Are The Resellers Becoming Too Greedy?

[stash21]

It's not about greed, the market sets the price.

[HogwldFLTR]

Resellers aren't the only ones who are greedy. I'd say anyone who buys as a method of accumulating wealth fits in the same category. If the market prices a watch at a certain price point in the secondary market there is no reason anyone should expect to buy for less than market price on the secondary market. If someone doesn't like the pricing the solution is straight forward, don't buy in that market. Simple!!!

[joli160]

Originally Posted by Ihatecheese

There will always be those praying on the vulnerable.

I’m sorry, are you not a bit out of touch with the real world ?
This really sounds entitled.

Calling anybody having the means to buy a Rolex vulnerable is insulting to people who have to make ends meet every month from a low paying job.

I don’t feel sorry ever for somebody who cannot spent 10K on a watch because the bigger guy takes it for 20 K

[teck21]

Originally Posted by Andad

Does a manufacturer such as a Rolex have absolute control as to how their product is distributed?

Rolex sells their watches in bulk to the Authorised Dealers who in turn are given plenty of leeway by Rolex in how they choose to sell to the end user.

Certain rules apply like not selling any particular watch above the price Rolex has set for that watch for that country.


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[mountainjogger]

Originally Posted by joli160

I’m sorry, are you not a bit out of touch with the real world ?
This really sounds entitled.

Calling anybody having the means to buy a Rolex vulnerable is insulting to people who have to make ends meet every month from a low paying job.

I don’t feel sorry ever for somebody who cannot spent 10K on a watch because the bigger guy takes it for 20 K

Could not agree more my friend.

Stay safe.

[Nidal]

Originally Posted by drfrankenstein

Always shock prices in the beginning...it’ll cool down

Disagree


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[teck21]

Originally Posted by MichaelFlash

It would be easy to say this market has to crash and burn because these ludicrous numbers can't be sustained. However, if enough people in the world agree that Rolex is THE luxury watch brand to own, it may never crash and burn and we may be seeing subs in the 40Ks. Why not? Simple supply and demand. Most other brands will suffer though because most of the money will be focused on Rolex and also AP and PP.

I am really wondering that myself as well. The thing to note is that these 3 brands are not beholden to shareholder interests, and the market strategies they can therefore adopt may really lead to just such an outcome.

There is so much anger at Rolex for not fulfilling peoples desires. All this angst actually appears to be fuelling the brand rather than causing some sort of eventual backlash.


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[supernova]

No, since Rolex is not an essential item and your not forced to buy it. Grey dealers are people too and looking to earn a buck to feed their families, obviously take the opportunity to make a few more bucks if the occasion arises.

It’s not like someone buying up all the cancer meds and then charging cancer patients 2.5 times retail. They are vulnerable people since their life depends on it and no other choice, not folks able to blow disposable income in a Rolex.

If some sucker offered me $27k for my Sub, you think I’m going to say no and give them for retail price as I feel sorry for them? No chance!


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[Hollie_Rollie]

They have become so greedy it’s absolutely hilarious. Hopefully when the pendulum swings back and hype/demand/Instagram(whatever you wanna call it) dissipates and the dust settles the greys haven’t burned too many bridges.

[1William]

Here we go again. Beating the drum about resellers and the market and how much everything costs. I get it and I wish that I could still walk into my AD and buy a Hulk for 7k and get five years interest free. But that is not the case so all the whining and belly aching about prices and Trusted Sellers and the Grey Market is not going to change. The market is what it is for many well documented reasons and will not change in the short term significantly. It really should be about the watches not the costs.

[Bigblu10]

Originally Posted by Nidal

Disagree


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It will because the world will eventually run out of suckers willing to pay 30K USD for a Submariner that retails for $9550.

[Rexplorer214270]

Originally Posted by 1kw

Stainless steel submariner with asking price of $27,000 ! Common I can’t relate to these prices . First the Daytona then the Stainless steel Pepsi and now the stainless sub. . Rolex seems to be trying to make flippers rich and the public is going to be turned off with waiting times that take years

OP, it is the free market

[1kw]

I was kind of surprised to read so many sympathetic views for the resellers. I have nothing against a business making a profit however posting a sub. In stainless steel for 27 k is kind of greedy pure and simple in my opinion. I have purchased 6 Rolex watches from a gray dealer here in the past at below MSRP . I do wonder if people who pay over MSRP for any Rolex have buyers remorse , its a mass produced watch. I have been buying other brands the last year that are available, which admittedly don’t have the resale value of Rolex but I have no buyers remorse..

