- Dec 24, 2011
- Reaction score
Not sure what your abbreviation "PM" means when you say, "PM datejusts" or "PM model." I'm sure its something I should know but I'm blanking out at the moment.I think they don't want to over-extend in terms of the capital required to significantly increase annual volume. Based on where we are in the economic cycle (long into the bull market) I don't think that's a bad decision. In terms of production mix, sure, they could make more SS sports watches and fewer PM datejusts and day-dates, but why? I would bet good money that the margin on ladies DJs and any PM model is well above what the margin is on an Explorer or Sub.
Yes the margin is far higher on Day-Dates than on a steel Sub or Explorer. Although, fewer people can afford a new $35K watch than a $8K-9K Sub.
Yes, that's basically what I have heard. I'm not surprised by any of what you have said, and I certainly understand ADs want to reward people who have been good customers. It's just sort of a shame that collecting and buying certain items has now become a lot of jumping through hoops, just to get what you want. Its also tougher for those who did a lot of business with certain stores for years and then Rolex cancels their contract. So all the money one spent there means nothing. It's not as though Rolex makes an introduction and says this is now your nearest AD, and they tell the AD this is a good client of the company treat them well. Anyway, classic first world problems.I'm going to pitch in with things I know from collecting for over a decade and from very close relationships with two major Rolex ADs. This may be public and common knowledge at this point, but I know this stuff for an absolute fact:
1) Rolex, in fact, limits supply of all watches relative to the volume they pumped out pre-2018 (that's when the squeeze began). They send shipments to ADs that, as a whole, contain less watches, especially less steel sport models;
2) The watches everyone wants - those models on "allocation" - are sold to people on a "wait list." Here's the trick that list does not function in chronological order. It is fluid. You get preference on the list according to spend history and relationship with the AD. For example, I didn't like the Pepsi GMT when it came out. In fact, I hated it. Then, I saw it in person. I called my AD and had one in a month. Because of my history and relationship there, I jumped ahead of everyone on the line. That's how it works. If you don't have the spend history, you'll spend years on the list. Want to climb up the list? You have to buy more stuff, more of whatever is on the shelves.
3) ADs hoard desirable watches in their safe. None of the good stuff is on display. When someone tells you, "I'm sorry. All we have is on the shelves and display cases," they're lying to you. Every AD has a safe/vault. They keep Daytonas, GMTs, Subs, etc. in there. I've literally walked in, asked for a rare watch, had it pulled from a safe inside the manager's office, and then walked out.
It's all a game, a very expensive game.
Cheers and that GMT is a beauty! Enjoy it!