Interesting conversation with an AD today.

[Frank McKay]

Interesting conversation I had earlier today with an AD I’ve known for many years on the west coast. I asked him how the inventory has been as of late compared to demand and has the situation changed at all for steel sports watches?

He said steel watch’s while still difficult to supply all of his clients with are no where near as bad as PM watches. He’s got clients breathing down his neck for PM Subs, DD’s and Daytona’s (bracelet and OF). There just isn’t enough PM watches at the moment. No PM watches in the cases, empty.

Regarding steel sports watches -
“Believe it or not, I think we’ve scared away the common Rolex buyer, we used to get a lot more walk-ins requesting steel Subs/GMTs and inquiring about steel Daytona’s. Not anymore”.

[vh2k]

Rolex’s strategy is working perfectly.

[ColdWater]

Maybe we'll be re-living the 1980's when it was fashionable to wear a solid gold watch to Burger King.

My co-worker that made $60,000 on Dogecoin Friday might be wearing one next time he buys a Whopper.

[Orangeface]

Originally Posted by ColdWater

My co-worker that made $60,000 on Dogecoin Friday might be wearing one next time he buys a Whopper.

Gotta be some tax implications there!

[David001]

Originally Posted by vh2k

Rolex’s strategy is working perfectly.

It depends which strategy you believe in, apparently according to some Rolex have restricted SS watches and are pushing precious metal ones because there is more margin, but that doesn't seem to be the case in reality, SS watches are being made in more numbers than ever to meet demand and PM is restricted.

Rolex can't do right for doing wrong.

[Ichiran]

Is showing numerous 2-tone DJ and Cellini in the display cases across the globe part of Rolex's strategy too?

[MannySDG]

Originally Posted by ColdWater

Maybe we'll be re-living the 1980's when it was fashionable to wear a solid gold watch to Burger King.

My co-worker that made $60,000 on Dogecoin Friday might be wearing one next time he buys a Whopper.

I wear my Bluesy and Rootbeer to Wal Mart....

[TimeAZ]

Yes, Rolex's strategy is working perfectly if the strategy is to cause consistent disappointment with every visit to the AD. I am reaching a point where I do not even bother going in to check in on the AD. Meanwhile I am taking a closer look at competing brands. Brilliant business strategy.

[teck21]

Originally Posted by David001

It depends which strategy you believe in, apparently according to some Rolex have restricted SS watches and are pushing precious metal ones because there is more margin, but that doesn't seem to be the case in reality, SS watches are being made in more numbers than ever to meet demand and PM is restricted.

Rolex can't do right for doing wrong.

Demand and supply are relative. It’s not that they are necessarily aiming to sell more PM than SS, but possibly to adjust the ratio.

The respective price points of SS and PM mean the market for SS will always be much larger than for PM.


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[teck21]

Originally Posted by TimeAZ

Yes, Rolex's strategy is working perfectly if the strategy is to cause consistent disappointment with every visit to the AD. I am reaching a point where I do not even bother going in to check in on the AD. Meanwhile I am taking a closer look at competing brands. Brilliant business strategy.

Yet here you are.


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[MannySDG]

Originally Posted by teck21

Yet here you are.


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[fskywalker]

Originally Posted by teck21

Yet here you are.


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[nhk]

Ask the AD to put his money where his mouth is and get a SS Daytona for you.

[TimeAZ]

Originally Posted by teck21

Yet here you are.


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Snarky comments aside, an unsatisfactory experience at the "authorised dealer" is not a smart business "strategy", no matter how you cut it.

Originally Posted by Ichiran

Is showing numerous 2-tone DJ and Cellini in the display cases across the globe part of Rolex's strategy too?

Yes, that seems to be the winning "strategy".

[joli160]

Originally Posted by teck21

Demand and supply are relative. It’s not that they are necessarily aiming to sell more PM than SS, but possibly to adjust the ratio.

The respective price points of SS and PM mean the market for SS will always be much larger than for PM.

Margins for Rolex on a PM watch are much higher so I think they do aim to sell more PM watches. It seems to work, even those are flying of ther shelves.

Lots of benefits for Rolex;
- extremely high profit margin on the gold used.
- easier to produce with respect to tooling and finishing.
- less inventory required to make the same revenues.

[Nairn1980]

Originally Posted by vh2k

Rolex’s strategy is working perfectly.

X2

[borango]

Meanwhile in Europe some grey dealers are able to regularly get and resell brand new Subs, GMTs and occasionally Daytona (all steel). That is coming from somewhere. It is becoming so annoying that I decided to buy Omega 321 instead of Daytona. If my AD doesnt sell me something nice this year I am fully done with buying modern Rolex.


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[Macnavara]

Originally Posted by ColdWater

Maybe we'll be re-living the 1980's when it was fashionable to wear a solid gold watch to Burger King.

My co-worker that made $60,000 on Dogecoin Friday might be wearing one next time he buys a Whopper.

He might be looking to buy a swatch if he hasnt already cashed in looking at price drop overnight

[padi56]

Originally Posted by vh2k

Rolex’s strategy is working perfectly.

Why would you think there is like you put a Rolex's strategy, Rolex is a business like all businesses, there strategy is to make and sell as many products cost effectively as they can .

[SS Oyster]

My AD says he gets at least 50 requests per day for SS sub, so he’s not seen the SS demand drop.


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[Escobardee]

This true I spoke to my Ad dealer and they are saying the same one hung here in the U.K. ... pm is getting hard to get in and certain models once a year !!

