Rolex Supply Artificial or Real?
Hello crunchers!
There was a good thread recently about the supply of Rolex watches. The original poster was asking if it was real or manufactured. This is a video I did on answering that question as an economist. Also, as an ambassador to WC, I'm asked to promote the platform so I give a shout out.
Basically, my answer is that all three options were true. How can that be? That's the point of my video. I talk in depth about veblen goods, supply chain management, and Rolex price trends.
I also talk about the Boston Red Sox and my experience in working in textile manufacturing. I promise it all ties together ;-).
Much thanks to those who contributed to the thread. Hope you enjoy the video.
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Ckim
Son of a watchmaker. Artsy farsy dude.
mission viejo
Member since
Last active: 1 day ago
6.50” / 16.51 cm
I think it is entirely possible that this whole issue is going to implode. By the time Rolex is ready to meet the current demand, it will have dropped off because people are fed up with their marketing tactics. Grey market dealers will also find themselves losing cash because fewer people will be prepared to pay their over inflated prices. There may well even end up being a surplus of Rolex's on the market.
Just popped into my local AD and he said all wait lists are closed for SS sport models,so demand definitely hasn't dried up
I think it is entirely possible that this whole issue is going to implode. By the time Rolex is ready to meet the current demand, it will have dropped off because people are fed up with their marketing tactics. Grey market dealers will also find themselves losing cash because fewer people will be prepared to pay their over inflated prices. There may well even end up being a surplus of Rolex's on the market.
John P at Delray watches in now hinting that most Rolex models are trading below retail. He explicitly stated that the days in flippers making instant profit is likely over for most models. Meaning grey dealers will only buy from you at less than retail. Used prices will still be higher since they need to make a profit, but the pressure is downward.
Just popped into my local AD and he said all wait lists are closed for SS sport models,so demand definitely hasn't dried up
The sports models will likely take longer to lose their hype. But I see only the Daytona holding their used value over retail long term.
Once the recession hits, it will shift the dynamic.
Not sure we're in a recession or near one ,I'm no financial expert, but I see lots of people are still eating out and buying luxury items ,I think certain watches will be immune to falling prices, when I got my submariner in 2005 I still had to wait 6 months
Thanks for an excellent, well-thought-out, concise video. It's really good to hear from an expert and actual economist, what Rolex is really about. I get so tired of all the Rolex haters and the specious allegations of nefarious behavior. Everything you said makes sense to me and in line with what I've always believed to be the truth, but you have the knowledge and verbal skills to tie it altogether. Great job!
Thanks for an excellent, well-thought-out, concise video. It's really good to hear from an expert and actual economist, what Rolex is really about. I get so tired of all the Rolex haters and the specious allegations of nefarious behavior. Everything you said makes sense to me and in line with what I've always believed to be the truth, but you have the knowledge and verbal skills to tie it altogether. Great job!
Thanks! I'm glad you enjoyed it.