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Old 22 March 2018, 11:48 AM   #61
stainlesssteve
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Originally Posted by peacocknation View Post
If you go back to economics class and the supply/demand curve, the intersection of those two lines is the price at which the product sells. If Rolex increased production to meet demand, they would not be able to continue commanding such a high price for their product and would be unable to raise prices in the future (ignore inflation exists, they still would want to raise their price). That’s not to say that increasing production would be easy, but if they wanted to do it they could and they would want to do it because it would make them more money....but they don’t increase production....why?.
In my view, most SS Rolex sport models are priced below the equilibrium price where the supply and demand curves intersect. And as we know from Econ 101, this leads to a shortage. The equilibrium price for a 116500 is probably about $20k. If Rolex simply raised the prices for all SS models to their true equilibrium price, there would be SS models available for everyone who wants one. But Rolex is stuck. The prices they would have to charge for SS models is approaching or equal to PM model pricing. The shortage will continue until they raise prices. Interesting problem to have.
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Old 22 March 2018, 01:10 PM   #62
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Walked into an AD last weekend and they had every professional model except Daytona, Hulk, BLNR, SD43 in the case.
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Old 22 March 2018, 01:14 PM   #63
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It's a ploy to raise price. Pure and simple.
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Old 22 March 2018, 01:27 PM   #64
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We might be in the new normal Rolex wants to create.
Will any journalist at Basel have the balls to ask the Rolex bigwigs what the hell they are doing? (They won't tell us, but I would still like to see someone ask.) Rolex has to maintain mystery, I guess. Revolution did videos with both Tudor and Rolex watches. The Tudor execs had no issues being on camera. The Rolex execs were not shown in camera.
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Old 22 March 2018, 03:48 PM   #65
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I think you should relax. People are so uptight.
I didn't want to take the bait when you said that to me, but I just saw a post you made early this morning in response to a thread someone started predicting a new SS Pepsi. And that was just for starters.

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Why would Rolex make a Pepsi bezel and totally insult the white gold owners and immediately devalue that reference overnight. If that happened, no one would ever buy a white gold Rolex from them again.
Like releasing a blue dial ss in the same colors as the LB.

I'm staring to think people are more bored than ever in todays social media world and just want to troll on TRF to have popular threads and views.
Uptight indeed. Physician, heal thyself.
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Old 22 March 2018, 03:51 PM   #66
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There is no data.
It's all speculation and conjecture with people experiencing varying situations.
There seems to be a trend but that can and will vary.
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Old 22 March 2018, 05:18 PM   #67
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I didn't want to take the bait when you said that to me, but I just saw a post you made early this morning in response to a thread someone started predicting a new SS Pepsi. And that was just for starters.



Uptight indeed. Physician, heal thyself.
Are we still on this...I thought this was resolved several posts back. Sighhh, no comment.
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Old 22 March 2018, 05:30 PM   #68
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Walked into an AD last weekend and they had every professional model except Daytona, Hulk, BLNR, SD43 in the case.
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Old 22 March 2018, 07:03 PM   #69
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Best thing would be that current ”shortage” would be the normal situation. There are Breitlings, Omega’s and Tag Heuers for those who want everything right away.
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Old 22 March 2018, 07:25 PM   #70
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Walked into an AD last weekend and they had every professional model except Daytona, Hulk, BLNR, SD43 in the case.
Oh. I have visited five ADs in Europe during the last few months and no SS Sport models were in stock. A Milgauss and an Explorer were the closest ones. Plenty of PM and DJ models though in every store.
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Old 22 March 2018, 07:25 PM   #71
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That's what worries me about the Pepsi. As soon as I was excited, I thought to myself, why? I won't get my hands on a new one for at least 5 years. That's why I wish Rolex would've released the Coke and Red Hand LN as well. I guess those come next year

And Rolex still needs to move their remaining 3186 movements
We need a like button on here.

I get rolex aren’t suddenly going to turn into SWATCH. However you should ve able to go into an AD and place an order for this watch and get it within a12 month time period.

