Youtuber offers solution to Rolex AD sports model scarcity.

[TheVTCGuy]

I won’t post a link or mention his name, but I have watched a few of his watch videos. The first part of the video he informs all of us that it is very difficult to walk in to an AD and buy a SS Sports model Rolex... ... ... Really? Anyway he then offers a solution... the first time I have ever heard of this... he suggest that if Rolex followed his advice, we as Wises could all walk in to an AD and purchase a SS Sports model... anytime. He said the key was for... wait for it.. for....


ROLEX TO RAISE PRICES TO CURRENT GRAY LEVELS.


Uhm..... hmmm.... He used a sub as an example once, and said if we are paying $16,000 for a new Sub from a Gray, then Rolex should raise the price to $16,000. That, (according to him) would eliminate the Gray market and all those watches that we are forced to buy from Grays would be in the ADs, and... Vu wallah! (Or however it’s spelled).

Uhm.... hmmm..... I must say, it is one of the more.. uhm.. interesting theories I have heard... What do you think?

[dimag333]

I think a sub would be 20k then from a grey in the current market

steve

[turkeysub93]

Still think there would be folks willing to scuff up an extra 6K to buy a Submariner for 16K and flip it for a few thousand in profit should Rolex production levels remain constant and the demand stay unchanged.

On the other hand, I think WAY less people would throw down whatever that marginal increase would be for a Daytona as the grey market would dictate that difference to be much larger than for that of the Submariner.

At the end of the day I think this theory is contingent on specific watches themselves rather than Rolex as a whole.

[Goin2drt]

Agree and have said it before. Rolex should keep taking the prices up until they realize the price of supply and demand are starting to intersect. Grays go bye bye and Rolex makes the profit instead of having ADs go out of business they could flourish and then they would control the market instead of leaving that up to grays. There literally is ZERO need for a gray. You wouldn’t need them to “buy” the slow movers as Rolex would control that.

[Hollie_Rollie]

Originally Posted by Goin2drt

Agree and have said it before. Rolex should keep taking the prices up until they realize the price of supply and demand are starting to intersect. Grays go bye bye and Rolex makes the profit instead of having ADs go out of business they could flourish and then they would control the market instead of leaving that up to grays. There literally is ZERO need for a gray. You wouldn’t need them to “buy” the slow movers as Rolex would control that.

Except when the party ends and realize that the sub isn’t a 16k watch and they have to lower the price back down to 9k and wipe the egg of their proverbial face. I don’t think Rolex cares about the grey market

[calatravato]

I've also said this in the past. The problem is that as someone previously mentioned, once the market goes down, you'll either have to lower prices or destroy inventory. I think Rolex doesn't want to do either of these. They're not under pressure to squeeze every last dollar out of the market like some of the other brands owned by Richemont or Swatch. Those brands found themselves buying back inventory and actually destroying excess. Not a good look for a luxury brand, and nothing Rolex wants to do.

[Jb1264]

Would the other models DJ’s etc also increase in price?

126610LV’s at more than 2x mrsp are sitting unsold on chr24 etc

I’d welcome it if if AD’s allowed walk ins to buy one without bundling, buying other brands, jewellery first.

[Harry-57]

The thing these "experts" seem to overlook is the huge demand for a constant and relatively small supply, or at least, a small supply compared to the demand.

If Rolex thought they could add value to their brand by matching their pricing structure to something as volatile as the grey market for a small cross section of their more popular watches, they would have done so.

Why are these "experts" making home videos instead of running sales and marketing departments of top brand watchmakers the world over? They should be if they are so clever. Like my grandad used to say "get a job while you still know everything".

[the dark knight]

A couple of issues I see with that strategy. What happens if the bubble bursts? Then Rolex would have to lower MSRP, and then if it picks up again, raise it. It's a bad look for a company to play yoyo with their prices. Also, there's almost a guarantee that they would have to raise prices drastically whenever a new model is introduced (due to scarcity and demand) and then drop it as the supply catches up.

Also, I'm not convinced grey market dealers are a problem. In fact I think they are mostly a good thing. First of all, it wasn't that long ago that trusted sellers were where you turn to to get a good deal on a watch when a lot of Rolex models could be had below MSRP and maybe your local AD wouldn't budge.

In addition, even if you get rid of grey sellers, as long as demand exceeds supply, individuals will just buy these watches for the purpose of reselling for a profit. There are people that literally make a living doing this on eBay for all sorts of things, be it Air Jordans, Transformer toys, or Nintendo Switches.

