Pepsi production rumour?

[thesharkfactor]

Originally Posted by Swiftneck

With very few watches now having a premium when selling to greys (pepsi/panda etc) and a generally harder watch market. Most of these are properly going out the backdoor from AD's.

So what do you tell your customers/SA. We don't get as many anymore.

Maybe that the reason.

This is a very good point. There are fewer watches in todays market that can earn the AD a premium for selling to greys. So the AD will divert the hype watches to grey dealers and tell customers they just don't get those anymore.

[Reikolexguy]

Originally Posted by 1lastone

+1 for another “my Ad said guy” but I picked up my blro a month ago and the store manager was saying the same thing, had been to recent Wow and was told the blro has a high failure rate and is expensive to make in steel for that reason. People can disagree all they want but this is coming from multiple sources.

If it’s a very high failure rate (~90%), then maybe the £1000 cost includes the wastage from the bezels that couldn’t pass Rolex’s factory QC?

Don’t think it’s that great a stretch that costs could snowball to such a quantum.

When you’re making a million watches a year, and assuming 2% of production is purely for a Pepsi, say 20,000 pieces, even if the bezel costs maybe £20 per piece to produce, that’s still £400,000. And that’s just the production cost for the ones that could pass muster.

The cost would be greatly inflated with such a high failure rate.


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[harvey]

…it’s laughable, bandying numbers about something no one really knows about.

[jb335]

Originally Posted by harvey

…it’s laughable, bandying numbers about something no one really knows about.

I tend to agree…


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[dannyp]

Originally Posted by Reikolexguy

If it’s a very high failure rate (~90%), then maybe the £1000 cost includes the wastage from the bezels that couldn’t pass Rolex’s factory QC?

Don’t think it’s that great a stretch that costs could snowball to such a quantum.

When you’re making a million watches a year, and assuming 2% of production is purely for a Pepsi, say 20,000 pieces, even if the bezel costs maybe £20 per piece to produce, that’s still £400,000. And that’s just the production cost for the ones that could pass muster.

The cost would be greatly inflated with such a high failure rate.


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I think that's one possibility. But I still question that since that means Rolex likely "sells" every BLRO to the UK distributor (wholly owned, but still, accounting...) at a loss. Have to figure £2k wholesale to the distributor, then £4k to the dealer, and then what, around £8k to the consumer?

More likely, and this is just a guess, is that this was a discussion about the WG version and that was the all-in cost of producing the whole bezel (which is WG). Perhaps a good number of the bezel inserts were cracking after insertion to the bezel itself, but in that case it's not £1k wasted, as the bezel can either be reused or melted down again.

On the other hand, if by some absolute outside chance it really cost £1k to make an insert, then I see a significant incentive to reserve all the BLRO inserts for the WG version.

[Tensai]

Here is the template:

I purchased the [insert model #] recently, and now it's market price has dramatically increased because [insert self-serving rumour].

[Eric-London]

Nothing to see here.

[harvey]

…went in to see my AD to check out the new releases…he has not been advised by Rolex of any issues with the Pepsi, nor has he seen a change of supply. Guess some ADs are fibbing..

[jb335]

I see there is a pic of an alleged cracked ceramic insert above but if this issue with them cracking was so rampant that Rolex stopped production, wouldn’t we see far more frequent threads on TRF about cracked BLRO inserts?

I can’t recall seeing a single one of those threads started here.

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[VerticalClutch]

Originally Posted by harvey

…it’s laughable, bandying numbers about something no one really knows about.

It’s even more laughable to think a company would put a product into production if it had a 98% failure rate. Or to think a company wouldn’t charge more for a product that had higher production costs (Pepsi = Batman sale price).

In my years I’ve realized that there are just folks out there who can’t accept the simple answers.

[BroncoOne]

I think it’s fake news. Supply of the BLRO is certainly constrained but that is because they are in such high demand, not because Rolex forgot how to manufacture the bezels.

The sales guy likely told you that as an excuse for why you aren’t getting the one in his pretty box in the safe but a bigger customer is.

[Rolexatlast]

Originally Posted by Reikolexguy

If it’s a very high failure rate (~90%), then maybe the £1000 cost includes the wastage from the bezels that couldn’t pass Rolex’s factory QC?

Don’t think it’s that great a stretch that costs could snowball to such a quantum.

When you’re making a million watches a year, and assuming 2% of production is purely for a Pepsi, say 20,000 pieces, even if the bezel costs maybe £20 per piece to produce, that’s still £400,000. And that’s just the production cost for the ones that could pass muster.

The cost would be greatly inflated with such a high failure rate.


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Assuming your figures are correct, the £400 000 cost of wasted bezels spread across 20 000 watches, is only £20 per watch. Easily absorbed.

[dannyp]

Originally Posted by VerticalClutch

It’s even more laughable to think a company would put a product into production if it had a 98% failure rate. Or to think a company wouldn’t charge more for a product that had higher production costs (Pepsi = Batman sale price).

In my years I’ve realized that there are just folks out there who can’t accept the simple answers.

To be fair, I think that some of this could repetitional, and an unwillingness to admit a problem exists. First of all, the high failure rate seems to be at the QC level, and largely color related (vs watches actually distributed with a defect). Secondly, to charge more for that version would be to admit it is more expensive to produce, and thus more difficult.

