Quote:
Originally Posted by colonelpurple
Rolex will keep demand > supply by either pushing up prices or restricting supply. It is a private company, they can do whatever they want.
They will also try to up the focus on bi-metal and precious metal, where there is far more margin.
I read an interview with the had of Patek. He said they didn't make money from selling SS models. They only keep a few around for fans, but otherwise everything is going to precious metal. Obviously they are tiny compared to Rolex, but the sentiment is the same. The main difference is that Rolex sells enough watches to keep a margin for SS, and also knowing they are buoyed by enthusiasts who mostly like SS watches.
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Watch the interview, don't listen!
I'm sure they make a pretty healthy margin on their $30K precious SS pieces too. They'll have to keep the supply tight so people spend money on their high margin PM pieces.