What if Rolex doubled their Prices?

[malba2366]

Originally Posted by teck21

A lot of people want Rolex precisely because they are so hard to obtain at an AD.


Rolex’s real power today comes from the premise that ‘yes you can afford, but no you can’t have it’.


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That may be attractive to those who are jumping in now based on social media, but it will alienate many traditional luxury watch buyers. It is a very fine balancing act to create demand from scarcity, and typically requires complete control of supply and distribution (ie. Hermes with Birkin bags). In the case of Rolex it will eventually alienate the target market when the items is not available at the AD level but is readily available on the grey market at over retail and with the threat of no warranty.