Rolex AD's dropping like flies

[EDL7]

I don't see this course of action working out for Rolex in the long run..esp when times get rough..as in...recession and depression times.
On their present course 2 years in...they are turning off and rejecting both the people that buy their watches because of no stock and insane pricing and waiting times..and their AD's as well..for totally wasting their time and money..
Rolex has basically turned their product..into a back street black market and corrupt business practice..
And..
Humble... Rolex... isn't...
If they continue down their present road of hubris, greed, and lack of respect..
I would think they would be severely diminished or ...totally gone..within 10 years..
Not the first time a great business..stabbed itself in the foot..and wasnt there..a short time later..
PP..played that game..diminished their quality and service...raised pricing..and now.. up for sale..
Rolex..please change course..and get back to what you do best..supplying people with great watches..
In other words..
Do your job..

[toneafficianado]

How's this for an idea:
Close ALL ADs and have online sales only directly from Switzerland.
Then models would be either available [or not] and the playing field would be dead level.
I , for one, would happily buy that way.
On a recent trip to Europe I went into 21 ADs and got the same story about lack of product. Wasted my time . I was sad for the ADs as there were folks before and after me on those visits asking the same questions as me. Huge demand, no supply. Why have a storefront?

My point is: if you can't try on a watch anyway then you may as well buy it online!!

[Brazicano]

Rolex gone in 10 years? That’s a funny joke

[EDL7]

Rolex gone in 10 years? That’s a funny joke

Remember Kodak..
.. any of the other businesses...both large and small..that changing times..recession..and foolishness..
Took out..for good..esp in the last 10 years..
Sears...JC Penny..
Malls..
100's of stalwart businesses..if not ..thousands..
Main Street too..
Rolex..is prime for this..prime..unless they can actually supply their market..and soon..
And when they fall..they fall...fast..
Apple comes to mind here..as another possibility..
People eventually get fed up with way over priced products..and then the rejection..moves the other way..people just get sick of a product ..that has too much bs attached..and the sales drop drastically..
And that's..the end..
Rolex hasn't reached that point yet..but even here on the forum..
People are starting to question the validity of all of this..and are considering other brands..than Rolex..

[tyler1980]

Originally Posted by toneafficianado

How's this for an idea:
Close ALL ADs and have online sales only directly from Switzerland.
Then models would be either available [or not] and the playing field would be dead level.
I , for one, would happily buy that way.
On a recent trip to Europe I went into 21 ADs and got the same story about lack of product. Wasted my time . I was sad for the ADs as there were folks before and after me on those visits asking the same questions as me. Huge demand, no supply. Why have a storefront?

My point is: if you can't try on a watch anyway then you may as well buy it online!!

i contend that no one really wants a level playing field for a luxury good. Part of the appeal of luxury is that some people can't have it for whatever reason. Its not a gallon of milk that everyone needs.

Whenever i hear that it makes not sense and i also think as soon as the person gets their watch they then have a motivation to keep it as hard to get for everyone else as possible. So even owners change their tune after acquisition

Most won't admit it, but the fact you can't get it is why people go into every AD wherever they go based on the <1% chance one will be there. Its a huge driver in trying to get one and when you get offered a watch you buy it immediately. Compare that to a watch that is always available, people over think it and put it off because its always going to be there as for most people it takes a lot of self convincing to spend 10K on a watch. Scarcity takes that overthinking away.... AD calls, you buy, and do it right now

[Ichiran]

Originally Posted by toneafficianado

How's this for an idea:
Close ALL ADs and have online sales only directly from Switzerland.
Then models would be either available [or not] and the playing field would be dead level.
I , for one, would happily buy that way.
On a recent trip to Europe I went into 21 ADs and got the same story about lack of product. Wasted my time . I was sad for the ADs as there were folks before and after me on those visits asking the same questions as me. Huge demand, no supply. Why have a storefront?

My point is: if you can't try on a watch anyway then you may as well buy it online!!

