Rolex Buys Rolex Watches To Prevent Price Drops

[diablojota]

Originally Posted by Flaxmoore

By holding their values, I presume you mean to append "at the expense of potential owners"? I can't figure out how this could be a sustainable model.

I've thought about this for a while, and I can't see how it would be sustainable. Now it would make sense that they push these back into the market place at a later date. For example, my AD tends to get M-series watches shipped to them when they need to add to their inventory. So this may be the result of Rolex releasing their old stock back out, or repurchased stock. This method does not make sense in the long run if they continue to make watches at the rate that they do.

Originally Posted by Bebot

That would also make sense, but you can't have a limited production for most or all models.

Actually, considering the prices that they have started charging and the fact that their watches don't change all that frequently (noting the exceptions of the new big cased watches), the only things that Rolex tends to change are dial options on DJs and the like, they could decrease their output. They would have to probably lay off some workers, but ultimately this may be better than than their current strategy. The sub has been the same for the most part for many years. If the want to charge the prices that they do, then they need to be more exclusive. The sheer volume they produce alone diminishes the air of exclusivity. Don't get me wrong, I like it that they can keep the secondary market prices higher, but that doesn't really affect me as I'm not looking to sell.