Rolex try to turn down the grey dealers but they still feed them>>>>

[Jocke]

It's very strange with Rolex way of thinking. They do a lot of action that will make it difficult fo ther grey dealers.

Next step is stopping access to the popular models, that make the grey dealers earn more than themselves when they sell a popular model.

So the winner is not Rolex in this battle IMHO.

[Ravager135]

Originally Posted by Jocke

It's very strange with Rolex way of thinking. They do a lot of action that will make it difficult fo ther grey dealers.

Next step is stopping access to the popular models, that make the grey dealers earn more than themselves when they sell a popular model.

So the winner is not Rolex in this battle IMHO.

I just want to rewind the clock a year or so ago...

[037]

ADs need to be strict about removing stickers with every sale. That's about my only gripe with the situation.

There's no way to stop the secondhand market completely. Flooding it devalues the product and restricting it boosts the resellers. Finding the perfect balance is impossible.

Rolex makes the same amount of money regardless of any situation. ADs buy the watches and Rolex's job is done. As long as they keep supply one tick behind demand, they'll never lose.

[SLS]

Originally Posted by Jocke

It's very strange with Rolex way of thinking. They do a lot of action that will make it difficult fo ther grey dealers.

Next step is stopping access to the popular models, that make the grey dealers earn more than themselves when they sell a popular model.

So the winner is not Rolex in this battle IMHO.

And it leaves a poor taste in a potential new customer’s mouth. I want to buy a Submariner, sure we’ll get one for you in a year...maybe sooner if you buy this TT DJ and some jewelry.

I get the new game, just glad I don’t have to play it.

[johnnyjazz]

Yep, if you want a steel sports but you have to buy pm to get it and you don,t agree then the grey will agree and will always be at the front of the queue. Rolex don,t care, they have made the sale to the ad, ad don,t care, they have to shift units to make a living. Don,t think this will ever change, it is called good business practice.

[FTX I]

Grey dealers offered watches with a discount and now they offer with a markup. Same problem, different approach and no risk of cheapening the brand.

[Likestheshiny]

And it leaves a poor taste in a potential new customer’s mouth.

A poor taste, perhaps, but not a diminished interest in buying the product. Telling people they can't have something just makes them want it more.

That said, I think you're significantly overestimating how many watch buyers are looking for a specific model. Sure, watch aficionados know exactly what we want, but I suspect the large majority of watch buyers are fairly easily diverted to other models that are currently available, and probably don't even recognize that many models weren't under the glass in the first place.

[oldman2005]

IMO, this has to do more with the SS sport scarcity marketing that is going with Rolex, I doubt it has to do with grey market nor China, from what I read Swatch group (Omega, hubblot,..) sale increased by a record +60%, yet we don't hear the same lack of SS watches.

Rolex SS sport watches attracted many because of lower price, easily accessible, yet luxurious/iconic back then, but now SS Sport are hard to find or reserved for privilege VIP customers, and can very expensive in the grey market. I'm sure Omega and others will take up the slack left by Rolex.

[DARK_KNIGHT]

Read this.


It might help (or it might not) to place a new perspective.



https://www.hodinkee.com/articles/sw...-business-news

[Chewbacca]

Originally Posted by Jocke

It's very strange with Rolex way of thinking. They do a lot of action that will make it difficult fo ther grey dealers.

Next step is stopping access to the popular models, that make the grey dealers earn more than themselves when they sell a popular model.

So the winner is not Rolex in this battle IMHO.

I think Rolex is playing both sides.


Pretty much always have since the late 80’s.

[DARK_KNIGHT]

Originally Posted by Chewbacca

I think Rolex is playing both sides.


Pretty much always have since the late 80’s.

Both sides against the middle?

************************************************** *********


I dunno. They are control-meisters. They control point of production.

They might want to control the actual end buyer (user) experience. When you buy grey , the buyer usually sacrifices the "buying experience".


Waiting on a FEDEX truck and yelling incoming , while wearing your under britches and flip-flops is not the idea of a Swiss Luxury - buying experience.

[Etschell]

Originally Posted by Jocke

It's very strange with Rolex way of thinking. They do a lot of action that will make it difficult fo ther grey dealers.