If Rolex goes the online way, then there will be less sales of PM, TT and DJ that used to be part of bundle-sales with sports models. It will hurt Rolex.

[EDL7]

Rolex should start selling online for msrp..this will get rid of all the greys within a few months..and make 40% more for Rolex..
Keep the AD's around and make sure they are well stocked..so they actually sell some watches..and people can try em on..and the dealers can service them.
Let the AD's order what they need as they know what their customer base actually wants and let them special order PM if needed..unless they want to stock such as a regular item..
Don't force them to carry slow selling stock..just make less of it..not less of what people actually want..
If the AD's want to discount to move product..have a Rolex authorized legit sale now and then..
"All Cellinis on 20% sale for mothers day"...or.. "All Subs on sale 10% for fathers day"...instead of some backdoor discounts..which are going to happen anyway..
Take the restrictions off the AD's and let them ship out of state too..to match the Rolex website msrp price..
Like any other business does business..
Its a product..let them sell it..
Sure...Rolex can follow their current course...and let the customers beg & grovel for a handout..as well as the AD's..all in the name of luxury..
But that doesn't sound like luxury to me..

[tyler1980]

Originally Posted by EDL7

Rolex should start selling online for msrp..this will get rid of all the greys within a few months..
Keep the AD's around and make sure they are well stocked..so they actually sell some watches..and people can try em on..and service them.
Let the AD's order what they need as they know what their customer base actually wants and let them special order PM if needed..unless they want to stock such as a regular item..
Don't force them to carry slow selling stock..
If the AD's want to discount to move product..have a Rolex authorized legit sale now and then..
"All Cellinis on 20% sale for mothers day" instead of some backdoor discounts..
Take the restrictions off the AD's and let them ship out of state too..
Like any other business does business..
Its a product..let them sell it..

once you have a sale 1 time that's the maximum price anyone will spend going forward ever again. How do you think that the secondary dealers got so big in the first place? No one would pay retail so they got non official discounts from bulk dealers and these dealers became the biggest and most important AD customers. Having the brand sanction those discounts would be even worse

Discounts are why we are where we are now as these resellers have a platform to sell based on people refusing to pay retail

[EDL7]

once you have a sale 1 time that's the maximum price anyone will spend going forward ever again. How do you think that the secondary dealers got so big in the first place? No one would pay retail so they got non official discounts from bulk dealers and these dealers became the biggest and most important AD customers. Having the brand sanction those discounts would be even worse

Discounts are why we are where we are now as these resellers have a platform to sell based on people refusing to pay retail

Good point..!
Maybe...even better...
Lower base msrp pricing 10% to 25% depending on the watch...and cut dealer wholesale percentage to 10% to 15% only...as that's what greys are paying anyways.. this will get rid of the greys for good..and if necessary..only warrantee the watch with photo id of actual AD sale in store..holding warrantee card for 1 year..
Cutting dealer % is the key..make it very hard to justify a 5% to 10% profit to a grey..as that barely pays for expenses..and flood the market with watches until things stabilize..further eliminating the greys..
Or enact the final stroke of doom..get rid of all private dealers and AD's..have only a few boutiques for demo only..cut msrp online sale price 20% to 30% to put greys in their place..as well as AD's....whilst Rolex still makes more $$ w/o AD's..while simultaneously getting rid of all the greys for good and employee dependent shipping and other bs.. like keeping a close eye on the independents etc..which don't exist anymore..
Just change the whole game with one fell swoop..
This will allow allow for give and take in good and bad economic times..
Basically..eliminate the middleman..and the secondary middleman..give the customer the same quality at a better price..delivered to their door..or the boutique..where they can pick up in person..
And this will get rid of the flippers too...lol...
It would behoove Rolex to do this...as they are such control freaks..and allow them to totally control the market..from top to bottom..but they will have to make watches available..or the same bs is going to start all over again..

[GMT Aviator]

Rolex.....I hope you’re reading this thread and paying close attention....

Because if you’re not, the alarm bells are ringing.

[tyler1980]

Originally Posted by GMT Aviator

Rolex.....I hope you’re reading this thread and paying close attention....

