It's the internet stupid!

[Watch This]

My oh my, this current mess we are in. Shortages, bundling, wait lists, deposits. Grey's thriving with all the inventory much of which commands a premium. The "should I send chocolate to my AD" thread blew my mind.

Here's my theory. Rolex has adhered to a 100 year old business model that does not function in the age of the internet. The growth of Greys would not have been possible without the internet. Removing stickers and holding warranty cards is not the answer and is basically a joke. Look at what Amazon has become. Look how malls are struggling to re-invent themselves. Countless other examples. Rolex is employing 100 year old ways of doing business and the good stuff still goes out the back door.

In 2018 there are far more sophisticated ways to control inventory, distribution, pricing, and sales. In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

[Goin2drt]

Yep and they could care less. It’s a business and clearly their financials are just fine. When money gets tight, folks will make different decisions. Until then they will carry on as is.

[Fencer]

Originally Posted by Goin2drt

clearly their financials are just fine.

Source?

[melrob1]

Originally Posted by Watch This

My oh my, this current mess we are in. Shortages, bundling, wait lists, deposits. Grey's thriving with all the inventory much of which commands a premium. The "should I send chocolate to my AD" thread blew my mind.

Here's my theory. Rolex has adhered to a 100 year old business model that does not function in the age of the internet. The growth of Greys would not have been possible without the internet. Removing stickers and holding warranty cards is not the answer and is basically a joke. Look at what Amazon has become. Look how malls are struggling to re-invent themselves. Countless other examples. Rolex is employing 100 year old ways of doing business and the good stuff still goes out the back door.

In 2018 there are far more sophisticated ways to control inventory, distribution, pricing, and sales. In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

What would be your progressive plan if you were Rolex brass?

[beshannon]

Originally Posted by melrob1

What would be your progressive plan if you were Rolex brass?

Continue to sell luxury, ignore the whining

[GradyPhilpott]

Originally Posted by beshannon

Continue to sell luxury, ignore the whining

I agree.

All this hysteria is just playing right into the hands of Rolex.

Maybe I'm just not as annoyed as others because I already have a nice collection, but honestly, if Rolex can't deliver the goods, then go elsewhere.

There are plenty of great watches on the market and a lot of them very nicely priced.

[Watch This]

Originally Posted by melrob1

What would be your progressive plan if you were Rolex brass?

There are no easy answers. The internet has forever changed the game. The list of other retailers who have been put out of business by internet sales grows each day. The taxi industry is being decimated by Uber/Lyft. Kids these day are all about the internet.

I am a lawyer, not a business executive, marketing expert, or strategist. If supply is plentiful, they Greys can buy and sell at discount. Bad for Rolex. If supply is short, the Greys still seem to get inventory and can command a premium. Bad for Rolex. It's a no-win.

ADs who ship stuff out the back door seem to largely go unpunished and immune from blame. There are better ways to monitor this. Perhaps make warranties non-transferable for a period of time. Perhaps move to on-line sales. I think that as long as internet Greys exist, this problem will persist. I appreciate the courteous, thoughtful discussion.

[ALF61]

Originally Posted by Watch This

There are no easy answers. The internet has forever changed the game. The list of other retailers who have been put out of business by internet sales grows each day. The taxi industry is being decimated by Uber/Lyft. Kids these day are all about the internet.

I am a lawyer, not a business executive, marketing expert, or strategist. If supply is plentiful, they Greys can buy and sell at discount. Bad for Rolex. If supply is short, the Greys still seem to get inventory and can command a premium. Bad for Rolex. It's a no-win.

ADs who ship stuff out the back door seem to largely go unpunished and immune from blame. There are better ways to monitor this. Perhaps make warranties non-transferable for a period of time. Perhaps move to on-line sales. I think that as long as internet Greys exist, this problem will persist. I appreciate the courteous, thoughtful discussion.

Like I said, it changes the dynamics, but not the basic laws. I see you are now insinuating that they should curb this by increasing supply. Well, that may not be as easy as one thinks or even convenient. It is not unusual for a business model to limit the supply of goods to ensure good long lasting buying interest and stability. Therefore I cannot agree with any wrongdoing in Rolex business strategy.

[Cloudchaser]

Originally Posted by Watch This

There are no easy answers. The internet has forever changed the game. The list of other retailers who have been put out of business by internet sales grows each day. The taxi industry is being decimated by Uber/Lyft. Kids these day are all about the internet.

I am a lawyer, not a business executive, marketing expert, or strategist. If supply is plentiful, they Greys can buy and sell at discount. Bad for Rolex. If supply is short, the Greys still seem to get inventory and can command a premium. Bad for Rolex. It's a no-win.

