Interesting part of this Rolex strategy as well is they are, at least initially, marketing their CPO watches without a model year listed. So those using this buying method will receive a new guaranty but unless it's a very specific model, they'll never know the original year of the watch. Imagine how that would fly in the CPO car market!!
By far the best analysis on this topic! Your assessments made a lot of sense. Just want to add this move will help out the ADs and boutiques greatly too. I noticed that the turn-around of salespersons in a local Rolex boutique is pretty high. It is difficult for us to build a relationship if they keep leaving. But think of sales persons for a minute. It is a tough job to have nothing to sell and face unhappy customers who cannot buy what they are looking for. So, CPO will bring greater revenues and happier salespersons (hopefully more pay) for the ADs. Just as you said, walk-in customers will have products to buy.
It will be a major impact to the greenmarket dealers for sure. They may be saved by Rolex's decision to limit CPO to watches of 3 year or older. I would imagine that flipping takes place more for new watches. Many folks would like prefer to get a brand new or mint condition Rolex watches, to mark milestones or use as gifts. Grey market will be still the place to get a new Rolex without a long wait time for most people. Good point in your article that Rolex may eventually be able to determine the prices with CPO. So, the markups earned by flippers will be capped.
Interesting part of this Rolex strategy as well is they are, at least initially, marketing their CPO watches without a model year listed. So those using this buying method will receive a new guaranty but unless it's a very specific model, they'll never know the original year of the watch. Imagine how that would fly in the CPO car market!!
By far the best analysis on this topic! Your assessments made a lot of sense. Just want to add this move will help out the ADs and boutiques greatly too. I noticed that the turn-around of salespersons in a local Rolex boutique is pretty high. It is difficult for us to build a relationship if they keep leaving. But think of sales persons for a minute. It is a tough job to have nothing to sell and face unhappy customers who cannot buy what they are looking for. So, CPO will bring greater revenues and happier salespersons (hopefully more pay) for the ADs. Just as you said, walk-in customers will have products to buy.
It will be a major impact to the greenmarket dealers for sure. They may be saved by Rolex's decision to limit CPO to watches of 3 year or older. I would imagine that flipping takes place more for new watches. Many folks would like prefer to get a brand new or mint condition Rolex watches, to mark milestones or use as gifts. Grey market will be still the place to get a new Rolex without a long wait time for most people. Good point in your article that Rolex may eventually be able to determine the prices with CPO. So, the markups earned by flippers will be capped.