Rolex - keep cutting supply of sports models please!! (What say you?)

[RazorD]

Originally Posted by ap1

I like scarcity for watches that I own or am able to acquire. I don’t like it when I can’t.

Yeah, that sums it up nicely.

[Bobby T]

Originally Posted by MoosicPa

My theory is Rolex is actively depriving AD's of SS (easy to move) pieces in an effort to drive them out of the Rolex family. A long time friend of mine is a Rolex AD in the western part of the US. Last year his Rolex sales rep cautioned him to be careful not to violate Rolex sales rules, as Rolex USA was actively seeking to close independent AD's in the US. They feel there are too many AD's and they want to focus on expansion of their boutique stores.

Could Rolex be deliberately withholding the SS models in an effort to get some AD's to drop their line?

A sound theory but the big flaw is that even the Rolex Boutiques don't have any SS Sport models.......haven't had since October/November........

[Bobby T]

Rolex has the right (obviously) to run their business any way they want but this idea about scarcity being good and building a relationship with an AD is the epitome of elitism. Building a relationship with an AD comes at the expense of purchasing multiple watches per year, for years. Many people buy a watch or two for life. Most can't be buying a Rolex once or twice a year.

[Dan Pierce]

Doesn't bother me in the least. I ain't buying another so limited supply is a nonissue. Plus it's another reason my GMT II keeps gaining in value.
dP

[lucevan le stelle]

For TRF members aggrieved by what they perceive as Rolex practices or policies, what watch brand do you then go to? Seems to be nothing out there that is competitive in terms of quality and value retention. Rolex knows this too, obviously. Until there is...

[thomaswentworth]

Supply and Demand. Macroeconomics - If Rolex were to flood the market, the supply would outpace the demand and sellers would feel compelled to drop their prices. This would be terrible for value retention and buying a Rolex would be easy. Part of the Rolex psychology is that people feel lucky to be able to give their thousands of dollars to a seller. Try talking someone into buying a $200 Citizen Eco drive. It's like pulling teeth.

By controlling the supply, they are creating a frenzied thirst and hunger for the acquisition of their products. Extremely wise and time proven strategy.

[Jacobson]

Speaking to an independent AD acquaintance of mine, he doesn’t seem to worried due to the short supply of SS Professional models. Claims they do quite well with all the other references. The DJ41 has helped with this.

Like me, he feels Rolex are aiming to move the brand into a new price tier.
Sell less SS Pro stock @ a higher price. He sees anything from 35-50% price increase on sports SS over the next few years.

[Fleetlord]

Originally Posted by Jacobson

Speaking to an independent AD acquaintance of mine, he doesn’t seem to worried due to the short supply of SS Professional models. Claims they do quite well with all the other references. The DJ41 has helped with this.

Like me, he feels Rolex are aiming to move the brand into a new price tier.
Sell less SS Pro stock @ a higher price. He sees anything from 35-50% price increase on sports SS over the next few years.

Absolutely,

The walk in, one time, casual buyer will get a Datejust or maybe even a DD.

It's a ROLEX, it's the best, so I'm the best. Easy sale.

Let them eat the DJ41. There are a ton of variations. The people who want the professional line can wait. It's worth it.

[Shamorai]

LOL @ having to build a relationship with a salesperson in order to buy a watch!!! FFS!!!!

[aquatimerfla]

Why does it always have to be about restricting supply or flooding the market?

Heres an idea. Meet demand. Let customers walk into ADS try on a watch and if they like they can purchase in stock or if not in stock have ordered and be delivered within a 2-4 month range Porsche does this.. AD gets a cut at all times obviously.

No under supply, no excessive supply. Like Porsche. Build to order.

This solves the trusted scalper problem.

[ellipsicon]

My experience with first purchase.

Summer of 2017 started looking and local AD had a BLNR, no where near ready to purchase but decided that was the watch I wanted.

December 2017 Had to get my Omega fixed and dropped it off, inquired about BLNR and they had received one couple of days ago expected it to be gone by Christmas.