Because if you’re not, the alarm bells are ringing.

yeah, people jumping through all kinds of hoops and buying whatever is offered even if it wasn't their first or second or third choice is awful for the brand position

If only Omega could be so lucky. "Sorry we have a 5 year WL for this particular version of the speedmaster, but how about this other watch instead?"

[toneafficianado]

i'm really enjoying reading all these good points here, some of which I'd never have thought of in a million years.
There's got to be a way to get more stock available with less restrictions.
It's actually getting boring to me.
I for one have bought an Omega in the last year because it was a model i liked and...IT WAS AVAILABLE! I would have bought a Rolex instead that day for sure if I could have gotten my hands on a SS one anywhere in Sydney.

[tyler1980]

Originally Posted by toneafficianado

i'm really enjoying reading all these good points here, some of which I'd never have thought of in a million years.
There's got to be a way to get more stock available with less restrictions.
It's actually getting boring to me.
I for one have bought an Omega in the last year because it was a model i liked and...IT WAS AVAILABLE! I would have bought a Rolex instead that day for sure if I could have gotten my hands on a SS one anywhere in Sydney.

i bought an omega too. One of my favorite watches TBH. Why didn't i buy it last year or the year before though? because its always there so no rush.... planning on buying something isn't the same thing as buying something.

Rolex has eliminated that problem. You buy the second its offered

[timedate]

Originally Posted by tyler1980

its not savings if you own and hold inventory. Currently Rolex wholesales to AD's and those watches are off their books immediately. Its safer because they dont have to figure out how to sell them one at a time. AD's take all that risk on. Every AD has watches that have been sitting multiple years. Even in London i had my wife try on a watch that had been discontinued for over 5 years yet the AD had it, sitting there.

I would gladly sell my product at wholesale prices immediately vs worrying about selling a million items one at a time

Because Rolex doesn't own or operate their boutiques unlike some other brands that leads me to believe they have zero interest in the retail business or dealing with end customers.

Had they been opening brand owned boutiques all this time i may have thought otherwise but they dont have to. Most people see a Rolex boutique and think they are buying a watch from Rolex directly, but they are not. They get all the benefit of that perception without any risk.

ok, thanks for that, i dident realise that they were this distant from their retail supply,

maybe they still have a large direct cost though, with the administration side and ensuring that each AD has its own rolex representative etc


online rolex will happen, the times we live in will dictate this aswell, most high end boutiques need security on the door nowadays, online gets rid of this fear of being robbed.

[tyler1980]

Originally Posted by timedate

ok, thanks for that, i dident realise that they were this distant from their retail supply,

maybe they still have a large direct cost though, with the administration side and ensuring that each AD has its own rolex representative etc


online rolex will happen, the times we live in will dictate this aswell, most high end boutiques need security on the door nowadays, online gets rid of this fear of being robbed.

i do feel bad for the AD's sometimes having all that PM sitting there trying desperately to get someone to buy it and then everyone wants the watch they dont have

The amount of money tied up in slow moving inventory is probably staggering... and yes i would probably "bundle" too. they really want to get rid of those full gold pieces

[Hollie_Rollie]

Originally Posted by tyler1980

i contend that no one really wants a level playing field for a luxury good. Part of the appeal of luxury is that some people can't have it for whatever reason. Its not a gallon of milk that everyone needs.

Whenever i hear that it makes not sense and i also think as soon as the person gets their watch they then have a motivation to keep it as hard to get for everyone else as possible. So even owners change their tune after acquisition

Most won't admit it, but the fact you can't get it is why people go into every AD wherever they go based on the <1% chance one will be there. Its a huge driver in trying to get one and when you get offered a watch you buy it immediately. Compare that to a watch that is always available, people over think it and put it off because its always going to be there as for most people it takes a lot of self convincing to spend 10K on a watch. Scarcity takes that overthinking away.... AD calls, you buy, and do it right now

I agree. I remember a few years ago the hulk was for sale on the secondary market for much less than msrp. I believe at one point I could’ve purchased one for 7k but went with the BLNR. Then all of a sudden they became hard to get and everyone and their mother wanted one.


