Exhibition pieces - really, what is the point?

[supernova]

When all the cabinets were empty and bare, everyone was posting pics and complaining.

Now there are some pieces to fill the cabinets to look at and try on, folks still complaining. No satisfying some people!

There is a supply issue for years now and we all know of it so get over it!


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[samuel019]

They are there to piss people off. As in we dont have anything for you to buy but you can touch these, in some cases, and walk out scratching your head

Never in all my days did I ever think this is where we'd be just to try on a Rolex.

In all seriousness it does at least allow to do a test run on certain models and I guess thats better than empty cases.

[youthagainsttt]

Of course, it's pretty obvious why there's exhibition pieces from our pov, as the consumer

But I'm talking about from the POV of Rolex as a business themselves. Leaving perhaps $100m+ in PROFIT (estimated) out there, letting people try them on when each product could have have 100s or 1000s waiting or wanting to buy. If you have exhibition pieces, this may increase a small amount but then again Rolex can never meet the demand.

[dannyp]

Originally Posted by youthagainsttt

Of course, it's pretty obvious why there's exhibition pieces from our pov, as the consumer

But I'm talking about from the POV of Rolex as a business themselves. Leaving perhaps $100m+ in PROFIT (estimated) out there, letting people try them on when each product could have have 100s or 1000s waiting or wanting to buy. If you have exhibition pieces, this may increase a small amount but then again Rolex can never meet the demand.

1. Rolex invests in the brand for the long-term. Things won't always be what they are today, and keeping an interested customer base is key.

2. Many of the exhibition pieces seem to be paid for by the dealer, so it's not actually a loss for Rolex.

[temporarychicken]

I agree that the exhibition prices are a 'pot boiler' strategy.

Even though Rolex is still not currently a retail brand, the exhibition pieces are both visible and may be tried on.

This will help in the long game as/if we get back to retail, and may just help end-customers to tolerate a bit more wait and not desert the brand.

[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.

[amphr1]

Better to try on something before you buy it than to buy it and not like it and be called a flipper because you have to sell it.

[DJFanUK]

They are great..... Being able to actually try on a piece for size. I had longed for a sub date for a few years. When I was able to try on the SD43 last year, I knew instantly that I wanted it over the sub and not look back since.

[indianmachine]

What is the alternative? Empty cases, not being able to try anything on until you buy it?

Exhibition pieces help shoppers make more informed purchase decisions and at the least get some foottraffic in the store.

[Subguy48]

Because theres only upside to having them as opposed to not having them. Car dealerships do the same thing.

[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.

[amh]

I like it - would be better if the ADs carried more. But I know full well they're functional watches and not dummy models, AD has cash tied up. They'll eventually be sold, likely to a grey (and then resold at 2x MSRP as 'LNIB')

[Driver8]

There's really no great mystery, master plan, or conspiracy here guys.

Basically because of hype, social media, hype, unspent money due to Covid, hype, more wealthy people in the world, oh and hype, the demand for Rolex watches is currently far outstripping supply.

Rolex are not prepared (and actually not able) to instantly increase their production - they simply don't have the capacity to meet the current demand. They're also smart enough to know that finding a way to dramatically increase production isn't a good idea in the long term, because if/when the market takes a downward turn (for whatever reason), they'll be left with excess production and will then need to consider discounting... and no brand really wants that.

As a result, they're producing pretty much the same number of watches as they have for some time... which, given the current demand, means everything Rolex makes, sells instantly.

Instant sales means nothing in the display cabinets, which means dead retail space, nothing for customers to look at, touch or try on, and SA's with nothing to do other than give apologies. None of that is a great look for the brand so display models are the order of the day. They fill the space and they also undoubtedly hook future buyers, while keeping those on the waiting list interested and not walking next door into the Omega boutique.

[mountainjogger]

Originally Posted by youthagainsttt

Of course, it's pretty obvious why there's exhibition pieces from our pov, as the consumer

But I'm talking about from the POV of Rolex as a business themselves. Leaving perhaps $100m+ in PROFIT (estimated) out there, letting people try them on when each product could have have 100s or 1000s waiting or wanting to buy. If you have exhibition pieces, this may increase a small amount but then again Rolex can never meet the demand.

Rolex is not leaving any profit out there. Think about it.

[BillA]

Rolex +1
Rolex AD +1
Rolex Customer 0

[shaunylw]

Empty windows=empty dreams. Full cases give the illusion that the customer might get a watch.

Imagine going to BMW and asking for a 5 series, while there are zero 5 series cars to look at. Better yet, they have zero cars. Each car is allocated. They are going to look like they are going out of business.

Those demo watches are written off, just like the demo model for any product. Rolex doesn’t care, nor should they care, about one more person at the AD getting a watch. They would rather have 1,000 people get to look at it and try it on, and hop on the imaginary train to Rolex ownership.


