Business policy makes Rolex successful

Who does not want to own and wear a Rolex watch? Let it be Submariner, Sea-Dweller, Oyster, Daytona, Explorer and many other collections are so popular in several countries as the ones to be chosen and exhibited as a piece of classy wear that never fades. Behind this great phenomenon stands Rolex Business Policy:

Founded by Hans Wilsdorf a German-British businessman in1905, Rolex Company is of perennial nature. As there was no heir for this legendary watchmaker, the business was converted to a private charity trust after his demise, where the employees of the company are beneficiaries.  This charity goes as Hans Wilsdorf Foundation whose revenue is not taxable. Rolex business policy runs hereunder:

 

• Every Rolex piece that comes into the market, is tested and certified for its, precision, performance and permanence.
• Scarcity underpins Rolex business policy. There is no flooding of Rolex in the market. Not more than 2 million pieces of watches a year are made to ensure demand stays at its peak forever.
• Design features take into count of modern technology in fusion with timeless style, unparalleled prestige and contemporary innovation and the finished products are classified into collections, few of these I have mentioned in the prelim.
• The company does not engage in direct marketing; there are authorised dealers worldwide who sell Rolex watches to buyers. While the company itself does not give sales discount to dealers, it suggests a maximum retail price taking into count of the dealer margin. The company business policy is to take a 25% wholesale margin, whereas dealers are allowed to add their retail margin covering their holding cost and the target profit they desire, before effecting a sale.
• The business policy ensures there is a secondary market value throughout the life of the product. For this purpose every watch produced is tagged with unique number such that fake can be detected at any time by authorised dealers. Hence. only genuine watches have the re-sale value. The driving force is the prestige of Rolex which is part & parcel of any sale transaction.
• The company does not sell any spares to individual users but make these available only when the affected watch is handed over to the authorised dealers to undertake ostensible repairs. However where the repair needs overhaul on the mechanism it need to be sent to Rolex Headquarters. 
• The company does not accept the “Right to Repair” condition imposed in USA, where user has inalienable right to repair or re-fit items he buys and uses. Nevertheless, dealers in America generally accept watches for major repair if it is evident there is accidental damages caused by circumstances beyond the control of such users.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist