Have we reached peak "overs"?
Discussion
SS/WG Sky Dweller blue dial:
£20,750....RRP £10,600
http://www.watchfinder.co.uk/Rolex/Sky-Dweller/326...
The black dial is slightly less at £19.750:
http://www.watchfinder.co.uk/Rolex/Sky-Dweller/326...
At stroke the seemingly over blown SD43 market looks positively sane in comparison.
And will just lead to a torrent of people wanting to be on the waiting list not because they want watch but rather to make a buck....seems to me that Rolex are creating this issue by stifling supply, yet they produce over 1 million watches a year so just make some more of the ones people want.
I know it's a delicate balance as many people want a SS Rolex sports because of the residuals but it seems to have tipped too far the other way.
I wanted a SD43 and toyed with the idea of paying 12k for one but in the end I couldn't do it ended up putting my name down for one via friend who buys lots of watches from our local Rolex AD and gave he me an intro to the branch manager, even then it's going to take 12 months.
Madness.
AmosMoses said:
It's madness, I really want a batman GMT but the money they are making is stupid. Maybe they will drop in a few years.
I don't get who is buying these mega inflated pieces though, you'd have to be pretty daft to pay 100% more than rrp.
Batman GMT - not much markup really. B&P mint 7.5k over what rrp 6750ish? I don't get who is buying these mega inflated pieces though, you'd have to be pretty daft to pay 100% more than rrp.
AmosMoses said:
It's madness, I really want a batman GMT but the money they are making is stupid. Maybe they will drop in a few years.
I don't get who is buying these mega inflated pieces though, you'd have to be pretty daft to pay 100% more than rrp.
Same here! I think dealers are very wary of flippers if you don't have a previous relationship with them. Goldsmiths in Sheffield quoted me a 4 year wait..I don't get who is buying these mega inflated pieces though, you'd have to be pretty daft to pay 100% more than rrp.
critical mass said:
sad61t said:
If you are not an existing, regular, customer, is there any point in going into an AD?
A bit of a Catch 22 situation!sad61t said:
If you are not an existing, regular, customer, is there any point in going into an AD?
This is the issue, there are so many people who just want to flip the watch ADs are very wary of anyone they don't know so the AD told me. I had to get a friend to introduce me as a contact to get on the "real" list so to speak. Odd times....
What annoyed me was not being able to get on the Daytona list at either the watch gallery (one Hyde park and Westfield) who I bought a Blnr from before it went so had to get or at Rolex boutique Bond Street where I bought a 9k ladies watch for my wife
Won't be using them again. Wasn't expecting them to magic up a watch but not to allow a customer on the list is poor a
Won't be using them again. Wasn't expecting them to magic up a watch but not to allow a customer on the list is poor a
Wills2 said:
This is the issue, there are so many people who just want to flip the watch ADs are very wary of anyone they don't know so the AD told me. I had to get a friend to introduce me as a contact to get on the "real" list so to speak.
Odd times....
Why would the AD care? They just want to sell everything, and they can.Odd times....
The question is, is Rolex making money on these second hand sales? Otherwise it seems like stifling supply is a big risk, they could sell more at RRP than they are now, so they miss out on sales now. The only way forward then is keep supply low and hope interest in the watches stays, as upping supply now could mean a lot of flippers but also other people (who hoped for very good residuals) get cut.
ZesPak said:
Why would the AD care? They just want to sell everything, and they can.
The AD cares because Rolex HQ are control freaks and draconian in dictating how ADs behave. One of the things Rolex abhors most is the siphoning-off of their product to the ‘grey market’. Rolex only supplies to ADs because they can control the entire process from cradle to grave. It makes sense – no-one wants to buy Louis Vuitton from Lidl.
Rolex could withdraw their agency at a moment’s notice – a potential killer for some businesses.
ZesPak said:
The question is, is Rolex making money on these second hand sales?