[Tha Baron]

It’s the same dumb conversation over and over around here....

[teck21]

Originally Posted by 1kw

I was kind of surprised to read so many sympathetic views for the resellers. I have nothing against a business making a profit however posting a sub. In stainless steel for 27 k is kind of greedy pure and simple in my opinion. I have purchased 6 Rolex watches from a gray dealer here in the past at below MSRP . I do wonder if people who pay over MSRP for any Rolex have buyers remorse , its a mass produced watch. I have been buying other brands the last year that are available, which admittedly don’t have the resale value of Rolex but I have no buyers remorse..

So you’re saying they should not be trying to sell a luxury product for the most money that they believe people are willing to pay?

And they do know very well what people are prepared to pay regardless what any ‘false demand’ theorists think.


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[Chester01]

There are suckers that will spend those amounts because they want to be the first to post to their instabook-hey look what I got, and are willing to look past the fact that they are being had.

See the AD's pretends to cater to everyone, and has a few pieces on hand for the regulars, but the gray market caters to those who know and value the watches enough to pay more than MSRP. Most people looking for a graduation present walk in, ask for a sub/gmt/daytona the AD says, lol we don't have any, gives them the business about how in demand they are-similar to a used car salesperson (meanwhile 5 just went out the back to the gray dealer), and the regular consumer walks away and gets something else.

The people in the know, they know where to go, but are extorted into paying if they want bragging rights. Cynical way of looking at it, but a good amount of truth as well.

[georgekart]

Originally Posted by TimeAZ

Option A: Pay $27,000 ...

Option B: Pay at minimum $50,000 (and for some, $100k or more) ... in order to establish yourself as a "preferred client" ("VIP"), with the HOPE of being offered the chance to buy at retail at $10,000...

Option C: Don't buy that watch. Buy something else. Would I get a white Daytona at retail? No questions asked. Will I pay market value for it? No way in hell. At that price point I'm looking for other watches. Some of which I may get at an AD if it suits me and hopefully I'll then get the Daytona at retail. Or I'll get them for cheaper not at an AD. Now if Daytona was let's say 1, maybe 2k over retail, I would maybe get it grey, just to avoid the wait, etc. But at its current price? No way. Obviously that amount will differ for everyone.

[Bizcut1]

Originally Posted by Tha Baron

It’s the same dumb conversation over and over around here....

Boy. No sh*t. Pete and Repeat are the main posters anymore...adios for awhile...

[Kevin of Larchmont]

Originally Posted by jvb.nc

they’ve always been greedy. as long as people pay them, they will continue to be so.

When you sell your house do you ask the highest price you think the market will bear and take the highest price someone will pay? Are you greedy or are you wise?

[fskywalker]

Originally Posted by Tools

Resellers can ask any price they want, and will, as long as somebody is willing to pay it.

Nailed it!



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[Posh Gentleman]

yes, resellers are greedy. no question about that, lol.

but as long as there are enough suckers out there that want to shell out $25-30K for a steel Sub, with a green colored ring, then these resellers will keep doing what they've been doing.

There are lots of profits to be made by those that are able to take advantage of systematic, market wide inefficiency. Buying a Rolex watch is very in-efficient, at large. you have to play games with AD's with silly waiting lists, bundling purchases, etc to "qualify" for a new steel Rolex watch. Resellers are taking advantage of this inefficiency.

Ultimately, market inefficiency tends to correct itself over long term. Either the demand for these products at these crazy prices will get hammered down, or the distribution network will improve, or some other factor will come into play.

Think about department stores that sold luxury clothing in the past, for a huge mark-up and fat margins, such as Neiman Marcus, etc. Look where they are now. Market inefficiency does not last forever, especially in the 21st century with the technological advances and competitive pressure from supply side.

[Avs Fan]

Originally Posted by stash21

It's not about greed, the market sets the price.

This of course. The amoral market perfectly balances supply and demand.

[Patton250]

Originally Posted by Hollie_Rollie

They have become so greedy it’s absolutely hilarious. Hopefully when the pendulum swings back and hype/demand/Instagram(whatever you wanna call it) dissipates and the dust settles the greys haven’t burned too many bridges.

I truly don’t understand this line of thinking. So let me ask you this. Apparently people from NY and other northern states are flocking to Florida for reasons not allowed to be discussed here. Now because of this mass exodus the housing market (that was already on fire before this) is going absolutely nuts here. My question is simple. Am I “greedy“ if I sell my house for 3 times what it was worth 3 years ago if someone is willing to pay it????

