@@Colby_0-3_IRL_and_title_fights I suppose, but two of the driving factors of demand in the Rolex market are scarcity and quality, both of which will be affected to varying degrees if production increased.
So they'll be two streams as now, those prepared to wait or lucky enough to buy at rrp, and those who would go grey, but instead give their money to rolex.
It is a hornet’s nest. I don’t have a Rolex, I’d like to buy a particular model for my wife, I’ve been told by our AR I’ll need to wait approximately 4-5 years for this 10K watch. I can buy a used one on the secondary market for 12-13K, or unused for 15K. That’s life - and I choose not to play that game right now but… How would I feel if my AR said “you’ll have to wait years for this but, ahem! I do have a used one right here if you want to pay a 20% premium”. I’d be insulted, astonished and I’d go buy something else. It’s a tacky game of wealth signalling, one upmanship, and exploitation which I refuse to subscribe to.
Absolutely Mark. I understand the reasons as Teddy outlined, but I also don't know if folks at Rolex have fully imagined the look of an AD having a CPO priced at a premium available, someone buys it, and then the next day a brand new one comes in and is sold at MSRP to another customer? In many of these markets, it's a small world and word goes around. And if the pricing on CPOs is highly guided by Rolex, are we going to see the absurd situation of an AD offering the same watch, one at MSRP and one at a CPO at a premium? Or is the CPO price simply going to swing wildly up and down depending on stock of new watches at that same AD? It just seems that anyway you slice it, it's a simple money grab and they are willing to grab whatever they can even if it's a *hitshow at the retailer and a diminished experience for the customer
@Ioakim Boutakidis some ad's are already doing it and overcharging. Oisin Omalley had a great vid on it. 60gs for a Daytona used. They aren't eliminating the grey market. They know how important of a vehicle it is for their watch popularity. Rolex doesn't do anything without thinking long term. They know exactly what they are doing. Their watches are for those with tons of disposable income.
I live in Switzerland and I went to Bucherer last week because a friend of mine, who works in the Pre-Owned Department there, told me they just received about 100 watches directly from Rolex for the new program. And sure, they’re still being sold for regular market prices but he also told me that most of the watches they got from Rolex are literally showpieces (from Baselworld, Watches&Wonders,etc.) and old stock, so they’re mostly unworn or even untouched and come with brand new warranty cards.
@@MattyVice No, unfortunately not…I was hoping they would sell them around MSRP in hopes of regulating the grey market, but they decided to just go with the market prices or actually slightly less to be fair.
@@WatchFanatic_ so hold on a hulk (pretend it wasn’t discontinued) market is 25k; they are selling a certified pre owned for on or around 25k rather than around their price on the website of 12k? Thats bullshit wtf; nothing is resolved here, this makes the problem worse if anything
@@WatchFanatic_Rolex will be running the grey market. They will control the grey market price. What Rolex doesn’t seem to realize is their most valuable asset is their good name. Selling at AD’s at grey market prices is going to rebound on them. I expect these grey market guys to rip people off, but a multi billion dollar company, that sells every watch they produce? Not a good idea.
Thanks for sharing your insight about the Rolex CPO launch. Personally, I have bought several Rolex & Non-Rolex watches from Bucherer in the past. They have had a Non-Rolex CPO offer for many many years and they just wanted Rolex to give them a similar option to sell more watches. I think as far as Bucherer is concerned, they just wanted another official source of Rolex watches to sell. The most amazing thing I have found about Rolex is that since the CPO announcement, not a single one of their "officials" has been on any of the "watches" channels to explain the details of the programme.
@@mariog7213 The brand wins. The flippers win. But the enthusiast loses. As always, the true costumers who aren't looking to make a quick buck are the ones getting fucked.
Between the ages of 13 and 15, I saved every penny I could scrape together in order to buy a Rolex when my parents and I went to Jersey where I could buy a Rolex duty-free. I might just have been able to afford a lower priced model which I would treasure for every. I was obsessed because I had read everything there had been written about the philosophy behind the original concept, the struggle for excellence amongst mechanical watches, and the desire to produce something that was a perfect representation of the best that could be achieved. Rugged, accurate, an engineering triumph that was almost unique. My mother subscribed me to National Geographic. Every issue had Rolex adverts which showed watches being mistreated by steamrollers, athletes, explorers, etc. It all captured my imagination and gave me a lot of adolescent inspiration. In the end, we didn't actually go to Jersey and I didn't get my watch but many years later I did buy one which I gave to my son on his 18th birthday. A perfect piece of engineering that I hope he will eventually hand over to his own children. Rolex used to be a dream, a value. Now it's just about money and that makes me sad. You do a great job Teddy analysing the market for watches. But so much has been lost. The company itself seems to have lost its original values. I don't know who is running it now but I am sure that Hans Wilsdorf would not be a happy man if he could see it now.
That’s a pretty cool story. Rolex also used to be something you’d purchase as a celebration of a special life event. A big promotion, retirement, the birth of a child, a wedding… etc. Now it’s months/years wait lists. And mediocre experiences at boutiques.
I can only imagine, it's Rolex wanting a share of the pre owned market prices. I'll be intrigued as to where Rolex obtain these pre owned models, if they are buying them from the public, Rolex will have to give prices comparable to other grey market dealers, if they don't then the seller will go else where to get an higher price. The only way i see Rolex offering less and obtaining a pre owned is with the lure of the seller getting a more desirable model from that AD if they trade in their other model. My feeling is, it'll drive prices even higher.
I think one of the primary reasons Rolex has established the CPO program is to give their AD's SOMETHING to sell. For too long I have walked into a Rolex AD to find the sales staff leaning against a display case with a bored look on his/her face. This is especially true of the Boutiques, where they have nothing but Rolex to sell.
I bought a prx from you a few minutes ago and I’ve already got tracking info! That’s kick ass. Edit: my package arrived the next morning! I ordered at 2pm on the 14th and this morning(15th) a delivery attempt was made close to 10am. The UPS ppl never even try to deliver to apartments so I’ll have to lick it up in the morning from the ups site. That delivery time is simply unbelievable though. I have never had a package arrive so quickly before.
Yeah, enjoy buddy. Nice to hear someone bought a watch from Teddy. I am reading this wearing mine lol. You should get a Gentleman from Teddy next. The PRX is not the most comfortable watch IME, but the Gentleman is. Best Delivery I ever had was next day (may have been morning) from Spain to U.K.
Since the secondary market for in demand models are selling at a much higher premium than the official authorized retail price, how is this going to look if a watch retails officially for $12,000 that is not available for sale, but the AD has the exact same CPO version for sale at $20,000? It's one thing for gray market dealers to sell at higher prices, but for the Rolex AD to partake in the pricing mark up is kind of screwed up....
Two years ago, I sent a vintage (1958) Datejust to the Rolex service center in Houston to be completely serviced. I was disappointed getting it back. Overall, a good job was done. However, a terrible job was done replacing the crown. The crown does not screw down enough to be flush against the case. Considering, it cost $2600 to have the work done, I expected better. This experience has turned me off from doing business with Rolex again. There are many timepieces to choose from that are as good or better than Rolex.
