The actual reason of current price madness

[DanielBoncu2902]

Very interesting discussion between me and rolex boutique yesterday when I purchased my wife her birthday gift.

He said that their sales these past 2 years have gone up significanly. This fact shows that rolex never slows down the production but the demands just grows up much faster than it production number. He can not count how many more people come both from WIS and no WIS to ask about sport rolex

He also said, the number supply from Rolex always be the same from the beginning. They get around 10-15 sport rolex every month.

I think if what he said is correct, this kind of madness will continue for a very2 long time

[Boaters]

It seems as it has been going on for some time now. I guess your either a player or you aren't. It is getting old and you see more switching to different brands.

[rich_harris]

I had a similar conversation with my AD and they said that Rolex have been making the same amount of sport models that they were making a few years ago and that they have not slowed down their production. The brand has just got so popular lately and social media is a contributory factor.


Sent from my iPhone using Tapatalk

[DanielBoncu2902]

Originally Posted by rich_harris

I had a similar conversation with my AD and they said that Rolex have been making the same amount of sport models that they were making a few years ago and that they have not slowed down their production. The brand has just got so popular lately and social media is a contributory factor.


Sent from my iPhone using Tapatalk

So the first possible reason to stable the price is when rolex expand their production output. Otherwise, this madness will remain. Unless, market crash.

Well, when market crash everything burst though

[rich_harris]

Originally Posted by DanielBoncu2902

So the first possible reason to stable the price is when rolex expand their production output. Otherwise, this madness will remain. Unless, market crash.



Well, when market crash everything burst though

It would make sense for us - but I don’t think they will because it could de-value the brand if they were to flood the market with sport models.


Sent from my iPhone using Tapatalk

[beshannon]

Originally Posted by DanielBoncu2902

I think if what he said is correct, this kind of madness will continue for a very2 long time

Good!

The day a Rolex watch is easy to get is the day I lose interest.

[Ljung]

Main reason: more women wear like men (i meant watches)

Rolex sports models used to be sufficient to satisfy men's desire, but since female started acquiring sports models.... There you go...

[jsausley]

It's actually smart decision-making from Rolex to keep supply at similar levels despite increasing demand.

A Rolex is a luxury purchase. People can wait for it to get what they want. This isn't a Samsung smart phone. If you had a demand higher than supply for a smart phone, people would go buy another smart phone because they need it NOW and you'd lose a sale. That's not happening with Rolex because there is no IMMEDIATE NEED for a Rolex, and furthermore there is no alternative for a luxury purchase (whether it's a Rolex, a Patek, a rare Hermes bag or even a Ferrari 488). Even if a customer does go and buy an Omega in the interim while he waits for his Rolex to come in, more than likely, he will still buy the Rolex when it becomes available because he still wants the Rolex.

The current market is frustrating, I get it. But I don't believe anyone is becoming so turned off of Rolex that they would refuse to buy a hot piece that they wanted just because it came up for sale 6 months or a year later than they had originally intended to purchase it.

This business strategy is great for the long term health of the Rolex brand. If Rolex were publicly owned, stockholders would want to produce more watches so that they got more value out of the stock. But this isn't the case with Rolex. Their decisions are made with the next 50 years in mind, not the next quarterly report.

[Spoonage]

I think the reason there is a madness in prices as you state it is because people are willing to pay those prices. Stop paying the obscene prices and the prices will come down. Or wait and get it from an AD at MSRP.

[ferrissteve11]

But given there's an option to have it NOW, albeit at a premium....well gray market prices are going to continue being what they are for the discernable future. Definitely a seller's market at present.
And there was a comment made earlier 'the day a Rolex becomes easier to get is the day I lose interest'. Its not like these are commonplace items. Very few people in actuality will ever be able to own a Rolex. It's not like they're an inexpensive item.

[rmlovett1]

Originally Posted by beshannon

Good!

The day a Rolex watch is easy to get is the day I lose interest.

