CONFIRMED news regarding the professional line

[JacksonStone]

Originally Posted by GradyPhilpott

Given the rate of increase in the few years prior to that, it does seem that one is due, but people have been predicting the next price increase regularly for nearly six years now.

Between 2010 and 2012, prices were going crazy (the SS SubC LN went up 16% in less than two years) due to the booming Asian economy and a devalued US dollar. Those increases were out of step with western economies, which had tanked due to the real estate bust in 2008. In other words, global demand had been propped up almost entirely by Asia. By 2012, Asia had cooled off, and the dollar had stabilized, so prices couldn't rightly go up any more at that point. People who were predicting increases may not have been looking at the bigger picture.

At this point, we're due for an increase, not so much because it has been six years since the last one, but because the circumstances indicate it: the US economy has improved enough that it can withstand an increase, particularly with demand here being what it is; the dollar is going down again (although it's not in freefall yet), so prices may need an adjustment to offset that; and demand in China is up again. From a more ground-level view, when was the last time you can remember pre-owned SS sports models listing for more than MSRP?

The only reason I can think of why they wouldn't increase prices is if their analysis suggests we're in a bubble economy due for an imminent correction. That would be a bad time to raise prices on luxury items, and some theorize that's a reason for the decreased production of SS sports models as well. I suspect it's the opposite, though: a price increase is imminent, and the decreased production is either to spur demand to justify the increase, or to make way for new models after Basel.

Time will tell.

[GradyPhilpott]

Originally Posted by JacksonStone

...the decreased production is either to spur demand to justify the increase, or to make way for new models after Basel.

Time will tell.

I vote for the latter.

[JacksonStone]

Originally Posted by GradyPhilpott

I vote for the latter.

Me too.

[askdanny]

Rolex is trying to recapture the grey market.

With normal production output, grey dealers were less expensive and a real attractive proposition. I remember when it was considered a noob move to pay retail at an AD. It's only at the end of last year, when production was down and ADs depleted that grey dealers sold sports Rolexes for as much, if not higher prices. So there's actually an incentive now to visit your authorized dealer and buy there.

In order to re-capture the grey and used market, for example, Audemars Piguet said it plans to open standalone stores to buy and sell second-hand timepieces. (Jean-Claude Biver has said he’s considering entering the second-hand business as well.)

"Inventory discipline" among its most popular lines is the strategy Rolex is using to make shopping at its non-authorized dealers less attractive. Overall, this is good news, not for the customer, but for the Rolex authorized dealer.

[Mystro]

Originally Posted by askdanny

Rolex is trying to recapture the grey market.

With normal production output, grey dealers were less expensive and a real attractive proposition. I remember when it was considered a noob move to pay retail at an AD. It's only at the end of last year, when production was down and ADs depleted that grey dealers sold sports Rolexes for as much, if not higher prices. So there's actually an incentive now to visit your authorized dealer and buy there.

In order to re-capture the grey and used market, for example, Audemars Piguet said it plans to open standalone stores to buy and sell second-hand timepieces. (Jean-Claude Biver has said he’s considering entering the second-hand business as well.)

"Inventory discipline" among its most popular lines is the strategy Rolex is using to make shopping at its non-authorized dealers less attractive. Overall, this is good news, not for the customer, but for the Rolex authorized dealer.

What prevents AD’s from doing the same thing and charging more than msrp? Some are reported to be doing this now.

[JR16]

Originally Posted by Mystro

What prevents AD’s from doing the same thing and charging more than msrp? Some are reported to be doing this now.

Just curious- are there any confirmed US ADs trying to charge more than MSRP + Tax ?


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[77T]

Maybe off-topic but I think I'm not sure of anything anymore - conspiracies? :thnking:

I have seen a letter - but not from Rolex. Is there a dark meaning to eBay's letter to all sellers that they will now take over financial intermediary status? Could eBay and Rolex be cooking up a secondary market offering?

Here's my letter - I removed my eBay ID from the salutation...
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.
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.
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[bobernet]

Originally Posted by 77T

Maybe off-topic but I think I'm not sure of anything anymore - conspiracies? :thnking:



I have seen a letter - but not from Rolex. Is there a dark meaning to eBay's letter to all sellers that they will now take over financial intermediary status? Could eBay and Rolex be cooking up a secondary market offering?



Here's my letter - I removed my eBay ID from the salutation...

.

.

.

.

.

This is different. This is eBay getting an additional bite at the apple. They’re going to make money on the payments spread.

eBay is becoming a payment facilitator much like Square is, PayPal already is, etc.

[77T]

Yes, I agree eBay is moving to an integrated platform closer to Amazon's existing capability. They probably wish they hadn't sold PayPal...