If I had the means and the desire to quickly get a watch even if I have to pay a premium, I'd rather do it through an established and trusted grey seller than have to vet individuals with no reputation on an auction site.

[JodyHighroller]

Originally Posted by Jb1264

Would the other models DJ’s etc also increase in price?

126610LV’s at more than 2x mrsp are sitting unsold on chr24 etc

I’d welcome it if if AD’s allowed walk ins to buy one without bundling, buying other brands, jewellery first.

+1

Let’s all remember that asking price is not always selling/market price.

[GradyPhilpott]

That's the silliest idea I've heard in a long time.

[supernova]

I’m glad that Rolex don’t take financial advice from YouTubers with eccentric and stupid ideas to just fuel the click bait to their channel.


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[Jb1264]

Originally Posted by JodyHighroller

+1

Let’s all remember that asking price is not always selling price.

Couldn’t agree more

[JoseR]

Originally Posted by GradyPhilpott

That's the silliest idea I've heard in a long time.

I agree..

[vh2k]

Originally Posted by GradyPhilpott

That's the silliest idea I've heard in a long time.

Agree with this. Thankfully, $5 billion companies don’t listen to stupid YouTubers.

[DLRIDES]

Originally Posted by dimag333

I think a sub would be 20k then from a grey in the current market

steve

Concur

Bundling will always occur, allowing dealers to move “undesirables” ...................... which is something that NEVER gets discussed !

Why does Rolex force dealers to take “undesirables” ? Do they ?


IDK

[hawg]

Only getting high prices because people are willing to pay.

[1lastone]

Voilà...

[1995akcoop]

Its not the prices, its not the Grays.... just make more watches!!!! Problem solved. You’re welcome.


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[TheVTCGuy]

Originally Posted by 1lastone

Voilà...

Thanks

[fooey]

The sub isn't a $16k watch! Never will be and people will only go so far!

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[SDGT3]

This moment in history is but a blip on the timeline. The watch market is certainly out of balance at the moment because people have equated watches with an asset class. ALL asset classes are artificially inflated at this time because of the unprecedented monetary and fiscal policies worldwide. The greys serve their purpose and are reflective of current market conditions - whatever they may be.

[brucethemanlee]

Originally Posted by vh2k

agree with this. Thankfully, $5 billion companies don’t listen to stupid youtubers.

+1

[GCFA]

Most of the YouTube watch channels are either want to sell their overvalued cheap merchandises or watch celebrity wannabe. One of them offer a solution includes gun and masked rubbery. You can watch them to entertain, their words are amount to nothing.

[enjoythemusic]

At this point in time... sure why not have all watch companies raise to market value. Let's see who the 'last man standing' truly is and who is swimming naked.

[Mystro]

Originally Posted by Hollie_Rollie

Except when the party ends and realize that the sub isn’t a 16k watch and they have to lower the price back down to 9k and wipe the egg of their proverbial face. I don’t think Rolex cares about the grey market

^^^ And there is the simple truth. The Sub is not a $16k watch and anyone that knows entry level horology will detect that as well. The inflated gray market cost is really a wink/nod moment in Rolex history that cant be sustained. Remember in the end, the resale value of Rolex was getting its msrp after a few years and that was the remarkable expectation. Msrp is really the true value of the watch so sayeth Rolex.

[dimag333]

I think the market is artificially being controlled by the greys to a certain degree. You ever notice all the big greys have the same models in all the time.....almost like they share pieces? Tin hat stuff maybe, but one day 3 grays all have a plat dd, the same date just variations & some other models all come in at the same time

steve

[Rado63]

All major fashion houses are creating exclusivity around certain products. To qualify you just need to spend Money and get on the VIP list simple as that. I am sur that you can get every sport watch you want in a year or up to two if you just spend. Doubtful Rolex will change the MSRP on steel sports , because, bundling , packaging, and leveraging sells out the inventory of both the professional watches and the classic watches.

[EEpro]

If AD price = grey price a huge amount of demand would evaporate (at the AD).

[horseShu]

Originally Posted by dimag333

I think the market is artificially being controlled by the greys to a certain degree. You ever notice all the big greys have the same models in all the time.....almost like they share pieces? Tin hat stuff maybe, but one day 3 grays all have a plat dd, the same date just variations & some other models all come in at the same time

steve

it's highly likely that dealers are colluding on a massive scale.
but since *luxury* watches are non-essential goods, we can't exactly report this to the authorities or something.
just vote with your wallet.