MRSP went up : What about Grey pricing ?

[TswaneNguni]

MRSP increase worldwide at different percentages as of today ....

Any increase in Grey pricing yet ?

[Podmornica]

The BLRO already had difficulties lately to sell for $17,000 on a gray market, and it would be interesting to see if they can now be flipped for $18,500 to match the percentage of new price increase ..

[Uhtred59]

Gray prices are market driven, the question is if people will purchase at a higher price. I think the watches are at the high water mark now.

[Zakalwe]

No movement here as far as I can see though January is traditionally a time when retailers incentivise sales through discounting. Whilst I don’t expect reductions, a price rise will take a few weeks, if it happens at all.

The last couple of years has seen price rises on specific references in the run up to Basel on the back of speculation surrounding possible discontinuation. I expect this to happen again.

[THC]

Current grey inventory will most likely stay the same, but greys will be paying more to the ADs in a month or two.

[Mystro]

I noticed a slight tick up when it was announced last week. I suspect that when new watches start coming in at the new msrp price point, then you will see the full increase filter down.

[djgallo]

About the same ....or up a bit....

[Robtayham]

Too many unknowns:

We don’t know if the wholesale price that Rolex sells to the AD was increased, or by how much.

We don’t know the discount, if any, the AD gives the grey.

We don’t know if the market will support a price increase by the greys.

[roh123]

Originally Posted by Robtayham

Too many unknowns:

We don’t know if the wholesale price that Rolex sells to the AD was increased, or by how much.

We don’t know the discount, if any, the AD gives the grey.

We don’t know if the market will support a price increase by the greys.

Margin is as far as I know a percentage throughout the board. The grey market usually works as they buy packages from ADs. Meaning buying a bunch of hard to sell items to get one or two hot. Often to retail on everything so the grey dealer then makes their living selling the hot watches over list and trying to go break-even on the rest. It’s not a very easy business and I think a big price increase like today will cut away a few greys that wont be able to make it work.

[Hollie_Rollie]

I was looking at a day date that has been listed for sale for a while. In negotiations the grey tried to urge me to close the deal before the price increase. I didn’t bite, if it wasn’t moving at its current price point what genius would think it’s going to magically move with a price increase? These guys are salesman first they’ll say whatever to close a sale

[georgekart]

I think it is too soon to make predictions now. Let's wait a month or so and we can decide then.

[Mystro]

I can tell you the margins are not high at all with our trusted sellers. I recently traded back a 1 year old TT CHNR. I got top dollar and when It was listed, I was shocked how tight the margins are. They are paying above msrp on a lot of popular models.

[TswaneNguni]

Its not about predictions,its about actual increases in asking price .

Perhaps the world is still closed down on New Years day ,however,tomorrow there may be movement ..

Will be interesting to see if current stock rises or only new stock .

Please let know if a pattern emerges .

[DTap]

Originally Posted by Mystro

I can tell you the margins are not high at all with our trusted sellers. I recently traded back a 1 year old TT CHNR. I got top dollar and when It was listed, I was shocked how tight the margins are. They are paying above msrp on a lot of popular models.

2-3 years ago the greys were selling below msrp and making money. I used to think they were the problem... but now I realize it’s just the market.

[beshannon]

Originally Posted by TswaneNguni

MRSP increase worldwide at different percentages as of today ....

Any increase in Grey pricing yet ?

Which one?

[TswaneNguni]

Originally Posted by beshannon

Which one?

Which one what ?

[beshannon]

Originally Posted by TswaneNguni

Which one what ?

Well there are thousands of resellers aka "grey".

Who chooses to raise prices when is a very big open ended question.

[WRISTROLEX]

Web sites around the globe, are being edited as we speak!

[TswaneNguni]

Originally Posted by beshannon

Well there are thousands of resellers aka "grey".

Who chooses to raise prices when is a very big open ended question.

Its big world ...

Chrono24 ,most together ?

[WatchLurv]

From the offers I've received, I have not seen any price-hike so far. Let's see tomorrow when everyone is back at work.

[TswaneNguni]

Originally Posted by WatchLurv

From the offers I've received, I have not seen any price-hike so far. Let's see tomorrow when everyone is back at work.

Scanned chrono24 quickly ,,still looks status quo.

[peterpl]

The whole thing of increasing of the prices is to reduce the gap between MSRP and the amount ppl are willing to pay on the gray market.

I have not seen any gray dealers rising prices on pieces - they cant because they are not selling at the current prices and and they would sit even longer they if they raised the price - whats the point? They'll just reduce it again after 3-4 bumps and sitting for a month.

Some grays might try the water but I think the boat has long sailed already in the gray market in terms of the market softening. Market is still soft and a 3% or whatever price rise in MSRP isnt going to change that.

