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Old 6 March 2012, 05:58 AM   #31
Solo118
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Quote:
Originally Posted by COBill View Post
Yes, but do we really want to hit the Ferrari model of paying over MSRP for a new vehicle and only being allowed to purchase a new vehicle if you've previously purchased one or more used ones from the same dealer?

On the note of luxury goods, consider the MSRP of the Chanel classic Jumbo Flap purse:

2008: $2850
2009: $3420
2011: $3500
2012: $4300
I was going to bring up the exact same thing. Chanel is doing this to keep the regular folk from having their merchandise. As for Rolex, the days of having a new Sub for $3,500 are long gone, so that guy that could just manage to afford it can no longer have such thoughts.

At 8k for an SS Sub, I do not think the 10% will make or break the buyer. These days if I would even purchase a brand new Rolex from an AD, I would just want to walk out with it and not pay any Tax. Luckily I do not have the need the be the first owner to rip off the plastic, and i have no problem buying pre-loved
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Old 6 March 2012, 06:15 AM   #32
chaisson
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As much as everyone loves a deal, when there's none to be had people will still buy what they really want.
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Old 6 March 2012, 06:34 AM   #33
rr-nyc
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Quote:
Originally Posted by Solo118 View Post
I was going to bring up the exact same thing. Chanel is doing this to keep the regular folk from having their merchandise. As for Rolex, the days of having a new Sub for $3,500 are long gone, so that guy that could just manage to afford it can no longer have such thoughts.
...
I don't think Chanel or any other brand is trying to keep "regular folk" from buying their products. They are bumping up their pricing to the level where comparable brands have been successful.

People who want to buy a Rolex will still buy a rolex, even at a higher price and the same for Chanel.
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Old 6 March 2012, 09:08 AM   #34
Vernal
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Originally Posted by nim View Post
eliminating ADs totally will be the grand plan of rolex
so that they can keep 100% of the sales revenue and not having to share that 35-40% with the middlemen
No offense, but since you posted and I'm feeling chatty, I see this idea pop up a lot on these threads, but the logic confuses me. Rolex pays nothing to sell through an AD, unless you count the difference between wholesale price and retail as a cost, so it seems to me that as long as Rolex has the supply available, they will send them to ADs. The cost and hassle of running a boutique has to eat into the bottom line as well. I don't see ADs being eliminated, although the waiting lists may grow.

Am I wrong? I know Omega is opening boutiques (I went to one, not impressed) but are they actually eliminating ADs?
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