I have found a great local watch specialist has done a better job, is more transparent, and has the personal touch when compared to any of the OEMs. IWC was the best of the bunch but it was still with them for almost 6 months.
In the oncoming years a service for a vintage Rolex will cost you about 5k- or even more. Better get some spare parts sourced for your datejust as Rolex wont sell them anymore and you will need to send the watch to their bespoke/ vintage service department
Excellent video presentaton. Straight forward information, no annoying music over you talking. As a hobbyist watch repairer horologist for 20 years I have seen real Rolex watches in Pawn Shops but not as cheap as I would like. It was getting hard for me to know all the models and what to look for with regards to replica watches. I don't mean the $500 replicas, the $2,000 ones are hard to tell the difference. Same for the Pawn Shop owner who does not deal with replicas. This program will eliminate the guess work. Buy a certified watch from an AD and save a few $$$$$$ with a preowned over brand new. But I do have a fear of parts being withdrawn from the market to repair preowned. In house repairs and certified only. We see the battle for Rights To Repair in a lot of items from cell phones to farm equipment. Watches Like Rolex or Breitling or Omega etc could do the same to keep their watch prices stable through this coming recession. I might have a hard time finding watches and parts for them.
Pre-owns from the CPO program are more than retail, and in fact more than the grey market dealers pricing. You are getting no discounts here. Only a warranty for and added premium.
It will help people start a relationship and allow the AD to assess true buyers for collections, if a customer walks in and pays over retail for a Daytona say.. they I’m sure will be rewarded with a jump up the wait list for that Sub or GMT in half the time. I can also imagine they could offer a better buyback option on that Pre owned
Rolex wants to control their 2nd hand pricing so that it will be more stable and not hurt their brand…prices will still be at a premium and increase slowly overtime.
Disagree. The price run ups - and current drops - are mostly macro economics driven. Rolex can’t call central bank and tell them how much liquidity to put into circulation. And good luck with crypto…
@@WestCoastAce27 when the ADs starts to hold shares of the 2nd hand watches (might take few years), the ball is back in Rolex hands as far as pricing goes.
@@timchan334 sorry, that’s BS. This program is going to be tiny relative to the total number of grey market watches for sale. Rolex has repeatedly stated they can’t bring that many new watch technicians onboard to assemble new watches; now they need even more for these inspections/maintenance. And just 1 model of 1 not very popular sports watch has 36+ pages on 1 grey market website. It’s estimated grey market is a $20B/yr industry. Rolex cannot compete with those numbers. Macro forces move the prices - slowdowns in US, EU, and CHN have already lowered prices. More to come in 2023.
@@WestCoastAce27 have to think from Rolex perspective, their main goal is to keep the brand in Prestige level. What happen these couple of years have some what hurt the brand (Prices going insane levels and a sudden dropped). For them, they need to have some control of the secondary market and this is their approach…will it work, we’ll see.
@@timchan334 sorry, terrible take - it’s not about perspective, it’s about economic reality - they’ve gotten so much free publicity - TH-camrs readily admit Rolex videos got views over the last 4-5 years. Their Prestige is through the roof - they could EASILY sell 10x the # of new Daytonas, GMTs, Subs (and a lot more Exp IIs, Yachtmasters, etc) at MSRP. They are an aspirational brand, at a level similar to Apple, Mercedes, etc. Also, if the price swings were their concerns they wouldn’t have waited this long. And you totally dodge my pt: Rolex will not buy enough watches (AND be able to refurb them) to move the price needle. Did you see the outrageous prices the initial pieces at Bucherer in GER are listed at? Way over grey! You really must think Rolex mgmt is stupid (they’re not) if you think they’re going to buy tons of watches, spend $$ on refurb, then watch them languish in ADs.
It will definitely be interesting to see how this evolves in the next few months and years. I am hoping it has a positive impact on the market as I am unwilling to participate in AD games or exorbitant second hand prices. Too many other superior options are out there. That being said, it is remarkably clever of Rolex to be able to double dip their toes in the second hand market by providing (some unknown level of) service plus adding a tag. I do, however, applaud their reinstatement of the lost & found policy which hopefully detracts thefts. I like Rolex as a brand and remain hopeful that the relative Rolex market will be of equal value & quality.
@@michaeljordan6008 I don’t purchase watches as an investment or specifically for “value retention”. I buy them to enjoy them on my wrist and not in a box. If they depreciate in value, so be it. It has no impact to me who isn’t interested in flipping them.
Rolex may want to get hold of many Rolex watches on the secondary market, add the CPO certification and increase their prices. Purposefully or not, it could be a way to increase the prices of their watches on the secondary market, which have been plummeting recently, and hence boost the demand for their watches.
This corners the market for them. There is no question as to the authenticity this way. Customers will more likely buy CPO from ADs than buy in the open secondary market.
I am still unsure about how much of premium they can demand. There are good sellers in the secondary market that have stellar reputations. If we are talking 15-20% more than market for CPO that is sizable in its difference.
How about Rolex is using CPO scheme to legitimize AD tactics of building up a purchasing history? Instead of pushing other brands to build up a purchasing history, Rolex is providing a pathway for the AD doing the same but with CPO Rolexes.
It’s going to be like those stores that resell shoes. Yeah it’s there but buying from independent sellers will always be cheaper. Might be nice for trade ins tho
I am currently working with my AD on getting an Explorer 36- 124270, but would love to get my hands on a 39- 214270, (but the grey market prices are still double original retail). Right now, they cant give me any info on when I could get a watch, and the AD basically told me that it could be over a year....for an explorer. If Rolex gave me an opportunity to spend say 1500-2k more to get a discontinued, pre-owned 39mm from an AD, with the same warranty, QC, experience etc., I would jump at that. I think this will be a huge success for Rolex.
Hello nothing to do with the video but Is philipp plein making good watches cause I have my eyes on the skull diver watch (black-silver) and the nobile (silver) but I am not sure about the quality and I would like to hear your opinion Ps I know that there are many more reputable brands etc with better quality for the money but I like the design and I am just asking if the quality is good enough Thanks for your time
It will be interesting to see how the current price plunge affects the success or relevance of this program and the creativity of ADs in how to make products accessible. The sneaker collectors market is a fascinating comparison in this regard with raffles and such
The long game is 10 years to attain AP status. They don't want to kill the grey market, they want to quietly destroy 5% of the used stock every year whilst charging a 15-20% premium. They know that the grey market will increase their margins in turn. Every year Rolex will increase the cost of their new models by 10%. In 10 years there will be half as many used Rolex's in circulation, and new Rolex's will cost twice as much and be seen as an AP/Patek alternative. By this point Tudor will have been elevated to fill the gap left by Rolex, and the game starts again.
Firstly, how will Rolex or ADs get hold of Pre-owned inventory? I doubt people will give up their watches for less than secondary market values. I believe people are okay paying more for a pre-owned Rolex in the "Grey Market", knowing they don't have to play the games of the AD and "sticking" it to Rolex in the process. If Rolex can keep the prices within reason, maybe it will open the market to people who actually want the watch for what it is, and not just owning "something expensive" or an "investment".
