Had a long chat with my AD

[uniqueMR]

Hello All :)

I had a long chat (1 hour) with my AD in Chicagoland on Saturday. We were discussing Rolex shortage, demand, popular model, etc.

Last week, my AD attended a meeting at NYC, headquarter of Rolex USA, and noted that Rolex just cannot meet the demand. Rolex have 4 locations where they make/manufacturer Rolex and have 3 shifts, running 24 hour. Rolex will be increase inventory by 60,000+ watches this year but that won't help. 60,000 addition to Rolex is how much Patek makes in a year :) AD really hoping if Rolex with open their 5th location

We also discussed why not Rolex increase MSRP instead of being shortage. AD noted because people won't accept it due to fact there is not much change in a watch on yearly basis. But noted some increase might be coming in 1-2 years in regards to price (due to inflation, demand, value of money, tariffs, etc.). Let's wait and see on msrp :)

We talked about Hulk and Pepsi (Daytona I already owned but AD noted wait time is 2-5 years on them). There are not talking any names. In regard to Hulk and Pepsi, after a long chat, AD offered me Sub Date :) and can find me Hulk in few days :) That was a lucky day for me haha. Cannot believe it. BUT Remember: NEED TO HAVE A RELATIONSHIP with AD. Period.

So picking up my Hulk in few days and lucky to have a great piece in my collection.

I will confirm that they are not filling the Warranty Card. They might even hold Warranty Card to make sure buyer is not flipper or gray market representative. I do not blame my AD.

In regards to gray market. ADs are very strict now. They been tricked in past and now ADs do not even sell watches to anyone out of state or with lame excuses or lies :)

Lucky to have a good relationship with my AD, at my age of 33


Looking forward to adding more limited editions :)

[jrs146]

Congrats! Looking forward to some incoming pics!


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[Ckci]

Interesting info. Thanks for post re: production.

[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.

[oldman2005]

Congrats!

Thanks for sharing. It seems like the drought is with SS Sport not with the rivers of Datejust/TT/PM, maybe they should shift production to SS Sport. Hope this true but I sincerely doubt it as I believe Rolex intentionally keeps the SS sport scarce

[BillA]

Was this a fireside chat? For an hour you are worth definitely a few logs on the fire.
Glad you found it useful.

Re read your post:
In regards to gray market. ADs are very strict now. They been tricked in past and now ADs do not even sell watches to anyone out of state or with lame excuses or lies :)

Nonsense. AD's sell and ship out of state all the time, maybe yours does not, or at least until sales decline of people walking in the door.

[dardeca]

I'm skeptical on the increase of production shifts at Rolex...seems you need highly skilled people in those roles and I'd assume those people aren't just wandering around the streets of Geneva looking for a job. While I like the idea of increasing production shifts...seems you need additional skilled people to work those shifts...and I'm not sure where that is coming from.

[BT1985]

I spoke with and AD that said Rolex is manufacturing new displays for dealers with less slots so their cases won’t appear so bare. If Rolex will make that spend that tells you how real the shortage is and that it’s not short term.


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[BT1985]

Originally Posted by dardeca

I'm skeptical on the increase of production shifts at Rolex...seems you need highly skilled people in those roles and I'd assume those people aren't just wandering around the streets of Geneva looking for a job. While I like the idea of increasing production shifts...seems you need additional skilled people to work those shifts...and I'm not sure where that is coming from.

The guy I spoke with said they won’t expand unless they they can be assured of no potential loss of QC. Which to your point is why it may be awhile till there is any meaningful increase in production.


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[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.


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[AK797]

Good to see Rolex trying to stop flippers across the pond as well, needs to be global strategy.

[Terrakot]

Originally Posted by dardeca

I'm skeptical on the increase of production shifts at Rolex...seems you need highly skilled people in those roles and I'd assume those people aren't just wandering around the streets of Geneva looking for a job. While I like the idea of increasing production shifts...seems you need additional skilled people to work those shifts...and I'm not sure where that is coming from.

I read some article that Swiss watch brands don't need high quilified specialists anymore since many operations are performed by robots

[hhtwaijri]

A friend of mine is Rolex AD. Actually I wouldn't call him a friend, as he refuses to provide me with unicorns ahead of others (PS. He's very serious about his job, and a truly great friend)

Anyways, he goes to Switzerland a few times a year for his business, and learned that the shortage was for the reasons mentioned. He also learned that the steel used for the SS Rolex watches is another reason. Rolex makes their own steel, 904L. Its not cheap to make, and it's not easy to make, and it takes time to make.

With that, demand shot up in the last year or two. Interest in watches has grown considerably. Everybody is into watches nowadays, to a great extent I might say.


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[rogue828]

Bought my bruiser in April and the AD definately screened me. I lived across the state line but only 30 miles away. Had the blnr in the safe and called two days after I inquired about it. Not gonna flip this one, college gift to son in four years.

[Thuilln]

Originally Posted by BT1985

I spoke with and AD that said Rolex is manufacturing new displays for dealers with less slots so their cases won’t appear so bare. If Rolex will make that spend that tells you how real the shortage is and that it’s not short term.


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That's really funny, and pathetic at the same time.

[fskywalker]

Nice!


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[Art 1]

Nice info. Not sure what being 33 has to do with an AD relationship though.

[Rashid.bk]

Congrats on the LV. When I picked up my Deepsea my AD spoke about the same thing regarding demand. He said it isn't some Rolex strategy to create demand, they just weren't ready for the spike in interest that occurred with the advent of the BLNR. All of a sudden all ss Rolex became in high demand, they couldn't keep up and haven't recovered.

Rolex has even added a nightshift to increase production, an extreme measure in european working society. The Daytona has always been a small volume watch but not because a controlled marketing strategy but because it is the only watch that uses that movement unlike the 3235 which goes in everything. The chronograph requires a bit more resources.

