No More Deliveries Professional Series

[SevenWays]

Hi, long time lurker, first post.

Just bought my first Rolex today, an Explorer 1. Very happy!! My AD has known my family for generations so it was nice to keep the tradition going. I love my new watch - it is simplicity and elegance. The only thing it does is tell me the time. Oh, and look good doing it, of course!! LOL!!!

The bad news was that they said flat out that they had been informed by the regional rep that there would be no more deliveries of any professional series watches for the remainder of the year and likely into spring. The reason apparently is a reaction to unworn watches showing up on the gray market.

Anyway, that's the word from one AD. FWIW.

[Old Expat Beast]

Hearing this more and more. Rolex really needs to find a real solution to this issue, rather than just fumbling around wih supply.

[AK797]

Into Spring now? That factory explosion must be bigger than I thought...

[mtgjr]

Congrats on the Explorer! Great choice!!

[kauffee]

So I haven't been paying much attention to these threads about shortages, but I don't buy the conspiracy theories about Rolex trying to hurt the gray dealers. Production numbers are likely planned far in advance - let's say a year. We know that Swiss watch sales have had some rough years, and it's more likely Rolex just miscalculated the demand for the year.

Even if it doesn't truly take a year to make a Rolex, it certainly takes a few months... especially with sending the movements to COSC. So it's more likely they just got stuck with decisions they made months ago.

[SevenWays]

Thanks!! I've wanted one since the 1960s with all those "if you were climbing here tomorrow" or "if you were skiing here tomorrow", etc. advertisements. Already planning my next Explorer - 1016 from 1960.

[TickTockChuck]

Congratulations on your new Explorer! It's a great watch. I've seen the AD year end watch shortage happen before in 2015 into 2016 and it was weird to see virtually no sports models at several ADs. Anyways, enjoy your new watch in good health. Cheers!

[sensui]

How interesting....I wonder if it's just certain ADs they catch when they observe certain grey market watches being sold as new that Rolex knows sold to these ADs.

[OgSnowflake]

Talked to my ad this afternoon who thinks like us here on the forum and orders backups of the hot sellers ... told me he had 13 empty spaces in his case for the last 2 weeks and never seen a drought like this ever ....when all he can offer me is yachtmasters & 2 tone everything else....times are tough point blank period.

Rolex makes what a million + watches a year and no way a company that cranks that kinda speed is gonna slow up production...are they holding back Distribution of said production...100% why....who knows write them a letter and ask.

[Macnavara]

Surely restricting supply would just drive UP gray prices....not really going to help much

[douglasf13]

If these rumors are true, it's interesting that it sounds like Rolex has a formula in mind when it comes to watches for sale vs. watches on wrists. They can't let their watches be too available for purchase now, can they? This is an exclusive club!

[AJM914]

Congrats on the new watch!

[kauffee]

Originally Posted by Macnavara

Surely restricting supply would just drive UP gray prices....not really going to help much

Exactly. Restricted supply probably ends up hurting the ADs more. That’s why I don’t think this was a conscious decision on Rolex’s part.

[Case61]

Originally Posted by Macnavara

Surely restricting supply would just drive UP gray prices....not really going to help much

Yes, this is what trips me up over these claims that Rolex is artificially restricting supply. Rolex sells fewer watches, and the Grays make higher margins. Makes no sense.

[stillsane]

I stopped by my ADs today he said the same thing but said the shortage was to do under projecting sales for this year. He also said he has sold more Rolex this year than every before.

[watchwatcher]

Well...this is shocking news.

Congrats on the new Explorer.

[douglasf13]

Originally Posted by Case61

Yes, this is what trips me up over these claims that Rolex is artificially restricting supply. Rolex sells fewer watches, and the Grays make higher margins. Makes no sense.

I don't know. It could be about their long view of the company and making sure Rolex maintains a certain status. They probably have to balance the idea of profit now vs. maintaining their air of exclusivity over the long term.

I mean, it isn't as if they couldn't currently make enough Daytonas to avoid waiting lists, if they really wanted to. I just can't believe they trick so many people into this madness.

[OgSnowflake]

Originally Posted by kauffee

Exactly. Restricted supply probably ends up hurting the ADs more. That’s why I don’t think this was a conscious decision on Rolex’s part.

Agreed nobody wins when the supply is down...I’d rather to much than not enough... 20 hulks 20 daytonas and 20 ss skydwellers in one truck .....Bet half our ads would need more in a month.

[HK Islandboy]

Originally Posted by kauffee

Exactly. Restricted supply probably ends up hurting the ADs more. That’s why I don’t think this was a conscious decision on Rolex’s part.

As annoying as it is to be a Rolex customer at the moment, it’s nothing compared how tough it must be being an AD with rent and employees to pay, but nothing to sell

[Canefan1]

I have news for a lot of you. Every AD I’ve been to in S Fl has more stock than you can shake a stick at( - DayC,S Sky). SS,TT and 18k Rolex galore.my bad, new SD43’s not in displays.

