A surprising conversation at the airport

[Robison347]

Yesterday I was standing in the boarding line at the airport, and I got to talking with the fellow in front of me. Both of us had come down from Vermont, and we were both wearing Rolex watches. I observed he was wearing a Batgirl, which is a fairly new release, and I asked if he’d gotten it from Perrywinkle’s, the authorized dealer in Burlington.

No, he said, he’d had to buy it online. I expressed some surprise, since we were two fellows in our 60s and I was a bit surprised an older Vermont resident was not buying watches from the regular dealer, as opposed to paying the premium in the grey market.

Well, he said, my company gives Rolex watches to employees for years of service. His watch happened to mark 30 years, and one of his duties was overseeing the program that awarded them. Rolex won’t do corporate partnerships, he told me (this was a large multinational company we all know) and we needed 38 watches. It was a job finding them, and on average, we paid double the list price to get brand new in box, which we then got engraved.

I did talk to some dealers a long time ago, he continued, but they could not get 30-40-50 of anything, so it never went anywhere. So his company ended up paying roughly a $400,000 premium to get all those watches that year.

It was a bit eye opening to hear that. Sure, people are buying watches from resellers when they don’t want to wait for the dealer, but it never occurred to me that big companies and other groups find themselves in exactly the same position, and on dozens of watches, that adds up.

[996marty]

What a great story and it sounds like a great company to work for. That really is a nice surprise for putting in long service and an expensive way of the company to do it but good on them

[116510lv]

Do they have any vacancies.

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[MarioB83]

Originally Posted by 116510lv

Do they have any vacancies.

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30 years wait list, sir

[mpkRolex]

Great story. Well now we know that it is not just the watch collectors and enthusiasts but also corporations pushing up to Rolex gray market prices


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[subtona]

Originally Posted by MarioB83

30 years wait list, sir

[Colorado_kid]

Interesting story. Thanks for sharing.

I’m surprised the company wouldn’t just swing for Datejusts as those can be ordered from the ADs quite easily.


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[kilyung]

Surprising any companies still do this

[sambb]

seems like maybe an older company with older management - newspapers, fax machines, etc. Watches as corporate gifts seem outdated, and women and men in the workplace might desire something different... I know of a company that gave ties to their workforce, but now with a large percentage of women and with more casual dress, ties are outdated

That being said, if the goal is to give a rolex - kudos to them for getting them in any way they can! I know of an individual who purchased 10 DD40s as a gift, and had to work with a gray dealer to get all of them.

[Kevin of Larchmont]

By the time you throw the watches, the premium, the engraving and the man hours to administrate the program it’s feeling like about a million dollar project. Every year. This mystery company must not have shareholders.

[Harry-57]

Originally Posted by Kevin of Larchmont

By the time you throw the watches, the premium, the engraving and the man hours to administrate the program it’s feeling like about a million dollar project. Every year. This mystery company must not have shareholders.

No more than some companies I have worked for/with would spend on four consecutive adverts in a trade journal, or a sales conference. It's all deductible and it's nice when the shareholders don't get to harvest all the proceeds of other people's sweat and commitment.

[brandrea]

Name and shame … who is this company and where do I sign up?

[Kevin of Larchmont]

Originally Posted by Harry-57

No more than some companies I have worked for/with would spend on four consecutive adverts in a trade journal, or a sales conference. It's all deductible and it's nice when the shareholders don't get to harvest all the proceeds of other people's sweat and commitment.

Agreed on your last point but advertising and sales conferences generate revenue while employment milestone gifts are rewards for revenue already generated.

[train-time]

I'm surprised that the corporation didn't look elsewhere for their corporate award gifts. It would be much easier just to go with Omega or some other brand than to support a brand than no longer cares about your business. Rolex has always been in the forefront as a corporate award watch. It's time to stop bending over just to acquire a watch to pay tribute to a milestone for a loyal employee!

[SpeakWithMichael]

Originally Posted by MarioB83

30 years wait list, sir

[JettyOne]

Originally Posted by train-time

I'm surprised that the corporation didn't look elsewhere for their corporate award gifts. It would be much easier just to go with Omega or some other brand than to support a brand than no longer cares about your business. Rolex has always been in the forefront as a corporate award watch. It's time to stop bending over just to acquire a watch to pay tribute to a milestone for a loyal employee!

Thats a cheap take.
Pay tribute to a loyal employee should take some effort and bending backward to show appreciation. A Rolex GMT is THE watch to give. An Omega GMT is not.

People want gifts that are desirable. Not easy to acquire.


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[jmgorman]

Originally Posted by Kevin of Larchmont

Agreed on your last point but advertising and sales conferences generate revenue while employment milestone gifts are rewards for revenue already generated.

I work in a field with a soft-skilled workforce and I know our replacement and retraining of experienced mid-career staff easily approaches six figures. If this is a high-skill, experience-dependent company, then $400k pays for itself if it convinces two or three midlevel folks to stay.

These watches aren't rewards for the retirees, they are tangible signals to the 40-somethings who have 15 years in and might otherwise be looking for warmer winters or to provide their clever middle-school kids with better opportunities than rural-VT schools.

[Robison347]

Interesting comments . . . . The company is a big Asian conglomerate that’s into everything. To them, the cost of the watches is nothing; if it means keeping some long term people happy its money well spent. I believe they give Rolex awards for other things with shorter horizons, not just 30 year anniversaries.

