Rolex shortage, ways to possibly alleviate it?

[richard371]

Yup good point. Id just like to add an SS GMT or Sub to my 116500 and my collection will be complete. If my AD does not come through I may add a new Speedmaster 3861

Originally Posted by Madman37

Ha ha yeah imagine that. Rolex would just stop making them and say due to Reddit users raising a QC issue we need two years address it so no watches being made for 2 years.

[superpop]

I have said it a million times but Rolex could easily fix this by allowing the AD network to charge a premium for in demand watches. This would reward the AD's that have spent a ton of capital on floorspace for this brand and would allow Rolex to keep the MSRP where it is at. Right now Rolex is letting some back alley punk profit off of their popularity. The AD should be enjoying this profit, they have made the investment and will suffer when the hype bubble pops. For Rolex, this really is hurting the brand long term because the true buyers are turned off by these games. Ferrari, Porsche and most other luxury brands let the AD set the street price in situations like this. Doing this would certainly smooth out demand as well as you would lose an entire layer of the distribution that is manipulating the market. Contrary to what what some have said, Rolex is asleep at the wheel on this one.

[UK_]

Originally Posted by superpop

I have said it a million times but Rolex could easily fix this by allowing the AD network to charge a premium for in demand watches. This would reward the AD's that have spent a ton of capital on floorspace for this brand and would allow Rolex to keep the MSRP where it is at. Right now Rolex is letting some back alley punk profit off of their popularity. The AD should be enjoying this profit, they have made the investment and will suffer when the hype bubble pops. For Rolex, this really is hurting the brand long term because the true buyers are turned off by these games. Ferrari, Porsche and most other luxury brands let the AD set the street price in situations like this. Doing this would certainly smooth out demand as well as you would lose an entire layer of the distribution that is manipulating the market. Contrary to what what some have said, Rolex is asleep at the wheel on this one.

There is no harm being done.

The people are getting frustrated seem to be the people who want one SS watch tomorrow.

They are not top of the list for Rolex to worry about.

The people who Rolex really wants to sell to are getting all the watches they want.

I think Rolex know exactly what that are doing - when when it all dies down (as it will eventually, fashion changes), they won’t have to discount, which is not a good look for a luxury brand (it doesn’t matter if it’s the AD or Rolex lowering the prices either).


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[superpop]

Originally Posted by UK_

There is no harm being done.

The people are getting frustrated seem to be the people who want one SS watch tomorrow.

They are not top of the list for Rolex to worry about.

The people who Rolex really wants to sell to are getting all the watches they want.

I think Rolex know exactly what that are doing - when when it all dies down (as it will eventually, fashion changes), they won’t have to discount, which is not a good look for a luxury brand (it doesn’t matter if it’s the AD or Rolex lowering the prices either).

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We will have to agree to disagree. The harm being done is to the brand, with the true end users of Rolex products. Why do you think Rolex insists on a dedicated area within an AD shop, and very expensive displays. Rolex does understand that people rich enough to buy a 10K+ fashion bauble, want a nice, safe experience. They do not want to buy it from some clown on facebook. Several other luxury brands manage this so much better. I mentioned Porsche in my last post, they allow the dealer to add whatever they want to a hot car. They do not force the dealer to sell at MSRP and have some flipper profit off of the car. The way it is now, is a complete turn off for future customers that Rolex will need at some point.

[CashGap]

Originally Posted by superpop

The harm being done is to the brand, with the true end users of Rolex products.

I'll be only one in fifty Rolex owners is even aware of the situation.

But... you meant the TRUE end users.

https://en.wikipedia.org/wiki/No_true_Scotsman

[Goin2drt]

Originally Posted by superpop

I have said it a million times but Rolex could easily fix this by allowing the AD network to charge a premium for in demand watches. This would reward the AD's that have spent a ton of capital on floorspace for this brand and would allow Rolex to keep the MSRP where it is at. Right now Rolex is letting some back alley punk profit off of their popularity. The AD should be enjoying this profit, they have made the investment and will suffer when the hype bubble pops. For Rolex, this really is hurting the brand long term because the true buyers are turned off by these games. Ferrari, Porsche and most other luxury brands let the AD set the street price in situations like this. Doing this would certainly smooth out demand as well as you would lose an entire layer of the distribution that is manipulating the market. Contrary to what what some have said, Rolex is asleep at the wheel on this one.

This is common sense and not aloud here. Folks here love the grays and any talk of how Rolex can take business away and shut down grays is like talking politics. Take your nonsense elsewhere

[42itus]

Originally Posted by superpop

I have said it a million times but Rolex could easily fix this by allowing the AD network to charge a premium for in demand watches. This would reward the AD's that have spent a ton of capital on floorspace for this brand and would allow Rolex to keep the MSRP where it is at. Right now Rolex is letting some back alley punk profit off of their popularity. The AD should be enjoying this profit, they have made the investment and will suffer when the hype bubble pops. For Rolex, this really is hurting the brand long term because the true buyers are turned off by these games. Ferrari, Porsche and most other luxury brands let the AD set the street price in situations like this. Doing this would certainly smooth out demand as well as you would lose an entire layer of the distribution that is manipulating the market. Contrary to what what some have said, Rolex is asleep at the wheel on this one.