[nikesupremedunk]

Originally Posted by askdanny

Rolex is trying to recapture the grey market.

With normal production output, grey dealers were less expensive and a real attractive proposition. I remember when it was considered a noob move to pay retail at an AD. It's only at the end of last year, when production was down and ADs depleted that grey dealers sold sports Rolexes for as much, if not higher prices. So there's actually an incentive now to visit your authorized dealer and buy there.

In order to re-capture the grey and used market, for example, Audemars Piguet said it plans to open standalone stores to buy and sell second-hand timepieces. (Jean-Claude Biver has said he’s considering entering the second-hand business as well.)

"Inventory discipline" among its most popular lines is the strategy Rolex is using to make shopping at its non-authorized dealers less attractive. Overall, this is good news, not for the customer, but for the Rolex authorized dealer.

This makes sense. Grey dealers are now offering new watches OVER msrp and used close to msrp. If I were in the market I would rather pay msrp and get it from an AD. The only issue now is the supply...

[904VT]

I'm sure this will make a lot more sense after Basel

[oldman2005]

But ADs can sell directly to grey dealers bypassing the customers. I know many SS Daytona-C in Asian market or asian owned AD go the directly to backdoors, a normal customer would never have a chance at an AD. By limiting the production of SS sport watch the same thing could happen.

My 2 cents.

Originally Posted by askdanny

Rolex is trying to recapture the grey market.

With normal production output, grey dealers were less expensive and a real attractive proposition. I remember when it was considered a noob move to pay retail at an AD. It's only at the end of last year, when production was down and ADs depleted that grey dealers sold sports Rolexes for as much, if not higher prices. So there's actually an incentive now to visit your authorized dealer and buy there.

[askdanny]

Originally Posted by oldman2005

But ADs can sell directly to grey dealers bypassing the customers. I know many SS Daytona-C in Asian market or asian owned AD go directly to backdoors, a normal customer would never have a chance at an AD.

Yeah, I thought about that. And I wonder if this is why Rolex is sending a letter to ADs giving them a heads-up: Not much will be coming your way, so be careful if you’re going to sell to grey dealers.


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[yannis]

Originally Posted by TheVTCGuy

NO PAUL IS NOT HAPPY!!!!!!! 700!?!?!? I can't get three people to reply on MY threads!!!!!



Did... did someone say TUMI?



You think Yannis.... Ok... going to start the thread now... Everyone let me know what they think of my pics

I always reply to your threads when i see them up...i am looking forward to your starting that thread man

[Mobikid]

What do you think is the best move now? Been thinking of selling my 116610lv.. should i do it now or wait till basel?


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[SeaDweller50]

Originally Posted by nikesupremedunk

This makes sense. Grey dealers are now offering new watches OVER msrp and used close to msrp. If I were in the market I would rather pay msrp and get it from an AD. The only issue now is the supply...

Used Rolex in the U.K. are selling WAY above MSRP in most circumstances.

[JacksonStone]

Originally Posted by Ra_88

Used Rolex in the U.K. are selling WAY above MSRP in most circumstances.

Depending on where you look, used ones are listing above MSRP in the US, too, sometimes upwards of $1000 over. I don't know what they're actually selling for, but the listing price alone is a definite shift. A little over a year ago, used SS SubCs were listing with the same sellers for a good $1000 or more under retail, and could be negotiated down from there.

[enkrypt]

I don't understand any of this. Over here (western EU, not UK) I can get pretty much any Rolex (except Daytona) on the gray market at around 1000 € below MSRP.
In recent years I bought a Sub ND 114060 and a DJ 116234 at around 1000 euro discount on each.

[AK797]

Originally Posted by enkrypt

I don't understand any of this. Over here (western EU, not UK) I can get pretty much any Rolex (except Daytona) on the gray market at around 1000 € below MSRP.
In recent years I bought a Sub ND 114060 and a DJ 116234 at around 1000 euro discount on each.

That's not the case in the last few months, even in the EU. Can't see any unworn 114060s on chrono24 for under retail.

[topfuel25]

Originally Posted by oldman2005

But ADs can sell directly to grey dealers bypassing the customers. I know many SS Daytona-C in Asian market or asian owned AD go the directly to backdoors, a normal customer would never have a chance at an AD. By limiting the production of SS sport watch the same thing could happen.

My 2 cents.

Originally Posted by askdanny

Yeah, I thought about that. And I wonder if this is why Rolex is sending a letter to ADs giving them a heads-up: Not much will be coming your way, so be careful if you’re going to sell to grey dealers.


