Why isn’t the Premium higher on the SkyD Blue?

[Frank McKay]

Apparently it’s the most difficult watch to obtain from an AD, more so than a Daytona C or BLRO. You would think the grey premium would be much higher. The Daytona is nearly double the retail price and the variance on the BLRO is also higher.

[Maxy]

Originally Posted by Frank McKay

Apparently it’s the most difficult watch to obtain from an AD, more so than a Daytona C or BLRO.

But not nearly as popular as Daytona C or BLRO! There is your answer!

[RJRJRJ]

Less demand?

[Frank McKay]

Originally Posted by Maxy

But not nearly as popular as Daytona C or BLRO! There is your answer!

I understand that part but then why is it so difficult to source from an Ad if not as popular or in demand?

[Frank McKay]

It’s apparently the most difficult SS Rolex to source from an AD.

[dnpina]

Originally Posted by Frank McKay

Apparently it’s the most difficult watch to obtain from an AD, more so than a Daytona C or BLRO. You would think the grey premium would be much higher. The Daytona is nearly double the retail price and the variance on the BLRO is also higher.

You want the price higher?

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[wulin]

Demand is lower for a 42mm thick watch.

[Maxy]

Originally Posted by Frank McKay

I understand that part but then why is it so difficult to source from an Ad if not as popular or in demand?

They just make less number of stainless steel pieces. They want you to buy precious metal!

[delboylee]

Less demand.

I prefer the Daytona C or GMT but that’s just my preference :)

[RJRJRJ]

Originally Posted by Frank McKay

I understand that part but then why is it so difficult to source from an Ad if not as popular or in demand?

There are probably 10x the number of people on a Daytona list as a SkyD blue list.

[Frank McKay]

My point is if there’s less demand for the SkYD Blue and it’s less popular than why is it more difficult to obtain at an AD than the DaytonaC or BLRO. Just doesn’t add up. Most difficult SS watch to obtain should command a larger premium than those that are easier to obtain as an AD. And if it’s not the most popular and in demand watch, than why so difficult to get at MSRP at an AD. Sorry for the confusion.

[Swaye]

Originally Posted by Frank McKay

My point is if there’s less demand for the SkYD Blue and it’s less popular than why is it more difficult to obtain at an AD than the DaytonaC or BLRO. Just doesn’t add up. Most difficult SS watch to obtain should command a larger premium than those that are easier to obtain as an AD. And if it’s not the most popular and in demand watch, than why so difficult to get at MSRP at an AD. Sorry for the confusion.

The SkyD Blue is super popular, and they clearly don't make tons of them (my AD also said it is the hardest watch for them to get), but even though it is super in demand, that demand pales compared to the Daytona, whose popularity of off the scale.

So even though there are 4 times as many Daytonas sent to AD's (or whatever), there is 10 times the demand. Doesn't mean the SkyD Blue isn't popular - it is hugely popular. I am on the list for both watches and will gladly take whichever one I get a call for.

[Tools]

Originally Posted by Frank McKay

My point is if there’s less demand for the SkYD Blue and it’s less popular than why is it more difficult to obtain at an AD than the DaytonaC or BLRO. Just doesn’t add up. Most difficult SS watch to obtain should command a larger premium than those that are easier to obtain as an AD. And if it’s not the most popular and in demand watch, than why so difficult to get at MSRP at an AD. Sorry for the confusion.

This isn't the fundamentals of how supply and demand works to set the price of a commodity.

If there is little supply, but high demand, they can command a higher price, which keeps supply in check.

If there is little supply, but also little demand, prices are kept low to try and increase demand.

In either case, you could adjust supply to stabilize demand, but Rolex sets supply on manufacturing capability and stable employment, and does not chase demand as other Companies do.

[Maxy]

Originally Posted by Frank McKay

My point is if there’s less demand for the SkYD Blue and it’s less popular than why is it more difficult to obtain at an AD than the DaytonaC or BLRO. Just doesn’t add up. Most difficult SS watch to obtain should command a larger premium than those that are easier to obtain as an AD. And if it’s not the most popular and in demand watch, than why so difficult to get at MSRP at an AD. Sorry for the confusion.

Simple assumption at each AD.

Daytona demand: 100
Daytona production: 5

SkyD blue demand: 25
SkyD blue production: 2


So, AD might get more Daytona than SkyD blue but still Daytona is more popular. SkyD is just produced in very less number in SS.

[Coopdog]

Originally Posted by Frank McKay

My point is if there’s less demand for the SkYD Blue and it’s less popular than why is it more difficult to obtain at an AD than the DaytonaC or BLRO. Just doesn’t add up. Most difficult SS watch to obtain should command a larger premium than those that are easier to obtain as an AD. And if it’s not the most popular and in demand watch, than why so difficult to get at MSRP at an AD. Sorry for the confusion.

