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Old 8 August 2018, 05:56 AM   #1
AznD85
"TRF" Member
 
Join Date: Jun 2014
Location: USA
Watch: 116610LN
Posts: 160
Icon5 Rolex ADs don't hold onto their watches. They sell them.

Admittedly I don't post here often but I do follow some threads and read online about Rolex watches.

I stopped by my local AD and we had a very interesting conversation that I wanted to share with you all hence the subject line above.

I am sharing my conversation with him and wanted to hear everyone's thoughts about this and it does make sense to me.

Nivarox is the maker of metallic alloys for hairsprings and mainsprings for the movement of the time piece. Nivarox used to make these parts for Rolex but Rolex bought the machine from Nivarox to bring it all "IN HOUSE" movement.

Rolex has been struggling to make these parts with the Nivarox machine and thus supply has been low or slow due to difficulty making these essential parts.

For Rolex to make their watches scarce starting with the famous Daytona then now some of the other ones like the Submariner is crazy. A business should find ways to ramp of their production when demand is high and if it doesn't meet the demand then their profits will be capped by production. It is not like Rolex ADs can sell their scarce sought after Rolex models for more. We all know ADs cannot do that. Therefore again, profits for Rolex and ADs are capped by Rolex production. This seems to make sense for me that Rolex has trouble producing their time pieces in terms of their movements.

What are you thoughts guys?

(I apologize if this was previously brought up before on another thread. If not, this may enlighten us all!)
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