CONFIRMED news regarding the professional line

[SpeedyTuomas]

Originally Posted by meganfox17

I feel sorry for the bored AD staff. I walk pass the boutique almost daily and they would be looking down fiddling with their mobiles.With the latest turn of events, why even bother turning up for work.....

I noticed this at "Starhill gallery" too as well as MBS Singapore - no customers and they looked surprised when I walked in :D

[RHIII]

Back to AP and PP I suppose.

Not that they are making them any EASIER to acquire...

[SWISSAHOLICS]

Thanks for the wonderful news G !!!

[wiswrist]

This really is crazyness! I can’t believe I’m still waiting for a 2017 Basel release when Basel 18 is right around the corner. My AD has not seen the single Blue SS SkyD that he ordered at Basel last year. It’s frustrating for everyone involved.

Originally Posted by Mystro

What is the yearly volume of production of AP??

40,000 units. The CEO, François-Henry Bennahmias, started capping at 40K pieces a couple years ago. This year at SIHH he said the cap is still going to be in place for 2018 and 2019. They will reevaluate for 2020. The mix within the 40K pieces is the interesting part. There are still a bunch of hot models they intentionally don’t produce enough of.

[Greenp]

Maybe Rolex is providing "charity" to other watch brands.

Seems like Rolex is doing OK: “In the U.S., you have a monster in front of you,” says Jean-Marc Pontroué, CEO of Roger Dubuis. “It’s Rolex. So, you are already sharing half the cake.” Pontroué extends the analogy: “You are very hungry, but you say to your friends, ‘Well, we can only have half the cake today,’” he says, with a laugh.

[77T]

So, just leaving my nearby AD and they did not get a letter. But they did get a visit and meeting with their RUSA rep and Regional Mgr. This was just before Holidays.

The message was nearly identical to the letter Gerardo cited. (I did not quote that letter - just asked an open-ended question)

When they asked why, the two Rolex employees said that the factory’s backlog of custom orders had grown too large in some markets where sales had “gone through the roof”.

The bulk of these backlogged orders were in the Professional lineup. Not in DD or Cellini lineup.

So the decision was taken at HQ to adjust the fabrication rate of general stocking models in those markets downward to focus on increased fulfillment of the backlogged orders.

Yes, just the owners telling me a story perhaps - but I’ve known them for almost 10 years and they are straight shooters. I believe they are telling me what the reps told them. So you may doubt the reps I suppose. But they were told deliveries will slowly return to normal sometime in the late Spring.

This could explain why not all markets are getting the same message.

Just sharing in the spirit of community rather than rumors.


Sent from my iPhoneX using Tapatalk

[gegarrenton]

Originally Posted by rossi46

Exactly how I feel about. Rolex is not PP, VC, or AP. The day they try to claim that a Submariner isn't a mass produced aspirational product, I'm out.
...

I vote Subs with 3235 at Basel.

I agree with you 100%, but there are millions of people who posit justthat everyday.

I think it's a movement or model update though as you say. There is no reason for Rolex to pare back volume otherwise.

[SpeedyTuomas]

Originally Posted by 77T

So, just leaving my nearby AD and they did not get a letter. But they did get a visit and meeting with their RUSA rep and Regional Mgr. This was just before Holidays.

The message was nearly identical to the letter Gerardo cited. (I did not quote that letter - just asked an open-ended question)

When they asked why, the two Rolex employees said that the factory’s backlog of custom orders had grown too large in some markets where sales had “gone through the roof”.

The bulk of these backlogged orders were in the Professional lineup. Not in DD or Cellini lineup.

So the decision was taken at HQ to adjust the fabrication rate of general stocking models in those markets downward to focus on increased fulfillment of the backlogged orders.

Yes, just the owners telling me a story perhaps - but I’ve known them for almost 10 years and they are straight shooters. I believe they are telling me what the reps told them. So you may doubt the reps I suppose. But they were told deliveries will slowly return to normal sometime in the late Spring.

This could explain why not all markets are getting the same message.

Just sharing in the spirit of community rather than rumors.


