What is the real reason for Rolex limited supply?
Discussion
Good Morning,
As the excitement builds for Baselworld and the recent new braclet video there will be a lot of frustrated and disappointed enthusiasts when they can’t buy a Steel Rolex.
Does anyone know they genuine reason Rolex limits the supply of steel sports watches to such an extent? Limited supply just fuels the grey market and why would a company not like to sell more watches?
As the excitement builds for Baselworld and the recent new braclet video there will be a lot of frustrated and disappointed enthusiasts when they can’t buy a Steel Rolex.
Does anyone know they genuine reason Rolex limits the supply of steel sports watches to such an extent? Limited supply just fuels the grey market and why would a company not like to sell more watches?
To give an air of exclusivity and keep the prices up. As far as I can see they make 700,000 watches, turning over near $5 billion a year so they are hardly a boutique artelier. The grey market? I doubt they care, adds to the mystique.
Many luxury brands could make more units than they do, but don’t.
Many luxury brands could make more units than they do, but don’t.
Rolex, along with many other prestige brands, have always had a reputation based on their history, innovation, quality, durability and exclusivity.
This has been the foundation for their marketing success, and the careful management of their supply and demand strategy is crucial to protecting that success.
However, there seems to be dual markets that perpetuate that demand. Those who will always want the latest, 'must have', new launch models, and those who are more interested in the collectible, out of production, 'vintage' models. The newer models may command a premium, but the older models are a classier investment - IMO.
I should add that Rolex's policy has served its customers well. If you buy sensibly, keep the box and paperwork safe, and wear and enjoy the watch, you should never lose money, quite the contrary.
This has been the foundation for their marketing success, and the careful management of their supply and demand strategy is crucial to protecting that success.
However, there seems to be dual markets that perpetuate that demand. Those who will always want the latest, 'must have', new launch models, and those who are more interested in the collectible, out of production, 'vintage' models. The newer models may command a premium, but the older models are a classier investment - IMO.
I should add that Rolex's policy has served its customers well. If you buy sensibly, keep the box and paperwork safe, and wear and enjoy the watch, you should never lose money, quite the contrary.
Jumpingjackflash said:
Good Morning,
As the excitement builds for Baselworld and the recent new braclet video there will be a lot of frustrated and disappointed enthusiasts when they can’t buy a Steel Rolex.
Does anyone know they genuine reason Rolex limits the supply of steel sports watches to such an extent? Limited supply just fuels the grey market and why would a company not like to sell more watches?
Look at TAG and Breitling. Huge supply, second hand prices terrible and an oversupply leading to the pursuit of other brands. Rolex are doing a couple of things here including supporting the used market and exclusivety for SS models. But, they are also making people consider the less sought after models and precious metal models which can be very slow sellers.As the excitement builds for Baselworld and the recent new braclet video there will be a lot of frustrated and disappointed enthusiasts when they can’t buy a Steel Rolex.
Does anyone know they genuine reason Rolex limits the supply of steel sports watches to such an extent? Limited supply just fuels the grey market and why would a company not like to sell more watches?
Hello Mr AD, can I have a Sub? Sorry sir, not available, but have you seen this new shiny with the same movement? Ermmmm, nice!
audidoody said:
Voldemort said:
They don't limit supply in any way: there are simply more brain dead sheep customers than they can cope with.
I'm so brain dead I stupidly bought a Rolex that increased more than 300 per cent in value over 15 years.I feel sheepish.
Look at crypto currencies for example.
tI was pleasantly surprised to get a phone call today from my local AD asking if I want a SS date Sub that I enquired about last month. Yes I do.
The larger chains in London weren’t interested in me and quoted two year waits.
I think the AD you choose and your circumstances play a major part.
The larger chains in London weren’t interested in me and quoted two year waits.
I think the AD you choose and your circumstances play a major part.
Artificially low supply -> artificially high price.
Simple.
I do get the Rolex hate, but in general it doesn't bother me. People pay their money for what they want.
The value proposition is a strong one. But I only buy watches I can afford without counting on what I might get back on them.
