Reply With QuoteI've heard it said that ADs are hiding the SS models in the safe, until the imminent (allegedly) price rise.
If that were true, it would suit them to blame the mother ship of course.
Interesting conversation with AD saying that supply of SS sports models is being restricted and will only be getting worse in the future.
This has made some sense as I have visited numerous AD and no one has any SS sports you can easily set various gold derivatives but not steel.
Looks like Rolex are controlling their market again....
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I've heard it said that ADs are hiding the SS models in the safe, until the imminent (allegedly) price rise.
If that were true, it would suit them to blame the mother ship of course.
Daytona and D-Blue appear to slow to come through but can say the two AD I frequent have said they are receiving the usual amout of Sub's and GMT's but they just never make it to the window due to increased demand.
They supposedly cut the production of sports Rolex by 50%
I think they trying to go back to the old days where you never saw a sports watch in the window but can go on the list.
I remember around 2001 I asked for a sub non date and they said 10% down and will ring in 2 years when it comes in lol
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This.Originally Posted by pitbull666
Someone more knowledgeable might be able to clarify, but as I understand it the majority of AD's don't own the Rolex in their windows. However some of the bigger AD's like Weir's in Dublin go to Geneva annually and buy stock from Rolex directly. I can see how the former might be easy to restrict but not the latter. Is my understanding correct?
In regards to this all AD's have to own and pay for there stock. Granted they get I think 30 days from invoice but they do have to pay for it. Some major heavy hitters will occasionally will be allocated large or eccentric pieces on appro but that's the extent of any free stock and is only done because the brand want these pieces out there.
This is why they proceeded to make to changes such as in store boutiques - shop in shops and minimum pieces being held - to only have the super heavy hitters (or supposedly - such as major chains), then once they realised that a lot of what They believed were not major players had the funds to do this, they started closing good, loyal and historic stores whom have had the brand for more years then any of the perceived mentioned above stores.
Although I 'think' the actual Rolex boutique don't own there stock but they are run by the brand distribution according to country so ....
For your info - these changes were done to try and make the brand more exclusive and controlled - sales and discounts
Rant - so basically companies with loads of brands and whom generally are up there own arses and believe you should be grateful they sell you a watch now have the AD ship and so when you ask for a deal, because you work hard - that unknowledgeable 'toaster' wearing a borrowed / loaned or 50% off RRP watch - can say - hmmm we don't discount as we are not allowed or there is no margin in them, plus we don't do that or we don't need to (hate, hate this)
Hope this is useful ?
(Just to cover myself, this is a generalisation and from my info and in no way aim towards any impurticular parties - as there are still many great AD's out there with this brand and many others)
Last edited by Jonathan_Brett; 2nd October 2016 at 13:36.
I heard they are going to stop making SS models.
I heard production is moving to India for the cheap labour.
Rolex Old Bont St has a 5 month wait list for the ND Sub. Damn
Eric N Smith (Glasgow AD) had a ND in their window earlier this week
Goldsmith - Canterbury, had one in the window yesterday.
Is it just me or does this not seem right? Sure, you control the flow of goods into the market bug not at the detriment of sales. I wonder how many buyers look elsewhere when told the wait for an SS model is long. Okay let's accept that lots of people only want a Rolex but if you have that sun of money at your disposal it makes sense to see what's about. Are Rolex happy to think that they could lose (for example) 1 sale in 10 to another brand simply because they want to control a market? Surely they cannot help their cause if they actually cut the number of watches manufactured. Sounds crazy to me. I don't buy the idea that they have enough money to not care. Seems a bit daft and more an associated myth with a company we perhaps give a little too much credit to. Don't get me wrong, I like them and own one and would probably have another but all of these tales and legends are a bit over the top.
Raised value through exclusivity.
How come this was not on front page of all the news papers??
I was merely trying to help the previous poster who appeared to be looking for one, that he may wish to make further enquiries but as usual, some smart-ar5e feels the need to pollute a thread with needless inane comments!
I think the OP has been taken in by normal sales staff BS. There are plenty of SS models in both AD's in Cardiff or were last time I looked.
I see what you are saying but they don't put up the price accordingly. Is it worth not selling 100 watches for the raised value perception. I'm talking in real terms. If everybody on TZ who has talked about buying an SS model in the last week old buy one today and did, would that not be better for Rolex? I use TZ as an example only.
It's only a few SS models that are scarce, the ones currently "trending"... you can walk into any dealer and get a SS sports model, perhaps just not the model you want... or think you want because everyone else wants it? See how it works...?
Anyone who wants to know the motives and benefits of strategically limiting supply in a market need only look at diamonds. Were they all released on to the market diamonds would be worth buttons.
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I appreciate how it works, don't get me wrong. I just wonder how many sales you would realistically be prepared to lose in order to operate like this. Clearly it does Rolex no harm and perhaps it seems worse because we focus on the SS models which are not their biggest seller. It just had me wondering really.