A Rolex used to be something you strived for, worked hard for and eventually, maybe, you could walk into a store and buy knowing that you'd earned it. Not now. Now they've come to represent something almost sinister...affluence, status, entitlement, superiority...I have a couple from years back before we'd all lost our collective minds about them but I never, ever wear them anymore. I feel like a complete tool whenever I even put one on. So, whatever Rolex does in the pre-owned market, I could care less. They're dead to me.
Can I buy your Rolexes if you no longer use them? I'm not a flipper - just someone who has also saved up for a Rolex and can't get one (and won't go to the ridiculous secondary market)!
It will prop up secondary prices. CPO models are already selling at a premium to other used watches. In addition, Rolex Service Centers are rejecting warranty claims on watches purchased in the secondary market, so that will be an additional benefit that might justify higher CPO prices.
Great video, Teddy, thank you. I see this benefiting Rolex, and the customer with deep pockets who want peace of mind that their purchace is 100% genuine. Could benefit the flipper if it ends up driving prices up. Everyone else? Nope.
The CPO prices is way above the grey marked. Would rather buy a full set from a trusted second hand dealer. Then send it in for service and get the service document.
This has a lot to do with the exhibition only models. They are going to take those well handled models refresh them and sell them under the new program.
Rolex just announced that they build a new factory in Switzerland. Budgeted at 1 Billion, 2000 people will work there. My take is that with more production the 2nd market prices will drop. When they have thheir hands in the 2nd market they are more capable to influence prices.
We don’t know their plans for the new factory. Maybe it is to have better manufacturing equipment and they might tone down production in the old factory.
I want to know how is this better for us, the consumers ? Not counting the hype-beasts and the people that want to put the watch in a safe for the "investment", how is this better for the ones that actually like the watches and are not flippers ?
I am not sure it actually is. It could be depending on how Rolex rolls this out but we could just be looking at the money shifting hands. This 3 year window should in theory slow down the opportunist flippers but we will have to see.
I dun think that’s the intention of rolex. Ur well being is least of their concern buddy. It’s all about maintaining the prestige / desirability of the brand . Watch industry is not like the financial industry where ethical actions are expected or regulated/ governed by any regulator hence you can expect rolex to continue to act like this way. The way to beat this game is to walk away. No manipulation lasts forever and when it collapses you can enter like a king . For now, spend ur money on the brands that deem as a valued customers
@@TruthTeller00 u must be new to the game . No manipulation will last forever. Watch market gets affected by general economy too. If u put aside 2017-2021, watch prices been declining badly. There’s many articles talking about the dying of Swiss watches back in 2016 till Rolex played the manipulation game. There is a limit to everything and there’s always a cycle to it. We r at the end stage and it will go thru a decline for a while before the cycle repeats itself. A year ago I said the watch market will collapse, till now some ppl still trying to down play it and termed it as soft landing or correction. Hahaha. The only reason why there is a slight rebound is because the grey dealers are trying to hold the prices hoping that people will spend like before. Right after the festive season, get ready for another round of decline. Rolex can be appealing , but at the end of the day, a rich man (being rich) knows what’s best for each dollar that he spends. To buy things at premium and at this moment doesn’t make sense (those temporary and dumb rich men have already died with their bitcoins and diamond hands , probably verge of bankruptcy) 2023 is the year of death of grey dealers. Rolex will do just fine given that any customers would still buy some models at retail price.
Soooo, let me try to understand this .... Rolex is going to start offering CPO's? This should be interesting. For example, a Pepsi grey market approx. 22K. MSRP apprx. 10K where does the CPO price land? probably in the middle? This way Rolex can make it official that preowned watches will be worth more than new ones. For a company that is still in production to be able to create this situation is amazing .... I think it sucks ... but it is amazing. Does anybody else think this is insane?
It's a simple growth strategy by expanding into an adjacent space i.e. the secondary market. Rolex is able to thus capture share of the profit pools with lower operating costs (since they don't need to produce a watch again). They effectively increase the unit economics per watch and can justify the operating expenses of the pre-owned program based on just the volume of secondary watches. Net net, it's massively (and positively) impacts the company's valuation
A question I have is can anyone submit their rolex to get a certified preowned card and box. I bought mines off of crown and caliber with no box and papers, could I get it certified by then without selling my watch.
Pretty interesting, I talked to my local AD about their thoughts and they were already authenticating any watches they were selling anyway so the only real difference is the new hang tag
I got my first rolex a year ago live in small city in Tennessee got a 126610LV from ad went in once a month chit chatted learned about watches tried them on enjoyed them, got my watch in 9 months. All about relationship and not being a flipper.
Shameful double dipping on their watch sales. Not only that, Rolex is taking a page out of DeBeer to buy up open market inventory to control its availability and pricing. Note they are pricing their CPO even higher than open market pricing. Even as a Rolex owner myself (bought it in 2016), I have checked myself out of any future Rolex purchases and out of the watch hobby in general. This watch hobby has become a show of vanity so much so that I don't even want to wear the one I have anymore. I still enjoy watching Teddy's channel because he is one of the few - or perhaps maybe the only one - that truly provides informative content and doesn't hype up those notorious brands.
I don't know if this will change much if their scummy business model of roping you into buying other jewelry before getting a rolex doesn't change as well. Love the content brother
Guaranteed they will sell them above retail. What incentive would flippers have to sell their preowned watch to Rolex otherwise? And Rolex also has a vested interest in keeping the secondhand market above retail.
Rolex are not silly.. They are a massive company where things are planned years in advance & this is just the first phase.. By entering & eventually controlling the market & bringing used prices down to below retail.. it will kill the grey dealers & flippers overnight - Game over👍🏻
Great video Teddy. Overall I think this is a good move by Rolex. There will be growing pains, but I see it morphing into a good way for Rolex to somewhat reel in the resell pricing of the
@@JCleggy Rolex ADs follow their rules, both official and unspoken. I see Rolex having guidelines, that they can enforce directly and indirectly, which will help them control the pricing of CPO models under 3 years. The pricing will organically(may take a yr or 2) find it's sweet spot where Rolex gets the cut they are missing, the ADs have a new product they can offer that is not outrageously priced above retail, and the desirability will still be very healthy.
The comparable is obviously high end CPO automobiles. In that market the the dealer sets the asking price on the CPO item. Presumably that won’t be the case here as the watch essentially goes back to the factory. So does Rolex literally ask more for CPO than new? Bizarre. But to let the dealer set the price and keep the margin seems equally bizarre. And how does Rolex get supply that costs more on the market than new currently and then sell at or below the price of new? I wonder if this move will ultimately be accompanied by a removal of price controls on new. All That noted, I think this could be a very good and profitable move for Rolex.
I know car companies do this too but that doesn't make it right, or even moral IMO....Also judging by the prices I've seen on their site Rolex is now saying not only is it ok to over charge for pre owned watches but that the prices out there are not high enough.....yet one more reason I will never buy another Rolex
For both Rolex and their dealers to make money they will need sellers willing to sell at less than they can get in the gray market and buyers willing to pay more than the gray market. This feels like a terrible business model but I have always had a lack of understanding of the valuation in the Rolex grey market. ……..
