Rolex vs Porsche
08-23-2018, 08:23 AM
#1
Rennlist Member
Thread Starter
Rolex vs Porsche
These two companies are known for quality, demand, are old and worldwide, and exclusivity especially for GT cars (Porsche) and Professional series (Rolex) . Both have high demand products but market and distribute differently. We all know how Porsche does it but Rolex controls distribution in a manner we could all appreciate and the dealers, customers are very happy and the flippers not so much. Rolex controls this process by having consequences for non compliance. Each dealer gets one warning and next infraction could result in loss of the dealership. First, No ADM's, second required MSRP, no discounts on specific watches, third if a new watch gets posted on an auction site Rolex works hard to trace back to a dealer. Strike one! Rolex grew over 20% last year, controls production, has over 50% market share in US and demand for the Professional Series is off the charts. It works and everyone is happy.
If some significant % of the new GT cars were acquired by flippers/speculators which it appears, and many who really wanted an allocation to drive were deprived that is not good for any of us. Rolex figured out how to control their market.
Thoughts
If some significant % of the new GT cars were acquired by flippers/speculators which it appears, and many who really wanted an allocation to drive were deprived that is not good for any of us. Rolex figured out how to control their market.
Thoughts
08-23-2018, 08:30 AM
#2
Three Wheelin'
One is in control of dealer sales practices. One is not. At least this is the case in the US.
Last edited by bluehorseshoe; 08-23-2018 at 09:24 AM.
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GT3_Driver (06-04-2020)
08-23-2018, 08:37 AM
#3
Nordschleife Master
These two companies are known for quality, demand, are old and worldwide, and exclusivity especially for GT cars (Porsche) and Professional series (Rolex) . Both have high demand products but market and distribute differently. We all know how Porsche does it but Rolex controls distribution in a manner we could all appreciate and the dealers, customers are very happy and the flippers not so much. Rolex controls this process by having consequences for non compliance. Each dealer gets one warning and next infraction could result in loss of the dealership. First, No ADM's, second required MSRP, no discounts on specific watches, third if a new watch gets posted on an auction site Rolex works hard to trace back to a dealer. Strike one! Rolex grew over 20% last year, controls production, has over 50% market share in US and demand for the Professional Series is off the charts. It works and everyone is happy.
If some significant % of the new GT cars were acquired by flippers/speculators which it appears, and many who really wanted an allocation to drive were deprived that is not good for any of us. Rolex figured out how to control their market.
Thoughts
If some significant % of the new GT cars were acquired by flippers/speculators which it appears, and many who really wanted an allocation to drive were deprived that is not good for any of us. Rolex figured out how to control their market.
Thoughts
Its actions say different.
08-23-2018, 09:24 AM
#4
Three Wheelin'
Rolex makes, what, a million watches a year? Porsche makes how many GT cars? The Rolex non-AD market worldwide is enormous. How many non dealer GT cars are circulating? Apples to oranges.
08-23-2018, 10:28 AM
#5
Rennlist Member
These two companies are known for quality, demand, are old and worldwide, and exclusivity especially for GT cars (Porsche) and Professional series (Rolex) . Both have high demand products but market and distribute differently. We all know how Porsche does it but Rolex controls distribution in a manner we could all appreciate and the dealers, customers are very happy and the flippers not so much. Rolex controls this process by having consequences for non compliance. Each dealer gets one warning and next infraction could result in loss of the dealership. First, No ADM's, second required MSRP, no discounts on specific watches, third if a new watch gets posted on an auction site Rolex works hard to trace back to a dealer. Strike one! Rolex grew over 20% last year, controls production, has over 50% market share in US and demand for the Professional Series is off the charts. It works and everyone is happy.
If some significant % of the new GT cars were acquired by flippers/speculators which it appears, and many who really wanted an allocation to drive were deprived that is not good for any of us. Rolex figured out how to control their market.
Thoughts
If some significant % of the new GT cars were acquired by flippers/speculators which it appears, and many who really wanted an allocation to drive were deprived that is not good for any of us. Rolex figured out how to control their market.
Thoughts
08-23-2018, 10:33 AM
#6
SJW, a Carin' kinda guy
Rennlist Member
Rennlist Member
The difference is that in consumer goods you can have (1) manufacturer owned dealers and (2) legally enforce MSRP sales and terminate franchisee stores somewhat easily. Due to state laws, neither are true for cars in the US.
Note GT cars in UK/Europe/Canada/Asia are sold at MSRP to the initial buyer. That is, in my view, almost entirely related to the laws and distribution channels.
Note GT cars in UK/Europe/Canada/Asia are sold at MSRP to the initial buyer. That is, in my view, almost entirely related to the laws and distribution channels.
08-23-2018, 12:34 PM
#7
Rennlist Member
"That’s not been my experience. Steel Daytona’s are available if you want to pay a huge markup. Retail there’s a 1-2 year wait. It’s been that way for years so whatever they are doing is not working."
+1
I've found this to be the case, as well.
+1
I've found this to be the case, as well.
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08-23-2018, 12:53 PM
#9
Rennlist Member
I like my watches.
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08-23-2018, 12:55 PM
#10
Rolex recently took the additional step of requiring ADs to remove the plastic film on the watches to dampen the interest on flipper resale. ADs also seem to keep a closer eye on its customers as to whether they will fulfill future purchases of its high demand pieces. Rolex frowns on flippers and its ADs generally adhere to what Rolex wants.
Has Porsche ever publicly told its dealers to steer cars toward (or away) from particular customers?
Has Porsche ever publicly told its dealers to steer cars toward (or away) from particular customers?
08-23-2018, 12:59 PM
#11
Originally Posted by ToasterThief
Man, can you guys post a list somewhere? I can't keep up with what I'm responsible for killing any more.
I like my watches.
I like my watches.
08-23-2018, 01:41 PM
#12
Racer
The difference is that in consumer goods you can have (1) manufacturer owned dealers and (2) legally enforce MSRP sales and terminate franchisee stores somewhat easily. Due to state laws, neither are true for cars in the US.
Note GT cars in UK/Europe/Canada/Asia are sold at MSRP to the initial buyer. That is, in my view, almost entirely related to the laws and distribution channels.
Note GT cars in UK/Europe/Canada/Asia are sold at MSRP to the initial buyer. That is, in my view, almost entirely related to the laws and distribution channels.
08-23-2018, 01:55 PM
#13
Rennlist Member
Rolex recently took the additional step of requiring ADs to remove the plastic film on the watches to dampen the interest on flipper resale. ADs also seem to keep a closer eye on its customers as to whether they will fulfill future purchases of its high demand pieces. Rolex frowns on flippers and its ADs generally adhere to what Rolex wants.
Has Porsche ever publicly told its dealers to steer cars toward (or away) from particular customers?
Has Porsche ever publicly told its dealers to steer cars toward (or away) from particular customers?
Spoke to a different dealer (further away from me) and they were willing for me to jump the line in front of everyone for 25k and get my car right away. I flipped them off - because the next person in line is supposed to get the car, not someone who just showed up.