[SevenWays]

Why do people go to the gray market? Because the prices there are better than at the ADs. Restrict supply and the gray market no longer looks so good to a buyer, pointing them back to the ADs.

Restricted supply also means people clamoring to get Rolexes, adding to the "can't get it so I want it more" factor. When the spigot is turned back on, demand is higher.

Restricting supply coupled with inelastic demand = higher profits. Short term pain for long term gain.

Who knows, though, if this was always the game plan or if it is an unintended outcome that works in Rolex's favor? I mean, the regional rep could have been just blowing smoke but it does match with what I've been told by other ADs so if it is a conspiracy, it's a good 'un!!

And who doesn't love a conspiracy? I still think it was Col. Mustard on the grassy knoll...

[Ruddiger]

Originally Posted by Old Expat Beast

Hearing this more and more. Rolex really needs to find a real solution to this issue, rather than just fumbling around wih supply.

Howdy,

To that end, has Rolex ever had people purchase watches on the gray market for the sole purpose of busting the ADs who sold to the grays in the first place?

Seems to me their pockets are deep enough to easily buy out the available inventory rather quickly, and then choke supply to the gray market by making examples of the ADs who sold them and putting the fear of God into the ones that didn’t.

If we can eradicate entire species surely they can do the same to the gray market dealers.

Take care,

Ruddiger

[Spartacus]

I wonder if there is some major update to the movement coming next year.

[Old Expat Beast]

Originally Posted by Ruddiger

Howdy,

To that end, has Rolex ever had people purchase watches on the gray market for the sole purpose of busting the ADs who sold to the grays in the first place?

Seems to me their pockets are deep enough to easily buy out the available inventory rather quickly, and then choke supply to the gray market by making examples of the ADs who sold them and putting the fear of God into the ones that didn’t.

If we can eradicate entire species surely they can do the same to the gray market dealers.

Take care,

Ruddiger

Rolex could severely restrict the grey market quickly if it wanted to, with a new set of rules and tighter oversight of ADs. Before now it has suited Rolex to generally turn a blind eye. Shifted units are shifted units, after all. It seems possible now, however, that someone high up might have had a change of heart with the current Daytona situation.

[AK797]

Originally Posted by Ruddiger

Howdy,

To that end, has Rolex ever had people purchase watches on the gray market for the sole purpose of busting the ADs who sold to the grays in the first place?

Seems to me their pockets are deep enough to easily buy out the available inventory rather quickly, and then choke supply to the gray market by making examples of the ADs who sold them and putting the fear of God into the ones that didn’t.

If we can eradicate entire species surely they can do the same to the gray market dealers.

Take care,

Ruddiger

This has happened in the UK, as the grey situation has been going on for over a year now and is out of control with all popular SS models. Rolex thru various means know which ADs have sold to greys or ended up with greys. Same will be happening in America now Rolex is signalling, famine is their solution.

[kilyung]

Glad I’m stocked up!

[kauffee]

Originally Posted by SevenWays

Why do people go to the gray market? Because the prices there are better than at the ADs. Restrict supply and the gray market no longer looks so good to a buyer, pointing them back to the ADs.

Restricted supply also means people clamoring to get Rolexes, adding to the "can't get it so I want it more" factor. When the spigot is turned back on, demand is higher.

I don't agree with this. I have a number of non-WIS friends with Rolexes. They were all purchased at ADs and none of them even know about gray markets or "trusted sellers." They wanted a Rolex and went to a jeweler who sells them. That's gotta be what 99% of Rolex buyers do.

So while people like us will look at the gray market and compare to ADs, we are small minority of overall Rolex buyers.

[Timetracker]

Can't speak for anyone else.....but I don't think for the models being discussed, the grey or TS market is much of a bargain currently.

[keschete]

Originally Posted by Old Expat Beast

Rolex could severely restrict the grey market quickly if it wanted to, with a new set of rules and tighter oversight of ADs. Before now it has suited Rolex to generally turn a blind eye. Shifted units are shifted units, after all. It seems possible now, however, that someone high up might have had a change of heart with the current Daytona situation.

My AD told me that he was told “No out of state sales” , and the sales person must remove all stickers and make sure the card is signed and scanned. He had a hulk that he had calls from out of state for and refused to sell to them. Then he took it out of the display case and put it in the safe. He and my sales lady basically told me they were being very selective about only selling to current customers or people they know are from our community.

I thought he was a little nutty at the time, because he kept trying to sell it to me while I was buying the yacht master. The hulk has been on my top ten list but I wanted the yacht master. So when I went back in he told me that his Rolex rep told him to put the watch in the safe. I don’t know if this is true but why would he lie? I told him I would put a deposit on the watch if it was MSRP. He looked really relieved and of course I had to promise that I wouldn’t flip the watch. I’m not in watch flipping. He also told me when they move he will be getting some sky dwellers.

[jrs146]

I’ve heard this from two AD’s as well.


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