Sent from my iPhoneX using Tapatalk

This makes a bit more sense. Still, would allocate resources from the production of less popular models but who am I to advise Rolex..

[kilyung]

Originally Posted by RHIII

Back to AP and PP I suppose.

Not that they are making them any EASIER to acquire...

That was funny.

[Darzee]

Originally Posted by krh7

in 2018, it makes sense for rolex to put 3235 in popular sport models. can't announce in advance of basel, so "old" stock 3135 shipments are low until march. after march, everyone wants the new movement watches and grey dealers are "stuck" with old models and those prices are forced down, while dealers sell new at msrp.

Very likely! Simply don’t make any business sense for Rolex to cut production of their cash cow permanently. They are so successful with their current business model, why would they want to change it? AD are their “salesman” it will not make sense to kill them hence I strongly believe that the production cut are temporary.

[brandrea]

Originally Posted by 77T

So, just leaving my nearby AD and they did not get a letter. But they did get a visit and meeting with their RUSA rep and Regional Mgr. This was just before Holidays.

The message was nearly identical to the letter Gerardo cited. (I did not quote that letter - just asked an open-ended question)

When they asked why, the two Rolex employees said that the factory’s backlog of custom orders had grown too large in some markets where sales had “gone through the roof”.

The bulk of these backlogged orders were in the Professional lineup. Not in DD or Cellini lineup.

So the decision was taken at HQ to adjust the fabrication rate of general stocking models in those markets downward to focus on increased fulfillment of the backlogged orders.

Yes, just the owners telling me a story perhaps - but I’ve known them for almost 10 years and they are straight shooters. I believe they are telling me what the reps told them. So you may doubt the reps I suppose. But they were told deliveries will slowly return to normal sometime in the late Spring.

This could explain why not all markets are getting the same message.

Just sharing in the spirit of community rather than rumors.


Sent from my iPhoneX using Tapatalk

Sounds like something I heard from our AD back in the late fall.

The market he was referring to was China. Such high demand that supply was being squeezed everywhere else.

[GenevaFan]

Originally Posted by GerardoG

As some of you have read in the Open Forum, I spent all day planning for our upcoming Vegas gathering, as well as talking watches with one of the largest accounts for Rolex in the United States.

I do not share ‘I heard’ or ‘someone said’; I only share confirmed information with you, my virtual family.

Rolex is letting all Authorized Dealers IN WRITING that, effective immediately, they will CUT BACK the production of ALL professional line watches. Not only SS, but 2T and precious metal.

Therefore, we, as customers, will see LESS of these units at our AD’s. Hold on to your subs, GMTs, Daytonas...steel, rolesor or gold/platinum. They will be harder to get.

I would like to see the correspondence referenced and then verify it's authenticity. I will anxiously await your sources information.


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[gegarrenton]

Originally Posted by Mystro

What is the yearly volume of production of AP??

Around 35k, of which 65-75% or so are some sort of RO or ROO

[Mystro]

[Takonwong]

I read this thread this morning, thought nothing more of it. Popped into my AD to pick up a ring I ordered for my wife and just spoke to the manager who I have a very good relationship with. He didn't tell me they received a letter but was told by Rolex they will be getting 30% less of all the professional line this year. They've closed all their waiting lists and are trying to fulfill what they have. I've been promised I will receive the LV this year sometime, he's expecting only three LVs this year.

[Wools]

Pretty revolting business tactic if true.

I'm a first time Rolex buyer. I decided I wanted one mid last year and when going to my local AD to try a SS Submariner Date Ceramic, I was told they had none but could try on a Kermit and a BLNR to get a feel for the brand. When they realised I was serious, they put my name down and when I informed them that I could realistically buy Summer 2018, the guy said, that's great to hear as the waiting list is over a year anyway!

I understand the business decision if true, but it leaves a bad taste in my mouth. Rolex is an expensive watch that 99% of the worlds population can never afford. I've had my eye one one for the past few years when my life started to become more prosperous and I had to blink when my local AD could not even show me one to try on.