Great video Teddy, new subscriber and truly enjoy your content and love the Wolf watch box I just purchased of your site. I would consider a cop Rolex only with box and papers, curios as well to see how they will control pricing. I’ve been waiting for a White Roman 41 with jubilee bracelet and fluted bezel for over a year now, have to say just about frustrated with the wait. I am now looking to alternatives so wanted your thoughts on that, possibly a Grand Seiko, especially after the video you just posted from NYC. Any comments/suggestions on alternatives I should be looking at? Keep up the great work!
Diamonds are basically worth pennies but debeers controls the market. Rolex thought that was a pretty good approach. "I'd like to look at a new GMT it says its 10k?, hmmm we dont have any but would you like a used one for 25k?"
Couple of questions. Why would I sell my rolex to an AD which would be far less than the grey market? Far less. The only leverage one could see is that the AD has/is getting a desired watch (?Daytona?) and if my rolex is sold to them for far less, the opportunity exists to purchase another model they have. Otherwise, why sell to them?
So they’re double dipping in profits? I mean if it stabilizes the market so they can’t have an extreme mark up then I’m for it, but it’s Rawlex you know they’re going to pimp their clientele based on brand name.
I think this will not change many things... I think this will be a opportunity for ADs improve their profits now they will have access to more watches... The only thing that can change Rolex market is social media who overrated the price and change the real value of the watch. Until there, the Rolex will be as usually over priced but now we can buy it on a store , lately only on chrono24 .
Seems like they are trying to monopolize even more of the watch collecting market. I think it's a slippery slope. It's going to give Rolex to much control over how pricing can be manipulated in the future. Once they have a decent portion of the used market under their roof MSRP for new pieces will be inflated so that new and used are closer in price and they can increase profits
Huh, I’m still surprised they haven’t done that already. Clearly a steel Daytona isn’t worth 14,450$. It may be priced so but it isn’t worth that. It is now simply impossible to get them at retail, so why not just price them at 20k? The ones that can’t jump from 15k to 20k won’t buy it, but they were never going to get one MSRP anyway, and it somehow tones down the secondary market craziness, as pricing naturally adjusts demand. Rolex doesn’t even have to decrease production to maintain desirability, they just pocket the difference.
They need to hedge against a recession. If there is a big downturn in the Market, no one will buy at 20K and they will be sitting on stock and their perceived reputation will go down, then they will need to lower the price back to 15K. They don’t want to keep making constant price changes up and down.
Anyway you can make a video on small details and finishes that the entry level watch enthusiast can start to appreciate more of just getting into the world of watches and not getting upset from seeing people around you with watches way more expensive then what you can afford and learn to value the pieces you have. I work in a hospital and see alot of higher end watches.
I am also worried abiut the slow rollout and growing pains of this program versus the 3 year limit. Many models will be inelligible by thebtime the CPO becomes mainstay.
The main advantage is that a Rolex owner will be able to trade his/her current Rolex at an AD to buy another piece. The might be willing to do that as a discount Vs great market
Pricing is just an issue of supply and demand. Rolex was not able to meet increased demand because of factory constraints and proper supply chain management. If supply and demand figures return to normal, the Certified Pre Owned Watch tag should be below retail. The Certified Pre Owned Program is a benefit that helps reduce the price point, avoid scammers and sideline speculators.
Has been said before... Rolex is no longer a watch company as much as a marketing company that sells watches. This was nothing more than taking advantage of an opportunity to control perceived market availability and make more money.
Now Rolex can officially double dip in their own market, awesome
To be fair they could have been doing this for the past 3+ years . I’m not saying Rolex has been under compensated for it’s product, but getting
@@nolanwalker7250
Then they can just make more lol
@@Colby_0-3_IRL_and_title_fights I suppose, but two of the driving factors of demand in the Rolex market are scarcity and quality, both of which will be affected to varying degrees if production increased.
So they'll be two streams as now, those prepared to wait or lucky enough to buy at rrp, and those who would go grey, but instead give their money to rolex.
Or single dip and just sell retails for free market prices. The incentive is pretty clear.
It is a hornet’s nest. I don’t have a Rolex, I’d like to buy a particular model for my wife, I’ve been told by our AR I’ll need to wait approximately 4-5 years for this 10K watch. I can buy a used one on the secondary market for 12-13K, or unused for 15K. That’s life - and I choose not to play that game right now but…
How would I feel if my AR said “you’ll have to wait years for this but, ahem! I do have a used one right here if you want to pay a 20% premium”.
I’d be insulted, astonished and I’d go buy something else.
It’s a tacky game of wealth signalling, one upmanship, and exploitation which I refuse to subscribe to.
Well said, Mark. Rolex is treating their customers like dirt, squeezing as much out of them as possible. Who wants to be a part of that?
Absolutely Mark. I understand the reasons as Teddy outlined, but I also don't know if folks at Rolex have fully imagined the look of an AD having a CPO priced at a premium available, someone buys it, and then the next day a brand new one comes in and is sold at MSRP to another customer? In many of these markets, it's a small world and word goes around. And if the pricing on CPOs is highly guided by Rolex, are we going to see the absurd situation of an AD offering the same watch, one at MSRP and one at a CPO at a premium? Or is the CPO price simply going to swing wildly up and down depending on stock of new watches at that same AD? It just seems that anyway you slice it, it's a simple money grab and they are willing to grab whatever they can even if it's a *hitshow at the retailer and a diminished experience for the customer
@Ioakim Boutakidis some ad's are already doing it and overcharging. Oisin Omalley had a great vid on it. 60gs for a Daytona used. They aren't eliminating the grey market. They know how important of a vehicle it is for their watch popularity. Rolex doesn't do anything without thinking long term. They know exactly what they are doing. Their watches are for those with tons of disposable income.
There's is a premium to pay for skipping the line. Rolex are for VIP Tudor is for commoners
@@bdegrds not the point
I live in Switzerland and I went to Bucherer last week because a friend of mine, who works in the Pre-Owned Department there, told me they just received about 100 watches directly from Rolex for the new program. And sure, they’re still being sold for regular market prices but he also told me that most of the watches they got from Rolex are literally showpieces (from Baselworld, Watches&Wonders,etc.) and old stock, so they’re mostly unworn or even untouched and come with brand new warranty cards.
So are the prices of these models are not going to be roughly MSRP or leas since theyre through an AD ?
@@MattyVice No, unfortunately not…I was hoping they would sell them around MSRP in hopes of regulating the grey market, but they decided to just go with the market prices or actually slightly less to be fair.
@@WatchFanatic_ so hold on a hulk (pretend it wasn’t discontinued) market is 25k; they are selling a certified pre owned for on or around 25k rather than around their price on the website of 12k? Thats bullshit wtf; nothing is resolved here, this makes the problem worse if anything
Rolex is out to make even more money, they know exactly what they intend is. $$$
@@WatchFanatic_Rolex will be running the grey market. They will control the grey market price. What Rolex doesn’t seem to realize is their most valuable asset is their good name. Selling at AD’s at grey market prices is going to rebound on them. I expect these grey market guys to rip people off, but a multi billion dollar company, that sells every watch they produce? Not a good idea.