I don’t think your suggestion would be what’s best for Rolex.
In my opinion this wave of hype is only securing its position in the luxury watch market for generations to come. So if Rolex allows an “adjusted market value” markup, much of the flippers will be eliminated but where does it leave the brand?
Part of the appeal of owning a Rolex, and I’m talking before the current hype, has been the idea that you won’t lose money if you decide to resell. So, is the prices at the AD are higher due to dealer markups, there won’t be as much room for a higher resale value.
In my opinion, it’s best for Rolex to sell it at their current MSRP and let the market dictate the price. Raising the price by way of a markup just to eliminate flipping will hurt the brand in the long term.


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[gtnator]

Just get the new blue dial DJ. It’s more balanced without the lopsided 24 hr circle hanging out of balance.


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[BigDogGoneHunting]

Several members have summed this up- Pay the AD or no hard to get watches will become available. That’s it. I don’t like it but that’s the world especially over the past 3-4 years. Once you start buying they will get you something on your list. You buy that and they’ll get you something else on your list or you buy something else and they will get you something on your list. See a pattern developing....? It’s not a model for a one and done buyer. One and done is available at retail plus market costs.

[boogiebot]

Here is the best way to stop the shortage. Stop buying the watches and stop pumping up all these articles, posts and video about the watches. It’s crazy but the fact we all sit here and consume all this data in the form of social media as well as content, the more we fuel this Rolex shortage.


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[Watch Rob]

Go grey. That’s where all the watches are.

[superpop]

All of the posts defending the flipper as anything other than a leach on the market are comical. Pretty transparent group.

[Oystersteel92]

Originally Posted by superpop

All of the posts defending the flipper as anything other than a leach on the market are comical. Pretty transparent group.

Well, it's all in the eye of the beholder. I don't resent grey dealers because they provide needed liquidity to the market. You can sell your watches or source one all day long. I do defend them in general.

I only blame an AD if they sell out the back door to a known grey dealer. Otherwise, they're in business to make sales and turn a profit. If the demand is there to sell every watch they get, and they choose to take care of good customers, that's ok too.

Where I do have an issue are people that get the call for a hot watch, have no desire to own it or keep it, but simply say yes so they can pocket a few thousand dollars. I would never say yes to a watch I didn't want to keep. Best to let it go down the line to someone who really wants it and will keep it long term.

I'm not seriously in the market right now, but when I am next year I know what I want and I'll reach out to my AD and I'm confident they will get it for me, in 2 weeks or 6 months, doesn't matter. While waiting, I'm not going to be buying a Pepsi or Skydweller if offered, because those are not the watches I want.

[superpop]

I guess I should be more clear in my post. I agree that grey's provide liquidity and serve a purpose on the second hand market. Where I have a problem, is when they become the defacto AD and attempt to manipulate the market to their benefit. For the most part, grey's or flippers have made little to no capital investment in selling new watches but in some cases are making more than the AD on a watch. It is silly, and it does ruin the buying experience. I would rather buy in the safety and security of an established AD with a long local track record, vs someone on Facebook or whatever site they are peddling from.

[HiBoost]

Originally Posted by superpop

Where I have a problem, is when they become the defacto AD and attempt to manipulate the market to their benefit.

But where is the proof that this is happening? I still believe > 90% of watches are going to regular customers of some form, not professional watch sellers. No way grays are getting 50% or 70% of any significant portion like that. We already know that in a world where every new Sub was sold for exactly MSRP, they would be sold out world wide. There is simply more demand than supply. The only reason grays have some to sell (and it's likely dozens, certainly not thousands) is because the elevated pricing and reduced security is a bridge too far for a lot of buyers. So let's say grays go away. Now what? Won't we still have individuals selling popular Rolexes? And if the supply is limited won't these prices still rise above MSRP? And before long, you're going to have RolexDude69 selling an LV for $19k on ebay. He's not a gray dealer. He just bought a green watch on a whim and realized he didn't like green. Or, knew they were hard to get and saw one in the store and snagged it. Just like people scooping up the latest Playstation at their local walmart and selling it for a markup on ebay. They aren't gray dealers, they are just normal people making a buck off the "I gotta have the hotness" aspect of human nature. But is this really superior to having longstanding gray dealers? Sure, we'd all love to buy from a safe AD at MSRP and be offered a glass of champagne while we're doing it. But that just isn't possible unless Rolex really cranks production, which in turn only dilutes their offering and thus will never happen. I just don't see grays as being the core problem here. If you took away grays, and took away flippers, you'd still not have a single damn watch in stock anywhere. At least the grays provide a plan b for people who don't mind wasting money ;)

[mips33]

How are all these watches getting to the gray dealers? Are the ADs getting a kickback? There is no way the GM is getting all these watches from individuals buying them at ADs. There has to be another channel. Anyone know?

[donq]

https://www.entrepreneur.com/article/250745

This article does a good job of explaining the current situation.

[HiBoost]

Originally Posted by donq

https://www.entrepreneur.com/article/250745

This article does a good job of explaining the current situation.

Some very interesting concepts there, thanks for sharing. This one concept pretty much sums it up.

...but the function of luxury brands is to create dreams, not to answer to problems and needs.

So I think the translation in our space is "AD doesn't have the watch you want? STFU."

[donq]

https://www.entrepreneur.com/article/250745

This article does a good job of explaining the current situation.

[NeedMoreCoffee]

Why wasn't your first proposed solution to simply produce more...

[ce027772]

Originally Posted by SkyDwelling

1st, why don't Rolex increase the prices of the watches to what ever people are paying for them gray market? If every watch made is happily bought by some one at a high mark up or double the price then why don't Rolex sell them for these exact prices?

Assume that Rolex followed your advice and did exactly what you are suggesting. The price now is the grey market price. Would you buy the watch at that price? If so, you can do it now, without waiting or complaining.