Why Rolex prices not coming down??

[enjoythemusic]

Originally Posted by EEpro

But but but it's different this time. Market is fixed. Buy all the things!

Love it!

[amanbra]

Certain assets don't move as quickly as others as you need sales to confirm the price. Property markets are an example. Right now everyone would bet the property prices are down but with auctions passing through and people take property off the market it makes it look like the prices aren't moving.

Anyway I hope flippers get caught with stock and credit interest. You guys have killed the fun for me in recent years, you have to take the good with the bad.

[Wcdhtwn]

Originally Posted by enjoythemusic

Why are prices not dropping?

Because everyone is getting $100 Trillion from the treasury :)

This is slightly off topic, but his wife is smokin’!

[Jona]

I note that the collector market on the Zimbabwe 100 trillion bills has increased. I paid $19.95 for mine and now they cost about $75 +

[Ensign]

Who will blink first - buyers or sellers?

Buyers have the advantage, though. Most can put off purchasing a new watch for years; sellers have less flexibility.

[Ocog]

I see Rolex long term strategy to raise prices and reduce supply. Cut current production of Rolex Watches as I think 1M is a little much with a brand of Rolex prestige. If they want the hysteria to build, they need to cut production. Make up revenue with price increases as it appears that people are willing to pay the higher prices. If you look at AP, Patek and some of the other "Prestige" names, they put out at best 10% of Rolex output if even.

Its time for Rolex go to the next level with (AP, Patek, etc) and for Tudor to be the "Tool" watch Rolex use to be. Tudor can potentially bring in much more volume of revenue being more price friendly. Just need to apply the same marketing to Tudor now. Plus, the Tudor customers will eventually become Rolex customers. So far, they have done well.

Service brings in a giant chunk as well. Rolex will always have the service vertical going for them.

That is my take if I was Fredric Dufour if I'm hedging for the future of Rolex. Obviously, as the middle class grows globally they should increase production as needed. However, there is always a need to maintain a shortage.

Not many companies have been able to achieve the "Scarcity" model. And, non have achieved it at the level of Rolex. Supreme does a good job at this as well but not at the level of Rolex.

[dkast85]

One of two things need to happen for prices on the gray market to fall below MSRP.

1. People need to stop liking the high demand steel watches (Daytona, BLNR, BLRO, etc.)
2. Rolex needs to make far more models than they currently make. It needs to meet the demand.

It really doesn't matter how the economy is doing.

[Onikage]

Originally Posted by dkast85

It really doesn't matter how the economy is doing.

If you say so.

[Webster2281]

Originally Posted by nick800

Are you not paying attention? Look at the sales forum. It’s a bloodbath

I’m missing it. What’s new in the classified section? I see the same dealers w a few private ones. Where’s the bloodbath?


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[bin31z]

Not a Rolex but I’ve been seeing Patek 5140 prices getting near 30k on chrono24, esp from asia. That is insane

[jb335]

Originally Posted by Webster2281

I’m missing it. What’s new in the classified section? I see the same dealers w a few private ones. Where’s the bloodbath?


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I was going to say the same thing. I do not see anything close to a bloodbath in the sales section. That is definitely fake news.

[mmmmp]

It's going to take more time before we see *significant* reductions in prices from both the greys and AD's. I don't know what people expect: Daytonas and Pepsis selling for half price?

The macabre aspect is: the worse things get with regard to Covid, the better the chances are going to be to grab grails and waiting list pieces at a 'bargain.'

I truly hope nobody wants a watch that badly, I sure as hell don't!

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[Ensign]

Originally Posted by nick800

Are you not paying attention? Look at the sales forum. It’s a bloodbath

IG_32.JPG

It's hard all over.

[peterpl]

Originally Posted by jb335

I was going to say the same thing. I do not see anything close to a bloodbath in the sales section. That is definitely fake news.

You wont see the sales prices on the sales forums anyway.

All you see is continuous bumps and price drops. The actual REAL sales price is probably the last price drop minus $1000 or so THAT is the real sales price for SS hyped models.

So if your seeing a BLNR for $12,900 these days, price drop to $12,500, price drop to $12,300, $12,200 etc....it will sell for between $11 - $11.5k privately via PM.

Give it another 2 weeks. No one really cares about Rolex now and the panic is really starting in B2B sales and even individuals holding a several hot pieces. They all want out. There are only 2 things ppl care about in times of need

1) Food 2) Housing/Having a roof over your head. Watches are way way way way down the list (they dont even make the list actually). LOL

Just got latest figures 16.8Million unemployed in the US asking for government assistance within the last 3 weeks? WTF THAT is CRAZY and SCARY.

[mml4]

Former Sec. Reisch was just on TV. 16million unemployed = 11.5% according to him. His expectation is this figure will go to 30million(33%). In the depression the unemployment was 25% according to Reisch. If he is right we are going to have a lot more to worry about than the price of our trinkets.

[Papanas]

Originally Posted by AK797

Because the grey market is an oligopoly and prices are set by the big greys who have resources, so they will not allow the market to collapse easily, it will take a sustained period of time before they do, and they won't while govts are signalling they are opening up their economies in a month or two as many are now indicating. However the private sellers market with all the risks involved will behave more like a free market.

I can go with that.

[JRique]

Originally Posted by dkast85

One of two things need to happen for prices on the gray market to fall below MSRP.

1. People need to stop liking the high demand steel watches (Daytona, BLNR, BLRO, etc.)
2. Rolex needs to make far more models than they currently make. It needs to meet the demand.

It really doesn't matter how the economy is doing.

Economy will provide money so people that like Rolex watches can actually afford it.

Rolex need to sell watches, and we are talking about 1,000,000 watches, don't think they can sell this amount of DJ and PM.