It's a good problem to have; when your product is so in demand it sells out. It's a questionable decision to artificially limit production or roll out.

If this turns out to be true, I may consider my decision to be on the waiting list. A real shame if so.

[NLYogi]

Are prices peaking already ;) got a minty Explorer on my wrist! It starts to look more golden every minute!

[gegarrenton]

Originally Posted by yannis

Rolex is no ordinary company and no ordinary methods have been employed over time in order for them to market/sell their products. In this sense, skyrocketing demand is going to be a foreseeable result in the light of bringing supply further down to the point that a Rolex is unobtainable. To me that does make sense in Rolex terms.

We had a taste of things to come last year. After March-April, sourcing a SS Rolex watch was a heck of a task. So Gerardo's info does make sense.

Of course Rolex is taking it to another level had this information been true and frankly i am glad i have what i need!

But who in their right mind thinks Rolex is unobtainable? They make almost a million watches a year.

[Mystro]

Originally Posted by Wools

Pretty revolting business tactic if true.

I'm a first time Rolex buyer. I decided I wanted one mid last year and when going to my local AD to try a SS Submariner Date Ceramic, I was told they had none but could try on a Kermit and a BLNR to get a feel for the brand. When they realised I was serious, they put my name down and when I informed them that I could realistically buy Summer 2018, the guy said, that's great to hear as the waiting list is over a year anyway!

I understand the business decision if true, but it leaves a bad taste in my mouth. Rolex is an expensive watch that 99% of the worlds population can never afford. I've had my eye one one for the past few years when my life started to become more prosperous and I had to blink when my local AD could not even show me one to try on.

It's a good problem to have; when your product is so in demand it sells out. It's a questionable decision to artificially limit production or roll out.

If this turns out to be true, I may consider my decision to be on the waiting list. A real shame if so.

You are in for a eye opening with Rolex. There is so much more that will tick you off you with the Rolex ownership experience like how controlling the Rolex servicing is. Rolex confiscates any and all parts you had done to your watch while being serviced. They also will not touch any modified Rolex regardless how small it is, etc

[Mystro]

Originally Posted by gegarrenton

But who in their right mind thinks Rolex is unobtainable? They make almost a million watches a year.

Sounds like that is gonna change..

[gegarrenton]

Originally Posted by 77T

So, just leaving my nearby AD and they did not get a letter. But they did get a visit and meeting with their RUSA rep and Regional Mgr. This was just before Holidays.

The message was nearly identical to the letter Gerardo cited. (I did not quote that letter - just asked an open-ended question)

When they asked why, the two Rolex employees said that the factory’s backlog of custom orders had grown too large in some markets where sales had “gone through the roof”.

The bulk of these backlogged orders were in the Professional lineup. Not in DD or Cellini lineup.

So the decision was taken at HQ to adjust the fabrication rate of general stocking models in those markets downward to focus on increased fulfillment of the backlogged orders.

Yes, just the owners telling me a story perhaps - but I’ve known them for almost 10 years and they are straight shooters. I believe they are telling me what the reps told them. So you may doubt the reps I suppose. But they were told deliveries will slowly return to normal sometime in the late Spring.

This could explain why not all markets are getting the same message.

Just sharing in the spirit of community rather than rumors.


Sent from my iPhoneX using Tapatalk

I can actually see this too. Makes sense.

[eltonbalch]

Originally Posted by 77T

So, just leaving my nearby AD and they did not get a letter. But they did get a visit and meeting with their RUSA rep and Regional Mgr. This was just before Holidays.

The message was nearly identical to the letter Gerardo cited. (I did not quote that letter - just asked an open-ended question)

When they asked why, the two Rolex employees said that the factory’s backlog of custom orders had grown too large in some markets where sales had “gone through the roof”.

The bulk of these backlogged orders were in the Professional lineup. Not in DD or Cellini lineup.

So the decision was taken at HQ to adjust the fabrication rate of general stocking models in those markets downward to focus on increased fulfillment of the backlogged orders.

