Please help a Dorklehead understand.

[TheVTCGuy]

I am a complete and admitted Dorklehead with marketing, the economy, sales in general, but am reasonably intelgin- intalgeant-.... intelllegente-... smart, so am trying to understand the strategy behind Rolex restricting production and/or delivery of their watches. I get it, reducing supply increases demand, but exactly how does ROLEX, the manufacture, increase profits from the current impossible to get strategy? Now, STRICTLY speaking sales to customers from ADs, let’s leave grays out of the original description. If a Gray market plays in to Rolex’s strategy, please explain how.

One thing I have learned, is that Rolex wants to increase their PM sales, because they make a much higher profit on a PM watch then a SS. This makes perfect sense. So, if they limit the number of SS models reaching the ADs, the plan is more customers will opt for the PM watches and bang, more profit to Rolex. But, if I am to believe my local AD, and every AD I have been in the last three years or so, even the PM models are impossible to get. As an example, my grail is the WG GMT, probably the blue dial. My AD said they have seen one in over a year. Again, assuming they are telling the truth, how is that serving Rolex? I would think if their main goal is to increase profits by increasing sales of the PM models then cases would be filled with them. If you want to reduce the sales of SS models and increase PM, then you make SS models extremely difficult to get (mission accomplished), but make it EASY to purchase a PM one. How many of you have walked in to an AD lately and seen a full available selection of PM models sitting in the case? Again, I am speaking solely AD purchasing, but if the Gray somehow plays in, I am all ears. But remember, my question is how does ROLEX, the manufacturer make more profit buy seemingly making every single watch model, PM and SS, so difficult to purchase through an AD?

Please, help out a Dorklehead like me