Could Rolex Dispense with Stainless Steel Watches?

[jets]

Originally Posted by HogwldFLTR

How about this possibility? Rolex is trying to eliminate sales of stainless watches that are in competition with their precious metal watches. Using them only as loss leaders to get their consumers to buy the PM watches. No lack in availability of PM pieces afaik. Rolex could choose to focus their manufacturing efforts where they can get the most bang for the buck going after the higher market tier. They don't care if there are people dying to buy their bargain stainless watches. That's not their problem. They could take the attitude that if the consumer wants Rolex watches let them pay for PM. The brand might have enough clout to pull that off.

This is without merit. Explain than why the Sky Dweller was just released in steel this year. 20k plus for a steel watch what kind of loss leader you referring to??? It's not loss leading it is market penetration and a way to pave the way for future sales though brand loyalty.

[pickettt]

No more than Honda can do away with the Accord and exclusively sell Acura NSXs.

[HogwldFLTR]

Originally Posted by Etschell

that is why i said no.

your rolesor has gold but it is monotone. two tone rolex tend to be slower sellers than monotone rolesor rolex (excluding the one anomaly that is the 116613lb).

True it does have a gold bezel.

Originally Posted by Etschell

i disagree with you on boosting the desirability of the PM SkyD. in fact in talking with a few ADs the effect has been zilch on PM SkyD sales. i would venture to think of all the PM lines the SkyD is the slowest seller.

No issue here. I agree; I wouldn't go PM due to the only secondary market one competitive would be strapped and not braceleted. Makes sense as well that it is the slowest seller due to the general lack of understanding by other than a fraction of the WIS population as to what it is, an AC. Additionally there are few who want such an extravagance. On the other hand at least on this forum the introduction in SS/WG has brought the model to the lime light.

Although PM sales haven't been impacted the SkyD is now discussed much more than it was. Who knows the absolute impact of the introduction. How about Daytona, Subs, and GMTs which don't have the complication of the complication interfering with sales. Of course the answer is no on other than the Daytona. Although the lack of watches in showcases could impact the others as well.

[GradyPhilpott]

Originally Posted by douglasf13

I agree with most of what you said, but, to be fair, I'd say Rolex has already jumped that shark, with prices doubling in the last 10-12 years. How often do current Rolex buyers buy their watch and then become afraid to damage it by regular use? I'm not so sure that was as much the case 50 years ago, with prices where they were. Tudor is really the old Rolex.

The price of Rolex watches has increased, but build quality and movements have also improved, and there's also inflation to factor in.

It does seem that Tudor is stepping in to take some of the market that might be turned off by Rolex prices, but then, that's always been the case.

As for being afraid to wear a Rolex because it might be scratched, that certainly doesn't describe me, and I suspect that hear more of that on this forum than might actually be the case in the real world.

[Bigblu10]

Originally Posted by amh

^^^ This

I don't think it will happen, I'd guess that Rolex sells SS models 10:1 over PM. Profit even within the SS models is likely to be very high, they would be crazy to kill those lines.

Take the SS Sub, it is one of the most iconic watches of all time. There's no way they'll mess with it or anything else SS. Those who want PM are free to buy them any time, eliminating SS is unlikely to push many people to PM.

Stainless steel has been a very popular metal for watches for decades. If anything, eliminating stainless Rolex would just push all those consumers to other luxury watch brands that have stainless watches in their catalog. It would be the biggest business debacle since "New Coke" came out and replaced the original Coca-Cola.

[HogwldFLTR]

Originally Posted by jets

This is without merit. Explain than why the Sky Dweller was just released in steel this year. 20k plus for a steel watch what kind of loss leader you referring to??? It's not loss leading it is market penetration and a way to pave the way for future sales though brand loyalty.

The cost of the watch is $14.4K not $20K. That is the selling price by ADs fwiw. Regarding Loss Leader terminology. Read the thread; it's been addressed multiple times.

[GradyPhilpott]

Originally Posted by Bigblu10

Stainless steel has been a very popular metal for watches for decades. If anything, eliminating stainless Rolex would just push all those consumers to other luxury watch brands that have stainless watches in their catalog. It would be the biggest business debacle since "New Coke" came out and replaced the original Coca-Cola.

Agreed, but at least New Coke caused an uprising among Coke drinkers that reinforced the idea that Coke was indeed the "real thing" before they went and changed it.

I doubt there's a watch manufacture in the world that wouldn't like to see Rolex go PM across the board.

[VicLeChic]

They would be shooting themselves in the foot. In their DNA they are first and foremost a SS toolwatch manufacturer. Sure, they've evolved and also offer PM models but quitting the manufacture of SS models would be a catastrophic strategic decision. They'd lose a huge loyal customer base who can't afford to spend 30k+ on a watch.

[HogwldFLTR]

Originally Posted by VicLeChic

They would be shooting themselves in the foot. In their DNA they are first and foremost a SS toolwatch manufacturer. Sure, they've evolved and also offer PM models but quitting the manufacture of SS models would be a catastrophic strategic decision. They'd lose a huge loyal customer base who can't afford to spend 30k+ on a watch.

They don't need to make the decision; limiting production of SS on sought after models is effectively doing that however.

[Glidelock]

Nope!

[douglasf13]

Originally Posted by GradyPhilpott

The price of Rolex watches has increased, but build quality and movements have also improved, and there's also inflation to factor in.

It does seem that Tudor is stepping in to take some of the market that might be turned off by Rolex prices, but then, that's always been the case.

