Rolex’s Great Offer
If you think the economy is tough today? Then you need to read this story.
Imagine you’re a Swiss watch maker during WWII. Watch sales have tanked because of war. Germany and the axis powers have competely cut you off from reaching your best customers.
Well, Hans Wilsdorf, founder of Rolex Watch Compay, decided business as usual would not work. Some may have heard marketing legend Gary Halbert talk about the only advantage he wanted when selling was to have a”Hungry Market”.
Well Hans had the next best thing…
A CAPTIVE Market.
“Rolex,…discovered that there were plenty of British and Americans right on Switzerland’s doorstep — literally a captive market — in German prisoner-of-war camps. Stalag Luft III, for example, housed up to 10,000 Allied airmen, shot down in operations over occupied Europe.”
More importantly. Hans recognized and identified that captive market. Then he changed his marketing approach and adapted.
His plan. In one word.
GRATIS.
He knew many of the officers in those camps had their watches confiscated. His offer was simple and basic. We will ship your watch now. Pay only after the war.
Did it work?
“The news that rolex was offering watches on a buy-now-pay-whenever basis…spread like wildfire. More than 3,000 Rolex watches were reportedly ordered by British officers in Oflag VII B POW camp in Bavaria alone.”
Also, Hans personally handled each of those prison camp orders. Here is a letter he wrote…
That is one heck of a customer service letter. Did you catch the last paragraph? “As we have now a large number of orders in hand…” I would say his offer struck a chord. Those words are sincere, i dont think he was just making up a false reason and implying, as some marketers do today, the principle of scaricity.
So what can we learn from this fascinating marketing example?
In the early days of advertising Claude Hopkins preached “one must outbid all other’s in some way”. He also said “I care not what it is. The usual advertising was impossibe”. Hans certainly outbid his competition with this offer.
Remember, in today’s money, the #1 Chronograph Oyster No. 192” would have roughly cost $2,500. We’re not talking a $9.95 or $19.95 household item but a precision time piece.
Another important lesson from this example? There are many, but for me it’s something less obvious considering the context and time period of this.
Stand for something. Have an opinion.
Rolex was taking a big risk. Making a big bet. He was going all in that Allied forces would win the war. I didn’t mention this was NOT offered to German soldiers, nor even american soldiers. In fact, Han’s Wilsdorf was German.
This certainly didn’t help his company cash flow in the short term. But the longterm value of this…the loyalty and word of mouth. Rolex certainly achieved this.
Oh, one more fascinating thing. The watch that Hans Wilsdorf sent to that prisoner, Clive Nutting happened to take part in the famous “Great Escape”.
