Starving the market to put greys under

[ADB85]

Originally Posted by hambone1983

you are suggesting both an increase in supply and an increase in price. The most basic rule of economics is that consumers buy less of an item at higher prices. A move like this would have an abundant supply of Daytonas available at healthy discounts in no time.

I work for a manufacturing company and every year there is a price rise. There is also allocation to ensure that purchasing prior to the price rise is restricted (for a number of reasons such as capacity, cost, retention of price increase, reduction of the peaks and troughs of purchasing after bulk buying and so on).

I don't think it is unreasonable for Rolex to restrict supply prior to a price increase, whilst in the short term it drives up the prices from grey dealers. It would also annoy plenty of customers but it would mean that should they ship in bulk after the increase I'm sure the people on the waiting lists for a Daytona would pay more (but less than a grey market watch). Thus maintaining their increase in price, as long as the ADs are under orders from Rolex to maintain prices or at least limit discounts (I'm sure competition law stops companies dictating sales prices, hence the recommended retails price).

I may be way off the mark but just my thoughts.....