Anyway, just saying that there seems to be some validity to your AD's story if another all the way in Texas is saying the same things.

[Easy E]

Originally Posted by uniqueMR

Hello All :)

I had a long chat (1 hour) with my AD in Chicagoland on Saturday. We were discussing Rolex shortage, demand, popular model, etc.

Last week, my AD attended a meeting at NYC, headquarter of Rolex USA, and noted that Rolex just cannot meet the demand. Rolex have 4 locations where they make/manufacturer Rolex and have 3 shifts, running 24 hour. Rolex will be increase inventory by 60,000+ watches this year but that won't help. 60,000 addition to Rolex is how much Patek makes in a year :) AD really hoping if Rolex with open their 5th location

We also discussed why not Rolex increase MSRP instead of being shortage. AD noted because people won't accept it due to fact there is not much change in a watch on yearly basis. But noted some increase might be coming in 1-2 years in regards to price (due to inflation, demand, value of money, tariffs, etc.). Let's wait and see on msrp :)

We talked about Hulk and Pepsi (Daytona I already owned but AD noted wait time is 2-5 years on them). There are not talking any names. In regard to Hulk and Pepsi, after a long chat, AD offered me Sub Date :) and can find me Hulk in few days :) That was a lucky day for me haha. Cannot believe it. BUT Remember: NEED TO HAVE A RELATIONSHIP with AD. Period.

So picking up my Hulk in few days and lucky to have a great piece in my collection.

I will confirm that they are not filling the Warranty Card. They might even hold Warranty Card to make sure buyer is not flipper or gray market representative. I do not blame my AD.

In regards to gray market. ADs are very strict now. They been tricked in past and now ADs do not even sell watches to anyone out of state or with lame excuses or lies :)

Lucky to have a good relationship with my AD, at my age of 33


Looking forward to adding more limited editions :)

I had a very similar discussion with my AD last week. He said they have amped up production(according to his regional rep at a training session), but that is not going to get me my Daytona any sooner. I also take "my AD said" with a grain of salt.

E-

E-

[Easy E]

It is also curious to me how to reconcile this with "the letter" from a few months back. Just sayin'...

[Fleetlord]

Originally Posted by BT1985

I spoke with and AD that said Rolex is manufacturing new displays for dealers with less slots so their cases won’t appear so bare. If Rolex will make that spend that tells you how real the shortage is and that it’s not short term.


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This is what is really going on.

Limit distribution

Market effectively

The keys to a successful luxury brand.

[uniqueMR]

Originally Posted by Art 1

Nice info. Not sure what being 33 has to do with an AD relationship though.

Age has nothing to do but AD paying attention to young man is pretty good :) Most of ADs don't even talk if you are not presentable :)

[uniqueMR]

Originally Posted by Easy E

I had a very similar discussion with my AD last week. He said they have amped up production(according to his regional rep at a training session), but that is not going to get me my Daytona any sooner. I also take "my AD said" with a grain of salt.

E-

E-

Daytona is in short supply. I am lucky to have mine few weeks back. Hang in.

[jvd99]

Is there any difference in value between first shift, second shift and graveyard shift watches? Would the fact that the watch was produced on a graveyard shift have more of an influence on resale than if the hangtag was missing?

[Art 1]

Originally Posted by uniqueMR

Age has nothing to do but AD paying attention to young man is pretty good :) Most of ADs don't even talk if you are not presentable :)

It's not like that I guess in Florida. Dealers don't care what customers wear and plenty of people in their 20's have nice watches. I have heard though that in some areas ad's judge on appearance. Hasn't been my experience in Florida or Ontario.

[Dirt]

Originally Posted by dardeca

I'm skeptical on the increase of production shifts at Rolex...seems you need highly skilled people in those roles and I'd assume those people aren't just wandering around the streets of Geneva looking for a job. While I like the idea of increasing production shifts...seems you need additional skilled people to work those shifts...and I'm not sure where that is coming from.

That's exactly right.

Unless they were implementing split shifts to oversee some machinery by process workers where there may typically be a bottle neck or two in the production process.
They may have the bulk of the most highly skilled work covered already with a bit of compulsory Overtime

[Dirt]

Originally Posted by Rashid.bk

Congrats on the LV. When I picked up my Deepsea my AD spoke about the same thing regarding demand. He said it isn't some Rolex strategy to create demand, they just weren't ready for the spike in interest that occurred with the advent of the BLNR. All of a sudden all ss Rolex became in high demand, they couldn't keep up and haven't recovered.

Rolex has even added a nightshift to increase production, an extreme measure in european working society. The Daytona has always been a small volume watch but not because a controlled marketing strategy but because it is the only watch that uses that movement unlike the 3235 which goes in everything. The chronograph requires a bit more resources.

Yes, resources that could be directed toward other models.
Also with the progressive change over to the new movements there will be that added layer of complexity right throughout the overlap period as they are effectively making more movement models until the transition is complete.

It's not just the Daytona movement either.
Don't forget to factor in the Skydweller movement now.

[Dirt]

Originally Posted by Thuilln

That's really funny, and pathetic at the same time.

I don't know about it being pathetic

It is a legitimate and logical strategy to please the dealers that are heavily invested in their displays.
It looks terrible from the shoppers point of view if there are all these gaps or incomplete rows in the display cases where there should be watches out on display ready for sale. It's a bad look all around and from any perspective actually.
The casual observer could be forgiven for thinking the dealers are going out of business or the same may apply to Rolex themselves.

[watchtabs]

This is never ending speculation!

[fishingbear]

Well, good to know what an AD knows about Rolex current marketing and production strategy.....