They did it for the money. Additional revenue stream
Exactly and also to control all of their pricing
Thanks for sharing your insight about the Rolex CPO launch. Personally, I have bought several Rolex & Non-Rolex watches from Bucherer in the past. They have had a Non-Rolex CPO offer for many many years and they just wanted Rolex to give them a similar option to sell more watches. I think as far as Bucherer is concerned, they just wanted another official source of Rolex watches to sell. The most amazing thing I have found about Rolex is that since the CPO announcement, not a single one of their "officials" has been on any of the "watches" channels to explain the details of the programme.
Now Rolex can cash in on the secondary market as well. Outstanding move.
Yeah, awesome 🤦♂️
@@mariog7213 The brand wins. The flippers win. But the enthusiast loses. As always, the true costumers who aren't looking to make a quick buck are the ones getting fucked.
AD's backdoor sibling flilping shops now moves legitmately to the shop front, brilliant.
Nice touch Teddy incorporating the 23 date video at the very moment you say 2023! That's some mighty fine attention to detail. Great video as always.
I think that was just coincidence but I’ll take it haha
The video should be longer, in order to allow Teddy to pronounce that word and to show that images at minute 20:23.
Between the ages of 13 and 15, I saved every penny I could scrape together in order to buy a Rolex when my parents and I went to Jersey where I could buy a Rolex duty-free. I might just have been able to afford a lower priced model which I would treasure for every. I was obsessed because I had read everything there had been written about the philosophy behind the original concept, the struggle for excellence amongst mechanical watches, and the desire to produce something that was a perfect representation of the best that could be achieved. Rugged, accurate, an engineering triumph that was almost unique. My mother subscribed me to National Geographic. Every issue had Rolex adverts which showed watches being mistreated by steamrollers, athletes, explorers, etc. It all captured my imagination and gave me a lot of adolescent inspiration. In the end, we didn't actually go to Jersey and I didn't get my watch but many years later I did buy one which I gave to my son on his 18th birthday. A perfect piece of engineering that I hope he will eventually hand over to his own children. Rolex used to be a dream, a value. Now it's just about money and that makes me sad. You do a great job Teddy analysing the market for watches. But so much has been lost. The company itself seems to have lost its original values. I don't know who is running it now but I am sure that Hans Wilsdorf would not be a happy man if he could see it now.
I’d politely suggest you to buy grand Seiko on your next purchase. At least they’re not hounds like the Swiss watch making companies
Well said Tony.
bro if you had to do all that you shouldn’t have bought a rolex.
That’s a pretty cool story.
Rolex also used to be something you’d purchase as a celebration of a special life event. A big promotion, retirement, the birth of a child, a wedding… etc.
Now it’s months/years wait lists. And mediocre experiences at boutiques.
@@dhruvd8953 if you buy today a Grandseiko watch for 5000usd. What you think will be the price in 5 or 10 years??
I can only imagine, it's Rolex wanting a share of the pre owned market prices. I'll be intrigued as to where Rolex obtain these pre owned models, if they are buying them from the public, Rolex will have to give prices comparable to other grey market dealers, if they don't then the seller will go else where to get an higher price. The only way i see Rolex offering less and obtaining a pre owned is with the lure of the seller getting a more desirable model from that AD if they trade in their other model. My feeling is, it'll drive prices even higher.
I totally agree!
I think one of the primary reasons Rolex has established the CPO program is to give their AD's SOMETHING to sell. For too long I have walked into a Rolex AD to find the sales staff leaning against a display case with a bored look on his/her face. This is especially true of the Boutiques, where they have nothing but Rolex to sell.
100% agree. As far as I’m concerned, this is pretty much the only reason.
As always Rolex are primarily concerned about themselves and not their customers.
I bought a prx from you a few minutes ago and I’ve already got tracking info! That’s kick ass. Edit: my package arrived the next morning! I ordered at 2pm on the 14th and this morning(15th) a delivery attempt was made close to 10am. The UPS ppl never even try to deliver to apartments so I’ll have to lick it up in the morning from the ups site. That delivery time is simply unbelievable though. I have never had a package arrive so quickly before.
Enjoy your Tissot PRX I know I do great edc watch reminds me of a Rolex Oyster Quartz.
Yeah, enjoy buddy.
Nice to hear someone bought a watch from Teddy.
I am reading this wearing mine lol.
You should get a Gentleman from Teddy next.
The PRX is not the most comfortable watch IME, but the Gentleman is.
Best Delivery I ever had was next day (may have been morning) from Spain to U.K.
Since the secondary market for in demand models are selling at a much higher premium than the official authorized retail price, how is this going to look if a watch retails officially for $12,000 that is not available for sale, but the AD has the exact same CPO version for sale at $20,000? It's one thing for gray market dealers to sell at higher prices, but for the Rolex AD to partake in the pricing mark up is kind of screwed up....
Now you can be on the pre owned waiting list
Heard a rumor that this will also allow ADs and gray market sellers to check on lost/stolen watches that people bring in for trade.
Two years ago, I sent a vintage (1958) Datejust to the Rolex service center in Houston to be completely serviced. I was disappointed getting it back. Overall, a good job was done. However, a terrible job was done replacing the crown. The crown does not screw down enough to be flush against the case. Considering, it cost $2600 to have the work done, I expected better. This experience has turned me off from doing business with Rolex again.
There are many timepieces to choose from that are as good or better than Rolex.
I have found a great local watch specialist has done a better job, is more transparent, and has the personal touch when compared to any of the OEMs. IWC was the best of the bunch but it was still with them for almost 6 months.
In the oncoming years a service for a vintage Rolex will cost you about 5k- or even more.
Better get some spare parts sourced for your datejust as Rolex wont sell them anymore and you will need to send the watch to their bespoke/ vintage service department
Oh great. Now ADs can price gouge along with scalpers and flippers. Can't wait.
Already are.
Excellent video presentaton. Straight forward information, no annoying music over you talking. As a hobbyist watch repairer horologist for 20 years I have seen real Rolex watches in Pawn Shops but not as cheap as I would like. It was getting hard for me to know all the models and what to look for with regards to replica watches. I don't mean the $500 replicas, the $2,000 ones are hard to tell the difference. Same for the Pawn Shop owner who does not deal with replicas. This program will eliminate the guess work. Buy a certified watch from an AD and save a few $$$$$$ with a preowned over brand new. But I do have a fear of parts being withdrawn from the market to repair preowned. In house repairs and certified only. We see the battle for Rights To Repair in a lot of items from cell phones to farm equipment. Watches Like Rolex or Breitling or Omega etc could do the same to keep their watch prices stable through this coming recession. I might have a hard time finding watches and parts for them.
The Right to Repair aspect is something I haven't thought about, but is a major possibility, and would be a huge bummer if true. Aw shucks
Preowned will still likely trade over MSRP
Pre-owns from the CPO program are more than retail, and in fact more than the grey market dealers pricing. You are getting no discounts here. Only a warranty for and added premium.