January 2018: Finally ready to pull the trigger, expecting to go on a wait list. Walked in spoke to the owner and he said they had just received one from Rolex and was still in the FedEx box. Been paying it off and pick it up in a couple of weeks. Very excited to pick it up. I'm in a very niche sales industry and getting it engraved with the serial number of the first item I sold.

Another AD that I frequently stop by hasn't received a BLNR for close to 12 months.

Same AD noted that he tries to only sell to certain people within a geographical location of the store to help prevent flipping.

[Shamorai]

It wouldn’t be so bad if at least Rolex Boutiques had display models that you could try on, and then make an order if there was no selling stock.

[pillboy]

I don't swim/dive, pilot a plane, or for that matter rarely change time zones. Tool, schmool.

[Enicarman]

Originally Posted by Fleetlord

i posted a thread a few years ago that Rolex was far too available...

It was ridiculous, for a luxury item, how full the cases were with everything except Daytona's....BUT they were in the back if you asked nicely...I mean every AD was absolutely overflowing with watches.

This is much much better. Sales on some references have INCREASED since the allocation. Hulks were kinda "meh" in terms of sales..

Now, since you "can't get one".....4 -5x the sales! Might even see the lowly EXP 2 (which I like) go up in demand if they aren't in your face..

Panerai did this in their early days. Limited production. Hunting for a 000 or 112 at a dealer was part of the fun...People used to post lists of AD availability on forums to assist in finding pieces. Resale was strong. All was good.

Then Panerai went haywire. Made a bunch of watches. Increased availability, number of models, and store fronts. What happened? Well...Panerai isn't so hot anymore...in fact it's pretty COLD.

Look at that stupid "Supreme" brand. Super limited production of whatever it is they do. People can't get enough and spend insane money on the stuff, because you just can't get it.

So...Yep I'm good with ROLEX hitting the brakes.

I thought that it was the watches that mattered, and that a suitable price for the quality of the item would satisfy both parties. Now it seems I have that all wrong; it is how you manipulate the market in order to maintain a premium due to scarcity.
So, we pay x$ for the watch, and y$ for the created scarcity premium.
What is our aim then, to own an available watch at a fair price, or struggle to find the watch we want at an exaggerated price?
I would rather put the money into the watch, than the marketing department.
Charge a fair price and produce enough to satisfy demand - seems to work for most businesses.

[Enicarman]

Originally Posted by Shamorai

LOL @ having to build a relationship with a salesperson in order to buy a watch!!! FFS!!!!

Yup, you pay the piper, and he calls the tune. Where is the dignity?

[astewartconst]

I appreciate Rolex trying to maintain value in the product


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[DoctorA]

The poll result shows that Rolex is doing something right as it seems that people like that scarcity as it keeps value up!!

[Craigdwh]

When did this rumour become fact? Come on time to give it a break. Unless an executive from Rolex publicly announces they have cut supply the only plausible reason for the reduced supply is simply because demand has gone up.

[HogwldFLTR]

Since there are no more watches that I plan on buying from Rolex I'm happy with the current status quo!!!

[richard371]

I think they are trying to become more exclusive because they know things are not going well for the lower end brands such as Tag, Omega, Panera, Brietling etc due to the smartwatch market. I feel like the Swiss companies that want to survive need to become very exclusive and Rolex is trying to do that.

I know the Swiss market survived the quartz age but this one might be different and only the best of the best will make it. I have pocket watch for sell btw lol.

[No SUBctitute]

Originally Posted by Enicarman

I would rather put the money into the watch, than the marketing department.
Charge a fair price and produce enough to satisfy demand - seems to work for most businesses.

Seems reasonable. But maybe Rolex is worried that less people will be interested in an unnecessary luxury purchase unless they are getting a status symbol as well as a reliable product.

I would spend thousands of dollars on a watch because it is engineered well and is a work of art. But many people would not. Many would only purchase if its a status symbol, and maybe Rolex thinks that to maintain itself as a status symbol it has to manipulate the market, create scarcity, and maintain a buzz.

