Rolex CPO: Well, my bubble's been burst
When initial news of Rolex's new Certified Pre-Owned program rolled out last week, I held a delusional hope that this was a way for Rolex to actually tame the hyperinflation of Rolex prices on the secondary market. A week later, a lot of analysis has been done by many folks in the watch community and, well, my hopes have been dashed on the rocks like a ship trying to pass through the Straits of Gibraltar.
I don't know what I was second-hand smoking but clearly, I wasn't thinking straight. Rolex is going to impact secondary prices, just not in the way I want. They are going to do the opposite which is to say, they are going to profit handsomely on not only new watch sales, but also during resale. As many have commented, including Adrian Barker, Rolex has just legitimized the gray market.
Also here's another interesting video from Oisin O'Malley about the Rolex CPO and those "Exhibit Only" watches.
Gen-X watch enthusiast. Into watches before I knew a damn thing about them or anything (maybe I still don't). An unabashed fan of Rolex and Cartier.
I don’t buy Oisin’s theory (though he isn’t the only one stating this). I align with Adrian’s take that it will be a trade in program that builds brand loyalty.
It’s important to remember that Rolex isn’t selling used watches. The AD is. The AD will have Rolex service and authenticate the watch for a fee and that fee will be passed on to the consumer either by offering less on the trade in or selling the used watch for more.
This might decrease the flipping, and if you can’t flip it, then the inventory will increase. If the inventory increases, the prices will drop. So, if Rolex is successful at decreasing the flippers, everybody else wins.
Theres always an angle.
Won’t watch Oisin, nevermind consider his insights. I have to agree with @cornfedksboy and Adrian, which I am already on record for saying this is not about curtailing the aftermarket and yes, it will absolutely help towards loyalty/AD relationship.
Two of my less liked YT stereotypes: The used car salesman and the tour guide.
Rolex have unintentionally given YouTubers something to increase their view counts. that’s about all.
I really don’t see what all the fuss is about: Bucherer sold over priced pre-owned watches before the CPO program and continue to do so after.
Nothing youtubers like Adrian and Oisin opinions are factual. On one hand you have one guy who literally lamented the moonswatch debacle but supported the bamford/g-shock malarkey. On the other you have a narcissistic bellend who got triggered by a lady working in church. Both were of the opinion that the Rolex bubble would never burst, but look at where we are now…
I don’t buy Oisin’s theory (though he isn’t the only one stating this). I align with Adrian’s take that it will be a trade in program that builds brand loyalty.
It’s important to remember that Rolex isn’t selling used watches. The AD is. The AD will have Rolex service and authenticate the watch for a fee and that fee will be passed on to the consumer either by offering less on the trade in or selling the used watch for more.
This might decrease the flipping, and if you can’t flip it, then the inventory will increase. If the inventory increases, the prices will drop. So, if Rolex is successful at decreasing the flippers, everybody else wins.
Yes the theory on "Exhibit Only" watches raised my eyebrows too. It seems far-fetched but it's not implausible although it wouldn't really come into play for another 18 months or so. Until then CPO inventory is going to have to be created through watches the ADs themselves have already acquired through their existing secondary market businesses, which still means Rolex is going to be paid their fees for authenticating and servicing the watches regardless of the source. The part of the theory that doesn't make sense is whether they are implying Rolex will continuously restock the exhibit-only cases in order to create a "used" inventory. That doesn't make sense but theories are only theories for a reason.
I'm sure the CPO will somewhat reduce the profit potential from flipping new watches but free markets (as I've been reminded) will operate however they do and there's nothing to stop a flipper from selling to the gray market instead of a Rolex AD. So it will be interesting to see the price trend over the next 18-24 months.
Nothing youtubers like Adrian and Oisin opinions are factual. On one hand you have one guy who literally lamented the moonswatch debacle but supported the bamford/g-shock malarkey. On the other you have a narcissistic bellend who got triggered by a lady working in church. Both were of the opinion that the Rolex bubble would never burst, but look at where we are now…
What? YouTuber opinions aren't factual? Mind-blown.
None of this matters to me in the least. If I can’t buy a new Rolex at MSRP or a used Rolex under MSRP, I’m not a participant in this game.
None of this matters to me in the least. If I can’t buy a new Rolex at MSRP or a used Rolex under MSRP, I’m not a participant in this game.
Judging by the number of other Crunchers dropping posts about getting the call it seems supply availability of stainless steel models is getting better (at least for anything not called Daytona, GMT Master II, or Submariner).
Judging by the number of other Crunchers dropping posts about getting the call it seems supply availability of stainless steel models is getting better (at least for anything not called Daytona, GMT Master II, or Submariner).
no kidding