And discounting that, there's very little Rolexes that are worth their asking price imho. The Sky Dweller would be one of them but currently outside my price range.
Simple.
I do get the Rolex hate, but in general it doesn't bother me. People pay their money for what they want.
The value proposition is a strong one. But I only buy watches I can afford without counting on what I might get back on them.
And discounting that, there's very little Rolexes that are worth their asking price imho. The Sky Dweller would be one of them but currently outside my price range.
Rolex’s policy is counter-intuitive. You would think it would make morse sense for them to restrict supply of their precious metal & jewel models in order to make them seem more exclusive & desirable, while cashing in by flogging as many steel watches as the market wants.
It’s a bit like Mercedes saying you can have an AMG GT today, but there is a two year waiting list for 220Ds.
Odd.
It’s a bit like Mercedes saying you can have an AMG GT today, but there is a two year waiting list for 220Ds.
Odd.
Bradgate said:
Rolex’s policy is counter-intuitive. You would think it would make morse sense for them to restrict supply of their precious metal & jewel models in order to make them seem more exclusive & desirable, while cashing in by flogging as many steel watches as the market wants.
It’s a bit like Mercedes saying you can have an AMG GT today, but there is a two year waiting list for 220Ds.
Odd.
You're assuming the conspiracy theorists are correct, which is pretty unlikely in the real world. It’s a bit like Mercedes saying you can have an AMG GT today, but there is a two year waiting list for 220Ds.
Odd.
The reason the stainless steel watches are in short supply is that there is more demand for them. Simple as that.
I think that it's a way of generating hype to sell watches.
Rolex produces somewhere around 800,000 watches a year, possibly more, so it's not as though they've got a supply bottleneck.
The fact that you often see posts along the lines of, "I ordered a GMT, my dealer said it would be at least eighteen months, but they got a cancelled order, so it arrived within three weeks" would seem to confirm that.
Even the oh-so-rare Daytona 116500 doesn't seem to be that uncommon. There are 279 for sale on Chrono24 at the time of writing. But go into a dealership and ask to put your name on the list, and you'll be told you'll be waiting until sometime after the heat death of the universe.
The precious metal models seem relatively available. Found two of them in Melbourne yesterday, and I wasn't looking.
In contrast, I was chatting to a dealer in the IWC boutique yesterday, and asked about the Big Pilot's Big Date edition, which is being sold as a limited edition of 150 pieces in each of the two dial colours, so the total production is only a few more than the number of steel / ceramic Daytonas on the grey market at present. Doesn't seem to be a problem getting hold of one of them.
Rolex produces somewhere around 800,000 watches a year, possibly more, so it's not as though they've got a supply bottleneck.
The fact that you often see posts along the lines of, "I ordered a GMT, my dealer said it would be at least eighteen months, but they got a cancelled order, so it arrived within three weeks" would seem to confirm that.
Even the oh-so-rare Daytona 116500 doesn't seem to be that uncommon. There are 279 for sale on Chrono24 at the time of writing. But go into a dealership and ask to put your name on the list, and you'll be told you'll be waiting until sometime after the heat death of the universe.
The precious metal models seem relatively available. Found two of them in Melbourne yesterday, and I wasn't looking.
In contrast, I was chatting to a dealer in the IWC boutique yesterday, and asked about the Big Pilot's Big Date edition, which is being sold as a limited edition of 150 pieces in each of the two dial colours, so the total production is only a few more than the number of steel / ceramic Daytonas on the grey market at present. Doesn't seem to be a problem getting hold of one of them.
audidoody said:
Voldemort said:
They don't limit supply in any way: there are simply more brain dead sheep customers than they can cope with.
I'm so brain dead I stupidly bought a Rolex that increased more than 300 per cent in value over 15 years.I feel sheepish.
What an idiot.
jonamv8 said:
Jumpingjackflash said:
there will be a lot of frustrated and disappointed enthusiasts when they can’t buy a Steel Rolex.
What have I missed ??? No more SS rolex?!?!?!?! I dont think sooooooGassing Station | Watches | Top of Page | What's New | My Stuff