@@jacobbwalters8133 exactly, the ones for sale on Bucherer are 30% higher than even grey market dealers, approximately double the new msrp.
@@jacobbwalters8133 Prices already set in Europe and significantly above the current market, but also pretty much sold out already…
It will help people start a relationship and allow the AD to assess true buyers for collections, if a customer walks in and pays over retail for a Daytona say.. they I’m sure will be rewarded with a jump up the wait list for that Sub or GMT in half the time.
I can also imagine they could offer a better buyback option on that Pre owned
Rolex wants to control their 2nd hand pricing so that it will be more stable and not hurt their brand…prices will still be at a premium and increase slowly overtime.
Disagree. The price run ups - and current drops - are mostly macro economics driven. Rolex can’t call central bank and tell them how much liquidity to put into circulation. And good luck with crypto…
@@WestCoastAce27 when the ADs starts to hold shares of the 2nd hand watches (might take few years), the ball is back in Rolex hands as far as pricing goes.
@@timchan334 sorry, that’s BS. This program is going to be tiny relative to the total number of grey market watches for sale. Rolex has repeatedly stated they can’t bring that many new watch technicians onboard to assemble new watches; now they need even more for these inspections/maintenance. And just 1 model of 1 not very popular sports watch has 36+ pages on 1 grey market website. It’s estimated grey market is a $20B/yr industry. Rolex cannot compete with those numbers.
Macro forces move the prices - slowdowns in US, EU, and CHN have already lowered prices. More to come in 2023.
@@WestCoastAce27 have to think from Rolex perspective, their main goal is to keep the brand in Prestige level. What happen these couple of years have some what hurt the brand (Prices going insane levels and a sudden dropped). For them, they need to have some control of the secondary market and this is their approach…will it work, we’ll see.
@@timchan334 sorry, terrible take - it’s not about perspective, it’s about economic reality - they’ve gotten so much free publicity - TH-camrs readily admit Rolex videos got views over the last 4-5 years. Their Prestige is through the roof - they could EASILY sell 10x the # of new Daytonas, GMTs, Subs (and a lot more Exp IIs, Yachtmasters, etc) at MSRP. They are an aspirational brand, at a level similar to Apple, Mercedes, etc.
Also, if the price swings were their concerns they wouldn’t have waited this long.
And you totally dodge my pt: Rolex will not buy enough watches (AND be able to refurb them) to move the price needle. Did you see the outrageous prices the initial pieces at Bucherer in GER are listed at? Way over grey! You really must think Rolex mgmt is stupid (they’re not) if you think they’re going to buy tons of watches, spend $$ on refurb, then watch them languish in ADs.
I am sticking to Seiko and Omega. Thanks for the video.
Yes. Very thankful to rolex for forcing me to focus on as good or better watches, Grand Seiko and Omegas.
It will definitely be interesting to see how this evolves in the next few months and years. I am hoping it has a positive impact on the market as I am unwilling to participate in AD games or exorbitant second hand prices. Too many other superior options are out there. That being said, it is remarkably clever of Rolex to be able to double dip their toes in the second hand market by providing (some unknown level of) service plus adding a tag. I do, however, applaud their reinstatement of the lost & found policy which hopefully detracts thefts. I like Rolex as a brand and remain hopeful that the relative Rolex market will be of equal value & quality.
Nothing superior in terms of value retention.
@@michaeljordan6008 I don’t purchase watches as an investment or specifically for “value retention”. I buy them to enjoy them on my wrist and not in a box. If they depreciate in value, so be it. It has no impact to me who isn’t interested in flipping them.
Rolex may want to get hold of many Rolex watches on the secondary market, add the CPO certification and increase their prices. Purposefully or not, it could be a way to increase the prices of their watches on the secondary market, which have been plummeting recently, and hence boost the demand for their watches.
I'll just stay in my lane, got a nice Tudor GMT. Thanks for the video.
I think Rolex behind closed doors will deem new models as CPO and sell them for a much higher price than retail. This way they pocket 100%
Exactly, a sneaky way to get rid of slow selling models.
Well done sir, you’ve got it 👏🏻
What's the website at 6:14 that shows the price history?
This corners the market for them. There is no question as to the authenticity this way. Customers will more likely buy CPO from ADs than buy in the open secondary market.
I am still unsure about how much of premium they can demand. There are good sellers in the secondary market that have stellar reputations. If we are talking 15-20% more than market for CPO that is sizable in its difference.
How about Rolex is using CPO scheme to legitimize AD tactics of building up a purchasing history? Instead of pushing other brands to build up a purchasing history, Rolex is providing a pathway for the AD doing the same but with CPO Rolexes.
It’s going to be like those stores that resell shoes. Yeah it’s there but buying from independent sellers will always be cheaper. Might be nice for trade ins tho
I am currently working with my AD on getting an Explorer 36- 124270, but would love to get my hands on a 39- 214270, (but the grey market prices are still double original retail). Right now, they cant give me any info on when I could get a watch, and the AD basically told me that it could be over a year....for an explorer. If Rolex gave me an opportunity to spend say 1500-2k more to get a discontinued, pre-owned 39mm from an AD, with the same warranty, QC, experience etc., I would jump at that. I think this will be a huge success for Rolex.
Question.. has anyone heard of a Peerson PR-540? My friend was gifted one and there is no MSRP on the world wide web
Hello nothing to do with the video but
Is philipp plein making good watches cause I have my eyes on the skull diver watch (black-silver) and the nobile (silver) but I am not sure about the quality and I would like to hear your opinion
Ps I know that there are many more reputable brands etc with better quality for the money but I like the design and I am just asking if the quality is good enough
Thanks for your time
It will be interesting to see how the current price plunge affects the success or relevance of this program and the creativity of ADs in how to make products accessible. The sneaker collectors market is a fascinating comparison in this regard with raffles and such
The long game is 10 years to attain AP status. They don't want to kill the grey market, they want to quietly destroy 5% of the used stock every year whilst charging a 15-20% premium. They know that the grey market will increase their margins in turn. Every year Rolex will increase the cost of their new models by 10%. In 10 years there will be half as many used Rolex's in circulation, and new Rolex's will cost twice as much and be seen as an AP/Patek alternative. By this point Tudor will have been elevated to fill the gap left by Rolex, and the game starts again.
Firstly, how will Rolex or ADs get hold of Pre-owned inventory? I doubt people will give up their watches for less than secondary market values.
I believe people are okay paying more for a pre-owned Rolex in the "Grey Market", knowing they don't have to play the games of the AD and "sticking" it to Rolex in the process.
If Rolex can keep the prices within reason, maybe it will open the market to people who actually want the watch for what it is, and not just owning "something expensive" or an "investment".
A Rolex used to be something you strived for, worked hard for and eventually, maybe, you could walk into a store and buy knowing that you'd earned it. Not now. Now they've come to represent something almost sinister...affluence, status, entitlement, superiority...I have a couple from years back before we'd all lost our collective minds about them but I never, ever wear them anymore. I feel like a complete tool whenever I even put one on. So, whatever Rolex does in the pre-owned market, I could care less. They're dead to me.
