Rolex Needs a New Business Model

[TimepieceRPP]

why? i want to get a Birkin, so i have to ask Hermes to change the business model too?

I am no VIP and frustrated by the current, i haven't got any sought after models since Jun 2020, still waiting for SkyD, green sub and pepsi but then what, what i can blame is i am not their so called VVVVIPs, i know a lot of OPs got their models.

if everyone can get their models, then you won't want Rolex at that time.

[TimeAZ]

Customers are pissed off.

The solution is to be more transparent about the purchase process and also more equitable in how models are distributed. I've read rumors that the ADs will limit how many you can buy per year, and frankly that is a GREAT first step (particularly for the highest-demand products). I also think it would great if each customer had an online account that lets them register which piece they want on a wishlist, linked to their local AD, with some trackable window as to when it might be delivered. And of course, you only get limited requests at a time, maybe one or two max.

[garyk]

I think the OP has guts to float this thread to this forum but unfortunately I’ve never seen one great idea to come along that has any chance at all to change the current market conditions. When the pandemic hit, there were TRF members who stated the coming global recession would get pricing on Rolex watches to retreat some and so they were waiting in the wings for that to happen lol!!

[LA_LEC]

Originally Posted by Coronette

Happy customers and ADs without empty cases. And all the watches Rolex could sell.

So you want them to be just like every other brand then. Boring

[dpt.calvin]

Originally Posted by TimeAZ

TRF Members are pissed off.

Correction.

[rmwill]

When I was last at my AD a few weeks ago, the three customers taking delivery of their MSRP Rolex watches were very pleased.

Originally Posted by dpt.calvin

Correction.

[dpt.calvin]

Originally Posted by rmwill

When I was last at my AD a few weeks ago, the three customers taking delivery of their MSRP Rolex watches were very pleased.

Exactly. It’s just people that aren’t capable of buying from an AD yet are only willing to buy from an AD that are upset.

[buffetwarren]

Rolex’s margin is already a very healthy 66%. Not sure they have much to gain assuming overhead costs of running their own stores.

[TswaneNguni]

I am happy

Love "the business model" ideas given by members to Rolex ..

[VogelPhoenix]

OP wants "fair", although it is unclear what he means by that.

Here's "fair": A Rolex operated online auction for every watch they produce and a Rolex operated CPO market, where anyone can submit their watch for auction for a defined CPO/escrow/listing fee. You'd get transparent price finding at the equilibrium between supply and demand. No place for flippers in an efficient market.

Perfectly fair, and absolutely the last thing Rolex would want to do.

[Uggi]

OP clearly hasn’t thought this through for more than 2 seconds.
Nonsensical idea.

[rolex16]

Originally Posted by dpt.calvin

Exactly. It’s just people that aren’t capable of buying from an AD yet are only willing to buy from an AD that are upset.

Please educate us on what being capable of buying from an AD entails. Is there some sort of training class?

[waterking]

So...if Rolex did this and then raised prices 200% would you accept that compromise between the consumer and Rolex? Or do you want the cake and be able to eat it too?

[rod727]

In my opinion, don't overthink this....grey dealers, no grey dealers.....AD sales, direct sales....it doesn't matter.

To distill this down to its simplest form Demand far outpaces supply.

[Doood]

Originally Posted by VogelPhoenix

2) Assume Rolex announced today that tomorrow, 12PM GVA time, first come, first served waitlists for all their models open. At 12:00:01 those waitlists would be filled by flippers/greys using automated machinery to secure their place in line. Zero reason for Rolex to get into an arms race with bot developers. Any hurdle they put in place will be much easier to clear for full-time flippers than the random guy from the street trying to buy a Sub for his 40th...

Maybe ADs should vet people before they go on waitlists? Well, welcome back to exactly where we are now.

So much this….hmmm, the waitlist just opened 30 minutes ago and I am number 37,765,654 for a sub.

[Krash]

Rolex is literally the last company on the planet that needs to change its business model.


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[dpt.calvin]

Originally Posted by rolex16

Please educate us on what being capable of buying from an AD entails. Is there some sort of training class?

Pretty sure I can’t just walk into my AD and buy a DD.

[chet]

Rolex needs a new business plan because the OP can't get a watch. This is the definition of entitlement. Beyond ridiculous.

[H25B]

As I mentioned previously. Rolex could solve this overnight by allowing the ADs to price watches however they want. Let a true, free market figure it all out.

I’m not saying that should happen nor would I ever expect it to, but anything short of that just results in some segment of the market pissed off.

[underpar]

lol. Every watch is sold before they produce it and AD's have no say in their allocation. Yeah, Rolex wants to change that.

[Harry-57]

Have you told Rolex? They need to know.

Give us a wave from Geneva when you get your strategic business director role with Rolex.

[stevestil]

The most recognized brand on planet earth needs to change its business model….. seems to me like they’re doing just fine

Maybe they are lurking the forums for suggestions.


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[Jojomojo]

You have to understand, Rolex has no say in distributions / allocations. It's the ADs that are playing games.
I think Rolex is being modest here, they have only 1 price increase per year & is forcing each AD to sell at MSRP.
Look at Chanel & Hermes, they hike 2-3 times a year for their bags, u still can't get the sought after models w/o purchase history too.
Even worse, If you ever look at exotic car markets, the dealers are selling whatever stupid prices they can think of & those cars are always sold out.
The sad truth is, people are pissed because they're not as rich as their competitions. The greys would buy pearlmasters / dj28 / cellinis, something only their grandma / grandpa would wear. The VVIPs they buy Hublots / IWC / whatever crap. In return these guys get the daytona / pepsi.
They're at the top of the pyramid & as long as they're still spending, everybody else has very little chance.
Once in a while the ADs are being nice & they let some1 buy the allocation models, which is why it's even more meaningful to own them now. The grey prices reflect that.

[VegasBaby]

Originally Posted by Coronette

Rolex needs to sell direct to consumer. That would completely eliminate the unfair lists the jewelers manipulate. Once the watch is purchased from Rolex its sent to an authorized jeweler that has all the fakes in the case to try on and they set the watch up once it arrives at the AD of your choice. This would eliminate all the AD grey market and waiting list shenanigans. I wouldn't hesitate to go on a Rolex corporate wait list because you know its going to be handled fairly and you wont get smoke blown up your A$$ as the ADs are doing now.

Genius idea!!! Probably would shake Rolex from its prolonged business slump and inability to sell their watches. After, reading this, I'm sure they'll be looking to hire you for their/global strategy department........bravo!!

[jbert12]

Originally Posted by MilgaussPE

Lol go ask sneakerheads how well this model works.

This


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[Solo118]

They sell every piece they make, so not sure they are OK with biz.

Kudos to Cartier though, you can go on their site and buy directly (as long as it is avail) which is pretty neat.

[zengineer]

Originally Posted by Coronette

Tesla does it, Works for them doesn't it?

Nobody is paying 3x retail for a Model 3.

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[brucethemanlee]

The Rolex model seems to works fine

[amanbra]

Lol, currently the watch brand in the most enviable position "needs" to change their business model? love it.

[dtwer]

This is a classic example of a solution in search of a problem.