Next step is stopping access to the popular models, that make the grey dealers earn more than themselves when they sell a popular model.

So the winner is not Rolex in this battle IMHO.

of course not. it only hurts new buyers who support the brand through thick and thin. when the thin comes back guess who will be laughing?

the difference is i dont need to buy a watch but the AD has to sell them. that will never change.

[Chewbacca]

Originally Posted by DARK_KNIGHT

Both sides against the middle?

************************************************** *********


I dunno. They are control-meisters. They control point of production.

They might want to control the actual end buyer (user) experience. When you buy grey , the buyer usually sacrifices the "buying experience".


Waiting on a FEDEX truck and yelling incoming , while wearing your under britches and flip-flops is not the idea of a Swiss Luxury - buying experience.

That, and other things.

[SLS]

Originally Posted by Likestheshiny

A poor taste, perhaps, but not a diminished interest in buying the product. Telling people they can't have something just makes them want it more.

That said, I think you're significantly overestimating how many watch buyers are looking for a specific model. Sure, watch aficionados know exactly what we want, but I suspect the large majority of watch buyers are fairly easily diverted to other models that are currently available, and probably don't even recognize that many models weren't under the glass in the first place.

I will agree with you to a certain extent. When I had finally saved up for my first Rolex, I knew I wanted a Sub. I went into the AD and they had a 14060m, 16610, 16610LV and a 16600 all in the case. I ended up choosing the 16600 because of the lack of the cyclops. At that time I really knew nothing of the brand except images of the Submariner I had seen for years. I was definitely a pre-sold customer and there was no way I would be walking out with anything but a SS Rolex diver. I think trying to put someone into a TT DJ who originally wanted a SS Sub is a bit of a stretch. Which is pretty much what Rolex is forcing the AD's to do and we all hear unhappy the sales people are.

[gccmd]

I don't think there is any intended manipulation on the part of Rolex. Demand is up but the supply has stayed the same. The one positive thing is that Rolex has not increased production at the expense of quality. The balance will be restored when an inevitable downturn in the world economy occurs. Rolex will at least not be caught with an oversupply of watches. While its currently frustrating as a potential buyer its probably good business practice for Rolex. A weaker economy will probably hurt the gray dealers because the demand will be met by the AD's.

[Seibei]

Originally Posted by Jocke

It's very strange with Rolex way of thinking. They do a lot of action that will make it difficult fo ther grey dealers.

Next step is stopping access to the popular models, that make the grey dealers earn more than themselves when they sell a popular model.

So the winner is not Rolex in this battle IMHO.

Can you please be a bit clearer? "make it difficult fo ther grey dealers". As far as I am aware, then Rolex does not have any grey dealers. Grey dealers may sell Rolex watches, but Rolex does not have those dealers.

"Next step is stopping access to the popular models". What does that mean? Stop providing popular watches to ADs, because they might end up with grey dealers? How will not making popular watches available to the market make Rolex a winner?

[Jocke]

Originally Posted by Seibei

Can you please be a bit clearer? "make it difficult fo ther grey dealers". As far as I am aware, then Rolex does not have any grey dealers. Grey dealers may sell Rolex watches, but Rolex does not have those dealers.

"Next step is stopping access to the popular models". What does that mean? Stop providing popular watches to ADs, because they might end up with grey dealers? How will not making popular watches available to the market make Rolex a winner?

It should be "the" grey dealers.

Rolex cut down the production of the popular watches consciously and the AD's only get difficult to sell models.

Where did I say Rolex was the winner?

[Seibei]

Thanks for the reply, J. I think you are misunderstanding me and I am misunderstanding you. Never mind, all the best.

[Jocke]

Originally Posted by Seibei

Thanks for the reply, J. I think you are misunderstanding me and I am misunderstanding you. Never mind, all the best.

I guess your swenglish is not so good as mine.

Have a great Sunday.

[Spam16v]

Originally Posted by DARK_KNIGHT

Both sides against the middle?

************************************************** *********


I dunno. They are control-meisters. They control point of production.

They might want to control the actual end buyer (user) experience. When you buy grey , the buyer usually sacrifices the "buying experience".


