A Dealer Told Me Today...

[1kw]

I was on the phone with a dealer today who told me that they received word from Rolex that production is going to continue to be low for awhile to try and starve grey dealers of inventory and make sure watches go to people who are not looking to flip them. If this is true it may be a year or more of these long wait times for the most desirable pieces. I have no way of knowing if she was telling the truth but wanted to share nonetheless

[2nastie]

Face palm...



A dealer told you a whole lot of nothing bud...

[tyler1980]

Originally Posted by 1kw

I was on the phone with a dealer today who told me that they received word from Rolex that production is going to continue to be low for awhile to try and starve grey dealers of inventory and make sure watches go to people who are not looking to flip them. If this is true it may be a year or more of these long wait times for the most desirable pieces. I have no way of knowing if she was telling the truth but wanted to share nonetheless

if it was a drug dealer and the supply was cut wouldn't prices go up if you had to go to a secondary drug dealer to get your product? Why would a Rolex dealer be any different? Cutting supply increases premiums and grey dealers just make more money per watch. Rather than have to source 10, they can source 2 and make as much money.

[t65tampa]

Originally Posted by 2nastie

Face palm...



A dealer told you a whole lot of nothing bud...

That's so right! Might as well have been a cab driver telling you that on the way to the Rolex dealer. We'll never know what Rolex S.A. has in store for us or what their plans are. That is a pretty reliable constant in life.

[lamnyc]

Yep, grey dealers will make more.

[101031-28]

So whatever bit the AD gets will go to the Greys... Brilliant plan! SMH

[tyler1980]

Originally Posted by lamnyc

Yep, grey dealers will make more.

and individual flipping increases. Secondary dealers get watches direct from AD's and also get watches from individual flippers who get AD watches. The higher the price the more people in the flipping business. It will have the opposite effect OP is suggesting.

[ashokleyland]

Originally Posted by tyler1980

if it was a drug dealer and the supply was cut wouldn't prices go up if you had to go to a secondary drug dealer to get your product? Why would a Rolex dealer be any different? Cutting supply increases premiums and grey dealers just make more money per watch. Rather than have to source 10, they can source 2 and make as much money.

Nice analogy, illegal drugs and watches.

[penguinrolex]

Originally Posted by 1kw

word from Rolex that production is going to continue to be low for awhile to try and starve grey dealers of inventory and make sure watches go to people who are not looking to flip them.

ROFL this is such a terrible idea that it might be true. So now EVERYONE will pester their AD to get the rare model, because they can trade or sell it to a Grey dealer. Meanwhile Grey dealers keep getting from their usual sources.
At what point does a luxury watch store decide to stop carrying Rolex, because it's too expensive dealing with all the calls and walk-ins trying to find a watch that they can flip?

[Jmbarrack]

I had a similar interaction with an AD inquiring about a professional model.

Was told the same thing about gray dealers.

So I went to a gray dealer and got what I wanted.

Seems like the strategy is working.