Exhibition pieces - really, what is the point?

[youthagainsttt]

I was just walking past 1 of the AD's & they had 10+ exhibition pieces of the models that would obviously be sold straightaway if they were for sale. But really, apart from letting people try them on what is the point of this from Rolex's POV?

Those 10 watches, if we take the AD out of the equation (as it's not the AD's decision to make them exhibition-only but Rolex), if we assume 40-50% profit for each watch. Let's say the average price is US$20k for argument's sake and perhaps every AD doesn't have 10 exhibition pieces. There's 1800 AD's from Google, let's say there is an average of 7 exhibition pieces per AD. By my very rough calculations that's US$125m potential profit from not selling these pieces

Rolex is a business, the demand is already outsripping supply so why do they have exhibition pieces at all?

[EEpro]

Being able to try them on and see them in person has a lot of value. Would have saved me a lot of money buying and selling crap to see what I liked.

[youthagainsttt]

Originally Posted by EEpro

Being able to try them on and see them in person has a lot of value. Would have saved me a lot of money buying and selling crap to see what I liked.

I'm kinda thinking from Rolex's POV, as we know they are masters at Marketing, Branding, manufacturing the most robust luxury watches that are out there. I think it's massively dropping the ball with the concept of exhibition pieces on their behalf

[904VT]

Originally Posted by youthagainsttt

I'm kinda thinking from Rolex's POV, as we know they are masters at Marketing, Branding, manufacturing the most robust luxury watches that are out there. I think it's massively dropping the ball with the concept of exhibition pieces on their behalf

Most of the cost is in the movement. So the empty display models in windows aren't a huge opportunity cost. The cost of the materials for the rest of the watch is not that expensive if you are the manufacture. These display models serve dual function, show new model intros before they go into production (so already a need with display models for their own production) and window display after private showings to the AD's top customers in advance of full production releases i.e. trying on new releases before they hit shelves.

[dannyp]

Originally Posted by 904VT

Most of the cost is in the movement. So the empty display models in windows aren't a huge opportunity cost. The cost of the materials for the rest of the watch is not that expensive if you are the manufacture. These display models serve dual function, show new model intros before they go into production (so already a need with display models for their own production) and window display after private showings to the AD's top customers in advance of full production releases i.e. trying on new releases before they hit shelves.

1. They have movements, they’re just non-functioning.

2. Only for steel. Not sure about TT and definitely not PM. Think about it: a PM Sub costs 4x it’s stainless counterpart with materials being the only difference.

[904VT]

Originally Posted by dannyp

1. They have movements, they’re just non-functioning.

2. Only for steel. Not sure about TT and definitely not PM. Think about it: a PM Sub costs 4x it’s stainless counterpart with materials being the only difference.

Dummy movements just added to simulate the weight....

Rolex has their own foundry, so I think their material costs are lower than most.

[CoolCat#7208]

Looks a lot better than empty windows that's for sure.

Gives people a chance to try them on before they settle down for the long wait too.

[Jpccarguy]

I think exhibition pieces scratch an itch for some- some people may not want a Rolex they’ve never seen. It may also help those who need to see to see how a smaller case fits someone with large wrists, or vice versa.

YMMV

[Bxtek]

I heard that there were a lot of complaints/feedback that was getting back to Rolex, about showcases always being empty. Nothing to even see, touch or feel anytime a person would walk in.

Cases full of exhibition pieces looks better than empty? Also, people could at least try on pieces that they were never able to see in the metal before?

From what I understand, most of these exhibition pieces have no movements or movements that have been made not to be operable. However, I have run into a couple of AD's that have exhibition pieces that WERE working, but still not for sale.

I also heard that these exhibition pieces belong to Rolex and are only on loan to the AD's. When the model is discontinued or whenever Rolex wants them back, they have to surrender them.

[dannyp]

Originally Posted by Bxtek

I heard that there were a lot of complaints/feedback that was getting back to Rolex, about showcases always being empty. Nothing to even see, touch or feel anytime a person would walk in.

Cases full of exhibition pieces looks better than empty? Also, people could at least try on pieces that they were never able to see in the metal before?

From what I understand, most of these exhibition pieces have no movements or movements that have been made not to be operable. However, I have run into a couple of AD's that have exhibition pieces that WERE working, but still not for sale.

