Had a long chat with my AD

[cajerseyboy]

Interesting point about the 904L steel manufacturing. Would like to hear more about this to eliminate the speculation aspect.

My thought is that demand has skyrocketed and Rolex isn't increasing production...period.

[aczaja10]

Originally Posted by sangkwanglee89

Hi!

Mind sharing the AD name and location? I am new to the watch collection and have only dealt with the Rolex boutique in Michigan Ave.

Go to RC Wahl in Des Plaines. Top notch, ask for Parker. He will hook you up. They have great selection.

[Rolexism_]

I also spoke to my AD regarding shortage, demand and supply and wait lists etc. He owns 3 Rolex Ads and said to me word for word, “Rolex does not communicate any strategic info and decisions and or future plans with any AD”. All ADs are left to speculate period. He has been an AD and owns 3 Rolex boutiques. ADs know only as much as anyone would know.

[hhtwaijri]

Originally Posted by btcus

Interesting point about the 904L steel manufacturing. Would like to hear more about this to eliminate the speculation aspect.

My thought is that demand has skyrocketed and Rolex isn't increasing production...period.

Ablogtowatch had a very interesting article on Rolex production. First part is the steel issue. And that article was 5 years ago. Within 5 years, demand definitely shot up, and Rolex didn't hike production enough.




Sent from my iPhone using Tapatalk

[ROLEXUS]

Originally Posted by Rolexism_

I also spoke to my AD regarding shortage, demand and supply and wait lists etc. He owns 3 Rolex Ads and said to me word for word, “Rolex does not communicate any strategic info and decisions and or future plans with any AD”. All ADs are left to speculate period. He has been an AD and owns 3 Rolex boutiques. ADs know only as much as anyone would know.

This

The stories re production struggling and Rolex being caught 'off guard' are a complete load of BS IMO. There has been a definite concerted effort to reduce supply of the SS sport watches to increase their desirability and maintain the status of Rolex as a luxury brand that is not just available to the masses. Supply of any watch bar the SS sport watches is still as plentiful as always.

[AK797]

Originally Posted by ROLEXUS

This

The stories re production struggling and Rolex being caught 'off guard' are a complete load of BS IMO. There has been a definite concerted effort to reduce supply of the SS sport watches to increase their desirability and maintain the status of Rolex as a luxury brand that is not just available to the masses. Supply of any watch bar the SS sport watches is still as plentiful as always.

Brexit is the prime example of Rolex getting caught out. Same with the Hulk disco rumours in Aug, no supply change then either. It is all demand and not been caused by any major change in supply, other than just tighter controls on who buys them so flippers cannot.

[1William]

Thanks for sharing.

[joe100]

Anytime an AD tells me anything I take it with a grain of salt, Rolex doesn’t communicate their business model with them, ever.

What’s more likely? Rolex demand has increased to the point they can’t supply because they can’t make steel with 5% more nickel? OR They’re cutting production for reasons unclear but likely for exclusivity and to build a bulwark against future downturns. I SPECULATE they were caught on the hop during the last couple decades of turbulent economics and decided to settle on a baseline production that can weather the ups and downs. When the market is up, they’re hot and exclusive and when it’s down they’re not over-producing.

We have to remember that Rolex is a charity first and foremost and their watch production funds the charity and not some greedy corporation. They’ll do what’s right by them, and if it seems the music has stopped, well maybe it has. I’m glad I have my Explorer II because the prices on used are only going to get worse from here until the next downturn

[Rashid.bk]

I don't think Rolex sits with ADs and tells them their corporate strategy, come on people, stop being so cynically stoic. Rolex sells watches and it needs dealers it's not going to just leave them blind waiting.

No matter what, I do not for one second believe that Rolex have decided to tell their dealers nothing this whole time and just left them in limbo. That would be an incredibly retarted way to run a business. Do I think they invite them into the board room and communicate future plans and market position or strategy or what ever intelligent business term you want to use, no....

But I do believe the answer is in the middle, ADs know something, they have to be told, or how could they expect to forcast if they as a business will even be open next year without selling popular watches....

There have been a few logical explanations laid out that seem plausible and make sense...its not all big brother type stuff or just wanting to screw with us to make demand at all costs.

The demand has shot up, fact.
Rolex makes everything in-house and every location is specific to building something, fact.
904L is the only ss metal they use, fact.
There has been introduced a more stringent test on accuracy, done in-house by Rolex on assembed watches, fact.
Rolex is in a movement transition while simultaneously still using the older movement, fact.
There are a few other considerations, but these things all added up can effect a giant machine like Rolex, no matter what you think.

When you check the box on special paint with Porsche or BMW, that pushes your production back months(minimum of of six), because they cant just retool a factory overnight, for one vehicle.

I just think the answer is out there and it sits in the middle. It's not 100% left with Rolex missplanning nor 100% to the right that Rolex is controlling the market from it's wizard's chair.

[jzzmn88]

Originally Posted by liu_watch

Rolex was able to meet market demand couple years ago; plenty of sports models at ADs. Suddenly, two years later, demand sky-rocketed; no more sports inventory, not because they are sold instantly, but because they are not supplied.

Rolex won’t increase MSRP because market won’t accept it, and yet thousands are waiting in line to buy at MSRP or above.

I need better thinking and reasoning skill to comprehend these reasonings. I’m sure your buddy at AD is telling exactly what he learned from the meeting, but the question is: Is Rolex revealing its true intentions?

Whatever their strategies may be, I have a feeling that it’s best for the company in the long run, given that it’s a non-public company with a long-term vision.


Sent from my iPhone using Tapatalk

My thoughts exactly.