Rolex shortage

[charge]

[Sublovin]

Shortage? First I’ve heard of this!

[teck21]

Originally Posted by Seibei

OK, demand exceeds supply and AD prices are artificially low. Most of these watches are however easily obtainable for those who are ready to pay a premium, arguably the correct market price. In that sense there is no shortage. With regards to the availability of certain watches at ADs the word shortage is inadequate. The watches are simply not available.

A dealer may get 5 watches of a certain type per year and have more than 200 people on a waiting list for it. Someone who just randomly walks in is never going to get that watch.

That is true, the price points at which Rolex sell their popular SS models is arguably deeply discounted to the true market discovered price, ie grey prices.

Rolex could raise the MSRP to match the greys, and that would quite possibly make it possible once again for anyone to walk into an AD and buy any model they wished because these new price points would frankly wipe out a large chunk of demand. Demand being people WILLING AND ABLE to afford it

But Rolex are in the business of brand preservation for the very long haul, and they understand that the current demand is a product of many factors, some of which might be very short term in nature.

Hence raising prices could end being a very bad move for the brand in the long run.

Pretty sure Rolex doesn’t like the idea of syndicates profiteering through the grey market because it really is costing them a lot of customer goodwill, but tolerate it because killing the greys may have even more undesirable outcomes for Rolex in the longer term.




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[1William]

There is no shortage of watches just a shortage that you can buy at msrp from an AD.

[beshannon]

Originally Posted by 1William

There is no shortage of watches just a shortage that you can buy at msrp from an AD.

Exactly.

What is fascinating about these numbingly boring, repetitive threads is this;

Many people want all watches available at all times and at a discount;

Many of those same people want their values to rise to protect their "investment".

So much fundamentally wrong with this, I am glad the inventory is snapped up and I hope it continues along with a 30% price increase to MSRP worldwide from Rolex.

[colonelpurple]

if you want SS just join a waiting list.
the waiting makes the watch more sweet when it comes

[RobearH]

Originally Posted by teck21

That is true, the price points at which Rolex sell their popular SS models is arguably deeply discounted to the true market discovered price, ie grey prices.

Rolex could raise the MSRP to match the greys, and that would quite possibly make it possible once again for anyone to walk into an AD and buy any model they wished because these new price points would frankly wipe out a large chunk of demand. Demand being people WILLING AND ABLE to afford it

But Rolex are in the business of brand preservation for the very long haul, and they understand that the current demand is a product of many factors, some of which might be very short term in nature.

Hence raising prices could end being a very bad move for the brand in the long run.

Pretty sure Rolex doesn’t like the idea of syndicates profiteering through the grey market because it really is costing them a lot of customer goodwill, but tolerate it because killing the greys may have even more undesirable outcomes for Rolex in the longer term.




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Excellent post.

[huggie49]

I dropped into the Underwood’s Ponte Vedra location on Saturday looking for an Explorer and they had a Z Blue, GV, Polar Explorer 2, RG Daytona, another Daytona on an OF, and lots of DJs in various configurations. Leslie ( I hope I spelled that correctly!) was the salesperson that assisted me. Nice people. So, a few stainless models are available.. Also picked up my Explorer!

[brucethemanlee]

Originally Posted by 1William

There is no shortage of watches just a shortage that you can buy at msrp from an AD.

+1


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[dtwer]

Originally Posted by beshannon

Exactly.

What is fascinating about these numbingly boring, repetitive threads is this;

Many people want all watches available at all times and at a discount;

Many of those same people want their values to rise to protect their "investment".

So much fundamentally wrong with this, I am glad the inventory is snapped up and I hope it continues along with a 30% price increase to MSRP worldwide from Rolex.

Totally.

As someone said this is truly a classic symptom of cognitive dissonance. Some people want everything in their favor despite the fact that all those things are inherently contradictory to one another.

[jssans]

I can walk into a AD & buy a ROLEX watch. I can custom order a watch & pay MSRP. It's awesome. I'll wait for it.

I can't do that at a Ferrari dealership. And even if the dealership would let me buy one off the street you'll have to wait for it.

Time is money. Your paying more by waiting. You are buying luxury. You're going to pay for it.

Don't want to buy luxury? Go buy a Corvette & drive to Walmart to pickup an Invicta.

[beshannon]

Originally Posted by dtwer

Totally.

As someone said this is truly a classic symptom of cognitive dissonance. Some people want everything in their favor despite the fact that all those things are inherently contradictory to one another.

It is very entertaining to watch though

[exador]

Originally Posted by beshannon

I am glad the inventory is snapped up and I hope it continues along with a 30% price increase to MSRP worldwide from Rolex.

Said from the perspective of a seasoned collector.

How about poor Joe Schmoe who has saved all his life to purchase his first nice watch and now must venture into the barren wasteland of the Rolex AD?

