Rolex Buys Rolex Watches To Prevent Price Drops
#1
06-17-2009, 09:24 PM
Rolex Buys Rolex Watches To Prevent Price Drops 
Watch sales are down, way down in some places, and the only option for many dealers is to provide deep discounts to move inventory. This creates price drops that many watch brands are less than thrilled with. Some brands are taking an active approach to protect brand pricing. Rolex is personally purchasing back inventory from dealers who are having trouble selling Rolex watches. Buying back the watches gives some money back to the retailers to help them during hard times, and allows Rolex to be confident that less deep discounting is occurring in the market. Rolex is of the most protective brands when it comes to pricing and image. They have an almost legendary reputation for not giving significant discounts. This is not a fact that they wish to change right now when keeping the integrity of a brand's pricing system solid is an important endeavor.
It is no secret that Rolex is a cash rich company. It is not likely a huge impact for them to be buying back inventory which will likely be warehoused until future times when things are better for the luxury watch market. I would go so far as to say that it is probably in Rolex's best interest to dismantle and recycle unsold watches than to release them at below market rates (that they set). Further, you might be wondering why dealers are all selling back to Rolex in the first place rather than discounting and potentially getting more money. This would likely conflict with their authorized dealer contracts with Rolex. Plus, Rolex likely has a redemption right - that allows it to buy back stock under certain circumstances. For you, this means less chance that your dream Rolex watch is going to be discounted any time soon. Pictured is a 2009 Rolex Datejust watch with Arabic numerals.
Source - Luxist
#4
06-19-2009, 10:22 PM
I got a message from my salesman at one of the AD's I often buy from. He said he can offer me a special discount on a Deep Sea.
Very nice of him, considering how they literally ridiculed me for asking for 10% off a few months ago. I will never forget that and was thrilled to find one elsewhere.
Never pays to be smug.
But I feel smug, so go figure...
Very nice of him, considering how they literally ridiculed me for asking for 10% off a few months ago. I will never forget that and was thrilled to find one elsewhere.
Never pays to be smug.
But I feel smug, so go figure...
#5
06-19-2009, 10:48 PM
Rolex can do what they want. Watches of that type are not needed by 98% of people the other 2% can wait. All lux items are taking a big hit and will for a couple of years.
#6
06-19-2009, 10:52 PM
Hi,
I just did the exact same thing with my company. Hopefully it will prove to be a smart move. I just couldn't bare seeing our Whisky being sold so cheap.
Cheers,
Nik
I just did the exact same thing with my company. Hopefully it will prove to be a smart move. I just couldn't bare seeing our Whisky being sold so cheap.
Cheers,
Nik
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