Prices on grey will fall at least 10-20% of MSRP real soon.

[hcivic91]

Originally Posted by Ocog

I see Rolex long term strategy to raise prices and reduce supply. Cut current production of Rolex Watches as I think 1M is a little much with a brand of Rolex prestige. If they want the hysteria to build, they need to cut production. Make up revenue with price increases as it appears that people are willing to pay the higher prices. If you look at AP, Patek and some of the other "Prestige" names, they put out at best 10% of Rolex output if even.

Its time for Rolex go to the next level with (AP, Patek, etc) and for Tudor to be the "Tool" watch Rolex use to be. Tudor can potentially bring in much more volume of revenue being more price friendly. Just need to apply the same marketing to Tudor now. Plus, the Tudor customers will eventually become Rolex customers. So far, they have done well.

Service brings in a giant chunk as well. Rolex will always have the service vertical going for them.

That is my take if I was Fredric Dufour if I'm hedging for the future of Rolex. Obviously, as the middle class grows globally they should increase production as needed. However, there is always a need to maintain a shortage.

Not many companies have been able to achieve the "Scarcity" model. And, non have achieved it at the level of Rolex. Supreme does a good job at this as well but not at the level of Rolex.

Excellent analysis and right on the money from a brand management standpoint. I’ve thought this exact thing every time I’ve read things like ‘what is Rolex doing by not producing more SS.” Luxury goods behave differently to most goods: demand goes up with price.

[Singslinger]

Originally Posted by hcivic91

Approximately 10.1% of the US workforce has filed for unemployment benefits in the last 3-weeks, and the job losses are not done. Add that the the 4.4% already employed and we are looking at April/May unemployment of 15%. There is a lot of pain on Main Street and supply will exceed demand for the large majority of goods for the next 12-months. The majority of trade has halted, and as always, prices are sticky. When the market clears prices will adjust.

-Econbro

Well said!

[Andad]

Originally Posted by JRique

Economy will provide money so people that like Rolex watches can actually afford it.

Rolex need to sell watches, and we are talking about 1,000,000 watches, don't think they can sell this amount of DJ and PM.

Prices on grey will fall at least 10-20% of MSRP real soon.

As the prices for the sought after Rolex models start to fall l would expect purchasers to hold off on buying while they wait to see the bottom line.

Would I buy a SS Daytona C while it’s price is falling?

I would be waiting to see if the grey prices reduce to MSRP or below.
After all is said grey watches are second hand, right?

[BaselWorld]

Us stock markets just had the best week since 45 years. Besides that stocks are up almost 30 percent since the lows of mid March. Rolex will lf course cut the supply of the current high demand models (116500, BLRO). Those won‘t come anywhere near MSRP.

[JK911]

Originally Posted by BaselWorld

Us stock markets just had the best week since 45 years. Besides that stocks are up almost 30 percent since the lows of mid March. Rolex will lf course cut the supply of the current high demand models (116500, BLRO). Those won‘t come anywhere near MSRP.

+1. The last thing Rolex will do is flood the market. After the crisis is handled, I can see some of the sought after models being even harder to get while the factory plays catchup whilst slashing supply.

[dkast85]

Originally Posted by JRique

Economy will provide money so people that like Rolex watches can actually afford it.

Rolex need to sell watches, and we are talking about 1,000,000 watches, don't think they can sell this amount of DJ and PM.

Prices on grey will fall at least 10-20% of MSRP real soon.

You have been wrong.


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[alllexandru]

Because I called 3 times my AD begging them to sell an Explorer and keep the money in my country instead going buying 1000 km from my home to another AD.
And they said until July there’s no way I can get one and even in July they don’t know IF they will get one available .
So why to lower the prices when you ask them to cash your money and we are not talking about hundreds of dollars / euro but sometimes value of small car :)))))
Demand is higher than the availability, very simple
Grey market that’s a different story as already discussed many many many times...

What irritates me is that I cannot have a nice experience in Rolex boutique buying from grey and make sure is a real one, I mean it doesn’t border me the premium paid on grey but missing the experience to go and try and be a king for the money (get in and out :)))) you pay at Rolex AD


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[barters]

We are still in the hope phase. This stuff takes time. Let’s talk at the end of this year.

The grey market will soften. Wait lists will reduce.

You’re not getting a discount from an AD on a SS sports watch. However the wait lists will reduce. Instead of stupid long they’ll just be long.


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[kodak]

Really a serious but funny question🤣

[socialpro]

I have not seen much softening yet in watch or high end car market. I recently picked up a watch, and recently SOLD a car. Both fetched high-end dollars.

One of my impressions is with less travel / events / eating out - majority of the population with enough disposable funds are funneling it towards getting some luxury purchases they have been putting off. Well at least I have ... I don't know about the rest!

[ibzk]

Originally Posted by socialpro

I have not seen much softening yet in watch or high end car market. I recently picked up a watch, and recently SOLD a car. Both fetched high-end dollars.

One of my impressions is with less travel / events / eating out - majority of the population with enough disposable funds are funneling it towards getting some luxury purchases they have been putting off. Well at least I have ... I don't know about the rest!

haha same here - seems more like a midlife crisis purchase for myself

[Yess]

Originally Posted by barters

We are still in the hope phase. This stuff takes time. Let’s talk at the end of this year.

The grey market will soften. Wait lists will reduce.

You’re not getting a discount from an AD on a SS sports watch. However the wait lists will reduce. Instead of stupid long they’ll just be long.


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This is as accurate a prediction you'll get without time travel.

[Golf&Watches]

Lower prices are definitely being accepted, asking prices may not have dropped much (though I'm certain they shall later this year) but you can buy for less.