⬆️⬆️⬆️⬆️ Agree! I think some level of exclusivity is necessary for Rolex for many reasons. I think next to impossible to get is a little ridiculous, but some level of exclusiveness is necessary for the brand. IMO

[Fallranger]

It has to be about exclusivity. It’s a private club and insiders will always get the best deal.

[Relentless]

Walked into an AD this past week - 126711CHNR sitting in the case!!

Did not buy it but was surprised to see it there. The market will work itself out. Hoping for a correction in the securities markets. Have a good one guys and gals.

[OcdRob]

The economy will eventually slow down and the demand for Rolex watches will as well. Rolex knows what they are doing. If they flooded the market like some other brands the value retention would not be there. Without the great resale value in relation to msrp I would not be a buyer. Im not a flipper but its nice to know I dont lose $5k on a $10k watch the minute I walk out of the ad’s doors.

[Dlong]

Originally Posted by Ljung

Main reason: more women wear like men (i meant watches)

Rolex sports models used to be sufficient to satisfy men's desire, but since female started acquiring sports models.... There you go...

My wife rocks a 41mm DJ with blue dial.

[ltmgeller]

You all make valid points. The Rolex strategy is for the long haul. Look at Breitling. They over produce models which don’t retain their value.

[Sublovin]

Originally Posted by rich_harris

I had a similar conversation with my AD and they said that Rolex have been making the same amount of sport models that they were making a few years ago and that they have not slowed down their production. The brand has just got so popular lately and social media is a contributory factor.


Sent from my iPhone using Tapatalk

The only real factor is the overall economic strength of developed nations. Let’s see what happens when a cyclical downturn comes like 2008....

[DanielBoncu2902]

I thought rolex was the one who limit their supply. Knowing the fact that they didnt, I kinda understand that Rolex is indeed the main trigger who help other brand sport model's price going up and become more popular such as AP Ro, Patek Nautilus and Aquanaut.

Thank you Rolex!!!!!

[DanielBoncu2902]

Originally Posted by Sublovin

The only real factor is the overall economic strength of developed nations. Let’s see what happens when a cyclical downturn comes like 2008....

I live in developed nations though. You are pretty much correct, and US market boom makes it worse (or better). We demand more, you guys who lives in big country also demands more.

[DanielBoncu2902]

Originally Posted by Spoonage

I think the reason there is a madness in prices as you state it is because people are willing to pay those prices. Stop paying the obscene prices and the prices will come down. Or wait and get it from an AD at MSRP.

It is impossible to do now. When market goes up nothing will slow it down unless demand meet supply.

How to stop if you buy something 50% above MSRP and still having a chance to flip it with profit (i am talking about Daytona C)

[Spoonage]

Originally Posted by DanielBoncu2902

It is impossible to do now. When market goes up nothing will slow it down unless demand meet supply.

How to stop if you buy something 50% above MSRP and still having a chance to flip it with profit (i am talking about Daytona C)

Not impossible. Stop paying grey prices and buy from an AD at MSRP. Problem solved. Luxury goods are worth what someone is willing to pay... If no one is willing to pay ridiculous prices the market will adjust. People need to learn how to be patient. I don't need to be the first to have something... I was able to get a white DaytonaC at MSRP with a 3 month wait, no down payment, no crazy list, no BS...

[HogwldFLTR]

Rolex would never admit to prejudicially affecting supply and demand of their product even if they did. All that any AD has is the company line. Rolex is one of the blackest of black boxes. Only insiders know what is true and that information is protected ferociously. All the other conversation sounds like one more rehashing of economics 101.

[DanielBoncu2902]

Originally Posted by Spoonage

Not impossible. Stop paying grey prices and buy from an AD at MSRP. Problem solved. Luxury goods are worth what someone is willing to pay... If no one is willing to pay ridiculous prices the market will adjust. People need to learn how to be patient. I don't need to be the first to have something... I was able to get a white DaytonaC at MSRP with a 3 month wait, no down payment, no crazy list, no BS...

What i mean by saying impossible is literally impossible. Everybody has a right to spend what they earn. Who have a right to stop them?

