Market price more than retail is it sustainable?

[fsprow]

WHAT, ME WORRY, WHAT'S THE PROBLEM?

1. Rolex is making a solid profit, one concludes, and continues to build on an outstanding reputation. Should be in business a very long time.

2. From some conversations, I believe most if not all Rolex AD's (those remaining) are making excellent profits, capitalizing on generally strong economies and good customer relationships.

3. Most customers (save a few) are very happy with their purchases and willing to pay reseller prices if needed to get what they want, or move to more available PM models. "Flippers" are especially happy with historic upward price movement.

4. Resellers also seem to be doing very well, seeing how long they have been in business and the prices they are sustaining.

[djgallo]

Originally Posted by Tavli3

In order for them to keep doing #2 they need #3
Which is keeping their main customers happy which are not us enthusiasts. Rolex's bread and butter customers want exclusivity and value retention as FleetLord wisely said elsewhere on the Forum. Lose the exclusivity and value retention part of the brand and you risk losing your main customer base.

Cut production, deflate the number of watches in gray hands and then ramp back up keeping a tight lid on watches going out the back door. Not sure how they do it, maybe close down a really high profile AD that's selling to the grays to send a message. All I know is there is a huge inventory of watches in the hands of the Grays. They are in control of the market at the moment not Rolex. As to what Rolex is actually thinking or doing or is going to do or not do, no one knows except for the very few Rolex execs that are allowed into the inner Sanctum at HQ where these decisions are made and never see the light of day as far as being leaked to the public.

I agree, Rolex needs to maintain exclusivity and value retention....no argument there. But, isn’t that exactly what they’re doing?

It sounds like you and others would like to see Rolex cases full of all of the SS models at anytime you walk into the store. That’s probably just a pipe dream...and even if that magically happened...what would that do to exclusivity?

The bottom line is, you can’t have your cake and eat it too.

[Vamp]

Originally Posted by DTap

“MSRP too low” is what people who paid too much tell themselves to feel better.

[fskywalker]

Originally Posted by Harry-57

If demand outstrips AD supply, the situation will be self sustaining. As soon as there are less buyers than watches, the situation will be unsustainable. What we don't know is when that cross over point will occur. If ever. Given that a lot of the desire is driven by fickle social media nonsense, we might see a sudden drop at some point. But Rolex watches will always be in demand. How much demand is unknown.

This!


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[10klakes]

Would you rather buy a Rolex at MSRP from the AD, or pay over MSRP and buy gray?

That’s why they aren’t raising prices (yet).

Rolex plan is working, they are creating motivation to buy from the AD, which long term will strangle the gray.

A market shift down will put many grays out of business, many of which you see on social media with tons of inventory. Get the popcorn ready-

[lemaitre]

This 👍🏼

[jerseyb]

Originally Posted by locutus49

Wrong. You are wrong on every level. Casual buyers are not WIS and buy Datejusts and other perennially popular references. And your assumption that we who think the MSRP is too low are rationalizing our overpaid watches has no evidence to back it up.

I think in 2019 even "casual buyers" who go in to an AD to purchase a Rolex have been to their website and are well aware of the different models in their catalog. They just can get them anywhere.

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[Finslayer83]

Originally Posted by fsprow

WHAT, ME WORRY, WHAT'S THE PROBLEM?

1. Rolex is making a solid profit, one concludes, and continues to build on an outstanding reputation. Should be in business a very long time.

2. From some conversations, I believe most if not all Rolex AD's (those remaining) are making excellent profits, capitalizing on generally strong economies and good customer relationships.

3. Most customers (save a few) are very happy with their purchases and willing to pay reseller prices if needed to get what they want, or move to more available PM models. "Flippers" are especially happy with historic upward price movement.

4. Resellers also seem to be doing very well, seeing how long they have been in business and the prices they are sustaining.

Our local reseller (TRF "TS") is in his 30's and drives a Ferrari.

Business is good.

[lkngshrp]

This recent surge in SS model pricing just serves to separate the wheat from the chaff. The collectors/wearers vs the profit takers... I have been wanting a Platona for 5 years now and while I’m kicking myself for not being able to swing it a couple of years ago for a discount off MSRP, I’m not losing any sleep over the fact I had to pay MSRP for my newest incoming later this month because not only did I get it at MSRP, the two pre owned ones I’ve seen are 6 years old and priced at the same MSRP AS MY NEW ONE!

I have no intention of flipping it or doing anything else with it other than what I have been doing with my 2 tone stainless/YG sub I’ve been wearing daily since 2013. I’m gonna make it my new daily. I see no value in putting it in a safe and looking at it every now and then. I want to smile every time I see it on my wrist. My favourite part? Most people won’t even know it’s a Platona. They will assume it’s steel.

Thanks for listening... enjoy everyone however and whatever you choose to do!

[DTap]

Originally Posted by 10klakes

Would you rather buy a Rolex at MSRP from the AD, or pay over MSRP and buy gray?

That’s why they aren’t raising prices (yet).

Rolex plan is working, they are creating motivation to buy from the AD, which long term will strangle the gray.

A market shift down will put many grays out of business, many of which you see on social media with tons of inventory. Get the popcorn ready-

I like this theory.

[akordz]

I also agree