Is India undercutting the Chinese now? Sneaky.
Cheers..
Jase
With all the talk about the scarcity of SS Rolex, I decided that I want a BLNR. So went to two ADs, one put me on the list, said 3-4 months maybe. The other one said, he needs 20% down and said has 7 people on the list. Time quoted was again 3-4 months. I tried to explain that I did not want to put money down for so long and without guarantee on price, but he said that's the only way to be on the list. I bought a SubC ND 3 months ago from him, put 20% down, but he got the the watch in 4 days.
So to above comments, I am either getting the BLNR at UK RRP before the raise, or not at all. I have enough watches to wear until I am alive. I am not interested in paying close to £1,500 markup to WF to get one immediately.
I put my name for my BLNR in January. Had the call a fortnight ago to say my luck was in and I collected the watch last week. No money went down in advance but clearly the wait was a long one at 9 months.
I've heard others have waited only a few weeks but perhaps this reflected my AD and my own lowly status as one of their customers? Anyway, very happy given its worth more than a paid for before any imminent price rise is factored in.
They are, all our cleaners were Chinese, it's now far cheaper to use Indians.
mike
I brought a batman GMT a few months ago. Watch was in the window of the AD and I even got a 50% off a service for one of my other rolex's As part of the deal. Did the same 2 years ago with a hulk just walked in and asked to see the one they had in the window. Either I m extremely lucky or the watches are there and most of this is hyped fuss.
Is there a difference between what you want and what you think you want? Surely they are the same thing, you want it!
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I think India are buying Rolex:-)
Like Jaguar:Land Rover etc.
And , the Chinese might just take you to the cleaners.
Last edited by RAJEN; 2nd October 2016 at 18:51.
As I said I have visited a lot of AD and spend a considerable amount with my local AD when he tells me they have restricted supply and it will only get worse I believe him.
It's a bit different from Rolex in the 70s when watches like Sea Dwellers would sit around for years at a time.
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I think different parts of the country fare differently. The only SS model I have seen in the window in recent times that is hard to find, was a Hulk in Manchester. I own a BLNR but I have never seen one in a window. I travel to Manchester two or three times a month with work, and I always walk round the ADs while I'm there. I also go to London once or twice a month and will usually tour as many ADs as I possibly can while there. If I'm lucky there's a black GMT or a SS Sub to look at.
Interestingly I was in Spain back in August and I didn't see any SS sports models there either. A few ADs had some references hidden in away in their safes, but in general there was very little to see.
On the flip side, one of my friends saw a SS Daytona (116520) in the window of Prestons Wilmslow a while back, and I know a couple of people who have seen a D Blue or two on their travels in the last year or so.
Pssst. I just heard from a source on the inside that Rolex is going bankrupt due to loads of unpaid taxes in Switzerland. Better buy some watches quick, they'll be history in no time. But you need to keep silent about this, it is really top secret. Promise?
Tosh 🙄
My AD is also saying there is more restriction on SS sports models. They are presented with a list of what they can order for the month and they tend to purchase whatever allocation they are given.
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It seems that you mainly see the same models in the shop windows. Even in Hong Kong that has a Rolex dealer on each corner I did not see a single GMT BLNR.
Not the same thing for some people.
The fact that an item is hard to get causes some folks to want it even more. Some are simply attracted to the exclusivity of owning something that others can't get because it's not readily available. These are powerful motivating factors for certain people, they'll go to great lengths ( and expense) to satisfy their desire. Once they aquire the item they are disappointed, they find they're not that keen on the item despite being convinced they really wanted it. For others, the exclusivity is satisfaction in itself and they're happy to own the item for this reason; they actually believe they like the item but subconsciously it's the elitist appeal of the rarity that's giving them a warm feeling.
This happens a lot with collectibles, where the exclusivity is a major part of the attraction. By restricting supply of certain models Rolex are able to create a similar appeal for a brand new item, which is rather clever marketing.
If Rolex made the BLNR and the new Steel Daytona readily available I'm sure some of the folks who are craving to own one wouldn't be so bothered, and some of the lucky lads who've aquired these models wouldn't find them quite so appealing without the exclusivity. Some won't admit this, even to themselves.
Maybe I'm just an ageing cynic!
Paul
Last edited by walkerwek1958; 3rd October 2016 at 09:46.
Let's face it, Rolex numbers are not truly restricted.
It used to be that they went too far and models such as the right Daytonas could be sold by new owners at a significant premium as you walked out of the AD door with your new watch.
Realising that they were leaving money in people's pockets, Rolex has mercilessly persecuted a strategy of maximising income for effort with a continuing campaign of pseudo-restriction (effectively just waiting list management) and never-ending price increases.
It is noticeable that it is mostly the models that appeal strongly to the male competitive ego that are "restricted". The SS sports models.
This keeps desirability on its upward trajectory.
I have no issues with the quality of their watches, but Rolex is a monster commercial entity.
It could easily reduce all waiting lists to zero if it so desired.