Don’t know if you are being serious or trolling
Can I buy your Rolexes if you no longer use them? I'm not a flipper - just someone who has also saved up for a Rolex and can't get one (and won't go to the ridiculous secondary market)!
this is the oddest post I have read for a long time
Rolex could care less about this to be honest. You already spent money on their products.
I get what you mean
It will prop up secondary prices. CPO models are already selling at a premium to other used watches. In addition, Rolex Service Centers are rejecting warranty claims on watches purchased in the secondary market, so that will be an additional benefit that might justify higher CPO prices.
CPO won’t work. Why should I trade in my Daytona when I can sell for higher price privately?
Agree. The only reason - you want another new Rolex and the AD makes it clear ‘you trade in that Daytona or you’ll be waiting a long, long time.’
Bought and collected Rolex for 20 years! I only buy new from Tourneau-Bucherer or Wempe. And when it’s pre owned Bob’s watches all the way! 😊
Great video, Teddy, thank you. I see this benefiting Rolex, and the customer with deep pockets who want peace of mind that their purchace is 100% genuine. Could benefit the flipper if it ends up driving prices up. Everyone else? Nope.
Good! All these high end manufacturers should do this
The CPO prices is way above the grey marked. Would rather buy a full set from a trusted second hand dealer. Then send it in for service and get the service document.
This has a lot to do with the exhibition only models. They are going to take those well handled models refresh them and sell them under the new program.
Rolex just announced that they build a new factory in Switzerland. Budgeted at 1 Billion, 2000 people will work there. My take is that with more production the 2nd market prices will drop. When they have thheir hands in the 2nd market they are more capable to influence prices.
We don’t know their plans for the new factory. Maybe it is to have better manufacturing equipment and they might tone down production in the old factory.
I want to know how is this better for us, the consumers ? Not counting the hype-beasts and the people that want to put the watch in a safe for the "investment", how is this better for the ones that actually like the watches and are not flippers ?
I am not sure it actually is. It could be depending on how Rolex rolls this out but we could just be looking at the money shifting hands. This 3 year window should in theory slow down the opportunist flippers but we will have to see.
I dun think that’s the intention of rolex. Ur well being is least of their concern buddy. It’s all about maintaining the prestige / desirability of the brand . Watch industry is not like the financial industry where ethical actions are expected or regulated/ governed by any regulator hence you can expect rolex to continue to act like this way.
The way to beat this game is to walk away. No manipulation lasts forever and when it collapses you can enter like a king . For now, spend ur money on the brands that deem as a valued customers
@@Akj6zmdteuxze Will it ever collapse though? Rolex is a trust ran by six lawyers, the brand is over a century old.
@@TruthTeller00 u must be new to the game . No manipulation will last forever. Watch market gets affected by general economy too. If u put aside 2017-2021, watch prices been declining badly. There’s many articles talking about the dying of Swiss watches back in 2016 till Rolex played the manipulation game.
There is a limit to everything and there’s always a cycle to it. We r at the end stage and it will go thru a decline for a while before the cycle repeats itself. A year ago I said the watch market will collapse, till now some ppl still trying to down play it and termed it as soft landing or correction. Hahaha. The only reason why there is a slight rebound is because the grey dealers are trying to hold the prices hoping that people will spend like before. Right after the festive season, get ready for another round of decline.
Rolex can be appealing , but at the end of the day, a rich man (being rich) knows what’s best for each dollar that he spends. To buy things at premium and at this moment doesn’t make sense (those temporary and dumb rich men have already died with their bitcoins and diamond hands , probably verge of bankruptcy)
2023 is the year of death of grey dealers. Rolex will do just fine given that any customers would still buy some models at retail price.
@@Akj6zmdteuxze So my local AD will put me on their waiting list no problem just now with that in mind?
I'm really only curious about what prices the AD"s will buy back the pre-owned watches from the customers are.
Thx for doing this video Teddy.
I think it should be very similar to a vehicle certified pre owned program. For a watch to be eligible it has to be within a certain age (
cost
Excellent video, but I always wondered what timepiece you're wearing. Can you start your videos by quickly sharing "today's timepiece"?
All goes back to where will they source the watches and what price do they sell at? This will dictate viability of sellers in the secondary market!
Soooo, let me try to understand this .... Rolex is going to start offering CPO's? This should be interesting. For example, a Pepsi grey market approx. 22K. MSRP apprx. 10K where does the CPO price land? probably in the middle? This way Rolex can make it official that preowned watches will be worth more than new ones. For a company that is still in production to be able to create this situation is amazing .... I think it sucks ... but it is amazing. Does anybody else think this is insane?
It's a simple growth strategy by expanding into an adjacent space i.e. the secondary market. Rolex is able to thus capture share of the profit pools with lower operating costs (since they don't need to produce a watch again). They effectively increase the unit economics per watch and can justify the operating expenses of the pre-owned program based on just the volume of secondary watches. Net net, it's massively (and positively) impacts the company's valuation
Is it about controlling the price of a rolex? Maybe but there are cheaper ways for Rolex to do this. This is fundamentally about growth
Where will they get their stock?
A question I have is can anyone submit their rolex to get a certified preowned card and box. I bought mines off of crown and caliber with no box and papers, could I get it certified by then without selling my watch.
Pretty interesting, I talked to my local AD about their thoughts and they were already authenticating any watches they were selling anyway so the only real difference is the new hang tag
And the warranty
@@mariog7213 they service every used watch through Rolex which comes with a warranty so no difference there
I got my first rolex a year ago live in small city in Tennessee got a 126610LV from ad went in once a month chit chatted learned about watches tried them on enjoyed them, got my watch in 9 months. All about relationship and not being a flipper.
Another great video, Teddy! Thanks for sharing!
Cheers from Brazil!
Rolex certified pre-owned inventory currently at Bucherer are much more expensive than what can be found through many grey market dealers.
Shameful double dipping on their watch sales. Not only that, Rolex is taking a page out of DeBeer to buy up open market inventory to control its availability and pricing. Note they are pricing their CPO even higher than open market pricing. Even as a Rolex owner myself (bought it in 2016), I have checked myself out of any future Rolex purchases and out of the watch hobby in general. This watch hobby has become a show of vanity so much so that I don't even want to wear the one I have anymore. I still enjoy watching Teddy's channel because he is one of the few - or perhaps maybe the only one - that truly provides informative content and doesn't hype up those notorious brands.
I don't know if this will change much if their scummy business model of roping you into buying other jewelry before getting a rolex doesn't change as well. Love the content brother
Thanks for watching my friend!
That's not the Rolex business model, it's the local AD doing that. Rolex tries very hard to prevent this but at the end of the day its the jeweler.
@@timgenter1264 ah I see, I wonder if they could step in and do something about that like AP did with their retailers or if they're even allowed to
Do you think the watches will be closer to retail prices or still subject to second market prices?
Smart way for Rolex to adjust to the market price changes .
Thanks for doing this - appreciated!