Yes it is the same thing. Exactly the same.

[dmash]

Originally Posted by Bigblu10

It will because the world will eventually run out of suckers willing to pay 30K USD for a Submariner that retails for $9550.

Lol it really is a sucker’s game. One would get mocked paying over MSRP for practically anything, in any other spectrum of life, but for some reason this is seen as acceptable right now. Not on a couple properties you really want, not for a limited edition 1/25 sports car, not on a one season run jacket that you just have to have.........but on a mass produced timepiece, continuously being churned out of a factory. It’s truly kind of hilarious.

People going to be beating themselves up in future years, because some are telling themselves ‘oh this is the new reality’. Same sentiment running around like before ‘08 Market and before ‘17 Crypto in my opinion. Everyone ignores logic such as, every single ‘hot market’ in history has fizzled out at some point......but hey, only time will tell and this could be the ONE thing to ever hold forever.

[dmash]

Originally Posted by Patton250

I truly don’t understand this line of thinking. So let me ask you this. Apparently people from NY and other northern states are flocking to Florida for reasons not allowed to be discussed here. Now because of this mass exodus the housing market (that was already on fire before this) is going absolutely nuts here. My question is simple. Am I “greedy“ if I sell my house for 3 times what it was worth 3 years ago if someone is willing to pay it????

Yes it is the same thing. Exactly the same.

Yeah I’m on board with this line of thinking, I have no idea why people get mad at greys. They’re doing nothing but hustling and taking the market for what it’s worth. They’re not the problem, the ADs are the problem. Can’t knock the hustle, that’s childish that some are doing so.

[Posh Gentleman]

Originally Posted by Patton250

I truly don’t understand this line of thinking. So let me ask you this. Apparently people from NY and other northern states are flocking to Florida for reasons not allowed to be discussed here. Now because of this mass exodus the housing market (that was already on fire before this) is going absolutely nuts here. My question is simple. Am I “greedy“ if I sell my house for 3 times what it was worth 3 years ago if someone is willing to pay it????

Yes it is the same thing. Exactly the same.

housing in certain location - this is a naturally limited product. land cannot be created. extra housing in certain regions cannot be built easily, due to supply of land, zoning laws, etc

watches on the other hand... well these are pure commodities with each manufacturer producing many thousands of them each year.

also housing is a necessity. a luxury watch is a jewelry, a discretionary item.

very different things.

[Posh Gentleman]

I understand huge grey market premium on very unique / rare timepieces, that many enthusiasts consider to be "work of art".

certain pieces from AP or PP would fit that bill.

A Rolex Submariner with a green colored ring, fetching 150-200% premium in grey market - this is resellers taking advantage of suckers, who are sucked into short term hype and insanity.

[Calatrava r]

Its not the asking price but what the watch actually sells for. We never know the real secondary price out the door. These prices will remain high if Rolex underdelivers on the new Subs which several people have said they intend do.
I think all these companies love the aftermarket price structure as it is the best form of advertising.

[dmash]

Originally Posted by Posh Gentleman

I understand huge grey market premium on very unique / rare timepieces, that many enthusiasts consider to be "work of art".

certain pieces from AP or PP would fit that bill.

A Rolex Submariner with a green colored ring, fetching 150-200% premium in grey market - this is resellers taking advantage of suckers, who are sucked into short term hype and insanity.

Agree. Hulk owners can clobber me all they want, but the majority of people saw that as kind of an ugly watch and they would sit at dealers around release. It was honestly a quite common phrase to say ‘who would wear an all green watch’ not that many years ago. It’s entirely a fad and it won’t age well.


Now something like a limited run, open work AP fetching a premium? That’s understandable.

[watchwatcher]

What is the goal of a capitalist economy, if not to make money?

I'm willing to bet a large percentage of our members have lived by this creed their entire lives, if not, we would not be on here spending Rolex money on a wrist watch. Count me in this group, by the way.

To turn on the resellers and label them as "greedy" is at best, childishly naive, and at worst, shows your true colors, which, by the way, look like you're just throwing a temper tantrum because you can't get the watch you want.

If you think the price is too high, well, here's a shocking revelation: you don't have to pay it. But...don't use the word greed, unless you personally want to eschew the bonds of materialism and live your life holed up in a cave somewhere. And when you do, be sure to let us know how that works out for you.

Oh wait, I forgot...computers and internet cost money.