But it doesn't, as it knows damn well that a level of cachet is attached to the "exclusiveness" of making people wait.
Dave
Rolex will not have unlimited production capacity. They can apparently manage something between 600,000 and 800,000 watches each year. That is a very large number of watches, which suggests the 'restricted supplu' cannot be very restricted.
Note also that the big sales are not in the forum favourites, but the traditional models such as the Datejust.
If Rolex didn't make a single Daytona, they would just sell more of another model. The short supply clusters around a few watches, which, as pointed out, sell to middle-aged enthusiasts. In truth, with a little patience, you can get whatever you want. No different to ordering a Range Rover, or any prestige car. You have to wait. Good for the soul!
Also it seems the situation is much worse in the UK. In the US, at least when I went 2 months ago, not only did I manage to buy 2 SS Rolex Daytonas (116520) at once as they were in the safe of the authorised dealer, they had the HULK, BLNR and both subs ON DISPLAY (At an AD, not grey!). Ofcourse the US retail price + Tax makes it somewhat more expensive than UK list but i feel in other countries the situation is not as dire as we have it here. Most likely its this weak GBP really hitting it hard, and Rolex most likely don't want to sell too many watches here in the UK, at least the SS ones, they prefer to sell it elsewhere for more money which makes sense. Selling a BLNR or Daytona in the UK is far less profitable then selling it in EU or US. If I were head of Rolex distribution, I would probably take a similar strategy and send most SS watches to US or Japan where currency is strong, and reduce in UK where £5950 for a BLNR is peanuts compared to the amount i get in other currency.
Pauls post above is spot on in my opinion.
At least Rolex can forecast sales accurately for certain SS Sports model sales in the UK at least !
But it doesn't raise the value. They have a fixed price to buy at.
So restricting supply would lead to a drop in sales and company profit.
Who runs a company based on such a business model.
They're punting them out to where they sell for more due to currency exchanges, not exclusivity.
Last edited by steptoe; 3rd October 2016 at 11:38.
Steptoe
Rolex want to sell their watches via boutiques. ADs and Grey dealers will allow discounts which devalues the product.
By restricting demand, the margins rise and profitability is retained.
Rolex want to sells to a guy who walks in, buys the watch he likes and pays without querying the price.
The guy who wants a good deal, goes to a grey dealer which distorts the market. True Rolex in effect get a quick sale, the original AD and the grey dealer have made a quick buck but some cheapskate is squawking on the internet how he got 20% off the price. That is the last thing that Rolex want and they are now realigning the market to what they want it to be.
Regards
Mick
Source please?
A few of use are still waiting for you to link to the Rolex rushed modification, if you could post it up please?
Manager of Preston's of Bolton in Leeds told me. But I have heard from other sources too how true no idea
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This has gone on for several years, so why are they only acting now? Somehow I doubt it's that simple.
Paul
Tokyo Tokei made the same point elsewhere on this forum – that in Japan, these ‘rare’ models are everywhere and the strange “you must join a list” attitude of ADs doesn’t exist.
Paul
If you walk into a Rolex boutique, you can view virtually every watch going but you will not get a discount.
If you walk into an AD or Grey dealer, you will see a limited amount of Rolex but you can haggle what is there. Also you can usually look at other competing brands which is not good for Rolex.
Controlling the retail via boutiques makes perfectly good sense and protects the brand which is a key objective.
It is slowly happening with ADs slowly being squeezed out.
Regards
Mick
It's about the knock-on effect on brand image, not necessarily short-term revenue. I personally think that Rolex might be trying to become a bit more exclusive again. Other than for the really special items, Rolex no longer means luxury because everyone and their grandmother can and will buy one these days (which certainly isn't helped by the crazy second hand prices). Exclusivity would also allow them to justify higher prices, and I'm sure they don't want to end up in Omegas position of being the common mans rich watch. I could be way off mark, but just my thoughts.
You already read copious articles about subs which are very clear about saying do not expect to be the only one in the room wearing one. they're no longe seen as anything unique or special, just "another sub" (in terms of the reality of people often buying luxury watches in order to stand out and make a point)
Last edited by hafle; 3rd October 2016 at 12:48.
How do you make a bar / nightclub appear popular? Control how long the queue is outside...
Seriously though, my guess is that it's the rumored price increase (is that just amongst WIS types or are all potential customers aware of this) coupled with the exchange rate that's causing this, though it'd also be foolish to think that Rolex doesn't have a hand in it as well. My local AD hasn't had any diver variant in their window for yonks though I haven't been in to ask why, I don't frequently pass any other AD so I can't comment through personal experience if it's just a one off. Perhaps Rolex are playing the market with the currency devaluation, though if that's the case why don't they do that with a supposedly more popular model like the DJ?
I dont think Rolex is cutting supply at all. I just think they are sending LESS to the UK but sending it to other countries. Even if they can sell in the UK, the profit is far less here than they could get elsewhere so why sell in the UK.
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