The 2 key laymans issues I see are will pre owned be priced under/over retail? And will this make owning a pre-owened as hard and painful with the AD
Guaranteed they will sell them above retail. What incentive would flippers have to sell their preowned watch to Rolex otherwise? And Rolex also has a vested interest in keeping the secondhand market above retail.
Luckily my dream grail watches are speedmaster, seamaster seaweed, tudor chrono in two toned
cool man you share your acknowledge about Rolex Certified Pre-Owned
So the pre owned watches will be more than MSRP?
Rolex are not silly.. They are a massive company where things are planned years in advance & this is just the first phase..
By entering & eventually controlling the market & bringing used prices down to below retail.. it will kill the grey dealers & flippers overnight - Game over👍🏻
For the buyer is also a matter of trust. Trust on the product and on the seller
Great video Teddy. Overall I think this is a good move by Rolex. There will be growing pains, but I see it morphing into a good way for Rolex to somewhat reel in the resell pricing of the
How will prices go down now that Rolex is now making money off the used market?
@@JCleggy Rolex ADs follow their rules, both official and unspoken. I see Rolex having guidelines, that they can enforce directly and indirectly, which will help them control the pricing of CPO models under 3 years. The pricing will organically(may take a yr or 2) find it's sweet spot where Rolex gets the cut they are missing, the ADs have a new product they can offer that is not outrageously priced above retail, and the desirability will still be very healthy.
I'm not even interested in rolex anymore tbh, prices are so high that (very violent) criminals now specifically target rolex owners as their targets.
With this program, now you can walk into any AD, choose your model, and purchase your brand new Blancpain... or Lange...or JLC.....or...
So where does the boutiques get all these watches to start with? All those watches that were in the ADs that you could try on but not buy.
I’d love to own a Rolex but there is no way I’d ever pay the prices they require … even at retail. Micro brands for the win. They’re more fun anyway.
Hello Teddy. In your opinion, what will be more collectible in the future? The Palm Green dial or Slate Wimbeldon? Thank you!
The comparable is obviously high end CPO automobiles. In that market the the dealer sets the asking price on the CPO item.
Presumably that won’t be the case here as the watch essentially goes back to the factory.
So does Rolex literally ask more for CPO than new? Bizarre.
But to let the dealer set the price and keep the margin seems equally bizarre.
And how does Rolex get supply that costs more on the market than new currently and then sell at or below the price of new?
I wonder if this move will ultimately be accompanied by a removal of price controls on new.
All That noted, I think this could be a very good and profitable move for Rolex.
Always like to hear your insights
How about the price? Will there be a difference?
I know car companies do this too but that doesn't make it right, or even moral IMO....Also judging by the prices I've seen on their site Rolex is now saying not only is it ok to over charge for pre owned watches but that the prices out there are not high enough.....yet one more reason I will never buy another Rolex
Why should I pay more for CPO product than a brand new one? I will continue to wait for new blue two tone sub.
If I were to ever buy another Rolex, I wouldn’t pay over retail. But there are so many great watches out there that aren’t a Rolex.
There is gonna be a secondary market for the certified pre-owned watches too, what will rolex do then?
If anything this is just going to increase the prices of rolex watches, for both secondary market and cpo's secondary market.
For both Rolex and their dealers to make money they will need sellers willing to sell at less than they can get in the gray market and buyers willing to pay more than the gray market. This feels like a terrible business model but I have always had a lack of understanding of the valuation in the Rolex grey market. ……..
Great video Teddy, new subscriber and truly enjoy your content and love the Wolf watch box I just purchased of your site. I would consider a cop Rolex only with box and papers, curios as well to see how they will control pricing. I’ve been waiting for a White Roman 41 with jubilee bracelet and fluted bezel for over a year now, have to say just about frustrated with the wait. I am now looking to alternatives so wanted your thoughts on that, possibly a Grand Seiko, especially after the video you just posted from NYC. Any comments/suggestions on alternatives I should be looking at? Keep up the great work!
Diamonds are basically worth pennies but debeers controls the market. Rolex thought that was a pretty good approach. "I'd like to look at a new GMT it says its 10k?, hmmm we dont have any but would you like a used one for 25k?"
Couple of questions. Why would I sell my rolex to an AD which would be far less than the grey market? Far less. The only leverage one could see is that the AD has/is getting a desired watch (?Daytona?) and if my rolex is sold to them for far less, the opportunity exists to purchase another model they have. Otherwise, why sell to them?
So they’re double dipping in profits? I mean if it stabilizes the market so they can’t have an extreme mark up then I’m for it, but it’s Rawlex you know they’re going to pimp their clientele based on brand name.
great video Teddy! check the black shirt on black background... makes for a floating head
You’re doing a great job Teddy!!
I think this will not change many things... I think this will be a opportunity for ADs improve their profits now they will have access to more watches... The only thing that can change Rolex market is social media who overrated the price and change the real value of the watch. Until there, the Rolex will be as usually over priced but now we can buy it on a store , lately only on chrono24 .
Hell yeah! Take us back to Rolexland Teddy!! 👑👑🤌🤌
Seems like they are trying to monopolize even more of the watch collecting market. I think it's a slippery slope. It's going to give Rolex to much control over how pricing can be manipulated in the future. Once they have a decent portion of the used market under their roof MSRP for new pieces will be inflated so that new and used are closer in price and they can increase profits
Huh, I’m still surprised they haven’t done that already. Clearly a steel Daytona isn’t worth 14,450$. It may be priced so but it isn’t worth that. It is now simply impossible to get them at retail, so why not just price them at 20k? The ones that can’t jump from 15k to 20k won’t buy it, but they were never going to get one MSRP anyway, and it somehow tones down the secondary market craziness, as pricing naturally adjusts demand. Rolex doesn’t even have to decrease production to maintain desirability, they just pocket the difference.
They need to hedge against a recession. If there is a big downturn in the Market, no one will buy at 20K and they will be sitting on stock and their perceived reputation will go down, then they will need to lower the price back to 15K. They don’t want to keep making constant price changes up and down.
Hi Teddy,
the watch wearing in this video is Grand Seiko Snowflake GMT ?..Please let us know
Anyway you can make a video on small details and finishes that the entry level watch enthusiast can start to appreciate more of just getting into the world of watches and not getting upset from seeing people around you with watches way more expensive then what you can afford and learn to value the pieces you have. I work in a hospital and see alot of higher end watches.
So the used will be cheaper?
I am also worried abiut the slow rollout and growing pains of this program versus the 3 year limit. Many models will be inelligible by thebtime the CPO becomes mainstay.
The main advantage is that a Rolex owner will be able to trade his/her current Rolex at an AD to buy another piece. The might be willing to do that as a discount Vs great market
Pricing is just an issue of supply and demand. Rolex was not able to meet increased demand because of factory constraints and proper supply chain management. If supply and demand figures return to normal, the Certified Pre Owned Watch tag should be below retail. The Certified Pre Owned Program is a benefit that helps reduce the price point, avoid scammers and sideline speculators.
Teddy mentioned Denmark and I lost it
Has been said before... Rolex is no longer a watch company as much as a marketing company that sells watches. This was nothing more than taking advantage of an opportunity to control perceived market availability and make more money.