11 Comments
User's avatar
Alex Giurgea's avatar

I think they are not leaving money on the table. It is a marketing move and we can look at it as a marketing budget. They are controlling the production volume. They produce a small enough quantity so that request is much greater than the availability. In this way they are able to make average volumes on models which would not be so popular. If people play the relationship building game, those volumes actually create more profit (or at least more units sold) than a steel Daytona at market value.

This game helps them have huge volumes of production and be in the hands of a huge volume of people who can upgrade to other models over time. Flywheel effect controlled with scarcity.

kingflum's avatar

I agree with you; I just think there’s room for both things to be true because they can upsell steel without harming the feeder system you described with the entry level steel pieces - but look, this isn’t a science - it’s all BS I guess 😅

Alex Giurgea's avatar

I am not sure it would pe possible to keep them hard to get and be expensive too.

People pay premiums to get it now and skip buying other models they don’t really want.

But yeah a lot of BS.

Bruce L's avatar

Interesting and fairly intelligently laid out conjecture 🤔

kingflum's avatar

But conjecture nonetheless. Feels dirty 😂

Lotus's avatar

i’m surprised by few things in the watch business, but it’s downright shocking to me how little people understand rolex.

rolex don’t give a rat’s ass about the secondary premiums. they’re a non-profit organization, their only focus is protecting the prestige of the brand. their relationship with their customers is like that of the vatican to catholic devotees. their goal is not to increase margins, but to get a rolex on every wrist on the planet, just like how the vatican want to bring every human soul into the catholic faith.

there will be no new steel daytona, they just brought out the new generation in 2023, it’s good for another 7 years at least.

kingflum's avatar

Yeah but that can keep the current one and still bring out an “upgraded” steel one which fits into that gap of not being RBOW levels of unattainable but still better than a standard Daytona.

Lotus's avatar

you’ve just described the gold daytona 🙂

let me put it this way, i would be very surprised if rolex even release a gold daytona with a ceramic bezel and bracelet (right now you can only get that with the steel or le mans). they don’t like clutter in the catalog.

Robert Kelley's avatar

Land Dweller with meteorite dial would be sweet. OP with the original vintage dial design in a modern OP case and bracelet would be fun. Tudor “flamingo yellow 🤣” chrono 🤷🏻‍♂️

kingflum's avatar

I might buy that Tudor I swear. 😂

Ron Hekier's avatar

"Predictions are hard. Especially about the future."

Whether or not your predictions are correct, they certainly have a lot more heft behind them than those of our Diamond District TikTok bros screaming that the Pepsi is going to be retired or any other of a host of predictions they're offering.

"A good process is more important than a good outcome because in the long run, the process is what will determine your results." - Charlie Munger

You've laid out your thoughts on why the Daytona might get a revamp and why other models might be retired or resurrected, and the thought process is what matters, not the result.

And yes, the process will be refined for W&W 2027 predictions, because that's how your sh1t works.