Dear Rolex: You are a Joke

[blankovich]

Hmmm. This level of production at, let's say and average cost of $8000 each (a guess) is $8 BILLION dollars in gross sales each year. Let's say their cost of sales is high, 30%. So, net gross is around $5.6 BILLION. comparing watches to Ferrari doesn't make sense. They don't seem to have any problem selling. Scarcity makes little sense. I smell snobbery.

[Singslinger]

Originally Posted by porschejeff

Isn't this the same as what Ferrari does? They produce only so many. Very difficult to buy one new without a long long wait and paying a premium over MSRP.

I'm not saying I approve of this, but this is what creates their image.

The same applies to popular Patek models. There's a new pilot's watch, ref 5524 that is apparently difficult to get, which inevitably means a long waiting period for those who want it. And it costs US$45,000 in Spore.

Bottom line - every company has a right to decide how much it wants to produce and how to preserve its brand/mystique/ value. Rolex is no different and it's perfectly legitimate commercial behaviour.

[traf]

I think people are starting to look at other options, i.e. SS Skydweller and new seadweller 43. This will likely have an effect on the overall demand, and the diehards will get their treasure


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[zaydans]

I'd agree with everything you say OP and I'm with you 100%. The problem is that there are enough Rolex slaves out there that will pander to this type of sales and marketing bs to ensure that Rolex and their ADs can do whatever they want. Personally I don't need a Chronograph function, and there are sufficient alternatives out there so why wait years or pay over the odds for a daytona?!!

[strafer_kid]

Originally Posted by zaydans

I'd agree with everything you say OP and I'm with you 100%. The problem is that there are enough Rolex slaves out there that will pander to this type of sales and marketing bs to ensure that Rolex and their ADs can do whatever they want. Personally I don't need a Chronograph function, and there are sufficient alternatives out there so why wait years or pay over the odds for a daytona?!!

Very well put! People appear prepared to pay way over the odds for this watch and whilst that remains so, all they hype, friction and disappointment will continue. Rolex could possibly do the same if they wish with some other releases such as the much talked about Seadweller43mm, though hopefully they will not!

Fortunately I have never been a huge fan of the Daytona and whilst I might not decline one if offered at MRRP (will never happen though), I certainly will never go chasing one at an inflated price. The real big disappointment for me however is that Rolex appear to be taking no steps to prevent the hiked up prices where these watches are being sold outside of ADs, given that the watches must in the first instance be sourced either via ADs or Rolex directly? Not sure what message that send out!

[DJRikki]

Originally Posted by strafer_kid

...The real big disappointment for me however is that Rolex appear to be taking no steps to prevent the hiked up prices where these watches are being sold outside of ADs, given that the watches must in the first instance be sourced either via ADs or Rolex directly? Not sure what message that send out!

WHAT?

Have you seen the threads about AD's withholding the warranty cards; some saying the case backs needs to be engraved; only giving to prequalified customers who have a history of purchasing and retaining other models ...

What would you suggest is done?

[Al1969]

I agree with your "rant" superdog. Also, how bout a bit of consistency from Rolex-ADs?
Is it 3-4 years or 7-8? I have interest in the Daytona, but with all the arbitrary restriction of supply and extreme markups. It's beginning to lose its luster for me.
I'd like to add a chronograph to my small collection, but perhaps I need to look elsewhere.
I appreciate your candor and believe many fellow members share your feelings.

[saralk]

It's frustrating to say the least. I hear ya loud and clear. But Rolex has a right to do what they think is the correct business strategy to grow their business in profits while sustaining the aura for their brand.


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[superdog]

Originally Posted by saralk

It's frustrating to say the least. I hear ya loud and clear. But Rolex has a right to do what they think is the correct business strategy to grow their business in profits while sustaining the aura for their brand.


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I agree. They do have the right.

And I (and others) have the right to leave the brand behind (at least for now).

[saralk]

Originally Posted by superdog

I agree. They do have the right.



And I (and others) have the right to leave the brand behind (at least for now).

Absolutely. This is how we as consumers vote in this great country of ours with our $$$$. Good luck Seth. Enjoy your posts.


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[superdog]

Originally Posted by saralk

Absolutely. This is how we as consumers vote in this great country of ours with our $$$$. Good luck Seth. Enjoy your posts.


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Thank you my friend. I appreciate that.

[saralk]

Originally Posted by superdog

Thank you my friend. I appreciate that.

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[subtona]

There are plenty available.

The market for the Daytona as it exists is as much to blame as Rolex...we are the market.

I waited 1 week

[phez]

Am I missing something here about the long waiting lists?

If Rolex is restricting supply, surely the only ones who benefit are Grey Sellers and whoever supplies them with the watch? Certainly not Rolex, nor genuine WIS.

If Rolex increased production they would make more income and the Grey dealers less and those who genuinely want the watch, not just to flip it, would get it sooner

[Formulansx]

If only it were socially acceptable to put an aftermarket ceramic bezel on your existing Daytona.........

[roger0770]

Same can be said with Yeezys and certain Jordans (if you're into sneakers). It's part of the game, and it doesn't get old.

[Grace]

A one to two year wait is bearable, but eight years?! I think they have misjudged their clientele if they think we will happily wait that long.