[hai.tranhr]

I’ve never seen any SS Rolex in ADs in my country


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[beshannon]

Originally Posted by exador

Said from the perspective of a seasoned collector.

How about poor Joe Schmoe who has saved all his life to purchase his first nice watch and now must venture into the barren wasteland of the Rolex AD?

Sorry but that too is flawed logic.

The price for any luxury item is what the market will bear. Rolex raising prices to equalize the price disparity would mean more inventory in the stores for a new buyer to look at and try.

[rushca01]

I honestly don’t think the market could bear AD’s selling SS sports at grey dealer prices. The people that actually buy from a grey are a small % of those that get them directly from the AD. I just don’t think your average Rolex buyer is paying double MSRP...the buyer buying these is in a different league financially.

ETA: If the market could bear it I believe Rolex would have already made the adjustement. Someone else pointed out in another thread...it does Rolex no harm to enjoy the inflated grey prices and rises the brand prestige but when the world economy does shift it would be much harder for Rolex to adjust prices if they increased now. Just my thoughts.

[bombafra1]

Originally Posted by colonelpurple

if you want SS just join a waiting list.
the waiting makes the watch more sweet when it comes

If it comes

[007timer]

Originally Posted by Davidwang

I went to a Rolex AD in LA. Nothing is there except some diamond watches and gold skydweller. The first word from the sales mouth is there is no any stainless watch available in store. I asked if they have the YG YMII (the 116688) and they even sold those watch out. Yellow gold model even has shortage? Crazy!! Is the happening everywhere?


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AD in OC had one on display yesterday. Not sure it’s appropriate to share the name on the forum, so PM me and I’ll give you info.


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[R G]

Originally Posted by Seibei

OK, demand exceeds supply and AD prices are artificially low. Most of these watches are however easily obtainable for those who are ready to pay a premium, arguably the correct market price. In that sense there is no shortage. With regards to the availability of certain watches at ADs the word shortage is inadequate. The watches are simply not available.

A dealer may get 5 watches of a certain type per year and have more than 200 people on a waiting list for it. Someone who just randomly walks in is never going to get that watch.

There is a shortage. End of, however you cut it.

[dtwer]

Originally Posted by exador

Said from the perspective of a seasoned collector.

How about poor Joe Schmoe who has saved all his life to purchase his first nice watch and now must venture into the barren wasteland of the Rolex AD?

The problem of calling "shortage" on something that can be readily purchased off the grey seller shelf is that it's a hyperbolic statement that contradicts fact.

[beshannon]

Originally Posted by R G

There is a shortage. End of, however you cut it.

https://www.rolexforums.com/showthre...ight=Inventory

[904VT]

News to me

[R G]

Originally Posted by beshannon

https://www.rolexforums.com/showthre...ight=Inventory

Yeah yeah, very snappy... well done.

I’m not going to bother arguing with your bizarre alternative take on availability.

You’re one of those. Go for it!

[beshannon]

Originally Posted by R G

I’m not going to bother arguing with your bizarre alternative take on availability.

Showing you a thread about watches for sale with images of the inventory is bizarre?

Not sure what you are seeking with your crusade?

[R G]

Originally Posted by beshannon

Showing you a thread about watches for sale with images of the inventory is bizarre?



Not sure what you are seeking with your crusade?

Haha yeah ok...

Like I said, you’re just one of those types.

[Nadster]

Originally Posted by 1William

There is no shortage of watches just a shortage that you can buy at msrp from an AD.

Translate that into any other product. If I search several BMW car dealerships around the world looking for a luxury car and their showrooms are empty of the most popular models except for "Pre-Owned" dealers selling them at twice retail I would call that a shortage. Try it with refrigerators. Same thing.

The difference with these watches is unlike most other products the AD's cannot raise the MSRP due to demand caused by a lack of supply like they can for other retailers. If they could the prices would get so high they would drive people to look at other brands or models until the supply increases and prices fall. It's simple macroeconomics. That supply and demand principle is broken for the ADs. For whatever reason Rolex can't or won't increase supply. They are not your typical business even though they are one of the richest businesses in the world. They are a charity. They don't suffer the same business pressures as other corporations. And their customers are ADs. Not us the end customer.

[WatchLurv]

Rolex cut supply so obviously demand exceeds supply. It was always the other way around with Rolex supplying enough for the market and for the steel watches to be seen on display at ADs.

[JayG]

Thee is no real shortage per se. There is however an artificially manufactured pseudo shortage.

[Pongster]

Saw this at our local AD. There seems to be no shortage after all.


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[JacksonStone]

Originally Posted by Pongster

Saw this at our local AD. There seems to be no shortage after all.

That reminds me of the Kenner Star Wars early-bird campaign of 1977, where kids got pictures of the action figures for Christmas, and a promise of receiving them some time between February and June the following year. Those kids didn't know how good they had it.