I also heard that these exhibition pieces belong to Rolex and are only on loan to the AD's. When the model is discontinued or whenever Rolex wants them back, they have to surrender them.

From what I've deduced, there are three types of watches in the "exhibition only" cases:

1. Non-functioning watches (that I would imagine belong to Rolex, but not sure).

2. Fully-functioning watches that cannot be sold (or sold yet) because Rolex has withheld the paperwork. AD pays for them, Rolex sends paperwork to allow their sale at "some point" down the line.

3. Watches that are part of the AD's regular inventory that the AD wishes to display, but wants discretion over whom to sell them to/are already allocated.

Today, it seems that only a fraction of the exhibition pieces are actually in group 1. I also think, and this is a complete guess, that any of these owned by Rolex will become the first batch of "certified pre-owned" watches when that program eventually rolls out.

[Nico81]

Originally Posted by Bxtek

I heard that there were a lot of complaints/feedback that was getting back to Rolex, about showcases always being empty. Nothing to even see, touch or feel anytime a person would walk in.

Cases full of exhibition pieces looks better than empty? Also, people could at least try on pieces that they were never able to see in the metal before?

From what I understand, most of these exhibition pieces have no movements or movements that have been made not to be operable. However, I have run into a couple of AD's that have exhibition pieces that WERE working, but still not for sale.

I also heard that these exhibition pieces belong to Rolex and are only on loan to the AD's. When the model is discontinued or whenever Rolex wants them back, they have to surrender them.

Both of what you heard is wrong
They are real watches that are already allocated

My daytona 116519 is currently on “exhibit” for others to try it


Sent from my iPhone using Tapatalk

[Eric-London]

Originally Posted by Bxtek

From what I understand, most of these exhibition pieces have no movements or movements that have been made not to be operable. However, I have run into a couple of AD's that have exhibition pieces that WERE working, but still not for sale.

I also heard that these exhibition pieces belong to Rolex and are only on loan to the AD's. When the model is discontinued or whenever Rolex wants them back, they have to surrender them.

I have not come across any exhibition piece that are non working. They are standard watches. The AD's are under obligation where they must keep back to 'show' a certain number of pieces (the number depends upon the size of the dealership). They are not loaned pieces. They are standard stock watches.

I was offered one which I subsequently purchased.

[MTdweller]

Seeing them in person and trying exhibition models on makes all the difference when it comes to choosing your next watch. Smart move by Rolex given the current market.

[mountainjogger]

Originally Posted by MTdweller

Seeing them in person and trying exhibition models on makes all the difference when it comes to choosing your next watch. Smart move by Rolex given the current market.

Agree. Don't understand the issue OP.

[Ensign]

Keeps the SAs busy. Otherwise, what would be the point of brick and mortar?

[temporarychicken]

'Exhibition' is just a little tag on the watch.

To remove it, offer to buy some other non-Rolex product from the store.

If your 'jewellery'' offer reaches the required threshold then the 'Exhibition' tag will magically disappear.

[Novartis]

Originally Posted by temporarychicken

'Exhibition' is just a little tag on the watch.

To remove it, offer to buy some other non-Rolex product from the store.

If your 'jewellery'' offer reaches the required threshold then the 'Exhibition' tag will magically disappear.

This was my experience (minus the need for a jewellery offer, though I expect it would have been needed if it was a hot model) - the "exhibition" watch magically became available for sale and was offered to me the next day.

It did bother me slightly that I was gratefully paying full price for something that had been handled and tried on possibly multiple times, that in my youth would have been called "shop-soiled goods" and sold at a discount. But, I took it anyway

As to the benefit for Rolex. They, and other successful luxury businesses, always have to have an eye on sustaining long term demand rather than short term profit. Being able to try on items fuels desire as people can see it on their wrist, and picture it in their life, and if anything will value it more for having to wait for it. Maybe one exhibition model will generate, let's say, 10 future sales of that particular watch and 5 lifelong Rolex customers who buy several watches over the next 50 years, even when demand falls to pre-2018 levels. It means that there will be a steady stream of demand from a large number of customers, which is worth more to Rolex than the profit on a few (relatively speaking) watches bought by passers-by who are minimally invested in the brand.

You could equally ask why Rolex bother to advertise at massive cost to them when every single watch can be sold within seconds of being up for sale at MSRP. Long term planning, keeping the desire for the brand high.

