Head Of Rolex UK Spills The Beans

[brandog]

Interesting Youtube video of a watch enthusiast who attended a VIP Rolex event in London. Supposedly the head of Rolex UK was at this dinner and he was able to ask him a few questions. The YouTuber claims that the head of Rolex UK said Rolex is aware of the shortages, waitlist issues etc. and they are essentially going to do nothing about it.


https://www.youtube.com/watch?v=xGb3VXTzLrw

[Luap1976]

There is all ready a thread about this

[Noonan]

I don't think there was ever a doubt that A) They were aware and B) doing it on purpose.

[Gaijin]

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

[Turb0wned]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in.They are just going out the back door or bundled.

Rolex and the ADs have found a sweet spot to maximize profits.

There is no shortage at greys.

I'm so glad someone on here understands whats really going on. People on here and the facebook groups keep throwing the words, "rare" "shortage."

[Pw92676]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona to anybody at MSRP.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

I think your summary is spot on.

[Harry-57]

Originally Posted by Noonan

I don't think there was ever a doubt that A) They were aware and B) doing it on purpose.

Doing what on purpose? Selling everything they want to make? Shameful!

[Calatrava r]

They do not intend to do anything about it. We know that by now.

[Brew]

ADs have always invested in Rolex so they can sell other stuff. They've just found a better way to make that happen and to ensure a return on their investment.

[Calatrava r]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

The fact you can buy any hot Rolex model on-line used for a premium does not suggest to me all the product is ending up on line. If that were the case, Rolex would be making only a few hundred watches per year given the number of watches on line at any time. There are hundreds of thousands of these watches being produced each year most of which are sold at retail to buyers who hold them for a while at least. I do believe overall SS sports production has been intentionally reduced by Rolex creating the intense demand and high margins on re-sell which begets more flipping for a quick profit.

[Rosex]

Originally Posted by Harry-57

Doing what on purpose? Selling everything they want to make? Shameful!

That! Rolex does not need our help or tips in running their business.

Most people bitching are actually not their target market.

[tgyberg]

Originally Posted by Harry-57

Doing what on purpose? Selling everything they want to make? Shameful!

How dare they!!

[ippon20]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

This ALL DAY.

[Noonan]

Originally Posted by Harry-57

Doing what on purpose? Selling everything they want to make? Shameful!

Limiting production to create a buying frenzy. If Rolex wanted to meet the demand of sport models, they could very easily. This isn't a case of them not being able to make enough to supply demand. It's purely artificial to inflate the prestige of the brand.

[GP13]

If you have a relationship with your AD, they will tell you sales numbers have increased and they are actually getting just as many or more professional models. Rolex has not reduced production. Demand is higher!

[904VT]

I think if Rolex limited purchases of allocation models to local and regional market only clients and developed a client database they could alleviate most all these issues. It's free publicity though too.

[123Blueface]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

What I have been saying for a while but.........still so many “shortage” believers it puzzles me.

[Noonan]

Originally Posted by 123Blueface

What I have been saying for a while but.........still so many “shortage” believers it puzzles me.

They want to believe they have something rare and exclusive rather than realizing that Rolex could literally flood the market with Subs if they wanted.

[Roddypeepa]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

I agree with all of this. And that’s what these “sympathy for ADs” threads are a bit much. Granted, I’m sure their commission takes a hit as they go quietly out the back door but they’re still flogging anything halfway desirable. Rolex certainly do know where these are coming from but have done very little to stop it short of making a few ADs hold warranty cards etc. There must be some who are selling just about every desirable model they get to friends and family or sending them straight out the back. Rolex been as effective in stopping this as the UN telling the leaders of hostile states they are little thinkers and appealing to their better nature - pointless.


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[jkesquire]

https://www.youtube.com/watch?v=yOh5-rAZO9E

[mepstein10]

Originally Posted by GP13

If you have a relationship with your AD, they will tell you sales numbers have increased and they are actually getting just as many or more professional models. Rolex has not reduced production. Demand is higher!

Correct. Definitely the case in the bay area. More people buying means less watches in the cases.

[Lemonvr6]

Originally Posted by 904VT

I think if Rolex limited purchases of allocation models to local and regional market only clients and developed a client database they could alleviate most all these issues. It's free publicity though too.

Some of you have the issues, not Rolex

[Locust]

Originally Posted by jkesquire

https://www.youtube.com/watch?v=yOh5-rAZO9E

A guy in his backyard reading an email? Seriously?

[oldman2005]

Of course Rolex is not doing anything because this is Rolex sale strategy for the past 2 years: Less SS sport and much more DJ/TT/PM which are Rolex bread and butter, Your AD cannot survive selling a few SS sport a month so does the multi-billion dollar Rolex Corporation. Profit is being maximzing pushing the higher profit margin watches.
This a great thing for many as it causes the increase retain value of your SS sport pro watch. Great bussiness for Rolex and ADs and unrealized profit for SS sport pro owners

[Swaye]

It is what it is. Nice to have what half the serious Rolex collectors already assumed psuedo confirmed I guess. Rolex is just going to make what they make, in the numbers they make them, and if tens of thousands of people can't get the watch they want at MSRP, oh well. It sucks for me and others, but I don't blame Rolex. They are doing what they think they need to do. I wish it was different, but only marginally at this point tbh.

I'm still having fun looking at PAMs and Speedy's and sitting on the list for a Daytona and SkyDweller. To be completely honest, there are so few Rolex left that I am interested in at this point it doesn't really impact me that much. Other than the fact that it would still be nice to walk into an AD and get to look at watches I enjoy. Meh...

[DPE]

As we say in England about this, "No shit Sherlock", the head of Rolex UK is going do nothing about this !

[Fleetlord]

Originally Posted by oldman2005

Of course Rolex is not doing anything because this is Rolex sale strategy for the past 2 years: Less SS sport and much more DJ/TT/PM which are Rolex bread and butter, Your AD cannot survive selling a few SS sport a month so does the multi-billion dollar Rolex Corporation. Profit is being maximzing pushing the higher profit margin watches.
This a great thing for many as it causes the increase retain value of your SS sport pro watch. Great bussiness for Rolex and ADs and unrealized profit for SS sport pro owners

This might be a painful and unfathomable concept for many a WIS, but an $8500 Stainless Submariner Date is really NOT what Rolex wants to sell. It might be what a WIS wants to buy because of all the lore and nostalgia associated with it, but Rolex (and AD) would much prefer you to buy a TT or PM version of that watch....and buy them the general public are..

The general public was always willing to spend MORE on a Rolex...now Rolex is helping them do so..easy as that.

[inadeje]

What amazes me is that (some of?) my fellow forum members honestly think that Rolex has its head in the sand. Let it be said that this gigantic company will have a whole team dedicated exclusively to business intelligence. They know everything, I mean “every single thing”, for every world market, every idiosyncrasy, every detail, all the time...

[Navarino]

https://www.rolexforums.com/showthread.php?t=682101

Link to a thread from yesterday about the same video.

[Dr. Robert]

Originally Posted by Fleetlord

This might be a painful and unfathomable concept for many a WIS, but an $8500 Stainless Submariner Date is really NOT what Rolex wants to sell. It might be what a WIS wants to buy because of all the lore and nostalgia associated with it, but Rolex (and AD) would much prefer you to buy a TT or PM version of that watch....and buy them the general public are..

The general public was always willing to spend MORE on a Rolex...now Rolex is helping them do so..easy as that.

Good point