ADs who ship stuff out the back door seem to largely go unpunished and immune from blame. There are better ways to monitor this. Perhaps make warranties non-transferable for a period of time. Perhaps move to on-line sales. I think that as long as internet Greys exist, this problem will persist. I appreciate the courteous, thoughtful discussion.

You.do realize that the "taxi industry" adapted and that many Uber/Lyft cars are just re-branded taxis, right?

Go pull the doors at the new Rolex Service Center in Dallas; they are adapting well, too, obviously.

Also...how is Rolex selling "online" the answer to "the internet?"

Respectfully, you seem more bitter about not getting a watch than you are thoughtful of what is actually happening in the market. It seems like you've given cursory simplistic thought to a complicated distribution model, which sort of makes it seem as though you see simple solutions to something nobody else fully understands.

You are clearly stabbing in the dark without a real clue, so forgive any "antaganistic tone;" posts like yours are constant here and ones with overly-simplistic assumptive logic are going to get chipped at pretty quickly.

Ironically, let's not forget that we are largely still waiting for the legal industry to properly adapt to "the internet" (LegalZoom the first of the big disruptors). Lawyers for internet adaptation is sorta like socialists for tax limits...we don't see many of them.

[Watch This]

Originally Posted by Cloudchaser

You.do realize that the "taxi industry" adapted and that many Uber/Lyft cars are just re-branded taxis, right?

Go pull the doors at the new Rolex Service Center in Dallas; they are adapting well, too, obviously.

Also...how is Rolex selling "online" the answer to "the internet?"

Respectfully, you seem more bitter about not getting a watch than you are thoughtful of what is actually happening in the market. It seems like you've given cursory simplistic thought to a complicated distribution model, which sort of makes it seem as though you see simple solutions to something nobody else fully understands.

You are clearly stabbing in the dark without a real clue, so forgive any "antaganistic tone;" posts like yours are constant here and ones with overly-simplistic assumptive logic are going to get chipped at pretty quickly.

Ironically, let's not forget that we are largely still waiting for the legal industry to properly adapt to "the internet" (LegalZoom the first of the big disruptors). Lawyers for internet adaptation is sorta like socialists for tax limits...we don't see many of them.

1. I am not currently in the market for a new watch.
2. I am not bitter. Pretty darn happy in fact.
3. I made a post to invite thoughtful discussion.
4. The tendency for people like you to hide behind a keyboard and use words like simplistic and then attack lawyers and use "dummy" emoticons, tells me all I need to know. I bet you have really small hands.

[Cloudchaser]

Originally Posted by Watch This

1. I am not currently in the market for a new watch.
2. I am not bitter. Pretty darn happy in fact.
3. I made a post to invite thoughtful discussion.
4. The tendency for people like you to hide behind a keyboard and use words like simplistic and then attack lawyers and use "dummy" emoticons, tells me all I need to know. I bet you have really small hands.

Thanks for your "thoughtful discussion." Your last bullet point there is a hot mess...sorry I upset you. It's a great thread and you weren't overly defensive at all.

[broham84]

Originally Posted by Watch This

1. I am not currently in the market for a new watch.
2. I am not bitter. Pretty darn happy in fact.
3. I made a post to invite thoughtful discussion.
4. The tendency for people like you to hide behind a keyboard and use words like simplistic and then attack lawyers and use "dummy" emoticons, tells me all I need to know. I bet you have really small hands.

Not sure what you’re babbling about mr.biglaw. There are plenty of us getting SS Daytona and subs just fine at AD.

Are you saying Porsche failed too? They use the same marketing and distribution tactics, and they are the most profitable automaker in the world backed up by their press release. Can you walk into a dealership without prior purchase history and order a GT3RS? No.

[subtona]

Originally Posted by Cloudchaser

You.do realize that the "taxi industry" adapted and that many Uber/Lyft cars are just re-branded taxis, right?

Go pull the doors at the new Rolex Service Center in Dallas; they are adapting well, too, obviously.

Also...how is Rolex selling "online" the answer to "the internet?"

Respectfully, you seem more bitter about not getting a watch than you are thoughtful of what is actually happening in the market. It seems like you've given cursory simplistic thought to a complicated distribution model, which sort of makes it seem as though you see simple solutions to something nobody else fully understands.

You are clearly stabbing in the dark without a real clue, so forgive any "antaganistic tone;" posts like yours are constant here and ones with overly-simplistic assumptive logic are going to get chipped at pretty quickly.

Ironically, let's not forget that we are largely still waiting for the legal industry to properly adapt to "the internet" (LegalZoom the first of the big disruptors). Lawyers for internet adaptation is sorta like socialists for tax limits...we don't see many of them.

interesting points



The current situation is frustrating for the average buyer, a solution would be nice but it is a complex situation that the internet is greatly assisting.

