After BH SVC Center Closing whats next?

[greekbum]

Well now that Rolex has closed the BH SVC Center what is next? I was always hoping they opened a vintage service division.The few independent watchmakers I know with parts accounts are telling me that Rolex after this move might stop supplying parts period.After raising there prices on watches endless times in the past few years and on service business has fallen off a cliff for both.Yes the economy is bad and was a long time in the making.If you look at real estate,the stock market, or any commodity except precious metals prices are down to at least 2000 levels to be concervative.To think Rolex watches werent going back to those levels is crazy.The market always dictates price and today its saying 30-40% off in the USA.

[chicagowatchman]

I hear that Rolex sales are down as much as 60% over 2 years ago

think about it there arn't a lot of people buying luxery goods these days.....a friend of mine who works for Armani says they are down almost 70% compared to 2007

[Whiskey]

Probably a pull out of Dallas.

NY can handle the rest of the USA.

Rolex has pretty much only one office in each country they are located in after the US (US was the only country with multiple headoffice locations), so I would expect the next thing to happen would be staff will be reduced in these remaining locations.

This is where the high quality of their own watches will hurt Rolex. Anyone who purchased new in the past couple of years won't need servicing on their watches until long after this recession is over and if one needs their watch to be serviced, some things take priority, so repairs will be held off until additional funds are available. This doesn't bode well for Rolex. Maybe they should consider lowering their labour/servicing fees for the next little while.

Expect there to be excessive idle watchmakers at Rolex.

Problem is, in 5 years will there be enough watchmakers still in the hobby for the sudden surge in demand for watch service when we pull out of the recession????????????

I also expect Rolex will swallow the loss and pay some watchmakers to remain idle. A lot of businesses which were laying off are starting to pull back on that because they know that in a years time, the economy will be very busy again and they won't be able to hire people and train people fast enough to keep up with business demands. May as well pay idle employees just to keep them around. It's called retention-pay.

[bodybump]

a hat will be waiting Nikos....

[AIKO]

Originally Posted by greekbum

Well now that Rolex has closed the BH SVC Center what is next? I was always hoping they opened a vintage service division.The few independent watchmakers I know with parts accounts are telling me that Rolex after this move might stop supplying parts period.After raising there prices on watches endless times in the past few years and on service business has fallen off a cliff for both.Yes the economy is bad and was a long time in the making.If you look at real estate,the stock market, or any commodity except precious metals prices are down to at least 2000 levels to be concervative.To think Rolex watches werent going back to those levels is crazy.The market always dictates price and today its saying 30-40% off in the USA.

A great time to buy.

[Wolfgang427]

Originally Posted by AIKO

A great time to buy.

Agree. But problem is most people are cash strapped.

[Omega_Precision]

I think Rolex will probably limit the amount of watches in production.

When AD's are pulling watches out of the back, it means they probably have tons of inventory in the back.

They are trying to get rid of the bad apple models (less popular) before bringing out the popular models.

[082013]

Originally Posted by Whiskey

This is where the high quality of their own watches will hurt Rolex. Anyone who purchased new in the past couple of years won't need servicing on their watches until long after this recession is over

So true, probably see Blancpain and Panerai opening more service centres

[Tombstone]

I hate to say it but I feel Rolex is to blame in part. Those endless price hikes have made many old loyal customers mad and this has hurt them. I bought a Breitling and an Omega this year and skiped Rolex.