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[tyler1980]

Originally Posted by Hollie_Rollie

I agree. I remember a few years ago the hulk was for sale on the secondary market for much less than msrp. I believe at one point I could’ve purchased one for 7k but went with the BLNR. Then all of a sudden they became hard to get and everyone and their mother wanted one.


Sent from my iPhone using Tapatalk

i passed on a hulk and a SD 43 at a Houston AD not that long ago... it was the summer after the SD43 was released and just before the true madness took hold. So i guess it was 1.5 years ago?

I regret the Hulk for sure. I would to have liked to see if i could bond with a green watch as i like it on other people. With todays prices that isn't happening

[Zakalwe]

Originally Posted by tyler1980

i passed on a hulk and a SD 43 at a Houston AD not that long ago... it was the summer after the SD43 was released and just before the true madness took hold. So i guess it was 1.5 years ago?

I regret the Hulk for sure. I would to have liked to see if i could bond with a green watch as i like it on other people. With todays prices that isn't happening

Have I misinterpreted the bit in bold or are you suggesting that you'd have difficulty getting it from your AD?

If that's the case then the apocalypse is truly nigh.

[josephvman]

You should stop posting before you embarrass yourself further.

Originally Posted by EDL7

I don't see this course of action working out for Rolex in the long run..esp when times get rough..as in...recession and depression times.
On their present course 2 years in...they are turning off and rejecting both the people that buy their watches because of no stock and insane pricing and waiting times..and their AD's as well..for totally wasting their time and money..
Rolex has basically turned their product..into a back street black market and corrupt business practice..
And..
Humble... Rolex... isn't...
If they continue down their present road of hubris, greed, and lack of respect..
I would think they would be severely diminished or ...totally gone..within 10 years..
Not the first time a great business..stabbed itself in the foot..and wasnt there..a short time later..
PP..played that game..diminished their quality and service...raised pricing..and now.. up for sale..
Rolex..please change course..and get back to what you do best..supplying people with great watches..
In other words..
Do your job..

[Peter99]

Rolex can afford to be picky as to who they have as their AD’s.
They out sell worldwide all other watch manufactures and their watches are the most in demand, hence the shortage.
They are in a fantastic position and much envied.
Rolex are on a no lose situation.
The brand name ‘Rolex’ has been recently rated in the U.K. as the top most prestigious symbol of luxury and desire.
I cannot see the situation changing any time soon!

[Exploradori]

Originally Posted by EDL7

I don't see this course of action working out for Rolex in the long run..esp when times get rough..as in...recession and depression times.

On their present course 2 years in...they are turning off and rejecting both the people that buy their watches because of no stock and insane pricing and waiting times..and their AD's as well..for totally wasting their time and money..

Rolex has basically turned their product..into a back street black market and corrupt business practice..

And..

Humble... Rolex... isn't...

If they continue down their present road of hubris, greed, and lack of respect..

I would think they would be severely diminished or ...totally gone..within 10 years..

Not the first time a great business..stabbed itself in the foot..and wasnt there..a short time later..

PP..played that game..diminished their quality and service...raised pricing..and now.. up for sale..

Rolex..please change course..and get back to what you do best..supplying people with great watches..

In other words..

Do your job..

Fully agree. Rolex: you are overestimating your mojo. You will loose many future customers. Hubris will take you down.

[rudestew]

Have they slipped Tudor in right under our noses ? how many bought the Tudor GMT that could not get hold of the blro?

[Al1969]

I’m also starting to get somewhat bored with this “shortage”.
Just about every reference is available for purchase, just not at MSRP or your
AD.

I’m looking forward to seeing how/if this impacts the brand down the road.

[DPE]

How can an AD store that majors in Rolex pay its own expenses and staff wages if their main supplier Rolex cannot supply them stock to sell ? This seems to go against the basic rule of selling a product, "Supply and Demand" ? No one is happy ?

