote:
Not that I don't believe you, but it's just wild how all over the place it is. |
|
26 April 2024, 04:42 AM | #42 |
"TRF" Member
Join Date: Jun 2016
Location: USA
Watch: es watches
Posts: 1,961
|
AD's now have plenty of stock to fill the cases, they choose not to, and we all know why.
|
26 April 2024, 04:47 AM | #43 | |
"TRF" Member
Join Date: Aug 2023
Location: Peachtree City
Posts: 274
|
Quote:
Yeah, I was shocked to hear that number too. I assume the Pareto distribution model (80/20 rule) holds true for ADs. The top 20% of ADs probably sell 80% of the pieces. Rolex seems to be consolidating their AD network too, so larger ADs will get even more in coming years. Sent from my iPhone using Tapatalk |
|
26 April 2024, 04:50 AM | #44 |
"TRF" Member
Join Date: May 2014
Location: Planet Earth
Posts: 796
|
|
26 April 2024, 04:51 AM | #45 |
"TRF" Member
Join Date: Dec 2023
Location: US
Posts: 73
|
|
26 April 2024, 04:56 AM | #46 |
"TRF" Member
Join Date: May 2014
Location: Planet Earth
Posts: 796
|
|
26 April 2024, 05:01 AM | #47 | |
"TRF" Member
Join Date: Dec 2023
Location: US
Posts: 73
|
Quote:
It's pretty easy to stop, we just need to stop buying brand new watches from "secondary dealers" or advising other people to do so. |
|
26 April 2024, 05:04 AM | #48 | |
"TRF" Member
Join Date: May 2014
Location: Planet Earth
Posts: 796
|
Quote:
Grey can be good. I think i’m on my own here. But I kind of like the AD game. lol. Asked my AD for a BLRO to pickup the 8 of June - and the only answer I got was “we will se - plenty of time till June” lol Sent from my iPhone using Tapatalk |
|
26 April 2024, 05:11 AM | #49 |
"TRF" Member
Join Date: Dec 2023
Location: US
Posts: 73
|
Cool, I asked for Explorer II, the answer was "we didn't even get a single one last year".
|
26 April 2024, 05:14 AM | #50 |
"TRF" Member
Join Date: May 2014
Location: Planet Earth
Posts: 796
|
|
26 April 2024, 05:19 AM | #51 |
"TRF" Member
Join Date: Dec 2023
Location: US
Posts: 73
|
I'm already waiting with all AD's in my state, spent hours driving and "following up". I saw one on display in Miami while on vacation a few weeks ago but obviously they wouldn't sell it. They told me they could get one in a few weeks but since I'm not local they advised me to check with my home AD. So there you go. It sucks.
|
26 April 2024, 05:45 AM | #52 | |
"TRF" Member
Join Date: Nov 2021
Location: Washington, DC
Posts: 1,467
|
Quote:
Rolex is one of the most prestigious luxury brands on the planet. The fact that people can’t get a Daytona has done very little to their reputation. The fact that being a Rolex AD likely increases other sales is good for Rolex. It means they have the leverage to demand ridiculous things like boutique like buildouts. Sent from my iPhone using Tapatalk |
|
26 April 2024, 01:36 PM | #53 | |
"TRF" Member
Join Date: Jan 2019
Location: USA
Watch: ing my wrist
Posts: 1,019
|
Quote:
If I were 22, a fresh college graduate living in a big city, and wanting my first Submariner I think the taste I'd quickly get in my mouth would be enough to walk away from the brand either permanently or at least for a very long time. I've been lucky on a few instances--I.E. getting a ceramic Pepsi when I was 23 in 2019 as things were heating up, but I think the current system isn't really welcoming to the younger generation and that I was an exception to a backwards and broken system. |
|
26 April 2024, 01:47 PM | #54 | |
"TRF" Member
Join Date: Nov 2021
Location: Washington, DC
Posts: 1,467
|
Quote:
The unavailability of these models makes them more attractive to most folks. Half the people here wouldn’t want a Daytona or a Pepsi or a Skydweller if you could just walk in and buy one. Sent from my iPhone using Tapatalk |
|
26 April 2024, 05:14 PM | #55 |
"TRF" Member
Join Date: Jul 2009
Real Name: Scott
Location: UK
Watch: ^^^ for now
Posts: 5,697
|
Agreed - my point was they are all originally sold (to ordinary people) via the AD network