Would thos tarnish the value/rep of Rolex?? I don’t know. I was so excited when I saw the watch yesterday and then it dawned on me forget getting one anytime soon
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Old 22 March 2018, 08:10 PM   #72
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In my view, most SS Rolex sport models are priced below the equilibrium price where the supply and demand curves intersect. And as we know from Econ 101, this leads to a shortage. The equilibrium price for a 116500 is probably about $20k. If Rolex simply raised the prices for all SS models to their true equilibrium price, there would be SS models available for everyone who wants one. But Rolex is stuck. The prices they would have to charge for SS models is approaching or equal to PM model pricing. The shortage will continue until they raise prices. Interesting problem to have.
Yes - but my point is that by keeping the price low on SS models, they fuel demand from folks like us and the general population. A $10k Rolex is much more affordable than a $30k Rolex. Drive demand from the people with less money...it keeps the brand popular, recognizeable, valuable, etc.
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Old 22 March 2018, 09:18 PM   #73
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Rolex reportedly makes close to 1 million watches a year and if they wanted to supply the AD's with watches they have the capacity to do it. It is all a game being played by Rolex and the outcome could move a lot of people away from the brand. Not everyone is a WIS and most will look at an alternative. All of this speculation could be put to rest if Rolex would comment directly to the issue of supply and demand. They will not do it because there is nothing to say but that they are driving the market by limiting supply. No issue there but at least address it directly.
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Old 22 March 2018, 09:19 PM   #74
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Oh. I have visited five ADs in Europe during the last few months and no SS Sport models were in stock. A Milgauss and an Explorer were the closest ones. Plenty of PM and DJ models though in every store.
Perhaps I misread the post.
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Old 22 March 2018, 09:34 PM   #75
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Now that we see the Submariner hasn’t changed and other SS professional models have not changed, we can discuss what other factors may be influencing the SS shortage accross the line. With no radical changes to the SS professional line, it doesn’t look like there is any reason SS models should have been so restricted.
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Old 22 March 2018, 09:47 PM   #76
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In my view, most SS Rolex sport models are priced below the equilibrium price where the supply and demand curves intersect. And as we know from Econ 101, this leads to a shortage. The equilibrium price for a 116500 is probably about $20k. If Rolex simply raised the prices for all SS models to their true equilibrium price, there would be SS models available for everyone who wants one. But Rolex is stuck. The prices they would have to charge for SS models is approaching or equal to PM model pricing. The shortage will continue until they raise prices. Interesting problem to have.
Where did you get that a Daytona has to be worth $ 20,000? That is to play the gray vendors. At that price they do not sell it to anyone even if the windows are full. I would like to know if the supply would be normal and sell them to $ 12400 how many would they sell? There must be a lot of people logged into dealers to do business when it's their turn to pick them up. Not to use them. But I would like to know how many people are willing to pay fortunes for a Daytona 116520 now that they can opt for the 116500. I think the same thing will happen with all sports models now that the Pepsi GMT is for sale.
I am not the owner of the truth, it is my personal opinion nothing more.
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Old 22 March 2018, 09:50 PM   #77
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It's a ploy to raise price. Pure and simple.
It is true and I assure you that the profit is shared between the gray seller and the one who provides it.
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Old 22 March 2018, 10:21 PM   #78
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Now we can discuss the SS shortage with some more data.

After reading this , it’s a win win for the AD and Greys. And please I am not accusing all Ad’s but they are out there . Both make money on us. We buy several PM’s and get a SS pro model. Then you have the VIP and so on . It’s what you are willing to pay.
Bad thing is Rolex knows about it .
Stickers? Come on any AD and Grey partnership will handle those SS pro models with kid gloves . You still get box and papers but no stickers .
I had more luck buying when I travel for business overseas and Canada (I call it dumb luck ) they just have what I want . My AD said hey if you can get it buy it. He knows the deal . It’s a game he saids they ALL play . When you buy some PM he can drive a new Mercedes and then some . He told me awhile ago during our chit chat that don’t believe everything you read on the wish forums . Just wait for Basel . Tell me what you want me to order for you. I pay in full and usually he tells me about 4 weeks .
He knows full well I am not a flipper. I buy for my own enjoyment .


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Old 23 March 2018, 05:59 AM   #79
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https://www.rolexforums.com/showthread.php?t=593825

I think it’s because of this they are so busy making PM /Ladies watches with Diamonds all of which are hugely popular and profitable
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Old 23 March 2018, 06:01 AM   #80
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Yes, yes we can. How about Rolex can create more hype surrounding these watches, and therefore continue evolving the image and customer base of the brand.
^^^^^^^ Exactly ^^^^^^^
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Old 23 March 2018, 06:07 AM   #81
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In my view, most SS Rolex sport models are priced below the equilibrium price where the supply and demand curves intersect. And as we know from Econ 101, this leads to a shortage. The equilibrium price for a 116500 is probably about $20k. If Rolex simply raised the prices for all SS models to their true equilibrium price, there would be SS models available for everyone who wants one. But Rolex is stuck. The prices they would have to charge for SS models is approaching or equal to PM model pricing. The shortage will continue until they raise prices. Interesting problem to have.
I have written about equilibrium and supply and demand previously here on TRF. When the curves intersect, you are walking a fine line. It is better to have a shortage of supply to ensure demand does not supercede supply. Especially in a thinning marketplace for mechanical watches. It is much better to err on the side of low supply than to have ADs giving big discounts out the back door if the company wants the value of its products to remain strong. (in my opinion)
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Old 23 March 2018, 06:09 AM   #82
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I was in Rolex Montenapoleone earlier today.....they have box of 12 of ss sport models including subs except blnr, daytona, sd43 and hulk. None Of the ss sport on display...also no sky d ss in stock.

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Originally Posted by SpeedyTuomas View Post
Oh. I have visited five ADs in Europe during the last few months and no SS Sport models were in stock. A Milgauss and an Explorer were the closest ones. Plenty of PM and DJ models though in every store.
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Old 23 March 2018, 06:12 AM   #83
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Walked into an AD last weekend and they had every professional model except Daytona, Hulk, BLNR, SD43 in the case.
And those pieces along with the SS Skydweller are known as the "allocation models" and haven't been seen in a case in awhile.
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Old 23 March 2018, 06:19 AM   #84
bbressler
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And those pieces along with the SS Skydweller are known as the "allocation models" and haven't been seen in a case in awhile.


Fair enough. But the case was almost full, including
Sub
Sub Date
Gmt LN
SD4K
Explorer
Explorer II
Milgauss
Air King
Maybe a YM2 as well?

Point being that it wasn’t as dire as some reports the past few months


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