[peterpl]

Because Precious Metal has always been the king and now Instragram Flex culture its ALL about precious metal. I've been reading from the hypebeasts its because SS became too popular and every joe blow's collection was all the same just a bunch of the same watches. Even 20 year old kids working at Maccas flexing with SS.

Precious metal cuts out ALOT of ppl simply because of price point so now all the instagram flex's are all precious metal as that differentiates them from many that can afford $20k SS but cant move to $40-$50k gold.

SS was just overhyped for ages and now most of them are stuck under $20k and havent moved from here for ages now BLRO/LV/BLNR etc etc....only the Daytona is flying.

Meanwhile PM is going through the roof. They are so expensive now I was going to add another one this month but decided that putting a deposit on another house was a much smarter option. LOL

[TswaneNguni]

Originally Posted by Frank McKay

Regarding steel sports watches -
“Believe it or not, I think we’ve scared away the common Rolex buyer, we used to get a lot more walk-ins requesting steel Subs/GMTs and inquiring about steel Daytona’s. Not anymore”.

Its because the sincere buyer leaves the AD feeling guilty for committing an offense by showing interest in a Rolex .
New buyers and collectors are lost in this unfortunate process.

The AD has the problem distinguishing between the sincere potential client and Mr Flipper from Flipper Heights in Greydale .

Demand >>>>> Supply .Very simple .

[AJMarcus]

Originally Posted by David001

It depends which strategy you believe in, apparently according to some Rolex have restricted SS watches and are pushing precious metal ones because there is more margin, but that doesn't seem to be the case in reality, SS watches are being made in more numbers than ever to meet demand and PM is restricted.

Rolex can't do right for doing wrong.

Just like Patek. And that’s where Rolex wants to be, sadly IMO. The great steel sports watch anyone with a steady job could save up for and walk in an AD anywhere in the world and try on and buy ( and own their entire life ) is no more. It’s all about exclusivity. Not what Wilsdorf initially intended. I guess that is why they brought Tudor back. But it’s not quite the same.

[AJMarcus]

Originally Posted by TswaneNguni

Its because the sincere buyer leaves the AD feeling guilty for committing an offense by showing interest in a Rolex .
New buyers and collectors are lost in this unfortunate process.

The AD has the problem distinguishing between the sincere potential client and Mr Flipper from Flipper Heights in Greydale .

Demand >>>>> Supply .Very simple .

The problem are the Gray dealers not the flippers. You can’t flip if no one wants to buy. It’s the Grays making the most money from Rolex not the one time flipper. And I don’t believe most ADs really care as long as they are not complicit. The ADs love this game because they get to allocate all the desired pieces and make more $$$$$$ from buyers forced to buy pieces they don’t want to get the one SS they want. And then turn around and thank the AD! And Rolex makes more $$$$$ from those transaction as well. Win-win. And the average person is shut out from ever owning a Rolex they would normally never consider flipping. That’s the irony of it all.

[Tensai]

Thanks for the info about watches.
But the talk about crypto and real estate...zzzzzzzzz...

[Bozack90]

Originally Posted by Frank McKay

“Believe it or not, I think we’ve scared away the common Rolex buyer, we used to get a lot more walk-ins requesting steel Subs/GMTs and inquiring about steel Daytona’s. Not anymore”.

I'd be curious too as to how many have just given up, I don't even bother looking anymore, not that I want anything, but I figure if anything were to happen to mine replacing them would be near impossible given availability.

I'd always hoped the lack of availability was only a limited thing and eventually we would see more stock but look like that might not be the case.

Originally Posted by AJMarcus

Just like Patek. And that’s where Rolex wants to be, sadly IMO. The great steel sports watch anyone with a steady job could save up for and walk in an AD anywhere in the world and try on and buy ( and own their entire life ) is no more. It’s all about exclusivity. Not what Wilsdorf initially intended. I guess that is why they brought Tudor back. But it’s not quite the same.

Wow I hope it doesn't stay that bad as aren't SS pateks impossible to get without having some type of buying history....but it does seem like that is how Rolex is headed permanently

[suux88]

TT and PM making comeback
Better bang for buck, especially at grey steel prices

[Etschell]

You can make 20k off the right pm watch. You can't make that off most ss watches. Only 1 rolex.

[Chester01]

Originally Posted by peterpl

Because Precious Metal has always been the king and now Instragram Flex culture its ALL about precious metal. I've been reading from the hypebeasts its because SS became too popular and every joe blow's collection was all the same just a bunch of the same watches. Even 20 year old kids working at Maccas flexing with SS.

Precious metal cuts out ALOT of ppl simply because of price point so now all the instagram flex's are all precious metal as that differentiates them from many that can afford $20k SS but cant move to $40-$50k gold.

SS was just overhyped for ages and now most of them are stuck under $20k and havent moved from here for ages now BLRO/LV/BLNR etc etc....only the Daytona is flying.

Meanwhile PM is going through the roof. They are so expensive now I was going to add another one this month but decided that putting a deposit on another house was a much smarter option. LOL

I wouldn’t equate insta hype with reality. Gold and PM watches are really only the domain of the top 1-3 percent folks and despite what one sees in the so called instabook not really reality. The overall trend is the younger generations are and have been moving away from jewelry for decades not to mention watches (Apple outsells all in just like what 2-3 years of existence) and most not see Rolex or other brands as “elitist” and smack of hierarchy and privilege. The reality is these watches may get some some attention in the externalities small confines of their zip code or smaller yet their work place but that’s about it, no one else really notices because they are too worried about making their car payment.