Yes, just the owners telling me a story perhaps - but I’ve known them for almost 10 years and they are straight shooters. I believe they are telling me what the reps told them. So you may doubt the reps I suppose. But they were told deliveries will slowly return to normal sometime in the late Spring.

This could explain why not all markets are getting the same message.

Just sharing in the spirit of community rather than rumors.


Sent from my iPhoneX using Tapatalk

After reading through eight pages of perceptive comments and well thought out conjecture, I think this one rings true. Both of my local AD’s have large waiting lists for desirable professional models and laugh when I ask if I can add my name and this seems to reflect what is going on world wide. While increasing production sounds like the solution, it isn’t a simple matter of just hiring more people and increasing capacity. As others have commented, I’d also like to see the letter that started the discussion. Guess I’d better hurry up and buy that DJ 41 I’ve been eyeing!

[Smarties]

I've put my name on the waiting lists of several ADs and visiting them regularly. None of them has any clue to why the supply of SS professional models dwindles.

What we see locally is ADs are selling to customers at a premium (under the table of course), to grey market dealer with premium (via backdoor), or reserve for VIP customers exclusively.

[gegarrenton]

Originally Posted by Smarties

I've put my name on the waiting lists of several ADs and visiting them regularly. None of them has any clue to why the supply of SS professional models dwindles.

What we see locally is ADs are selling to customers at a premium (under the table of course), to grey market dealer with premium (via backdoor), or reserve for VIP customers exclusively.

The latter is far and away the most common.

[tomchicago]

This is just the first in a series of steps preparing for the sale of Rolex to ETA.

[tomchicago]

What are "custom orders" ? China and Middle East I presume?

[AK797]

Originally Posted by ALF61

Lots and lots of imagination in this thread. TRF as a whole really lately has become big gossip world.

In my mind I can see Rolex laughing their heads out.

Originally Posted by Uhtred59

I like this. Think we might be turning into a self licking ice cream cone.

Why does a dog lick its own balls? Because it can.

Why don't we talk about watches to buy? Because we can't.

[elcompa]

Originally Posted by Loevhagen

Aren't we supposed to take this "confirmed" thing with some salt? I mean, it's just one data point.

And it may only be their short term plan for the US market.... In the long run, if this is a shortlived intervention, it will likely on have been a bump in the road. My guess is they will want to clear our old stock which will then get them back to healthy pricing.

[AK797]

Originally Posted by WhiskeyKoffee

My suspicions are that the reasons for this are actually very simple, and has nothing to do with new movements, Basel, greys, or price.

Simply put, Rolex is playing hard to get. It's just like the game playing in dating. By playing hard to get, one increases the desire and demand. It's not as if Rolex needs to maintain a certain level of immediate sells to stay in business.

In a world being guided by technology, smart watches are totally taking over. Who knows what smart watches will do in the future. They might drive your car or control your vacuum cleaner.

Rolex has to do way more than just stay relevant. Rolex has to stay in ultra high demand. Why else would a consumer pay thousands of dollars for a non smart watch going forward? It's all about keeping their product in high demand. Cutting production is brilliant and it's a long term strategy. It has nothing to do with short term issues.

At least that is how I see it.

Rolex already had 19 of the best selling 20 watches over £5K. Do we really need all these shenanigans so they get that other one too? But yes, I do think this is the way they are going, and most brands are thinking the same way and preparing for the shrinking watch market.

[AK797]

Originally Posted by Wcdhtwn

Sorry, I was being facetious. Their watches are anything but crappy. But if Rolex feels it needs to up it's game against Patek then Rolex must think of them as crappy as they currently don't compete. That's the point I was trying to make.

Realistically they are more like AP in product range and they are probably looking to position themselves closer to them, and above the fray of the Omegas and the Breitlings and the mid-lux market, which will come under pressure in the future from the I-gen. While I think this is a smart play it just seems to be too forward thinking for Rolex, they usually move slow. I still think events have overtaken them this last year but maybe this has helped to shape their future strategy and adopt it early, otherwise they could just say we will keep supply steady, not reduce it, but due to expected high demand, waiting lists will continue to be the norm.