[TswaneNguni]

Originally Posted by peterpl

The whole thing of increasing of the prices is to reduce the gap between MSRP and the amount ppl are willing to pay on the gray market.

I have not seen any gray dealers rising prices on pieces - they cant because they are not selling at the current prices and and they would sit even longer they if they raised the price - whats the point? They'll just reduce it again after 3-4 bumps and sitting for a month.

Some grays might try the water but I think the boat has long sailed already in the gray market in terms of the market softening. Market is still soft and a 3% or whatever price rise in MSRP isnt going to change that.

ss Daytonas and BLRO too ?

[peterpl]

Originally Posted by TswaneNguni

ss Daytonas and BLRO too ?

Not seeing it. Daytona have already been dropping - Grays tried to stretch the white dial BNIB to $27k only a few months back.

These are going for $23-$24k all day long now.

[TswaneNguni]

Originally Posted by peterpl

Not seeing it. Daytona have already been dropping - Grays tried to stretch the white dial BNIB to $27k only a few months back.

These are going for $23-$24k all day long now.

So,that means that the increase in MRSP may help to sustain current Grey pricing ,rather than increase it .

[peterpl]

Originally Posted by TswaneNguni

So,that means that the increase in MRSP may help to sustain current Grey pricing ,rather than increase it .

Maintain maybe since Rolex are not stupid either. They know what pieces are selling for in the gray market.

I'm pretty sure the main aim is to reduce the rampant flipping from ADs to grays and to sell directly to end customers again.

They want to reduce the profit as much as they can between MSRP and Gray market offer prices so the incentive for flippers are gone. They have copped so much criticism now because they lost control over their entire distribution across not only 1 country but around the entire world with all the dodgy shit happening everywhere.

I think thats why the price rises across all countries and mostly targeting the mostly flipped models. Some less flipped pieces didn't get price hikes in some countries (i.e) Australia but most the sport models all got price rises.

[SUPERDOC]

If Greys were selling at discounts, then, yes.. you will see their prices rise..
Why would anyone think that the grey would rise prices on watches already 30-50% above MSRP?

we keep saying the market sets the price, so how does Rolex raising their below market price affect the market asking price? the Market seems to have spoken that the BLNR is not worth $18k.. Rolex increasing its MSRP to 10k won't make it sell any better at 18k... this is all such faulty logic to fear a Grey price increase..

"Rolex raised their prices, I sell for more than what they ask, so I have to raise prices because 'prices have gone up', even though they have not gone as high as what I am trying to sell for." is that a sound argument?

the best deal is still the AD - and although harder to get, there are people (seemingly the vast majority of people posting anyway - an admitted selection bias) who are buying at MSRP.

Add to the fact that with passing time, these models will become LESS scarce, not more... Rolex continues to make watches...none of these are limited.

Furthermore, the fly-by night flippers may be turned away by a price increase - after having to pay a higher full MSRP + tax, they may realize less of a profit margin selling at current market value, and decide to leave the watch at the AD -

The Grey market has always been there - they have been our friends, and now our enemies (for Rolex, we are still great pals when it comes to Omega, Breitling, ALS etc) ..

What I hope a Price increase does is turn away those looking for the quick profit/easy flip...

[Token74]

I would be surprised to see an increase across greys in line with the MRSP increase.

In reality, it’s the hard-to-get pieces we’re talking about here, and the MRSP is somewhat irrelevant at this point.
If you can’t get one at MRSP, the MRSP doesn’t really matter!

In the short term, the greys may start to move more stock; a Reduced difference between MRSP and grey pricing will make it easier for some to pull the grey trigger. In six months time, this may well then result in grey prices increasing some more, but I predict it will take long.


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[watchwatcher]

Originally Posted by Token74

I would be surprised to see an increase across greys in line with the MRSP increase.

In reality, it’s the hard-to-get pieces we’re talking about here, and the MRSP is somewhat irrelevant at this point.
If you can’t get one at MRSP, the MRSP doesn’t really matter!

In the short term, the greys may start to move more stock; a Reduced difference between MRSP and grey pricing will make it easier for some to pull the grey trigger. In six months time, this may well then result in grey prices increasing some more, but I predict it will take long.


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Well said.

[brandrea]

Originally Posted by Token74

I would be surprised to see an increase across greys in line with the MRSP increase.

In reality, it’s the hard-to-get pieces we’re talking about here, and the MRSP is somewhat irrelevant at this point.
If you can’t get one at MRSP, the MRSP doesn’t really matter!

In the short term, the greys may start to move more stock; a Reduced difference between MRSP and grey pricing will make it easier for some to pull the grey trigger. In six months time, this may well then result in grey prices increasing some more, but I predict it will take long.


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Well said Vince