Rolex goes CPO!?

[Fritzli]

In a german Rolex-Forum there is a strong rumor that Rolex will start their own CPO business! Anybody heard about it?!

https://www.r-l-x.de/forum/showthrea...Weekly-Session!!

[BumbleB]

Originally Posted by Fritzli

In a german Rolex-Forum there is a strong rumor that Rolex will start their own CPO business! Anybody heard about it?!

https://www.r-l-x.de/forum/showthrea...Weekly-Session!!

What does CPO stand for?


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[Rushne]

Certified preowned is my guess

[BumbleB]

Originally Posted by Rushne

Certified preowned is my guess

Thanks, I was wondering why they would go in the Crude Palm Oil business


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[Fritzli]

Yes, certified pre-owned. The rumor says that the watches have to be at the minimum 2 years old and only for discontinued models. Rolex will proof/service them and sell it with an official Rolex certificate.

Many questions are still open - who is the buyer - an AD or Rolex direct, through which channel they gonna be sold etc. But remember Patek announced something similiar about 3 years ago - it hasn`t happend yet, but concerning Rolex the rumor is strong.

[lava flow]

and what will Rolex pay for say a Hulk - current market price?

this is a total non starter in my opinion

let the free market run has it has done very successfully for many, many years

[HMHM]

I would prefer if they introduce Restoration services for 4 digits models. Restoring old Frankenstein or broken pieces back to their original condition with certificate of authenticity.

[georgekart]

Will be interesting to see them justifying selling a 5 year old discontinued watch for 2x retail of the current model replacing it (say a Hulk or a late 116520).

[PO 2500D]

Porsche dealers do it with the GT3, list £130k with used examples sat on the forecourt for £200k+ (spit ball numbers)

However I don't see how Rolex could come into the market and make a meaningful difference as the greys are well established and very easy to deal with.

Having to play the ADs game for one at retail is fair enough but having to do the dance with them for one at market price?

[padi56]

Not going to happen just rumours but today it its on the net or so called social media many always think its true. As these things like net gossip and social media have taken over there lives.

[brandrea]

I’d highly doubt it. They have their hands full making new watches, and all that that entails.

[Parapraxis]

I hope it isn't true

[PO 2500D]

Although other watch brands/groups are in the used market, Richemont for example via WF.

[JSolution]

Originally Posted by georgekart

Will be interesting to see them justifying selling a 5 year old discontinued watch for 2x retail of the current model replacing it (say a Hulk or a late 116520).

My AD has a used section on the other side of the shop

[Harry-57]

Why not give their ADs assistance tapping into the grey market? Seems entirely logical and possible. Putting a used and certified section in my AD's instore Rolex boutique would considerably increase the number of watches for sale. It would look more like a watch dealer than an art gallery, which would be an improvement.

[dannyp]

It would make sense if it essentially allowed Rolex to control the retail price charged by ADs for pre-owned.

Or it's a way to charge dealers for having pre-owned watches serviced by RSC prior to sale in order to sell with a service warranty attached.

[HogwldFLTR]

I was thinking, "when did Rolex start making outwear?"

[rambo99]

Originally Posted by Fritzli

Yes, certified pre-owned. The rumor says that the watches have to be at the minimum 2 years old and only for discontinued models. Rolex will proof/service them and sell it with an official Rolex certificate.

Many questions are still open - who is the buyer - an AD or Rolex direct, through which channel they gonna be sold etc. But remember Patek announced something similiar about 3 years ago - it hasn`t happend yet, but concerning Rolex the rumor is strong.

it would be as hard to get as the new models if rolex are not setting the price over 2x that of the grey market. just a new game to play.

[DJ2020]

Originally Posted by Harry-57

Why not give their ADs assistance tapping into the grey market? Seems entirely logical and possible. Putting a used and certified section in my AD's instore Rolex boutique would considerably increase the number of watches for sale. It would look more like a watch dealer than an art gallery, which would be an improvement.

I absolutely agree. Love shopping pre-owned watches.

[georgekart]

Originally Posted by JSolution

My AD has a used section on the other side of the shop

AD and Rolex doing it is not the same. AD is a seller that doesn't set prices for the new watches they sell. They just follow what they are given. Rolex does. If Rolex says a CPO Hulk has an official pricelist of 30k: a) How do they justify that for a recent model? Easy to do for vintage. But a model that was available* not 2 full years ago? I don't see it happening. b) Will be even harder on Daytonas. "Oh those two watches that differ in dial color only, that were sold at the exact same retail price 5 years ago? Yes, this one is 5k more because the dial is black." I just don't see it happening. Or they charge such astronomical prices that all of them will go up.

[vh2k]

Originally Posted by Fritzli

In a german Rolex-Forum there is a strong rumor that Rolex will start their own CPO business! Anybody heard about it?!

If nobody has heard about it, how can it be a strong rumor?

[beshannon]

Is a strong rumor is better than a regular rumor?

[gerry100]

My Audi is CPO'd, mainly to protect against the maintenance costs of an incredibly complex and expensive to repair machine as the miles pile up.

Rolexes dont fit that profile IMHO

[dannyp]

Originally Posted by gerry100

My Audi is CPO'd, mainly to protect against the maintenance costs of an incredibly complex and expensive to repair machine as the miles pile up.

Rolexes dont fit that profile IMHO

True. But I think it would serve a similar purpose (peace of mind) in a different context (authenticity, legitimacy). It’s also a way to direct more of the watch trades back to dealers by getting more ADs to deal in pre-owned (filter through Rolex, with RSC handling authentication and refurbishing). Would potentially keep ADs from selling used pieces at vast markups if Rolex set “suggested” prices on CPO (leading people to wonder what’s “wrong” with the non-CPO watch one case over).

[csong825]

I heard about this from my AD (USA) a few weeks ago but I didn’t see anything on the forums so I didn’t make much of it. My AD thinks that Rolex will take back the “exhibition only” models and sell them as CPO, sort of like how car dealers sell demo/loaner cars at a discount. I imagine pricing will be somewhere between retail and gray market and this will hopefully bring down gray market pricing.


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[dannyp]

Originally Posted by csong825

I heard about this from my AD (USA) a few weeks ago but I didn’t see anything on the forums so I didn’t make much of it. My AD thinks that Rolex will take back the “exhibition only” models and sell them as CPO, sort of like how car dealers sell demo/loaner cars at a discount. I imagine pricing will be somewhere between retail and gray market and this will hopefully bring down gray market pricing.


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No. If Rolex is doing this, Rolex will set the prices. And Rolex will see below retail, for the sake of long-term brand integrity.

[rushca01]

This could be interesting. Maybe Rolex is getting a little upset they are not reaping the profits that the grey market is. They can keep MSRP the same to protect the future and at the same time get into the used market and compete with the “greys”. Pretty shrewd and smart.

[77T]

In a small way, having RSC overhaul your watch makes it CPO with a 2-yr warranty.


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[dannyp]

Originally Posted by 77T

In a small way, having RSC overhaul your watch makes it CPO with a 2-yr warranty.


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Exactly. Seems Rolex has just figured out a way to productize this in a way that exerts some control over secondhand market. Perhaps it would come along with changes to its warranty policy (that it follows the watch and only physical alterations risk voiding it).

[inadeje]

Originally Posted by padi56

Not going to happen just rumours but today it its on the net or so called social media many always think its true. As these things like net gossip and social media have taken over there lives.