[jezza17]

OP, great argument. Good points and I agree with you but this is the way rolex have always been. Controlling the supply for some models like the SS Daytona for many years now.... I feel your frustration..

[AU_911tt]

These marketing tactics are largely the reason Rolex is arguably the greatest brand in the world. It also is a big reason why your Rolex watch holds its value more than nearly any other watch.

Rolex could always take the approach of another brand, say Omega, and you'd have plenty of watches and poor resale value.

I do understand your frustration, but it's part of the luxury business. Look in the off topic forum for a recent thread about the new GT3 at 50k over MSRP.

[superdog]

Originally Posted by AU_911tt

These marketing tactics are largely the reason Rolex is arguably the greatest brand in the world. It also is a big reason why your Rolex watch holds its value more than nearly any other watch.

Rolex could always take the approach of another brand, say Omega, and you'd have plenty of watches and poor resale value.

I do understand your frustration, but it's part of the luxury business. Look in the off topic forum for a recent thread about the new GT3 at 50k over MSRP.

I saw that. I am also not OK with that either.

And I really do get it. I do. There are a lot of people that will be OK doing this.

I am just not one of them. And it turns me off from the brand. Sadly.

And fwiw, I love Omega. I have a story about Omega from today as well that I will post soon. I am an Omega guy through and through. Poor resale and all. Maybe I am sucker. But I am quite content with with my watches as they are.

[Kippers]

Originally Posted by AU_911tt

These marketing tactics are largely the reason Rolex is arguably the greatest brand in the world. It also is a big reason why your Rolex watch holds its value more than nearly any other watch.

Rolex could always take the approach of another brand, say Omega, and you'd have plenty of watches and poor resale.

I agree with what you say. If Rolex purposely keep resale value high, it allows them to increase their prices. Clever tactics and yes I agree the Daytona is the 'sacrificial' lamb or hype watch to increase sales elsewhere in the portfolio. It's also my belief the reason that Rolex introduced a 5 year warranty, that will help with resale values (positively) and justify their MSRP increases whilst pushing people away from the used market.



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[101031-28]

Originally Posted by AU_911tt

These marketing tactics are largely the reason Rolex is arguably the greatest brand in the world. It also is a big reason why your Rolex watch holds its value more than nearly any other watch.

Rolex could always take the approach of another brand, say Omega, and you'd have plenty of watches and poor resale value.

I do understand your frustration, but it's part of the luxury business. Look in the off topic forum for a recent thread about the new GT3 at 50k over MSRP.

This.

[rolexnub]

Thanks Seth aka Superdog for the rant.

It's about time we hear someone speak up against the Rolex marketing gimmick with regards to the Daytona watch. I was on waiting list for the white dial late last year but was told it could take me anywhere from 3-5 years to get my piece. So I told the AD to forget about it and take me off the list.

[superdog]

Originally Posted by rolexnub

Thanks Seth aka Superdog for the rant.

It's about time we hear someone speak up against the Rolex marketing gimmick with regards to the Daytona watch. I was on waiting list for the white dial late last year but was told it could take me anywhere from 3-5 years to get my piece. So I told the AD to forget about it and take me off the list.

Thanks for that!

[Boopie]

Originally Posted by rolexnub

Thanks Seth aka Superdog for the rant.

It's about time we hear someone speak up against the Rolex marketing gimmick with regards to the Daytona watch. I was on waiting list for the white dial late last year but was told it could take me anywhere from 3-5 years to get my piece. So I told the AD to forget about it and take me off the list.

I agree, this is crazy. Here on the forum it's estimated that Rolex makes 1 million watches a year. This estimate is also in the Wristwatch Annual 2017. Do they make 5 Daytonas? These are not limited edition Ferraris. The same Wristwatch Annuak estimates that Patek makes about 45k watches a year.

[CDNWatchNut]

I don't understand how limiting supply so significantly helps Rolex's business objectives. Perhaps a moderate constraint increases demand, but wouldn't it be better to meet the market demand or at least much closer to it, and sell many more units in a given period of time?

[jazznpool]

Originally Posted by CDNWatchNut

I don't understand how limiting supply so significantly helps Rolex's business objectives. Perhaps a moderate constraint increases demand, but wouldn't it be better to meet the market demand or at least much closer to it, and sell many more units in a given period of time?

In the coming months I think it is altogether possible that Rolex will quietly increase production to a modest degree on the Daytona C and distribute more of them to the ADs to capitalize on the current fervor. Would an increase in availability of 20-25% be detectable by our TRF bretheren?

[airchitect]

Yep, its all part of the most well oiled marketing machine on the planet....and its kind of stupid.

[AK797]

Imagine if they did this on all the popular SS models... some of us don't have to...

I think the D500 has been sacrificed to be the Hype Watch, clearly more profit could be made by meeting the over-demand but this is the D500 tactic in Rolex's overall strategy, same with the previous model, this is designed to get the sales up on the other "Rolex" watches.

[airchitect]

I stopped at an ad yesterday to find a brand new "perfect" sd4k in their case. Tried it on and tried to talk numbers......no discount period. Others would do 15-18% on that watch anyway and be pumped to get it. This joint, nope.