Why New Rolex Watches Can Cost Thousands Less Than Used Ones | WSJ The Economics Of
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Published 2023-04-30
WSJ’s fashion columnist Jacob Gallagher explains how factors like long waitlists and supply chain issues have caused the used watch market to explode in recent years, and how Rolex is trying to get in on the action with its own certified pre-owned watch program.
Is the clock ticking on the used watch market’s popularity?
0:00 New Daytona watch: $14,800. Used Daytona watch: $38,000.
0:31 Why people want used Rolexes
2:26 The used watch market explosion
4:02 Rolex’s new certified pre-owned program
5:33 Where’s the used watch market headed?
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#Rolex #Watches #WSJ
All Comments (21)
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WSJ is about two years too late to report this. Secondary market reached the peak last year and has been declining for 6 months
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Other outrageous practices by Rolex ADs are implying that buying some piece of jewelry from them will help you build a “relationship” with the authorized dealer. They never mention how much of this other jewelry you need to buy, and nothing is in writing (so they can’t get in trouble with the law).
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Two words: Artificial scarcity. Rolex produces more watches than Patek, AP, and Vacheron put together but pretty much 80% of the stock goes to the grey market where prices are inflated because only 20% of watches are made available for purchase at authorised dealers to meet 100% of the demand. They have recently started certified pre-owned program to get bigger piece of that aftermarket pie. Used to own a few pieces but got rid of them a while ago seeing all this nonsense (profit was nice though but that isn’t why I collect). Rolex used to stand for a brand that offers a great watch at a reasonable price that was accessible to an average joe. Now that brand is Omega, at least in my eyes. My Railmaster for e.g. is a far better watch in every aspect than the Explorer I that I used to own. And dollar for dollar, Seamaster 300m diver (which I also own) is a better watch than Submariner. If you have money for a Rolex, get a Lange or a JLC, instead. Can also get used/vintage ones from the aforementioned “big 3” swiss brands.
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Need a video on how Rolex do their waitlist and how come there are a lot of full stickers watches that’s out there in the grey markets while most of us cant come to the store and buy it regularly
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The ADs only sell to their exclusive clients who they know are flipping those Rolex to the grey market- so that means the average consumer cannot purchase a Rolex from the AD. Supply, demand, and AD selective selling. Simple.
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The biggest reason I don't want a Rolex is because wearing it paints a target on your back that says "Please mug me, I have money."
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Thank you for video 😊
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Interesting. And Very cool! Thanks.
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What an easy and relatively clear example of Supply and Demand to follow.
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Waiting list is a false word to use when waiting for Rolex. There is no such thing as a waiting list. You do not move up on the list as people ahead of you get those watches. The list is just to register your interest, when and if the AD sells you the Rolex you want depends on the variety of different factors such as, spending history, potential to buy more stuff other brands and luxurty items and frankly how they like you as a person.
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The reason why Rolex (and also Patek) have cachet is that they were one of the few Swiss watchmakers to survive the "Quartz crisis" of the 1970s. During that time many venerable Swiss watchmakers went bankrupt or almost bankrupt. Eventually the Swatch Group ended up buying out many brands and consolidated them by using similar movements across different brand names. Rolex proudly remained independent.
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Supply and demand, like diamonds, the market is manipulated to ensure prices remain high. Defining what the real price is is down to you, know one is forcing you to pay!
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When I explain supply and demand I simply tell them to look at Rolex. Prime example of it.
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Voiceover is excellent, not as squeaky as others on WSJ. Very useful data.
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Imna opt out my guy
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I've talk with a vendor at the rolex store paris and he told me: i use most of my time at managing the reservation and waiting client list than sell watches. it was a 6-month waiting minimum to get just an air king. the stupid thing is "collectionneur" pay a bigger price for the same product and they're happy (and the most just resell after to make a quick buck). this moron keeps the market and the bubble insane.
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When I bought my OP about 5 or 6 years ago the store had every Rolex model there was in the store. They had the one I bought in all different color dials. I wish I would’ve spent more and bought an Explorer. When I entered store I knew nothing about Rolex I just saw a commercial watching Wimbledon and thought “I am going to buy one.”
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My dady bought one :rocket-red-countdown-liftoff::rocket-red-countdown-liftoff: NKUWAN :rocket-red-countdown-liftoff::rocket-red-countdown-liftoff: and he loves it. It had been there for over 10 years when he went out with it.
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Bubble definition - paying over retail
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Because they can make more money by limiting supply to retail and covertly selling directly to the secondary market?