It actually depends on where you lived. I spent so much in my rolex boutique, order a daytona C since mid 2017, and still now news from them though.

[ALF61]

Originally Posted by DanielBoncu2902

What i mean by saying impossible is literally impossible. Everybody has a right to spend what they earn. Who have a right to stop them?

It actually depends on where you lived. I spent so much in my rolex boutique, order a daytona C since mid 2017, and still now news from them though.

He is suggesting people stop paying above MSRP. But as you say you cannot force someone to that nor will it stop while the watches continue to be so appealing and worthwhile for those paying massively above MSRP. I have a feeling Rolex has taken note of this for some time and a price increase (MSRP) might be on the works for 2019. Hurry, buy all you can, prices may never be this low again LOL !!

[ROLEXster]

Originally Posted by Spoonage

Not impossible. Stop paying grey prices and buy from an AD at MSRP.... I was able to get a white DaytonaC at MSRP with a 3 month wait, no down payment, no crazy list, no BS...

If genuine customers can get D500C with 3 months wait from AD for MSRP... I am sure they will wait.

The only people that can bypass the phantom waitlists are high rollers and relatives ... or Greys.

[For the Lulz]

Originally Posted by beshannon

Good!

The day a Rolex watch is easy to get is the day I lose interest.

They're lumps of mass produced metal. They've always been easy to acquire. You would just have to be prepared to pay a premium.

Also, I don't understand your point of view, could you expand?

I don't want a Rolex for its 'exclusivity', I want it for its build quality and heritage, and the service interval. A product backed up by a respected warranty.

The fact a stainless steel sports model is hard to acquire from an AD should have no impact upon your like for the product. That seems like an awfully snobbish opinion...

[Spoonage]

Originally Posted by ROLEXster

If genuine customers can get D500C with 3 months wait from AD for MSRP... I am sure they will wait.

The only people that can bypass the phantom waitlists are high rollers and relatives ... or Greys.

I am neither a high roller, relative, or grey dealer...My relationship with my AD is not purely based on $$$... Quite opposite I think and I can guarantee they have clients that spend more in a day than I have in 4+ years of purchasing. While it may not be the norm, it can and does happen.

[DanielBoncu2902]

Originally Posted by Boaters

It seems as it has been going on for some time now. I guess your either a player or you aren't. It is getting old and you see more switching to different brands.

Some people thing that this madness is because rolex limit their production to increase the price. I just want to share information I got that this is not true.

Supply is still the same.

[Etschell]

Originally Posted by DanielBoncu2902

Some people thing that this madness is because rolex limit their production to increase the price. I just want to share information I got that this is not true.

Supply is still the same.

Doesnt suprise me rolex is conservative. They refuse to acknowledge the macro economic environment but it works for them.

[steeevvvooo]

Some models are always going to be in demand. Daytona 15 years ago... I recall seeing pre owned Zeniths for very reasonable prices, less than the then current model which was selling for strong money due to a wait list. Now good ones are like gold dust. 10 years ago (I believe as I wasn't in tthe market for one at the time...) 5711 we're available for below list pre owned, now they are almost 2x the new inflated retail price.

In recent years, in my opinion, low interest rates have fuelled massive consumer spending. "Why put cash in the bank and earn poor returns when you can enjoy it?" Add in the fact that there are plenty of 30 something's (I am 36 so not discriminating) who have never really experienced a severe downtown in markets and economic expectations but are now becoming financially comfortable and have disposable income for luxury goods. Even the older millennials were barely into employment last time a crisis hit. This gives many newly financially secure people little fear and the view that long term process always go up. Housing, classic cars, luxury watches... Everywhere you look.

If people were not convinced of strong future values of Rolex SS there would not be insane waitlists. It won't take much softness to stop the speculators, and there could be, snowball effect, with some (not all) waitlists pieces seeing availability. E.g. 5712 im precious metals are popular now and I was considering buying one this week. If you could get a 5711a or 5712a within 6 months at list would these PM pieces be selling at a premium? I doubt it!