Matching Supply With Demand For Rolex Stainless Steel Sports Models
It is no secret, Rolex stainless steel sports models are the hottest watches on the planet. Good luck walking into a Rolex authorized dealer and finding a steel Submariner, Explorer, or GMT Master. You won’t find them in the cases and you won’t find one under MSRP on the pre-owned market.
The lack of stainless steel sports models produced by Rolex has left many buyers frustrated and wondering why doesn’t Rolex produce more stainless steel sport models. It’s a great question and it may be more complex than what is seems like on the surface.
Check out our Guide To The Rolex Waitlist on how to get the Rolex you want.
Will Rolex Produce More Stainless Steel Sports Models?
With the increasing demand of Rolex stainless steel sports models, we anticipate that Rolex will quietly expand its production of their stainless steel sport watches.
Let’s be clear, this isn’t something Rolex has to do. They are the most successful watch company and that isn’t changing anytime soon. The reason why we anticipate Rolex will produce more stainless steel sport watches is because potential buyers are leaving the brand to their competition.
I myself am one of them. I couldn’t buy the new Submariner 41 at an AD and was not willing to pay above MSRP. What I did next is what many have done lately, bought a stainless steel sports watch from another brand. I purchased the Omega Seamaster 300m and it was my first Omega. Why this should scare Rolex is because I have fallen in love with Omega and am already looking at buying another.
Essentially since Rolex has made buying a stainless steel sports watch so difficult, buyers are experiencing new brands and leaving Rolex permanently or at least considering other brands for their next purchase. I’m sure if this continues, it’ll be problematic for the business and the brand long term.
What Can Rolex Do To Increase Supply Of Their Stainless Steel Watches
For Rolex to to increase its stainless steel sport model supply to meet current demand, they have two options. Both options come at a cost both long and short term.
Increased Manufacturing
The first option is to increase its manufacturing capabilities with an investment into a new factory and human capital. This seems like the easy answer but there are reasons why Rolex hasn’t made this move. This option would be a monumental shift for Rolex, a company that doesn’t make drastic business decisions. A long term investment like this adds unwanted risk to the business and the brand.
Rolex is in a great position. They are a luxury goods producer who virtually sells through all their inventory every year. This allows for predictive cashflow and other meaningful accounting metrics. As of now it looks like Rolex is comfortable with reducing risk and relying on annual price increases to grow the business.
One thing worth mentioning is that an investment like this to produce more Rolex stainless steel sports models assumes that industry demand will always be the strong. Talk to a buyer 10 years ago and ask them how hard it was to find a Submariner. They’ll tell you they never paid MSRP and bought most at discounts.
Rolex is a luxury brand. It benefits them to have a product that is highly sought after and difficult to obtain. Yes they are losing potential revenue because they could sell more but brand strength in the luxury market matters too.
Optimize Production
The second option could be realized quicker and have less of an impact on the business. This would involve optimizing production to produce more stainless steel sports models instead of more undesirable models. The trade off here is that it is a zero sum game. When you increase production for one model you take away production from another model. Providing a limited total collection could alienate some buyers and decrease the total amount of brand enthusiasts just to make a select market happy.
Why Is There A Shortage In Rolex Stainless Steel Sports Models
There is a shortage in Rolex stainless steel sports models because demand is high, there haven’t been investments into increased production, and authorized dealers are selective who they sell these stainless steel sports models to.
Summary
As you may now understand the question, ” Will Rolex Produce More Stainless Steel Sports Models “, is more complex than it is simple. It seems crazy that Rolex is ok with grey market sellers and counterfeit operations getting rich off the brand because there is simply not enough supply. At the end of the day we anticipate that Rolex will increase supply through whichever method they choose (quietly). Demand is just way too high to not capitalize on the opportunity.