While our global market has been enabled, attempts at oversight of privacy and security issues resulting from technology have not scratched the surface and surely should be of more concern than luxury goods distribution?

[Ruud Van Driver]

Originally Posted by Watch This

The "should I send chocolate to my AD" thread blew my mind.

Somebody seriously asked this?

[superstarmar]

Originally Posted by Watch This

The "should I send chocolate to my AD" thread blew my mind.
:

Originally Posted by Ruud Van Driver

Somebody seriously asked this?

I actually gave a nice bottle of wine to my SA
for taking care of me on several pieces.
BLNR 10% off and no tax ... Plus a 5 digit pre-owned
Sub at a ridiculous low price ...

This was of course before the current crisis/shortage fiasco.

[watchwatcher]

Originally Posted by Watch This

In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

Really. Tell us more how Rolex has "failed." I'm all ears.

[Watch This]

Originally Posted by watchwatcher

Really. Tell us more how Rolex has "failed." I'm all ears.

Ignoring your somewhat antagonistic tone, I would say that when the average Joe who has saved for three years to buy their grail Submariner walks into an AD ready to buy and there is no stock available, the brand has failed the consumer.

[AK797]

Originally Posted by Watch This

Ignoring your somewhat antagonistic tone, I would say that when the average Joe who has saved for three years to buy their grail Submariner walks into an AD ready to buy and there is no stock available, the brand has failed the consumer.

Not the consumer, the latest consumer, but Rolex have taken care of all they predicted and planned for. Most of the rest are flippers and trend buyers only and thus can be dismissed.

[037]

Originally Posted by Watch This

Ignoring your somewhat antagonistic tone, I would say that when the average Joe who has saved for three years to buy their grail Submariner walks into an AD ready to buy and there is no stock available, the brand has failed the consumer.

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

[Watch This]

Originally Posted by 037

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

[037]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

No, and you didn't answer my question.

[casadecamporolex]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

Sorry to disagree on my 777th post.
Did the notion that more people are seeking the brand worldwide than the current production cycle allows enter this perception? If everybody has one, why the shortage?
And from what I understand, every SS Professional reference is presold before it makes it to the display case.
That is a win win for Rolex and AD. Loser is the newby looking to enter the marketplace.
Used to be just a short time ago that a SS Sub could be had for 20% off.
I remember then.....do you?

[acp001]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

Agree, haha

Sent from my Mi A2 Lite using Tapatalk

[envuks]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

I would argue your definition of “average joe” is skewed by wherever you are living. Just because you’re surrounded by fortune doesn’t make that an exclusive reality

[Bacnine]

And where do you live?

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

[frankfrazetta]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

Wow. Where I live NOBODY, or less than 1% have a Rolex on. I don't live in a million dollar a house area, but it's not cheap.

[Easy E]

Originally Posted by 037

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

Even if you assume the 20%, you are still talking about a roughly $7000 watch. That's a long way from every average Joe. As for me, I could care less if I have the only sub in town or if everyone in line at lunch has one on each wrist.

I appreciate the "average joe" type who worked, maybe an average job, but worked hard and saved his pennies to reward himself with a keepsake. Only now he would get laughed out of an AD.

[challer]

Originally Posted by 037

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

Yep. I don't care at all if sone one else owns what I own. Why should I? I own two Mercedes GLE. Where I live they are everywhere - doesn't diminish my appreciation of them. Both where special ordered at a premium - I didn't buy off the floor. Watches should be the same way.

The problem with all this analysis is the sports models are a side business to the main line Datejust/DD. They're at every dealer because that is what most people buy. If one doesn't use the sports complication/capabilities, the Datejust has amazing variety, availability, utility. Blue dials, jubilees, size variety, PM, SS all readily availability to anyone.

[ROLMARINER]

Originally Posted by challer

If one doesn't use the sports complication/capabilities, the Datejust has amazing variety, availability, utility. Blue dials, jubilees, size variety, PM, SS all readily availability to anyone.

Actually, SS DJ's are not readily available. I wanted a DJ41 SS Rhodium Fluted Jubilee a few months ago and I called close to 30 AD's in the NY/NJ/CT/PA vicinity and a) none had it and b) none could even tell me when they were expecting the next one.

So I went grey for the DJ as well. Got it for $500 below MSRP as a matter of fact. Point is, desirable color combinations of DJ's are not AD low hanging fruit, they can be just as hard to find as a sport model. Great watch FYI, Rolex really got it right.

[ap1]

Originally Posted by 037

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

20 below msrp is actually a strong residual in watch land, just saying. Clearly Rolex is special.