[Enicarman]

Originally Posted by No SUBctitute

Seems reasonable. But maybe Rolex is worried that less people will be interested in an unnecessary luxury purchase unless they are getting a status symbol as well as a reliable product.

I would spend thousands of dollars on a watch because it is engineered well and is a work of art. But many people would not. Many would only purchase if its a status symbol, and maybe Rolex thinks that to maintain itself as a status symbol it has to manipulate the market, create scarcity, and maintain a buzz.

Sadly, I think you are correct. Sad, because it keeps me away from buying a new GMT (which, although I can afford it, I can't bring myself to drink the marketing Cool-aid). The old models will have to do, besides my Christopher Ward GMT fills the spot admirably.

[tomchicago]

If Rolex does sell themselves to Swatch Group, there will be no more production bottlenecks.

[Quicksilver]

Originally Posted by ap1

I like scarcity for watches that I own or am able to acquire. I don’t like it when I can’t.

Spot on. The most realistic answer here.

[rudegar]

Originally Posted by Fleetlord

i posted a thread a few years ago that Rolex was far too available...

It was ridiculous, for a luxury item, how full the cases were with everything except Daytona's....BUT they were in the back if you asked nicely...I mean every AD was absolutely overflowing with watches.

This is much much better. Sales on some references have INCREASED since the allocation. Hulks were kinda "meh" in terms of sales..

Now, since you "can't get one".....4 -5x the sales! Might even see the lowly EXP 2 (which I like) go up in demand if they aren't in your face..

Panerai did this in their early days. Limited production. Hunting for a 000 or 112 at a dealer was part of the fun...People used to post lists of AD availability on forums to assist in finding pieces. Resale was strong. All was good.

Then Panerai went haywire. Made a bunch of watches. Increased availability, number of models, and store fronts. What happened? Well...Panerai isn't so hot anymore...in fact it's pretty COLD.

Look at that stupid "Supreme" brand. Super limited production of whatever it is they do. People can't get enough and spend insane money on the stuff, because you just can't get it.

So...Yep I'm good with ROLEX hitting the brakes.

It would be cool if someone on the forum could really speak authoritatively on how the market has been for Richemont, Swatch and other Eurolux conglomerates v the big independents such as Rolex, Breitling et al. I’d guess that Rolex is performing well, Breitling selling a lot but not as profitably and the big luxo makers hurtin for certain. IWC and other Richemont brands were in the toilet 2-3 years ago. Just speculation.

[vipereaper30]

Yeah I'm totally good with it. Until they come out with a new GMT that I'll have to wait years for. Then I'll be bummed...until I get the watch and I'll be stoked. The scarcity is good for the brand and for all of us who already own Rolex watches.

[SearChart]

Let them cut production as much as they want, I will still have no problems getting a hot model without paying a premium.

[HL65]

Originally Posted by Bobby T

Rolex has the right (obviously) to run their business any way they want but this idea about scarcity being good and building a relationship with an AD is the epitome of elitism. Building a relationship with an AD comes at the expense of purchasing multiple watches per year, for years. Many people buy a watch or two for life. Most can't be buying a Rolex once or twice a year.

Now there's a first!

[997]

I think going this route doesn’t make sense now, Rolex has always been somehow an affordable luxury watch, there should always be watches on any Rolex display and the price should be reasonable too. Having ZERO watches in many ADs world wide after decades of availability is nonsense. You’re not PP or VC or ALS. You’re Rolex. Why would matter to me (now) that no one will easily find an LV or a BLNR?? There literally thousands of them on wrists and for sale!

[VicLeChic]

The scarcity of profesional SS watches (due to unexpected high demand) creates frustration and aggravation for buyers with the risk eventually of losing customers to other brands. I don't see how this is good for Rolex. It's only good for owners of the scarce models. I believe this is the reason Rolex are trying to clamp down on greys and flippers to address the long waiting problem.