Rumor from AD

[ParisDakarBmw]

Yet again there is another "scoop" the AD shared with me today.

I was told that Rolex would be scaling back the production of stainless steel models, and producing more out of precious metal.

They explained that the SS models didn't fetch the desired prices, and the gold models would be more sought after.

I looked around at the inventory, and had a confused look on my face.

There are so many new models for every taste, and budget.

The smaller ladies models in stainless were made with many variations.

The turnograph, date just, explorer, submariner c, DSSD, and the list goes on. Those are only a few years from their Basel release. Why would they chop those from the line up?

I looked at every watch in the store again, and noticed plenty of rose gold models, white gold models, and also platinum. Stainless steel was surely a money maker compaired to the production cost. No precious metal keeps the cost low, while the prices increase on the sticker.

I didn't really know what to make of the comment, but hope Rolex doesn't abandon stainless steel any time soon.

[JUSTROLEXES]

Paul the SS Sports models sell faster and are cheaper so that is why you don't find many left...they are the bread and butter of the line...
Also the ADs place an order from Rolex and they will not know what they're getting up until it's on it's way... One more thing to keep in mind, Rolex was down for about 3 weeks for the summer vacation... and at that time ADs don't get much of new watches.

[ParisDakarBmw]

meant to start a new thread.

[Joey_V]

There's no way they'd quit making SS models as their big earner. They would alienate themselves from their buying demographic and price themselves out of public's reach.

SS is here to stay IMO.

[FremStar]

Originally Posted by Joey_V

There's no way they'd quit making SS models as their big earner. They would alienate themselves from their buying demographic and price themselves out of public's reach.

SS is here to stay IMO.

You would be very surprised on how many people own GOLD, Platinum, and/or Diamond Rolex pieces and I am not refrencing "celebrities"

[fly4food84]

If this were true my next watch would not be a Rolex as I do not like gold watches or even TT for that matter. SS simply can not go anywhere!

[beany]

Originally Posted by fly4food84

If this were true my next watch would not be a Rolex as I do not like gold watches or even TT for that matter. SS simply can not go anywhere!

Same for me SS all the way.

[buke45]

WOW!! I agree with all of you but do you think the AD could be wrong. They are usually always right but hey maybe they will be wrong for the first time. LOL

[tomchicago]

Makes no sense whatsoever. In the middle of a recession worldwide.

[CoopJr]

I'm calling AD

No way Rolex drops back on SS.

[marcinthemiddle]

Originally Posted by CoopJr

I'm calling AD

No way Rolex drops back on SS.

I agree. That would be C-R-A-Z-Y...

[Ebruner]

I doubt this will happen, but there is more margin in the Gold and Plat models than in the SS.

-Eddie

[Watch Professor]

AD's seem to be the last to know. I doubt this very much.

[rpryan55]

Paul, in my experience ADs say some of the stupidest things on the planet. Rolex will never scale back the SS models - they are the heart of the economic engine that is that corporation's business.

[padi56]

Originally Posted by ParisDakarBmw

Yet again there is another "scoop" the AD shared with me today.

I was told that Rolex would be scaling back the production of stainless steel models, and producing more out of precious metal.

They explained that the SS models didn't fetch the desired prices, and the gold models would be more sought after.

I looked around at the inventory, and had a confused look on my face.

There are so many new models for every taste, and budget.

The smaller ladies models in stainless were made with many variations.

The turnograph, date just, explorer, submariner c, DSSD, and the list goes on. Those are only a few years from their Basel release. Why would they chop those from the line up?

I looked at every watch in the store again, and noticed plenty of rose gold models, white gold models, and also platinum. Stainless steel was surely a money maker compaired to the production cost. No precious metal keeps the cost low, while the prices increase on the sticker.

I didn't really know what to make of the comment, but hope Rolex doesn't abandon stainless steel any time soon.

IMHO another case of a AD talking though where the sun don't shine.While all gold and precious metal watches have a huge mark up and huge profit for Rolex thats for sure.Its the S.Steel models that are Rolex bread and butter and have been for the past 50 odd years.

[Welshwatchman]

ADs have a very very very poor record of talking sense with regard to these matters.

I can see them trimming the AD network but not cutting back SS models.

All they ever need to do is up the SS prices closer to the TT models and make the extra money that way.

It's a dangerous game they are playing, even now. Rolex is a strong strong brand but there will come a time when the brand suffers due to such obvious poor value for what you actually get.

[Hansch99]

ADs in my area always seem to be the first to know bad rumors and the last to know what's really going on.

[Watcheroo]

Your AD employee has no idea what he/she is talking about. Why would any company shoot themselves in the foot?