Waiting on a FEDEX truck and yelling incoming , while wearing your under britches and flip-flops is not the idea of a Swiss Luxury - buying experience.

How else do you buy one? I was forced to go this route due to lack of supply.

[Lemonvr6]

Wait years? I’d rather pay extra than do some stupid dance with an AD

[JP(Canada)]

Rolex still wins in every way. They sell their product without deep inventory. They might push a few more less desirable pieces to those who really want that crown. And, they are making it more exclusive for folks to own even a middle of the road, commonly seen, sports model. I don't see how there's a bad angle for them in this situation.

[Yobber76]

I don't think Rolex cares at all about the grey dealer market. Rolex sells watches to the AD's, the AD's get put in a position where they have to buy enough watches to keep a favorable position with Rolex, Rolex can restrict SS sport watches limiting AD's inventory to PM, TT, and watches that don't normally turn over as quickly, like a million different variations of the DJ, Exp II's, etc., which I believe AD's are selling more of than they used to, and AD's are bundling these harder to sell items with hard to get watches to sell inventory to the grey market, who sells both the hard to get models for high margin, and the lesser models like DJ's, and PM, TT watches at a smaller discount than before.

Net effect: Rolex sets records, most AD's are selling watches they used to discount to move, at MSRP or close, most AD's I talk to claim they are selling more TT and PM watches than before, grey market seems to be selling Rolex watches for more money than before, the economy is strong, and the world goes round and round. Until the next market downturn, and then the cycle will change, but all the pieces will still be there.

[statsman]

Originally Posted by gccmd

I don't think there is any intended manipulation on the part of Rolex. Demand is up but the supply has stayed the same. The one positive thing is that Rolex has not increased production at the expense of quality. The balance will be restored when an inevitable downturn in the world economy occurs. Rolex will at least not be caught with an oversupply of watches. While its currently frustrating as a potential buyer its probably good business practice for Rolex. A weaker economy will probably hurt the gray dealers because the demand will be met by the AD's.

The Gray dealers have a few advantages. They don’t have to maintain a brick and mortar venue, nor do they need a full time sales staff. They just need to sell watches for a little more than they paid for them. They’ll be ok, in any economic clime.

[Spam16v]

Originally Posted by Lemonvr6

Wait years? I’d rather pay extra than do some stupid dance with an AD

I got a discount too

[Speedbird-1]

The obvious, but impossible solution to this
whole nasty mess, is, don't buy new Rolexes.

Rolex and their AD's NEED your money.
You, me, nobody NEEDS a new Rolex.

They are happily squeezing us.
WE have the power here, let's squeeze back!

As I said though.......impossible.

[Tombstone]

Rolex has bit the hand that feeds them. I have bought Rolex watches from the same two ADs since 1992. These sales people have become my friends, I care for them and they have always done right by me. This past year these fine people have suffered, as much as three quarters of their yearly salary is gone due to Rolex. They work on commission alone and there are no watches to sell. Datejusts are ok but the majority of the people want the professional line. Imagine being in your late 60s having sold Rolex over thirty plus years and now your seeing fhe worst market in your entire career when you need the money most. Let’s cut the Rolex leaderships salary by three quarters and see what they do shame on Rolex, not too loyal to anyone but themselves.

[Chester01]

The winner is Rolex and will be Rolex. They are one of the most recognizable and trusted luxury brands in the planet. While these issues frustrate the few here like myself and others who read this, does not impact the bottom line. If it did, they would shift strategies in a heart beat.

[AK797]

Originally Posted by Lt Virgil Hilts

The obvious, but impossible solution to this
whole nasty mess, is, don't buy new Rolexes.

Rolex and their AD's NEED your money.
You, me, nobody NEEDS a new Rolex.

They are happily squeezing us.
WE have the power here, let's squeeze back!

As I said though.......impossible.

I think in the pre-hype days this forum in particular had influence over WIS buyers and wannabe WIS, but now the market is so inundated with flippers and chancers that our influence is really weak now, so you are only cutting off your nose for nothing if you pass up a watch you really want.

[Muxi]

Here there are no SS sports models too, even some PM references are by order still. Since last month the policy seemed to be no more discounts even for Datejusts.