I don't think they are funding it. ADs are being allowed to set the prices so it follows that they are also taking the risk to get the watches. We have to remember that ADs aren't Rolex. They are independent dealers who have contracts to sell Rolex watches. This keeps the dealers at arms length and is also what opens the whole thing up to the way things are being done today. The AD has quite a bit of leeway to do business as they see fit.
Rolex....pre owned
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Re: Rolex....pre owned
Life is not a matter of holding good cards, but sometimes, playing a poor hand well.
Jack London
Jack London
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Re: Rolex....pre owned
There have been 2 ADs in the US taken to court in the last couple of years for backdooring watches at higher than RRP. Rolex is very aggressive at watching the AD network. Even to the extent of sending out 'secret shoppers' to ADs and boutiques. They know exactly what is going on with their dealers.
Life is not a matter of holding good cards, but sometimes, playing a poor hand well.
Jack London
Jack London
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Re: Rolex....pre owned
I would bet they do but at a very reduced rate. Probably not much more than cost to Rolex. One aspect that hasn't been discussed anywhere is the watchmakers. Both of the ADs in my area employ watchmakers but the work they are allowed to do is limited. Almost everything has to be sent to the NYC or Dallas service centers. Have they been on a serious hiring spree? Not that I have heard. This could be the reason for the rolling launch across the world. There are only a few ADs launching it. Rolex may be building up the capability to service more watches. My ADs send their pre-owned watches for service anyway before they go on sale but the number they see is really small. Maybe this program will see the numbers increase? I don't know. There is a lot that is yet to shake out.
Life is not a matter of holding good cards, but sometimes, playing a poor hand well.
Jack London
Jack London
Re: Rolex....pre owned
WOW....just seen some of the prices....£19000+ for a non date sub, £64000 for a Daytona don’t think this is going to do Rolex reputation any good at all, if those prices are true. Watchfinder etc must be loving this, they can increase their prices by a few grand overnight and still undercut Rolex, that’s if folk take Rolex preowned as benchmark price. I suppose they can ask what they like, you still have to find a buyer.
Re: Rolex....pre owned
The pre-owned market for Rolex is huge and currently grey market dealers are the ones benefitting the most from the extortionate prices some of these watches are fetching. No doubt Rolex has spent many hours trying to find a way to get a larger piece of the used market pie.
It's just my personal opinion but I think Rolex will mandate a pricing structure for their pre-owned watches that is lower than the current crazy grey market prices. Each watch by year will have a range that can be charged depending on condition. Similar to CPO cars or certified coins. As the system is implemented buyers will be attracted by the Rolex certified certificate rather than taking a chance on the grey market. Eventually consumers will think of Rolex certified as the main pre-owned market and grey market dealers as a distant second choice.
In the beginning the trick will be how do Rolex AD's get their inventory. If they have to sell their watches for less than the grey market dealers, then it stands to reason they have to pay less for the watches to stock their inventory. Rolex has a powerful tool that grey market dealers don't have, and that is their new watch inventory. An AD can say to a potential customer, if you sell me your used explorer for xxx price that is less money than you will get from a grey market dealer, I will put you at the top of the list for a new Rolex which of course is at retail price and not at the extortionate grey market price. This is basically like a car trade-in program. The customer will get less for their used Rolex than they would if they sold it privately, but in exchange they get a sparkling new Rolex at a good price.
The other thing that Rolex can do is initially subsidize the AD's to get the program running. It could be they don't charge them for the certification program in the beginning, or some other method. Sometimes you have to spend a little money to make money. After two years of not making a profit with the program, the market will be flooded with certified watches that will change the market forever. After all, once the public realizes they can get a certified Rolex for less than a grey market Rolex, the aftermarket money begins to flood into Rolex AD's pockets, and the grey market dealers have to find a new way to rip off the public.
These are just the rambling thoughts of a pre-caffeinated morning brain and probably way off the truth. If I were the owner of the most popular brand of watches in the world, I would want the huge profits being made off my watches by grey market dealers to make it's way into my coffers instead, and this might just work.
It's just my personal opinion but I think Rolex will mandate a pricing structure for their pre-owned watches that is lower than the current crazy grey market prices. Each watch by year will have a range that can be charged depending on condition. Similar to CPO cars or certified coins. As the system is implemented buyers will be attracted by the Rolex certified certificate rather than taking a chance on the grey market. Eventually consumers will think of Rolex certified as the main pre-owned market and grey market dealers as a distant second choice.
In the beginning the trick will be how do Rolex AD's get their inventory. If they have to sell their watches for less than the grey market dealers, then it stands to reason they have to pay less for the watches to stock their inventory. Rolex has a powerful tool that grey market dealers don't have, and that is their new watch inventory. An AD can say to a potential customer, if you sell me your used explorer for xxx price that is less money than you will get from a grey market dealer, I will put you at the top of the list for a new Rolex which of course is at retail price and not at the extortionate grey market price. This is basically like a car trade-in program. The customer will get less for their used Rolex than they would if they sold it privately, but in exchange they get a sparkling new Rolex at a good price.
The other thing that Rolex can do is initially subsidize the AD's to get the program running. It could be they don't charge them for the certification program in the beginning, or some other method. Sometimes you have to spend a little money to make money. After two years of not making a profit with the program, the market will be flooded with certified watches that will change the market forever. After all, once the public realizes they can get a certified Rolex for less than a grey market Rolex, the aftermarket money begins to flood into Rolex AD's pockets, and the grey market dealers have to find a new way to rip off the public.
These are just the rambling thoughts of a pre-caffeinated morning brain and probably way off the truth. If I were the owner of the most popular brand of watches in the world, I would want the huge profits being made off my watches by grey market dealers to make it's way into my coffers instead, and this might just work.