No, I don't think so. It makes zero sense – if Rolex have a ‘hot’ product and are greedy for more money, then they’d simply just up the RRP via their official ADs and the cash would roll in. Also, why give the grey market a cut & sustain it? They'd rather curtail the grey market. In fact, Rolex recently sent a letter to its authorised retailers in Singapore, instructing them to stick to the recommended prices, instead of inflating them.
However, some watch brands do surreptitiously dump slow-moving or excess stock into the grey market, but they all deny it (it’s a bad look). Rolex have never needed to do so.
ZesPak said:
Otherwise it seems like stifling supply is a big risk, they could sell more at RRP than they are now, so they miss out on sales now. The only way forward then is keep supply low and hope interest in the watches stays, as upping supply now could mean a lot of flippers but also other people (who hoped for very good residuals) get cut.
Why not make hay whilst the sun shines and cash-in on the Daytona, SD43 & Sky Dweller hype? It’s not that they couldn’t necessarily re-task their gigantic manufacturing arm to concentrate on those models – it’s simply that they just don’t want to, and calculate that it's not in their long-term interests.They know that approach builds hype & demand, and hugely works for their desirability factor. Perceived scarcity, exclusivity & rarity are key tenets for most makers of luxury goods – it’s a deliberate ploy.
It might seem counter-intuitive to frustrate customers who are demanding the latest model, but Rolex know what they’re at - people are like children, they want most what they cannot have. As longs as that approach garners more customers than it dissuades, then they win.
Remember, Rolex are a private company, held via trusts - they don't need to bow-down to shareholders or chase cash at all costs, and are notorious for doing things their own way.
DJMC said:
They must be rocking with laughter in their ivory (or ceramic?) tower that they've created demand for watches they'd struggle to sell if they were freely available.
Well done Rolex!
I don’t think it’s that Rolex would struggle to sell them – the current state of affairs attests to that. Underlying the hype, Rolex do make a great product. Well done Rolex!
You are 100% correct though that the hot air & hype does undoubtedly create a ‘bubble’ of demand, that artificially drives sales.
I also agree that Rolex must be p*ssing themselves with laughter.
Imagine sticking a tiny bit of ceramic on a basically otherwise unchanged steel Daytona, or simply changing the existing all-black bezel GMT to a half’n’half black & blue, and seeing the utter uproar that unfolds.
Madness.
ZesPak said:
Why would the AD care? They just want to sell everything, and they can.
The question is, is Rolex making money on these second hand sales? Otherwise it seems like stifling supply is a big risk, they could sell more at RRP than they are now, so they miss out on sales now. The only way forward then is keep supply low and hope interest in the watches stays, as upping supply now could mean a lot of flippers but also other people (who hoped for very good residuals) get cut.
They do care and my local AD manager told me they do. They will not take people on to the waiting list that they don't know for the on demand watches. The question is, is Rolex making money on these second hand sales? Otherwise it seems like stifling supply is a big risk, they could sell more at RRP than they are now, so they miss out on sales now. The only way forward then is keep supply low and hope interest in the watches stays, as upping supply now could mean a lot of flippers but also other people (who hoped for very good residuals) get cut.
Not sure what point you're making tbh.
DJMC said:
It's clever that Rolex make the fugly ones the ones people want to buy... SkyD... Daytona...
They must be rocking with laughter in their ivory (or ceramic?) tower that they've created demand for watches they'd struggle to sell if they were freely available.
Well done Rolex!
Good job for you that you like the ones that are discounted, every cloud........They must be rocking with laughter in their ivory (or ceramic?) tower that they've created demand for watches they'd struggle to sell if they were freely available.
Well done Rolex!
Wills2 said:
They do care and my local AD manager told me they do. They will not take people on to the waiting list that they don't know for the on demand watches.
Not sure what point you're making tbh.
That it's all artificial, to create hype and threads like this.Not sure what point you're making tbh.
As someone else said, laughing in their ceramic tower.
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