As for providing better opportunities than rural VT schools - he and I were both coming from VT because it’s a lovely place in the fall, not because we are rural Vermonters. Thanks to the explosion of remote work and commuting this past decade, people at his level often get the freedom to live where they want. If you have the money, there are good schools in VT, but in our 60s neither of us need them unless its for grand kids.

I have a lot of freedom in my work too, but I run a business and people expect me to be there most of the time. Still, I appreciate that the beauty of Vermont is nearby.

[Kevin of Larchmont]

Originally Posted by jmgorman

I work in a field with a soft-skilled workforce and I know our replacement and retraining of experienced mid-career staff easily approaches six figures. If this is a high-skill, experience-dependent company, then $400k pays for itself if it convinces two or three midlevel folks to stay.

These watches aren't rewards for the retirees, they are tangible signals to the 40-somethings who have 15 years in and might otherwise be looking for warmer winters or to provide their clever middle-school kids with better opportunities than rural-VT schools.

According to the OP the $400K is the premium paid for acquiring the watches through the grey market, plus the cost of the 38 Rolexes, plus the various administrative costs of the yearly program, so we’re back to around a million in rough speculative numbers. And while these watches may not be specifically for retirees per the OP’s description they are given after decades of service which is closer to the end than the beginning.

Believe me I am all for Rolexes as performance rewards. Hell, I just retired two weeks ago after sixteen years and I got a meat carving board. My point is that the scope of the gifting by this company seems luxurious and at odds with the cost cutting oversight usually imposed by stockholders. And I’m glad such employers still exist even though it’s too late for me to find one.

[EverCloserUnion]

Originally Posted by Kevin of Larchmont

Agreed on your last point but advertising and sales conferences generate revenue while employment milestone gifts are rewards for revenue already generated.

Think how much companies (rightly) spend on employee retention schemes (vested stock, etc).

Recruitment is expensive and losing good people is disruptive.

[EverCloserUnion]

Originally Posted by Kevin of Larchmont

Believe me I am all for Rolexes as performance rewards. Hell, I just retired two weeks ago after sixteen years and I got a meat carving board. My point is that the scope of the gifting by this company seems luxurious and at odds with the cost cutting oversight usually imposed by stockholders. And I’m glad such employers still exist even though it’s too late for me to find one.

I'm wondering why they haven't switched to a competitor brand with watches of comparable MSRP but ready availability? Omega, et al.

[Robison347]

Originally Posted by EverCloserUnion

I'm wondering why they haven't switched to a competitor brand with watches of comparable MSRP but ready availability? Omega, et al.

I think they do that because getting a Rolex as a gift means more than getting an Omega. Gifts are all about image.

[SLWoodster]

Batman/batgirl has just remained extremely popular but it's been out awhile with many other GMT releases after.

Batgirl is 5 years old now. Pepsi is 6 years old.

After the Batgirl, there was the Pepsi stainless with oyster release.
Then the Pepsi meteorite release
Then the GMT Batman stainless with oyster release
Then the GMT left hander
Then the GMT bruce wayne

this is all not including off-catalog releases.

I've helped clients gift watches before. Rolex, Cartier are the most recognizable names and the most welcomed. A lot of the times with older people, two tone and with diamonds are more welcomed than stainless.

Originally Posted by Robison347

Yesterday I was standing in the boarding line at the airport, and I got to talking with the fellow in front of me. Both of us had come down from Vermont, and we were both wearing Rolex watches. I observed he was wearing a Batgirl, which is a fairly new release, and I asked if he’d gotten it from Perrywinkle’s, the authorized dealer in Burlington.

No, he said, he’d had to buy it online. I expressed some surprise, since we were two fellows in our 60s and I was a bit surprised an older Vermont resident was not buying watches from the regular dealer, as opposed to paying the premium in the grey market.

Well, he said, my company gives Rolex watches to employees for years of service. His watch happened to mark 30 years, and one of his duties was overseeing the program that awarded them. Rolex won’t do corporate partnerships, he told me (this was a large multinational company we all know) and we needed 38 watches. It was a job finding them, and on average, we paid double the list price to get brand new in box, which we then got engraved.

I did talk to some dealers a long time ago, he continued, but they could not get 30-40-50 of anything, so it never went anywhere. So his company ended up paying roughly a $400,000 premium to get all those watches that year.

It was a bit eye opening to hear that. Sure, people are buying watches from resellers when they don’t want to wait for the dealer, but it never occurred to me that big companies and other groups find themselves in exactly the same position, and on dozens of watches, that adds up.

[Funkle]

Originally Posted by Kevin of Larchmont

I just retired two weeks ago after sixteen years and I got a meat carving board.

That goes a long way towards explaining your perspective on the deal. I do however, agree with the idea that execs being cavalier with "other people's money" is reflective of the corporate environment that often awards more to those who need it less, and less to those who need it more.
The striking baggage handlers know the execs all just got new Rolex.

[Kevin of Larchmont]

Originally Posted by Funkle

That goes a long way towards explaining your perspective on the deal. I do however, agree with the idea that execs being cavalier with "other people's money" is reflective of the corporate environment that often awards more to those who need it less, and less to those who need it more.
The striking baggage handlers know the execs all just got new Rolex.

All fair points.

Note to self: Next life, get a sweet sweet corporate gig.

[Funkle]

Excellent! Note to self: Next life, have wealthy parents.
I run a small business, and I would never give an expensive watch to an employee. If they cannot afford to buy one on the income I provide, then it will be an insult. If they can afford one and refrain, means they don't care about watches, and it will just wind up on ebay. It's a no win for me! I just give cash bonuses and buy whatever you want.