[Roddypeepa]

I think they are trying to use Tudor to fill
SS market with the intention of destroying Omega etc. They are subsidising Tudor and selling them cheap. They could easily make fewer Tudor and more Rolex sports. My AD had loads of Pelagos, BB etc. that are there week after week and are not selling.

Meanwhile Rolex move upmarket to focus on PP etc and the SS models stay rare boosting the mystique.

I must say, if that’s their game then it is totally necessary. A bit of healthy competition drives innovation. Where would Mercedes be without BMW? Porsche without Ferrari.

And if you do kill off your competition the need to innovate is gone and that’s bad for the customer as the brand goes stale.


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[jlovda]

Being a middle class retired engineer, my $7.3K Exp II was about the top of what I could afford to spend on a watch. Ironically when I went looking during a foreign vacation last summer it was the only one in the case that looked interesting that I could afford. I was naive to the SS shortages. If a BLRO was sitting in the case for $9.5K I probably would not have bought it because it was $2K more. A no date Sub, yes.

I wish Rolex would just move upscale so their MSRPs reflect an acceptable cost to an increasingly wealthy clientele. Price the BLRO at $15K at the AD (and adjust other models accordingly) and slowly try to squeeze out "new watch" grey dealers. Maybe an OP just stays at $5.5K?

[oldman2005]

Originally Posted by Roddypeepa

I think they are trying to use Tudor to fill
SS market with the intention of destroying Omega etc.

Usually the sale strategy is to up sell to higher profit margin products, you don't want to talk the customer down to a lower tier product. Image you coming to buy an Audi and the sale person advice you to check out the VW lot next door instead, you may offend your customer doing that. Beside that Omega is higher tier than Tudor.

[timedate]

Things come and go, honda is packing up after 30 years in the uk and going back to japan, the world changes,

i am glad to be out of this chasing ss models, ive got my 80s daydate from a gentler age, a time when you just went into a rolex shop and the only thing that stopped you getting any model was the cost.

To me, its not business denying people what they want, its bollocks.

[trelane]

Originally Posted by EDL7

Good point..!
Maybe...even better...
Lower base msrp pricing 10% to 25% depending on the watch...and cut dealer wholesale percentage to 10% to 15% only...as that's what greys are paying anyways.. this will get rid of the greys for good..and if necessary..only warrantee the watch with photo id of actual AD sale in store..holding warrantee card for 1 year..
Cutting dealer % is the key..make it very hard to justify a 5% to 10% profit to a grey..as that barely pays for expenses..and flood the market with watches until things stabilize..further eliminating the greys..
Or enact the final stroke of doom..get rid of all private dealers and AD's..have only a few boutiques for demo only..cut msrp online sale price 20% to 30% to put greys in their place..as well as AD's....whilst Rolex still makes more $$ w/o AD's..while simultaneously getting rid of all the greys for good and employee dependent shipping and other bs.. like keeping a close eye on the independents etc..which don't exist anymore..
Just change the whole game with one fell swoop..
This will allow allow for give and take in good and bad economic times..
Basically..eliminate the middleman..and the secondary middleman..give the customer the same quality at a better price..delivered to their door..or the boutique..where they can pick up in person..
And this will get rid of the flippers too...lol...
It would behoove Rolex to do this...as they are such control freaks..and allow them to totally control the market..from top to bottom..but they will have to make watches available..or the same bs is going to start all over again..

Not all businesses are built for direct sales models. Cisco is an example of that. They built their model through VARs with a layer of distributors in between. Sure, they'll negotiate through a direct B2B relationship, but they're not keeping a CRM of millions of customers, just the dozens of resellers that they maintain relationships with who run the sales overhead for them. Rolex likely isn't signing up for direct sales since it changes their business model drastically.

Most of the arguments I've seen are slanted toward a better overall consumer experience, and while that maybe important, it's likely not Rolex's only goal as a company.

[SSGMT]

We lost a local AD recently, they stated that they were the oldest continuously operating AD in California.