__________________
Past: 6239 (yes, I know...), 16610, 16600, 116515, 116613LN, 126600, 126711 CHNR Present: 16600, 116509, Cartier Santos Green. |
26 April 2024, 08:45 PM | #56 | |
"TRF" Member
Join Date: Mar 2020
Location: The South, USA
Posts: 930
|
Quote:
|
|
27 April 2024, 01:46 AM | #57 | |
"TRF" Member
Join Date: Aug 2016
Real Name: Chuck
Location: Canada
Watch: Rolex 116610LV
Posts: 2,194
|
Quote:
|
|
27 April 2024, 03:14 AM | #58 | |
"TRF" Member
Join Date: Feb 2024
Location: Atlanta, GA
Posts: 35
|
Quote:
I agree with this totally. I don't understand how hard it is for Rolex to just have a centralized database that customers get added to across the ADs and then they can see where and when to send models to based on demand. Prioritizing the younger generation should be a major concern for the company and all watch makers. They are all living in the clouds with how the last few years have breathed life back into the industry. Im 35 and if Im trying to get into watches long term I hate to say it but barring major tragic life events I have more decades of purchasing power ahead of me than other established customers. They need to do more to get younger people into the brands. I am running into the same thing at PP, AP. and VC. Oh you don't have a purchase history but no we can't get you a watch to start your purchase history. I have 4 Rolex ADs here and none of them has been able to get me a simple blue OP 36 or mint green 36 DJ in 2 years.... Oh and that's not even factoring in Millennials and Gen Z are about to receive the largest transfer of wealth in human history coming from the Boomers and older generations. These companies are missing the forest for the trees just because its easy at the moment. |
|
27 April 2024, 03:31 AM | #59 | |
"TRF" Member
Join Date: Jan 2019
Location: USA
Watch: ing my wrist
Posts: 1,019
|
Quote:
ADs sold plenty of watches when they were widely available 6-7 years ago, and Rolex was still the most successful Swiss watch brand. There are still tons of people out there that would buy the watch because they like the watch. Look at Omega. Almost all of their watches are widely available, and they can sell them. Sure, they're not flying off the shelves for the most part, but they're getting sold. At this juncture, I wonder how much of the waitlist for each desirable model on average is just a flipper. I wouldn't be surprised if it was over 50%. Rolex now having a target audience whose primary purpose is chasing value and/or flipping just isn't sustainable for the brand either. I believe their current CEO also recognizes this and wishes to correct it. |
|
27 April 2024, 03:45 AM | #60 | |
"TRF" Member
Join Date: Jan 2019
Location: USA
Watch: ing my wrist
Posts: 1,019
|
Quote:
Regarding these watch brands shooting themselves in the foot with younger generations, I definitely agree. Many brands had their time in the sun the last 3-6 years, and the chickens are coming home to roost on the grey market now. Look at brands like Vacheron or Czapek. They hit highs you would've never predicted, and things are correcting. Rolex, AP, and Patek, on the other hand, I think has done so much damage to their brand experience that I think it will be hard to shake off down the road. As Warren Buffett once highlighted, customers often forget things about that they bought, including the price, but they usually don't forget whether the experience was good or not. The majority of people walking into the majority of ADs are not walking out with a good experience right now. You're not even able to get the most simple entry level models from the brand, and yet you have people who have been able to buy multiples of even the hardest to get models. It is so backwards and an absolute racket being ran that Rolex at this point is complicit in allowing. |
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
|
|
*Banners
Of The Month*
This space is provided to horological resources.