[Numismatist]

The alternative viewpoint is that Eddie is right, the markup on precious metal watches is enormous. If they bring the SS prices closer to precious prices, it may tempt more people to go all in and buy the precious. Also, if there truly is a cut-back in the SS production, those prices will rise and perpetuate the first sentence.

I agree, ADs are full of usually; however, there is a strong argument for this to actually happen. Remember, Rolex has been increasing prices EVEN in and during the economic crash.

I'm not saying I like it, but it wouldn't surprise me.

[TheDude]

Originally Posted by Numismatist

The alternative viewpoint is that Eddie is right, the markup on precious metal watches is enormous. If they bring the SS prices closer to precious prices, it may tempt more people to go all in and buy the precious. Also, if there truly is a cut-back in the SS production, those prices will rise and perpetuate the first sentence.

I agree, ADs are full of usually; however, there is a strong argument for this to actually happen. Remember, Rolex has been increasing prices EVEN in and during the economic crash.

I'm not saying I like it, but it wouldn't surprise me.

There is nearly price parity now. Where I live, the ADs won't discount SS at all, but will do so for TT and Solid Gold/Plat. At least for TT, the actual price can come -VERY- close to the cost of an MSRP SS version of the same watch.

[Numismatist]

Originally Posted by TheDude

There is nearly price parity now. Where I live, the ADs won't discount SS at all, but will do so for TT and Solid Gold/Plat. At least for TT, the actual price can come -VERY- close to the cost of an MSRP SS version of the same watch.

Sure! The majority of their customers are NOT WISs like us, they're the uninformed impulse buyers that buy what looks pretty to them. This makes buying gold a better 'feeling' than SS for them. Also (and I suppose a more minor reason) is that Rolex probably bought lots of gold in the $700-$900 range, but can now price it at the $1100 - $1300 range in their watches. A small, but nice paper profit. Can't really do that with SS watches.

[Maxseven]

I think AD's sometimes make things up, just to spur buying interest. The psychology in this case, may be that you were looking at a SS model, and the AD cooked up a story to get you to pull the trigger (i.e. Rolex is going to run out of SS models and the prices are going to go sky-high, so you better get one while you can!)

[nowzen]

I really don't see how a steel subs can be described as 'bread & butter' when you have to sell 10 of them to make the same bucks as one a precious metal jewel-encrusted blingfest.

The economy argument is also specious as its not affecting the high end like its affecting main street. In the end, any big corporation will make these decisions based how how it affects the bottom line and not its popularity amongst a small market share.

I was recently in Macau cruising the many pawn shops looking at preowned Rolexes. Hard to find any steel subs amongst all the glitzy golds and diamonds. Look at ebay and the number of steel subs compared to the flash. I hope the AD is wrong, but I wouldn't be surprised at all.

[Mystro]

Your dealer is on crack... With the current economy, most people are looking to camouflage their money and the subdued SS models are more popular than ever . Its o.k if your successful as long as you dont look like you are.

[Maxseven]

Originally Posted by Mystro

... With the current economy, most people are looking to camouflage their money ...

That's interesting. Why would people want to hide their money? Are they ashamed of their success or is it more that they feel guilty because it is perceived that many others are suffering? If so, would it not be better to inspire others to endeavor success by not pretending to be austere or frugal? After all, material possession and consumption is probably the single largest driver of economies.

Just a thought -

[Mystro]

I totally agree with you. I wear my Serti Sub with great pride and respect. There is bizarre movement that many feel any show of wealth is unfashionable. God forbid I make a profit in todays economy. I guess I am a capitalist tool.

Originally Posted by Maxseven

That's interesting. Why would people want to hide their money? Are they ashamed of their success or is it more that they feel guilty because it is perceived that many others are suffering? If so, would it not be better to inspire others to endeavor success by not pretending to be austere or frugal? After all, material possession and consumption is probably the single largest driver of economies.

Just a thought -

[Puffy]

My AD said I could mow his lawn and get a free SS, model of my choice

They're so full of shite

[fc3s2k]

Oh and Toyota is cutting back on the camry as well!!!!!!

[ParisDakarBmw]

I smelled BS when the comment was made, but then looked at the inventory.

There was plenty of gold in the showcase.

The flip side was all of the new stainless steel models could be reduced in theory to force a gold model purchase if you wanted one new.

I doubt it, but it is marketing

[marcinthemiddle]

Originally Posted by ParisDakarBmw

I smelled BS when the comment was made, but then looked at the inventory.

There was plenty of gold in the showcase.

The flip side was all of the new stainless steel models could be reduced in theory to force a gold model purchase if you wanted one new.

I doubt it, but it is marketing

If you've got 100 Rolexes in stock- 5 gold and 5 ss....at the end of the week what do you think you'll be left with more quantity of? Better yet, What's the chance of the average person coming in to purchase...I dunno, a $29,000 gold sub or a $6,000 one? Just sayin'...