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Nothing is stopping ADs from selling to grey sellers...some AD employees for all u know may have vested interest in the grey sellers or could even be partners behind the scenes so even if Rolex limits the popular models to ADs and thinks by doing that it will make ADs think twice I doubt so.

Grey retailers often buy a couple of popular and slow moving models as a package from ADs so to Rolex the ADs are "performing" so they still get their quota of watches to sell. I don't see how Rolex is able to curb the grey retailers by limiting models to ADs.

Often you can see online many brand new popular models with undated or recent dated new popular models for sale and mind you these are even the respective countries AD pieces...not bought overseas and sold back in wherever the respective grey sellers countries are so something is very wrong...

[aohk]

Looking to buy my first rolex, a BNLR, price from grey dealer is around 10.5k USD, should i pull the trigger or wait till post baselworld?

[gegarrenton]

Originally Posted by Ra_88

Used Rolex in the U.K. are selling WAY above MSRP in most circumstances.

I've found the U.K. has always been a very difficult market for buying Rolex. For whatever reason, the supply has always been a lot more scarce there.

[askdanny]

Originally Posted by gegarrenton

I've found the U.K. has always been a very difficult market for buying Rolex. For whatever reason, the supply has always been a lot more scarce there.

Yet, it’s the only Swiss watchmaker that started in the UK.


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[Colin G]

Originally Posted by Sprta

In the last three days two of my ADs have received shipments. Many of the hard to get ones addressed by the OP Were included in the shipments including two Hulks.
None of them teceived any letter

Hi Everyone. First post here.

Same info from the AD I use a province over from me. I am after an Explorer II polar and they told me new stock is arriving over the next week. and that watch will be in the shipment

I picked up a new Explorer there 2 weeks ago with no issues. One in the case and one in the vault. Seems SS sport models are easier to get up here in Canada possibly. I had no issues picking up a Sub no date back in October when this shortage seemed to start to gain momentum (or at least that is when I started to read about it in watch forums).

[GerardoG]

Today, from TRFer Busyboy:

UK professional shortage due to continue
In light of people's speculation here and elsewhere, I thought I'd share this from my contact with the rolex UK boutique I frequent in London:


.................................................. ...


...... Personal chat removed..... So if I were to go by the list it would be a very very long time. I am trying my best for all my valued clients to be able to get one well before that time....(The order of years).....Thus there isn’t a particular order or date I can give you for your watch!

Also Rolex have been asking for 10 names at a time of clients who are on our deposit list. From those names they check any previous sales they have made/how often they purchase a stainless steel professional model. There have been many that have ended up in the pre-owned market, along with the new Sky Dwellers/ SeaDwellers and GMTs. Usually not from our store because we manage our list the way we do. But it just means that Rolex are extra weary when sending out stock. So it delays us as much as it delays you.

Sorry it wasn’t the best news. Hope to have something for you this year from Basel.

.................................................. ......



Another UK dealer I've spent a lot of time and money with. Sent this:


.................................................. ...........




.......been informed by our head office that the professional models will now be coming through at a slower rate than we have previously enjoyed, I will contact you as soon as I get any more information........


.................................................. ..............

Forum users do ask for emails/evidence. But aside from disclosing my own or a contacts details unfairly to the world, this really is about as much cut and paste as I can do I'm afraid....

Hope it helps paint a picture though.


Happy hunting, and good luck enduring the long wait times ahead....

[askdanny]

Originally Posted by GerardoG

Today, from TRFer Busyboy:


Also Rolex have been asking for 10 names at a time of clients who are on our deposit list. From those names they check any previous sales they have made/how often they purchase a stainless steel professional model. There have been many that have ended up in the pre-owned market, along with the new Sky Dwellers/ SeaDwellers and GMTs. Usually not from our store because we manage our list the way we do. But it just means that Rolex are extra weary when sending out stock. So it delays us as much as it delays you.

Confirms my theory that it’s more about recapturing the grey market...


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[rossi46]

Originally Posted by enkrypt

I don't understand any of this. Over here (western EU, not UK) I can get pretty much any Rolex (except Daytona) on the gray market at around 1000 € below MSRP.

That was the case in the US until just very recently, too. There's really no financial advantage to buy from a reseller anymore (sport models, that is).

[gegarrenton]

Grey market clampdown

[The Libertine]

Originally Posted by GradyPhilpott

I vote for the latter.

Agree as well - to make room for Basel releases.

[77T]

Clamping down on one’s prime channel would be done with less noise methinks. By noise I mean telling the channel directly. A flanking strategy would be better marcomm choice.

But I do agree that this does crimp the tactics that some AD owners have been doing. Bypassing their counter salespeople means no commission to pay.

If the direction to factory does work down the custom order backlog it could stimulate more buying in that manner versus taking whatever was in the case.


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