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[Polar Bear]

I've been talked into and out of purchasing a lot of watches by simply trying them on

I lusted after a Daytona until i actually tried one on and found it wasnt for me
Same goes for a Sub

Also, models like a Deep Sea really should be seen in metal before buying

[SLWoodster]

objectively it's better. for a lot of people it feels like false advertising, or bait...

[youthagainsttt]

Originally Posted by shaunylw

Empty windows=empty dreams. Full cases give the illusion that the customer might get a watch.

Imagine going to BMW and asking for a 5 series, while there are zero 5 series cars to look at. Better yet, they have zero cars. Each car is allocated. They are going to look like they are going out of business.

Those demo watches are written off, just like the demo model for any product. Rolex doesn’t care, nor should they care, about one more person at the AD getting a watch. They would rather have 1,000 people get to look at it and try it on, and hop on the imaginary train to Rolex ownership.


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Obviously they shouldn't care abt one person buying a watch but for argument's sake, if it was 1800 watches that are exhibition-only, US$125m revenue that Rolex can generate the minute that they release them for sale. For any business, why would they write this off?

And people think Rolex are almost printing money but they can only produce limited quantities, the AD's take a big cut, the price of the watch is controlled in so sense. Just because most Rolex models are selling for double their retail value, can be argued makes ZERO difference to them as they don't benefit from this at all, it's to the middlemen sellers/greys/private sellers.

[Bizcut1]

It's heartening to see so many people pretending they actually know or understand Rolex's business practices...as if their experience informs them of anything remotely resembling reality...

[Calatrava r]

Originally Posted by dannyp

1. Rolex invests in the brand for the long-term. Things won't always be what they are today, and keeping an interested customer base is key.

2. Many of the exhibition pieces seem to be paid for by the dealer, so it's not actually a loss for Rolex.

This is true. Plus, they are real functioning watches. The watches with dummy inserts belong to Rolex and are moved all over the country to show the new releases. Ads typically have these a few days. The exhibition watches in the case are there for months. Ads have told me these may switched out for other models. Not sure how this will work as the ADs had to buy the first bunch.

[EscapementArtist]

I'll double down on the "for you to try on" responses. I was 100% convinced I wanted the new 124270. I tried it on in person and quickly realized it wasn't for me.

[prnceofpersia23]

Just like the local gentleman's establishments. You can look, maybe touch and try it on for size, but you're not going home with one!

[Chester01]

It’s a little silly. My nearest AD is building an addition to the shop, special for their Rolex. The sign can be seen from the street coming soon. I mean who is paying for that and then of course a whole wing with not a single one for sale (outside of back door to gray). Yes the samples let folks see them, but the fact that they can’t have them leads to more frustration. It’s turned me off the brand completely and they can have them. It’s like going into the store and saying well look, that’s only a box of toothpaste right there, you can’t actually get the toothpaste, like ever.

[link517]

Online doesn’t do justice to in person. The other way around as well.

[shaunylw]

Originally Posted by youthagainsttt

Obviously they shouldn't care abt one person buying a watch but for argument's sake, if it was 1800 watches that are exhibition-only, US$125m revenue that Rolex can generate the minute that they release them for sale. For any business, why would they write this off?

And people think Rolex are almost printing money but they can only produce limited quantities, the AD's take a big cut, the price of the watch is controlled in so sense. Just because most Rolex models are selling for double their retail value, can be argued makes ZERO difference to them as they don't benefit from this at all, it's to the middlemen sellers/greys/private sellers.

There is no argument. It could be 38,000 watches, doesn’t matter. Unless they sell these watches as used, which is potentially possible at certain ADs, they are written off as demo models. That’s how retail works. Then they would be sent back to the manufacturer and then who knows from there. Probably serviced and sold somehow.

125M is peanuts compared to what kind of future demand they drive by cases being full and people getting to try on products. People say they hate waiting, but they really love it. People want what they see as hard to get or what they can’t have. It’s the greatest time in history for Rolex. The market has everyone convinced these are really hard to get.


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[Forty6nTwo]

I really liked the Explorer II in pictures, tried one on, and didn't like it. So i find it useful that they have display models.

[Ferdelious]

Originally Posted by 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?

I think that is the point. And empty cases make ADs look like they are going out of business.

[Trailboss516]

I recently went to an AD and loved that there were exhibition pieces there. Great to see how things looks....there were some pieces/configurations that look great on people's instagrams and all that, but then you see it in person and find that you like a different version/config, or even watch even more.

I for one really appreciate the exhibition models being available, so...thank you for rolex for doing that or else I might end up with a piece I couldn't see in person, wait for it, and then dislike it.

[Wcdhtwn]

Originally Posted by youthagainsttt

apart from letting people try them on what is the point of this from Rolex's POV?

Letting people try them is entirely the point. It may not be a perfect system/way to handle the situation, but it is better than empty cases.