Triple production shifts

[Geelerald]

I was in a local AD today and was told by sales staff that the Rolex rep told them that Rolex production was working three full time manufacturing shifts trying to keep up with professional line demands. Just an interesting conversation and wondered your take on it.

[Chute]

We should have a category in the forums labeled “Things my AD told me”.

Only time will tell and Rolex isn’t telling anyone what their plans are.

That being said, an increase in supply would me a nice thing to see.

2-3 years ago most AD’s were fully stocked including BLNRs Hulks and stainless Daytona’s prior to the 116500

[csaltphoto]

I seriously doubt it. Lots of people have posted pictures of displays full of SS/professional models at grey dealers. Those displays would not be full if there was a shortage. The last thing Rolex wants is a glut.

I just went to DavidSW. You can buy anything you want at close to retail if you knock the tax off from buying local. Except for SS Daytona's. Maybe pay few K more for in warranty sub. Which is really nothing if you are in the 10K watch buying frame of mind. No different than buying a BMW M or other super desirable item.

[steadywaters]

Wishful thinking: Great, we can all finally have panda Daytonas at retail in the next couple of years!

[watchmaker]

I do wish industry 'professionals' would refrain from this sort of chat.

There are people on the production lines in Switzerland that have no idea of the strategic decisions made upstairs. No chance a Random AD anywhere in the world knows this sort of information.

[Norbert]

The Swiss working night shift? No way!

[Sublovin]

I was at my AD and he told me your AD doesn’t know what the heck he’s talking about!

[NoVaSubowner]

Originally Posted by csaltphoto

I seriously doubt it. Lots of people have posted pictures of displays full of SS/professional models at grey dealers. Those displays would not be full if there was a shortage. The last thing Rolex wants is a glut.

I just went to DavidSW. You can buy anything you want at close to retail if you knock the tax off from buying local. Except for SS Daytona's. Maybe pay few K more for in warranty sub. Which is really nothing if you are in the 10K watch buying frame of mind. No different than buying a BMW M or other super desirable item.

Right. And in the meantime the Greys are screwing us worse than a day in a Turkish prison. 9500 for a 114060? Almost 15 for a LVC? It amazes me that the Grey market dealers have such a fanboy following here when they are exercising their rights to sell at whatever price the market will bear. Much in the same way as AD’s have the right to sell the hard to get pieces to their top customers.


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[Harry-57]

To increase production is to all intent and proposes, impossible. Where will they magically get all the extra qualified and trained staff from? To "keep up" with current SS demand would be commercially disastrous. Sounds like wishful thinking and/or a cheeky rep who likes a bit of a wind up.

[Harry-57]

Originally Posted by NoVaSubowner

Right. And in the meantime the Greys are screwing us worse than a day in a Turkish prison. 9500 for a 114060? Almost 15 for a LVC? It amazes me that the Grey market dealers have such a fanboy following here when they are exercising their rights to sell at whatever price the market will bear. Much in the same way as AD’s have the right to sell the hard to get pieces to their top customers.
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Why wouldn't grey sellers sell at the highest prices they can get? And why would anyone discourage them from doing so?

[socalwatchcollector]

Originally Posted by watchmaker

i do wish industry 'professionals' would refrain from this sort of chat.

There are people on the production lines in switzerland that have no idea of the strategic decisions made upstairs. No chance a random ad anywhere in the world knows this sort of information.

+1

[HOT CPA]

Originally Posted by csaltphoto

I seriously doubt it. Lots of people have posted pictures of displays full of SS/professional models at grey dealers. Those displays would not be full if there was a shortage. The last thing Rolex wants is a glut.

I just went to DavidSW. You can buy anything you want at close to retail if you knock the tax off from buying local. Except for SS Daytona's. Maybe pay few K more for in warranty sub. Which is really nothing if you are in the 10K watch buying frame of mind. No different than buying a BMW M or other super desirable item.

116610LV is going for 15,375.. that’s a 70%. Close to a knock off of sales tax? I’ll have whatever this guy’s having.

[Keepchasing]

Originally Posted by steadywaters

Wishful thinking: Great, we can all finally have panda Daytonas at retail in the next couple of years!

Panda...

[jrs146]

Originally Posted by NoVaSubowner

Right. And in the meantime the Greys are screwing us worse than a day in a Turkish prison. 9500 for a 114060? Almost 15 for a LVC? It amazes me that the Grey market dealers have such a fanboy following here when they are exercising their rights to sell at whatever price the market will bear. Much in the same way as AD’s have the right to sell the hard to get pieces to their top customers.


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I really have no judgement for gray dealers. It’s a business. They provide a service. However I’m quite sure that gray dealers will continue raising prices and buying inventory until customers are tapped out. The question is at what price is that? I’m constantly surprised at how high prices are going and people still pay.


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[NoVaSubowner]

Originally Posted by Harry-57

Why wouldn't grey sellers sell at the highest prices they can get? And why would anyone discourage them from doing so?