[Bazil]

All these rumours seem strangely to have no bearing on the grey market prices for Pepsi, if anything they are gradually in decline, just looking on C24 and a lot of jewellers I follow, 14-15K gbp can get a really good Pepsi, if anything it’s all complete tosh ! Grey dealers trying to up the price with this mysterious production rumour, or could it be 41mm GMT on its way ?
Hhmmmmm

[rolexgs]

Originally Posted by Bazil

All these rumours seem strangely to have no bearing on the grey market prices for Pepsi, if anything they are gradually in decline, just looking on C24 and a lot of jewellers I follow, 14-15K gbp can get a really good Pepsi, if anything it’s all complete tosh ! Grey dealers trying to up the price with this mysterious production rumour, or could it be 41mm GMT on its way ?
Hhmmmmm

I noticed that grey market price of pepsi has been stable for the past few weeks, while other sport models including daytona has dropped.

[Bazil]

Interesting, jeweller I’ve used now dropping their 2021 Pepsi to £14,550 .. and I see 166500 going up slightly, so maybe tomato / tomayto ..
interestingly I’m seeing some models quite close to retail, Yatchmaster being one .. overall though I have no belief in production issues for a company like Rolex, plus I’d love one I really would, think they are the epitome of Rolex, of course many will argue other models like sub or Daytona but for me, Rolex Pepsi is the King ..

[Devildog]

Originally Posted by jb335

I see there is a pic of an alleged cracked ceramic insert above but if this issue with them cracking was so rampant that Rolex stopped production, wouldn’t we see far more frequent threads on TRF about cracked BLRO inserts?

I can’t recall seeing a single one of those threads started here.

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Strange, isn't it.

Something like 30% of those responding to the 32xx movement issues thread reported a measurable fault and its bushed away by most as a "non issue" and literally no one on the forum posts about a broken Pepsi bezel and yet Rolex have "serious production issues"

[Harry-57]

North of £14k is still around double MSRP. I love the BLRO. I'm still delighted to have scored one. I can pay it all sorts of compliments but a £14k watch it is not. Yes, I know that's the "market price", but it's wrong IMO.

[Bazil]

No true, £14-£15,000 for a watch that retails at £9,150 is wrong, we all know that, but then so is most, and I say most, ADs requesting you buy a watch or jewellery you don’t really want or need simply to get the watch you do …
It’s all about how you as an individual want to spend your money, I bought a car north of £60K that depreciated almost 10% soon as I drove it .. it’s all about you as an individual, I’m not keen spending say £25K for the Daytona I want, I know my AD won’t get me it , so it’s all about wether I can stomach that price, or flip one I have ..

[TBC123]

To say Rolex can’t produce a blue and red ceramic insert is comical. Seems the clone market has no problem knocking them out in the thousands. Another urban myth started by folks with too much time on their hands.

[Harry-57]

Originally Posted by Bazil

It’s all about how you as an individual want to spend your money, I bought a car north of £60K that depreciated almost 10% soon as I drove it .. it’s all about you as an individual

I'm the bloke who buys it when it's 3 years old for less than half the purchase price. I'm tight like that!

[Bazil]

Originally Posted by Harry-57

I'm the bloke who buys it when it's 3 years old for less than half the purchase price. I'm tight like that!

[nr1416]

Originally Posted by tbc123

to say rolex can’t produce a blue and red ceramic insert is comical. Seems the clone market has no problem knocking them out in the thousands. Another urban myth started by folks with too much time on their hands.

x2

[worldofoyster]

Originally Posted by JSolution

I did hear this directly from my guy. He’s never told me any BS before.

there's always first time

[Devildog]

Originally Posted by TBC123

To say Rolex can’t produce a blue and red ceramic insert is comical. Seems the clone market has no problem knocking them out in the thousands. Another urban myth started by folks with too much time on their hands.

Originally Posted by nr1416

x2

The cloned red and blue inserts are two separate thin pieces mounted on a metal disk. Easy to do and cheap to manufacture.

Rolex bi colour bezels are one solid piece of ceramic. The Pepsi bezel starts off as all red and a compound is added during the manufacturing process to create the blue half. Completely different and not at all comparable.

This whole production issue thing may be an urban myth, but to use the example you have as the rationale for your point? that just shows a complete lack of knowledge.

[salnuaimi]

Originally Posted by Harry-57

North of £14k is still around double MSRP. I love the BLRO. I'm still delighted to have scored one. I can pay it all sorts of compliments but a £14k watch it is not. Yes, I know that's the "market price", but it's wrong IMO.

if IWC can sell their new ingenieur for 12k retail .. then pepsi well deserve 14k

[miama]

Believe what you want but, every single AD in my region told me the same story. One particular one is very honest with me, she's like a mom to me and told me it was the rolex representative that told them. The biggest dealer here said they didn't get any pepsis in 6 months. I don't think it's a rumor to make me stop complaining about having to wait for the pepsi because they reminded me about this problem as they allocated me my pepsi.

[lee fowler]

I know of some AD's that have been told that they will not receive any Pepsi models this year here in the UK.

[Harry-57]

Originally Posted by salnuaimi

if IWC can sell their new ingenieur for 12k retail .. then pepsi well deserve 14k

[Harry-57]

Originally Posted by Devildog

Completely different and not at all comparable.

Right on Scott. It's an interesting little bit of Rolex history, like so many bits of Rolex history.

Is it not the case that some (many?) OEM bicolour bezel inserts are two halves joined?

Now for the my AD said bit: the Rolex buyer, who is not overflowing with information and gossip but from time to time passes on small bits of information and hints which have been 100% accurate to date, once told me that the high production cost of the BLRO insert was why it first came out in WG. It would not have been cost effective to offer it on a sub £10k SS version.