rdenney
363
I think it’s a bubble.
Jul 11, 2019,06:17 AM
Too many other brands have the same quality reputation among the knowledgeable, but lack the status offered by a Rolex to the emerging wealthy. The perception that they are good investments feeds the frenzy (until the next downturn).
And Rolex collectors have lost their minds. (I collect Ebel watches, so I know insanity when I see it.)
But it is evidence that the AD sales model isn’t as dead as many claim.
I like Biver’s principle that the only sale that counts is the final sale to the end customer, not the wholesale transaction to the dealer. I wonder how much Rolex understands that principle and takes action accordingly. They certainly understand his principle of limiting supply to support exclusivity.
Simply raising prices is the short-term solution. But once raised, they are hard to lower when the next downturn comes, without undermining brand value. Rolex has already fed the lower price points with their Tudor brand. It’s not like Rolex hasn’t raised their prices in the last decade or so. Rolex likely puts more weight on long-term brand value than on profits—a remarkable long-term perspective that would be difficult to sustain if they were publicly traded
I seek unique buying opportunities that present a strong value proposition, and Rolex rarely provides that. Even secondary prices are high, and many other makes give up nothing in quality, at least at their production scale. (It’s remarkable that Rolex can sustain their quality model at such a large scale, but that’s their unique talent more than anything). I’m not insensitive to status symbols (and I’m honest enough to acknowledge it), but that doesn’t mean I want to pay that kind of premium to get it.
—Rick
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After speaking to AD’s my instinct says
By: emcquillan : July 5th, 2019-20:16
Production of steel professional watches has been reduced despite reports to the contrary. How can top selling AD’s receive less top selling models unless production has been reduced? Did the entire world suddenly realize Rolex actually makes reasonably p...
According to an article over on Watches by SJX it's mainland China
By: reintitan : July 9th, 2019-18:12
where previously the mainland Chinese weren't interested in Rolex (or Patek) they have now aligned their tastes to the rest of the world. and some videos on Youtube showing people shopping in Japan and are being told by the grey-market dealers there that ...
Interesting. Thanks for sharing ...
By: emcquillan : July 9th, 2019-22:57
Could be entirely or partially true. Without question, North America and Europe are not getting inventory as in previous years, which means Rolex would be redistributing shipments to other markets. Having said that from this forum and other sources the Fa...
No, it’s too many customers
By: cazalea : July 5th, 2019-13:17
If you had to write a 1000-word essay on why you (and your children and children’s children) deserve a Rolex, then there would be plenty to go around. Cazalea
No shareholders
By: Jurry : July 5th, 2019-15:19
You guys are obviously no shareholders haha (I know Rolex still privately owned but nonetheless )
I think it’s a bubble.
By: rdenney : July 11th, 2019-06:17
Too many other brands have the same quality reputation among the knowledgeable, but lack the status offered by a Rolex to the emerging wealthy. The perception that they are good investments feeds the frenzy (until the next downturn). And Rolex collectors ...