Interesting read about steel Pateks

[R@cerx]

Good read about the steel sport watch price craze.

https://www.hodinkee.com/articles/thier ... s-nautilus

[Cabaiguan]

Saw that article. Stern’s reasoning for not increasing steel models so as not to become an IWC makes some sense. But damned if they are not leaving cash on the table and pissing customers off in the process.


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[hoppyjr]

Saw that article. Stern’s reasoning for not increasing steel models so as not to become an IWC makes some sense. But damned if they are not leaving cash on the table and pissing customers off in the process.


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I agree. I wonder if Rolex is working with this same mindset or if they are at full capacity.

[AtomicTom]

David, am going to check this out, and know ahead of time that I will
enjoy it. ..Thanks a ton for finding it, and putting up the link !

[JP Chestnut]

For years Patek has been buying watches at auction for obscene prices to drive secondary valuations. They want this. I’m not sure Rolex does to the same extent.

[Joeprez]

As long as Patek is happy with their current margin, it makes sense. They don't have shareholders to keep happy so no pressure on growth. Very similar to Rolex.

[deepcdvr]

I just looked up Patek on Recon

Almost every single watch over $100,000 is a Patek. Nothing to do with the article, just an interesting data point when discussing margins/shareholders and leaving money on the table...

[Cabaiguan]

Saw that article. Stern’s reasoning for not increasing steel models so as not to become an IWC makes some sense. But damned if they are not leaving cash on the table and pissing customers off in the process.


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But leaving money on the table is how you build a luxury brand.

A few years ago, buying a Ferrari was a privilege, not a right.

Not saying this is right, quite the opposite: it's the attitude that will bring a big "Eff you!" out of me.

But this is how luxury is done.

Yea, I don’t disagree. There’s a short-term financial loss but long-term brand strength retention.


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[R@cerx]

Saw that article. Stern’s reasoning for not increasing steel models so as not to become an IWC makes some sense. But damned if they are not leaving cash on the table and pissing customers off in the process.

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I agree. I wonder if Rolex is working with this same mindset or if they are at full capacity.

I think Rolex makes a set amount of each model per year, with no interest in increasing output. It’s the AD’s that control who gets the watch they want, SS sport models for example. When you see celebrities wearing the latest models that are near impossible to obtain, it makes you wonder.

[sierra11b]

There's so much economic discussion/speculation about Rolex and Patek without and hard data that it makes my head spin, which is why I've given up on Rolex for now. I never could afford a Patek, and likely never would unless I came into truly SERIOUS money, which is quasi-possibility with my family, but not a betting hand for me in the 'SERIOUS' aspect, and neither is a mortgage-worthy $$$$$+ patek at any junction thanks to their charades.

Let's just say IF did come into the money in possible inheritance, I likely wouldn't give Patek the time of day but may have years ago, but might with Rolex still, unless they are at the same stupid level when that bridge is crossed. I might just buy a bass boat/truck and enjoy what I currently have.

Makes you wonder if this 1%er-only game is sustainable. I think not but the recent price data suggests otherwise.

[dinexus]

O'Leary is the perfect example of everything that has gone so wildly wrong with this hobby.

[matt.wu]

O'Leary is the perfect example of everything that has gone so wildly wrong with this hobby.

[r.palace]

O'Leary is the perfect example of everything that has gone so wildly wrong with this hobby.

This

[watchdawg]

Thanks for posting the link. I wouldn’t be surprised if Rolex is doing the exact same thing .

[JBZ]

There has to be a happy medium between flooding the market and devaluing the brand and making so few that people are shooting each other in the street for them.

And I agree about O’Leary.

[gr8sw]

Rolex promoting their own 'exclusivity' is a joke... they shouldn't even be mentioned in the same breath as Patek

[Dedalus]

O'Leary is the perfect example of everything that has gone so wildly wrong with this hobby.

Yup. Exactly what I thought as I read the introduction to the article.