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- jkbarnes • kiter65 • Bahnstormer_vRS
Malcolm
CW C60 Vintage Hamilton Khaki Field Sinn 104 CW C65 Vintage GMT Monta Oceanking Elliot Brown Holton
CW C60 Vintage Hamilton Khaki Field Sinn 104 CW C65 Vintage GMT Monta Oceanking Elliot Brown Holton
Re: Rolex....pre owned
The Anordain way. Id be fine with that. I dont need instant gratification, I just need to know and not be belittled or blackmailed into becoming a preferred client.rkovars wrote: ↑Sun Dec 04, 2022 12:10 am The more I think about the more I think big changes are coming to the AD system. The current system doesn't work for Rolex or the ADs. In Rolex's perspective new watches aren't making it to the right hands and there are too many holes for bad acting ADs to cut corners. ADs aren't happy because they have no product to sell. I would not at all be surprised if the ADs turn into 'showrooms' where you come in to place an order. You put down a deposit and the order goes to Rolex. They keep the 'master list'. It comes in when it comes in and you pay the balance. They will be able to tell you exactly how long that will take. Rolex now knows how many watches and what models to make. No more back door AD crap. The ADs can focus on moving pre-owned through their stores. Official Rolex flagship boutiques will still get product on hand.
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Re: Rolex....pre owned
Just had a look at Bucherer's site too. Absolutely ridiculous pricing!kiter65 wrote: ↑Sun Dec 04, 2022 3:25 pm WOW....just seen some of the prices....£19000+ for a non date sub, £64000 for a Daytona don’t think this is going to do Rolex reputation any good at all, if those prices are true. Watchfinder etc must be loving this, they can increase their prices by a few grand overnight and still undercut Rolex, that’s if folk take Rolex preowned as benchmark price. I suppose they can ask what they like, you still have to find a buyer.
And there we were thinking Rolex were doing this because they cared about their reputation and the customer.
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Re: Rolex....pre owned
That is a powerful tool, and I have a hard time thinking how Rolex is going to compete with grey market vendors if they dont implement some form of this. However, with the initial supply still being what it is, I wonder what effect it will have on new supply, and how much of a client loop it will create - just recycling clients for upgrades.mvlow wrote: ↑Sun Dec 04, 2022 4:41 pm Rolex has a powerful tool that grey market dealers don't have, and that is their new watch inventory. An AD can say to a potential customer, if you sell me your used explorer for xxx price that is less money than you will get from a grey market dealer, I will put you at the top of the list for a new Rolex which of course is at retail price and not at the extortionate grey market price. This is basically like a car trade-in program. The customer will get less for their used Rolex than they would if they sold it privately, but in exchange they get a sparkling new Rolex at a good price.
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Re: Rolex....pre owned
This was a good article from watchpro about Rolexes new scheme. Answers a lot of questions, but bear in mind it's the perspective of an industry professional.
https://www.watchpro.com/what-does-role ... wqYQ&=1
https://www.watchpro.com/what-does-role ... wqYQ&=1
'Tis me
Re: Rolex....pre owned
And this article is also talked about at length with 2 other watch dealers in one of Paul Thorpe's latest videos.Caller wrote: ↑Mon Dec 05, 2022 3:07 pm This was a good article from watchpro about Rolexes new scheme. Answers a lot of questions, but bear in mind it's the perspective of an industry professional.
https://www.watchpro.com/what-does-role ... wqYQ&=1
Re: Rolex....pre owned
They will be hiring Boycie's to work in the used car watch department.
Oh dear, dear. Sharp intake of breath. If you only you had the blue. There's just no call for the brown.
Oh dear, dear. Sharp intake of breath. If you only you had the blue. There's just no call for the brown.
Re: Rolex....pre owned
It’s just accrued to me why the chap dealing with me at M&W, when I picked up my Omega last week, was very interested in what Rolex I owned. I was wearing my Airking. Could I be getting the call soon, not to buy but to see if I wanted to sell
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Re: Rolex....pre owned
I saw it reported somewhere that pricing is at the ADs discretion. The Bucherer listings don't show any evidence that Rolex is putting limits on prices. They are currently several thousand over market. This might be wishful thinking on Bucherer's part and we may see them come down over time especially as more ADs come on line with the program and there is more competition amongst the ADs themselves.mvlow wrote: ↑Sun Dec 04, 2022 4:41 pm
It's just my personal opinion but I think Rolex will mandate a pricing structure for their pre-owned watches that is lower than the current crazy grey market prices. Each watch by year will have a range that can be charged depending on condition. Similar to CPO cars or certified coins. As the system is implemented buyers will be attracted by the Rolex certified certificate rather than taking a chance on the grey market. Eventually consumers will think of Rolex certified as the main pre-owned market and grey market dealers as a distant second choice.
I still say this is primarily for the ADs so that they can now more aggressively market the pre-owned watches they sell (which they couldn't before) and offer the official Rolex warranty which pre-owned dealers can't.
Whether the market will accept the current premiums being asked is yet to be seen.
Life is not a matter of holding good cards, but sometimes, playing a poor hand well.
Jack London
Jack London
Re: Rolex....pre owned
Oisin O'Malley had an interesting view on the Rolex pre owned watches yesterday.
Last edited by Bahnstormer_vRS on Sun Dec 11, 2022 12:20 am, edited 1 time in total.
Reason: Fixed YouTube links; need to be www.youtube.com/watch?v=. . . . (not youtu.be/)
Reason: Fixed YouTube links; need to be www.youtube.com/watch?v=. . . . (not youtu.be/)
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