The difficulty for an AD to source the watch depends on the supply from Rolex. My understanding is the AD just gets told “you’re getting [x] skydwellers per month/quarter/year.” Or they don’t get told anything and they occasionally just get them in the shipment. The premium on the grey market is clearly supply vs. demand. If the blue skydweller is in fact the hardest for an AD to get their hands on, and the premium is less than on a Daytona for example, that has to mean the demand for a Daytona is more than for a blue skydweller by enough that it outweighs the slightly higher supply of the Daytona.

Some ADs might get 1 or 2 Daytona’s a month but there are thousands of people who want that watch... I don’t think the demand for the blue skydwellers is close, just based on reading forums and such.


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[Coopdog]

Lol disregard my post 4 of us just typed the same thing...


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[lecorsaire]

Because it’s not a sports Rolex. That’s the most simple explanation. In addition although the Sky-Dweller is an annual calendar, for all intents and purposes it has the appearance of a larger Datejust 41. So much so that I know people who have sold their Datejust 2 or 41 after buying it.

So people who are mostly into Sub, GMT, Daytona will not be very interested in this watch even though it’s one of the finest Rolex currently produces for sure. I would love to have a black or blue dial Sky-D. Maybe some day. Apparently Rolex only has 5 watchmakers producing the 9001. Whether this is actually true or just marketing to hype them up more I don’t know.

What I do know is that there is no trouble buying yellow and rose gold Sky-Ds. There’s good reason for this. Limiting steel production doesn’t cheapen the status of the gold references. If everyone were walking around with a blue steel one, it would no longer have any sort of exclusivity.

[enjoythemusic]

i blame aliens ;)

[AK797]

Demand is lower than for the fabled D500, but the retail price is too low, Rolex didn't sell the PM SkyDs well so underpriced the SS by a couple of grand to make them a sure fire hit, and have probably kept production low both for this reason and because they are the hardest and most complicated watch for Rolex to make.

[Likestheshiny]

My point is if there’s less demand for the SkYD Blue and it’s less popular than why is it more difficult to obtain at an AD than the DaytonaC or BLRO.

I'm skeptical that it's more difficult to obtain. But even if it is, that doesn't mean more people overall want it.

[Xerxes77]

Originally Posted by Frank McKay

I understand that part but then why is it so difficult to source from an Ad if not as popular or in demand?

Because have the most complicated movement Rolex ever made!
Rolex know better how to keep this watch in high demand and also it’s not interested to produce very much of this movement.
About popularity I don’t think we can say now this watch are less populare then Daytona or other model.....
It’s a watch who have only 6 year history, it’s a big watch.....
We can talk about popularity in 20 years when we see what is the opinion of Rolex lover about it. Now 70% maybe more of Rolex lover expose opinion about a watch who they don’t see it live!
Rolex will know how to make this watch very desirable!

[Dr Watches]

Because it looks basically like a 42mm datejust and it’s as thick as the average (not Daytona) chronograph.

[dannyp]

I think part of it has to do with what the competition, in reality, is. If you want a Daytona or GMT, you want a Daytona or GMT. But if you want a blue SkD, I think it's fair to say you're also sniffing around the PP Nautilus and APRO 41mm in blue (both also nearly impossible to obtain). Granted both of those are 2x the price, but I think the blue SkD is part of a trend that is broader than just Rolex and its price must be stabilized relative to the others.

[DoctorA]

If it was 40mm it would’ve had much higher premium! As it would’ve had more demand!
I however love its size as it fits my large wrist perfectly!!


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[Chiboy]

It's not only supply and demand, it's also the elasticity of demand (going back to my college economics here!). Perhaps demand for SS Daytonas is more inelastic (people still want it regardless of price) whereas perhaps many people want the blue Sky-D, but aren't willing to pay $10k over MSRP for it. That is elastic demand (relative to the Daytona).

I always knew my economics classes would eventually come in handy.

[Harry-57]

My AD has been allocated two SS blue this year, plus one SS white and one SS black. So the blue dial is twice as "easy" to get locally to me. It should attract a lower premium.

[BakerView]

Maybe, just perhaps, the whole "big watch" thang isn't such a thang....
From someone that owns one, I would love it 10x more if it was a 40mm.

[00devo]

its harder to obtain because supply is slightly lower than a daytona. but daytona demand is more than "slightly" higher, therefore higher premium. i have sold both bnib and the daytona was much easier to sell.

[crazycarlitos]

Simple.

1000 people want the 100 Daytonas produced

20 people want the 10 Sky-Dwellers produced

[Monte Cristo]

Originally Posted by Chiboy

It's not only supply and demand, it's also the elasticity of demand (going back to my college economics here!). Perhaps demand for SS Daytonas is more inelastic (people still want it regardless of price) whereas perhaps many people want the blue Sky-D, but aren't willing to pay $10k over MSRP for it. That is elastic demand (relative to the Daytona).

I always knew my economics classes would eventually come in handy.

only a true WIS would use a watch as an example to substantiate an economics theory, been waiting a long time to be able to use “elasticity of demand” haven’t you