As for being afraid to wear a Rolex because it might be scratched, that certainly doesn't describe me, and I suspect that hear more of that on this forum than might actually be the case in the real world.

Tudors today cost in the same ballpark as Rolex watches in the 50s-70s, and that is with inflation. Gold Rolex watches back then were in the same ballpark in prices as steel Rolex watches are today. Depending on the calculator you use, a gold DD in 1973, at $1873, would cost something like $8900 in today's money.

There certainly hasn't been enough improvement in a Sub to have it nearly double in price over a dozen years.

[Tangier11]

https://www.youtube.com/watch?v=OWSKyGRKHYA

[watchwatcher]

If anybody could pull it off, it would be our boys at Rolex.

But...don't see it happening.

[AK797]

Lee, you're not a secretly working ninja for the Grey Union are you? I wouldn't blame you, that's where the money is now. Can I sign up?

[HogwldFLTR]

Originally Posted by AK797

Lee, you're not a secretly working ninja for the Grey Union are you? I wouldn't blame you, that's where the money is now. Can I sign up?

Actually it was the discussions of converting TT Daytonas to SS for less than the cost of the grey market watch that started me thinking. No I don't believe for a minute that Rolex is going to do this. On the other hand limiting production does place pressure to buy PMs on the grey market.

[Canefan1]

Originally Posted by kilyung

Wouldn’t bother me in the least but never going to happen

[AK797]

Originally Posted by HogwldFLTR

Actually it was the discussions of converting TT Daytonas to SS for less than the cost of the grey market watch that started me thinking. No I don't believe for a minute that Rolex is going to do this. On the other hand limiting production does place pressure to buy PMs on the grey market.

I read that more and more often here and it is def a consequence of the grey prices but the delta between PM and SS is just too great for the vast majority to bridge in this manner for this to be an intended Rolex strategy. In truth I don't think Rolex have planned any of this, they have been on the back foot from day one. Their D500 price/supply strategy was based on the previous version's but now with rampant social media and the forums it is a totally different environment with so many opportunists that they did not envision at all.

[GradyPhilpott]

I'd like to see some concrete evidence that Rolex is manipulating production to put grey dealers out of business.

[HogwldFLTR]

Originally Posted by jets

This is without merit. Explain than why the Sky Dweller was just released in steel this year. 20k plus for a steel watch what kind of loss leader you referring to??? It's not loss leading it is market penetration and a way to pave the way for future sales though brand loyalty.

Absolutely, it was just an idea for conversation and not identification of a Rolex strategy. If you would have read the thread there are three redactions of the loss leader term. A mistaken term meant to imply a technique for market penetration (getting customers to the brand). Similar to loss leaders are used to get customers into stores. Same concept. A carrot. So many literalists on this forum.

[HogwldFLTR]

No merit what so ever!!!

[Paul_I]

Originally Posted by HogwldFLTR

Absolutely, it was just an idea for conversation and not identification of a Rolex strategy. If you would have read the thread there are three redactions of the loss leader term. A mistaken term meant to imply a technique for market penetration (getting customers to the brand). Similar to loss leaders are used to get customers into stores. Same concept. A carrot. So many literalists on this forum.

Watching your increasing exasperation as people don't read the thread has been entertaining.

To the substance, all I can say is I hope not.

[HogwldFLTR]

Originally Posted by Paul_I

Watching your increasing exasperation as people don't read the thread has been entertaining.

To the substance, all I can say is I hope not.

Pretty presumptuous assuming to know what I'm feeling? Just pointing out that it is the way things seem to be heading.

[EDL7]

Give up SS..
They would be out of business within 36 mos..
I doubt the manufacturing cost of a SS Sub is more than $300-..

[Valhala]

Nope

[tyler1980]

as much clout as Rolex has i honestly dont think they could pull it off. For PM rolex money, i would buy a SS Patek. So to me its not really about the metal at all.

Too many options in the upper price points which also includes steel.

[peterpl]

I would say every single SS watch would cost Rolex less than $1000 to make - more likely $500 to make per piece.

They are making a killing on SS pieces and to get rid of SS would severely impact their revenue.

Going to only PM I would say they would lose more than 70% of their customers purely on a pricing perspective alone.

[dmash]

Originally Posted by Paul_I

Watching your increasing exasperation as people don't read the thread has been entertaining.

To the substance, all I can say is I hope not.

[HL65]

I don't think so and SS sports watches aren't going anywhere any time soon and if that ever happened I will have bought my last Rolex. I think people are reading too much into this and if demand ever slips and if supply increases perspectives will shift. I wouldn't make assumptions based on the last 6 or 7 months since supply started tightening. Things could change in a hurry as well but who knows.

PS SS sports watches or professional models for many of the top houses have been very tough to get just look at Patek and AP. This isn't simply a Rolex phenomenon or exclusive to them.

[abozz]

My perspective is different, simply if you are an AD and sell an SS in the gray market and there you get a profit of thousands of dollars more than selling it through the regular channels is too much temptation. In my country that is under a communist regime that regulates prices that happens with EVERYTHING, from the food that you do not get in the formal market but in the black market to car spare parts. I do not know if Rolex could solve that problem, and I do not think that Rolex intends to disappear steel watches to sell only gold, it would pass from 800 thousand watches a year to 30 thousand.

[Wcdhtwn]

New SS Daytona in '16, new SD43 in '17, new SS GMT BLRO in '18, updated DSSD. If they stop coming out with new and improved SS models that might be a sign of moving to all PM. But they seem to be adding to and improving the SS as much or more than PM. The new SS GMT got a new movement but the existing SS and PM didn't. DSSD also new movement, bracelet.