Just my take on it. Not an expert

[Macnavara]

These are actually customers watches waiting to be collected….I was in an Ad this weekend as they were explaining that the display models are indeed already sold …..infact minutes later a customer turned up and collected a sub from the display only watches

[Chris]

Originally Posted by Macnavara

These are actually customers watches waiting to be collected….I was in an Ad this weekend as they were explaining that the display models are indeed already sold …..infact minutes later a customer turned up and collected a sub from the display only watches

You could hardly sell this as new unworn, if it were a car demonstrator surely you would expect a discount.

[Novartis]

Originally Posted by Macnavara

These are actually customers watches waiting to be collected….I was in an Ad this weekend as they were explaining that the display models are indeed already sold …..infact minutes later a customer turned up and collected a sub from the display only watches

I know this is done but I really don't like it.

[Carguy87]

Originally Posted by Novartis

I know this is done but I really don't like it.

Yea I’m torn because it’s nice to try stuff on but not a fan of people trying on and handling a piece someone has been waiting a long time to pay full MSRP for. I just bought a Moonphase Speedmaster yesterday that was the only one in the boutique, and even though it had plastic wrap on it someone still managed to damage the bezel. I didn’t notice til after I left so now I have to jump through hoops of shipping it back (I live 4 hours away) and wait for a replacement (to be fair the OB is being awesome about it). If it would have come out of the back I wouldn’t have this issue. At least with Omega they have watches to replace it with, if it were a Rolex I’d have to accept them sending it out to be fixed instead of getting a new watch.

[amanbra]

to try them on and see if they fit or are actually like what you had in your head. In the current market situation do you know how many watches I purchased blind to see if they worked or not for me?

[Jay2101]

The exhibition models in Japan are not for sale and I don't think they even work. They are all stopped at the exact same time down to the second with the crown pushed in. Highly unlikely with real products.

They don't even let you try them on here. Gotta go to the greys to try them.

Tapatalk を使用して私の CPH1943 から送信

[youthagainsttt]

Originally Posted by Jay2101

The exhibition models in Japan are not for sale and I don't think they even work. They are all stopped at the exact same time down to the second with the crown pushed in. Highly unlikely with real products.

They don't even let you try them on here. Gotta go to the greys to try them.

Tapatalk を使用して私の CPH1943 から送信

Yep same here in Hong Kong. Look but don’t touch (and can’t be bought)!

[BiG JeEzY]

I don't mind the exhibition pieces at all. Its a lot better than looking at empty cases if you ask me.

[brandrea]

Originally Posted by BiG JeEzY

I don't mind the exhibition pieces at all. Its a lot better than looking at empty cases if you ask me.

Exactly

[MrMikee]

Most/All exhibition models I have seen in the UK are definitely working. As someone mentioned above, the watch has already been allocated or will be allocated. Having an exhibition piece at least lets you try stuff on. I wouldn't put myself on a 'waiting list' for a watch I haven't tried on or at least something similar.

[dannyp]

Originally Posted by Macnavara

These are actually customers watches waiting to be collected….I was in an Ad this weekend as they were explaining that the display models are indeed already sold …..infact minutes later a customer turned up and collected a sub from the display only watches

Originally Posted by Chris

You could hardly sell this as new unworn, if it were a car demonstrator surely you would expect a discount.

Originally Posted by MrMikee

Most/All exhibition models I have seen in the UK are definitely working. As someone mentioned above, the watch has already been allocated or will be allocated. Having an exhibition piece at least lets you try stuff on. I wouldn't put myself on a 'waiting list' for a watch I haven't tried on or at least something similar.

I've heard conflicting reports as to whether people are actually allowed to try all of these on, or if it's strictly a "look, don't touch" policy. Most places allow try-ons but the ones I've been in have had non-functioning models. Wonder if it's different when it's customers' watches vs. true for-display-only pieces?

[kopi-c]

Originally Posted by dannyp

I've heard conflicting reports as to whether people are actually allowed to try all of these on, or if it's strictly a "look, don't touch" policy. Most places allow try-ons but the ones I've been in have had non-functioning models. Wonder if it's different when it's customers' watches vs. true for-display-only pieces?

In Singapore, they have exhibition models you can try on.

[Harry-57]

If you walk into a car showroom, would you be happy to see photos instead of demonstrators?