My 'question' was mainly about Rolex production capacity. I understand the scarcity/desirability equation.Originally Posted by Tahiti
Since my original post I've thought about it. Rolex currently turn out around 1.25m watches a year. Sounds a lot, but it's a bigger world than you might imagine judging by demand. Could Rolex, as things stand, turn out 2 or 3m a year, with full am support for that many watches..........I am not so sure.
I think someone has mentioned that Rolex are building another production facility. Interesting. I don't know why they are bothering, other than because we live in an ever more inflationary world and they see a need to go with the flow to maintain a certain level of nett profit. Well, that and they might want to rein in the wait lists a bit to prevent a potential slow exodus of buyers.......but I would guess that if they do increase production then there'll be a slight price increase to offset the effect of that.
I have to admire Rolex, they've nailed it. They are their own market and can juggle price and production versus demand however they like.
Last edited by Mouse; 3rd March 2024 at 13:43.
I read Rolex were building 3 new manufacturing facilities which will be open by 2025.
With the opening of these new facilities I imagine production will increase considerably, will 2025 be the year most models are back in the windows again and maybe offered with discounts like they were in 2015/6?
I edited my above post whilst you were replying. I don't see any increase in production/availability will bring discounts. Quite the opposite in fact. Maybe only a slight increase in prices, but some. Will be interesting to see how it all plays out over the next few years.
Of course they can't just double/triple production. That's the whole point of them building the new factories. More factories = more products to sell = more profit.
I would expect the cost per unit to decrease (not increase as your comment implies) with the increase in production, that's pretty standard. The exorbitant marketing budget will not need to increase linear to production for example. So while price rises are all but guaranteed (see history), I don't believe it'll be to offset new production.
I think it's all very complex, but no doubt Rolex have some very clever business people on their staff. Very clever.
I don't think waiting lists will ever go away. Waiting lists are a huge data asset to Rolex. But I feel they will be wanting to get those waits down to months rather than years. Hence the new production facilities. But they have the weapon of price rises to play with too and it's only going to go upwards. It's all about controlling demand versus supply and Rolex are pretty good at that, though I think it's got away from them in recent years (maybe the covid years?) and now they're in catch up mode.
As for marketing. I agree with what you say, though costs for that will no doubt have increased in line with all the other costs in these unbalanced and expensive times we now seem to live in.
No offense to OP but I don't get the sort of bum-rimming that some people want in shops?
Why does it matter how much some teenager cares about your collection?
I think it’s still the case that Rolex is effectively a Non Profit Organisation, owned by the Hans Wildorf Foundation.
All of the money it makes is funneled into the charitable activities of the Foundation, so whilst not entirely profit motivated, I suppose it all benefits good causes in the end and the more the better hence the new manufacturing capacity.
I know some are sceptical of the arrangement, but it is fairly unique amongst watch manufacturers I think.
Thanks. I must confess that I'd somehow forgotten about the Foundation ownership. That could be a discussion all of its own.
Should this threat be renamed to say withdrawn my Expression of Interest ?
Maybe just call it “Meh..” for short ?
Exactly, and since I know they care F all I just don't visit these sort of places anymore.
When the world is upside down and I have to be glad I can leave my money in a shop instead of the other way round the fun is gone.
Got a new watch, divers watch it is, had to drown the bastard to get it!
There is one issue around their 'charitable' status and that is down to Swiss law allowing Rolex, (and any other Swiss charitable organisation), to not disclose where all the money goes; and, of course, Rolex doesn't.
Best Regards - Peter
I'd hate to be with you when you're on your own.
Most of their models run the same movement - how hard can it be to produce a few more Submariner cases instead of Datejusts then stick the movements in them instead? Same steel just in a different shape. The waiting lists imho are all artificially created - I’m amazed that people fall for the BS.
Exactly..utter BS
I’m with the OP
When it comes to buying a watch, customer service is everything. I expect a seamless experience from start to finish. Product knowledge is key; I want sales staff who know their watches inside and out, guiding me to the perfect timepiece based on my style and needs. Personalised attention matters too— I want to feel like my preferences are being heard and respected.
Transparency is non-negotiable. A retailer who offers guidance on care and provides after-sales support earns my trust.
Ultimately, exceptional customer service makes all the difference in turning a purchase into a positive experience.
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Last edited by Kippax; 9th March 2024 at 00:34.
Don't Date Justs outsell Subs, by a considerable margin?
ETA - And not because of availability, but because of desirability.
there aren't any waiting lists, that's been stipulated to me by WoS group. It's metaphorically a retail drug that some people are becoming addicted to. It seems that people who've already tried the drug might be able to get their hands on more but people new to the drug, who desperately want to try it are being made to wait for an unknown length of time in the hope that they'll want it even more and become more addicted when they eventually try it. Those who aren't interested in taking the drug are quite happy to try the less addictive substances and are therefore of less interest to the dealers.
They sell more watches then any other luxury manufacturer.
They are building more factories as we speak to increase production.
Doesn't really correlated with artificial supply constrain IMO.
Don’t seem to have been in much of a hurry. It’s nonsense imho.
So with supply increasing and demand falling, what happens to the watches in their C(3)PO programme? Do they cut prices, sell discreetly via auction houses, store them or destroy?
Another option might be to issue them to sales staff, but they already have their BLROs so a 2020 oyster perpetual is not going to be a winning proposition.
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