I am not discouraging Grey’s from their pricing. If that’s the market out there, it is what it is. Let the price reflect the demand.

I’m just saying that the gouging creates less outrage than an AD having the “gall” to tell a customer, who they have never met, that the sports models are now being allocated to top customers when and if they get them.

If you want to pay through the nose and go to a grey just for the benefit of having a watch now, go for it. Enjoy. I think retail sucks and markup from retail is even suckier. It’s a marketplace that I personally chose not to play in.


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[Crazy Lugs]

Originally Posted by Norbert

The Swiss working night shift? No way!

You hit the nail I’m on the head! No way in hell are the watchmakers at Rolex SA hot bunking! In Japan, perhaps...

[Bluepilot15]

Yes, 3 shifts;
8-12
12-4
4-8

[strafer_kid]

Originally Posted by Harry-57

To increase production is to all intent and proposes, impossible. Where will they magically get all the extra qualified and trained staff from? To "keep up" with current SS demand would be commercially disastrous. Sounds like wishful thinking and/or a cheeky rep who likes a bit of a wind up.

Yes..does seem a bit aspirational!

[Monty22]

Originally Posted by NoVaSubowner

Right. And in the meantime the Greys are screwing us worse than a day in a Turkish prison. 9500 for a 114060? Almost 15 for a LVC? It amazes me that the Grey market dealers have such a fanboy following here when they are exercising their rights to sell at whatever price the market will bear. Much in the same way as AD’s have the right to sell the hard to get pieces to their top customers.


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As it should be in any business. Customers pay market price when it is a sellers market and not all customers are created equal.




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[brandrea]

Originally Posted by jrs146

I really have no judgement for gray dealers. It’s a business. They provide a service. However I’m quite sure that gray dealers will continue raising prices and buying inventory until customers are tapped out. The question is at what price is that? I’m constantly surprised at how high prices are going and people still pay.


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Ageed

[challer]

Originally Posted by Norbert

The Swiss working night shift? No way!

There are not many Swiss people on the lines.

[socalwatchcollector]

Originally Posted by HOT CPA

116610LV is going for 15,375.. that’s a 70%. Close to a knock off of sales tax? I’ll have whatever this guy’s having.

I was thinking the same thing, What on earth is he talking about.

[Howlerbro]

Bit of a side question to this but how levered must grey dealers be? There's no way they're buying all these pieces with straight cash - maybe borrowing 60-70% of the purchase price? More? I imagine if/when the global economy slows and there are corrections elsewhere that this will start to unwind a bit.

[brandrea]

Bas, I hope this isn’t true or they might be recruiting you

[SeaAndSky]

Have you ever been to Switzerland? They're not like us here in the States. They believe in balanced lives, and vacations, and time with family, and on and on. I doubt very much Rolex is upping production and why should they?

[nicon]

Current Rolex CEO haven’t gave a single interview, watch press would kill for a reliable source of such information, yet mr Nobody at the AD has all the inside info.

[envuks]

Originally Posted by Norbert

The Swiss working night shift? No way!

ROFL! I was thinking similar! Triple shifts doesn't sound very Swiss to me....


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[opaline460]

greys will get more watches from 3 shifts.

[Syed117]

I'm loyal to one AD, but whenever I'm around a random AD I tend to stop by and see what they have to say. I've heard many different things in the last 6 months.

- Rolex production has increased but the demand is also very high.
- Rolex production is exactly the same, but the demand is very high.
- Rolex were considering opening a 5th facility, but they don't want to flood the market so they won't.
- ADs are getting the same amount of watches they have in the last 5 years, but demand is so high that everything is sold the instant it comes in.

Not one AD has told me that production has decreased. They have universally said that production is exactly the same as it has always been, but they have never seen this kind of demand.

Multiple ADs have also recalled a time when they used to keep 5 subs and 5 gmts in stock because that was standard for their stores. Now they apparently can't even order SS models.

[tng11]

Originally Posted by Syed117

I'm loyal to one AD, but whenever I'm around a random AD I tend to stop by and see what they have to say. I've heard many different things in the last 6 months.

- Rolex production has increased but the demand is also very high.
- Rolex production is exactly the same, but the demand is very high.
- Rolex were considering opening a 5th facility, but they don't want to flood the market so they won't.
- ADs are getting the same amount of watches they have in the last 5 years, but demand is so high that everything is sold the instant it comes in.

Not one AD has told me that production has decreased. They have universally said that production is exactly the same as it has always been, but they have never seen this kind of demand.

Multiple ADs have also recalled a time when they used to keep 5 subs and 5 gmts in stock because that was standard for their stores. Now they apparently can't even order SS models.

One AD salesperson told me he definitively had great inside information - that Rolex reduced production from over 1 million watches to 200K. I just threw out a loud "Ha" and moved on.

My current AD tells me that they're receiving similar numbers of watches to the past. Maybe even more due to their new shop. But demand is just sky high and all the desirable models are already allocated to clients or being held back for loyal customers instead of making it into the showcase.