Stupid question I can't figure out
Rolex make around 1.1 million watches a year.
Rolex shops & AD's 1,302 (inc Bucherer, I think)
That's 844 watches per outlet.
I keep hearing how they can't sell some watches as no-one wants them. They only sell them to Daytona buyers sucking up to AD's for purchase history.
I must be missing something.
Are they selling 700 watches per store of watches no-one really wants so they can sell 144 watches people do like? And at retail,which was 30 - 100% less than grey market for years?
It just seems such a bad business model.
The watches they make that don't sell dilute desirability. Anyone who buys them gets told 'Eh, I don't like that watch.'
Every other business, if some things sell, you make them.
If others don't, you stop making them.
I realise their system keeps up prices, makes their watches investments, doesn't flood market and makes them less attainable and more desired.
But it seems a weird business plan.
Are all watch brands making unpopular watches that don't sell, instead of shifting to those that do?
Tell me what I'm missing.