ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX

tictocChuck · 8 November 2010, 03:53 AM

What is the typical price mark-up by Rolex AD's?

I haven't seen this discussed, unless it's considered taboo or as secret as the formula for Coca-Cola, but was wondering if anybody might have some ideas.

Logically the margins would increase from the basic all steel to the diamond encrusted platinum models. As it says on my official Rolex price list, "The retail prices are suggestions only, jewellers may sell for less."

This might make AD's squirm, but I see no harm in knowing the approximate percentage mark-up for us buyers. I respect the fact that AD's take a risk in bringing in a product into their inventory which may sit for months or even years, as well they have overhead costs.

Thanks to all. Cheers.

zak98 · 8 November 2010, 03:56 AM

double what they pay for the timepiece. would be my guesstimate.

moviefreak · 8 November 2010, 03:56 AM

40%...

Pep04 · 8 November 2010, 04:00 AM

I believe it is 45%. But, keep in mind that rent, taxes, advertising, holding a large inventory creating a huge investment and other cost factors are anything but cheap.

gimpex · 8 November 2010, 04:04 AM

I believe it has been discussed before and accepted that the ADs buy at 40% off from MSRP

InVision · 8 November 2010, 04:15 AM

Quote:

Originally Posted by gimpex

I believe it has been discussed before and accepted that the ADs buy at 40% off from MSRP

Yep

Grissom · 8 November 2010, 04:46 AM

I do recall it being 40%, with an additional 3% if paid within 30 days (3% net 30).....

Engi · 8 November 2010, 04:52 AM

45% - 50%

Engi

HL65 · 8 November 2010, 04:59 AM

It is exactly 40%. If they pay within 30 days they get an extra 2% off. So maximum they can make is 42% of the retail listing price.

tulsaokusa · 8 November 2010, 05:10 AM

Quote:

Originally Posted by SteelerFan1965

It is exactly 40%. If they pay within 30 days they get an extra 2% off. So maximum they can make is 42% of the retail listing price.

Mockingbird · 8 November 2010, 05:08 AM

I believe it's 40%. Do you see why it's hard to get a discount now?

tictocChuck · 8 November 2010, 06:09 AM

Thanks everyone! 40% + 2% seems to be the consensus. Nice to know for reference when the Rolex urge strikes. I respect that AD's need to make a living, so there has to be give & take when negotiating. Although with AD's that won't budge a nickel, you have to wonder about a $4000 retention on a $10000 watch. A 15-20% discount seems like a reasonable compromise. Cheers

Speed · 8 November 2010, 08:00 AM

Quote:

Originally Posted by tictocChuck

Thanks everyone! 40% + 2% seems to be the consensus. Nice to know for reference when the Rolex urge strikes. I respect that AD's need to make a living, so there has to be give & take when negotiating. Although with AD's that won't budge a nickel, you have to wonder about a $4000 retention on a $10000 watch. A 15-20% discount seems like a reasonable compromise. Cheers

That may seem reasonable to you. However, Rolex retail sales don't play by the same rules.

Actually the reason you don't have to wonder is because after the AD (from whom you have likely never purchased a watch) tells you your price is MSRP and not a penny less...(unless you are talking a WG or YG watch) and you walk out in a huff...someone else walks in and pays full price for the watch.

GradyPhilpott · 8 November 2010, 06:51 AM

Markups of 100%+ are not uncommon in retail.

45% to 50% to me sound like a steal already.

conrail · 8 November 2010, 06:59 AM

I've read 40% other places as well, so I think thats a fair MINIMUM markup to assume. Lord knows it probably goes higher.

RolexPete32 · 8 November 2010, 07:22 AM

It is 40%.

HL65 · 8 November 2010, 07:30 AM

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

tulsaokusa · 8 November 2010, 07:57 AM

Quote:

Originally Posted by SteelerFan1965

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

SCA · 8 November 2010, 08:45 AM

Quote:

Originally Posted by SteelerFan1965

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

springer · 8 November 2010, 10:04 AM

Quote:

Originally Posted by SteelerFan1965

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

100% correct. Anyone that did not state 40% is guessing.

IT IS 40%!!!!!!!!!!!!!!

frank777 · 8 November 2010, 08:22 AM

Sounds like a sweet deal . So, my question is how do I become a AD

CAllen · 8 November 2010, 08:32 AM

An AD was willing to come down $500 off list on a no date Sub this afternoon. Does that sound about right? I have read discount is tight on SS and popular models.

Speed · 8 November 2010, 08:37 AM

Quote:

Originally Posted by CAllen

An AD was willing to come down $500 off list on a no date Sub this afternoon. Does that sound about right? I have read discount is tight on SS and popular models.

Tight to non-existent, depending on location...and if your AD has not eaten in a while.

Las Vegas - SS Rolex Sport Model - 0% discount

Small Town USA - SS Watch that has been sitting in the case for eons, something > 0% discount.

TRF Classified Section - SS BNIB Rolex, sometimes up to 25% discount. Best deals around. Hands friggin' down.

HL65 · 8 November 2010, 08:36 AM

It is if you are selling jewelery--diamonds, necklaces, earrings etc, where your mark up is 60-70%. Once you factor in your fixed and variable expenses of running a top tier jeweler-which means top tier area--which means high rent and operating expenses--factor in discounts etc.....What does one's bottom line actually look like? Lastly--factor in a recession's impact on the luxury retail sector???

CAllen · 8 November 2010, 08:45 AM

I have been lurking around TRF for a few weeks waiting for a well taken care of, recent model (or BNIB, LNIB) no date Sub - no joy. Oh well, keep on waiting.

Speed · 8 November 2010, 08:59 AM

You'll have better luck / faster success with a Date Sub...but hold out for what you want.

sond86 · 8 November 2010, 09:47 AM

I think a lot about getting a discount it is based on approach.

I'd expect if you Just walk in and asking for a discount to be quoted full MSRP

If you are seriously interested and serious about buying and let the salesperson know its the right one and you would like to buy it and politely ask, if you can get a better price, one may have a decent chance at getting a discount.

Speed · 8 November 2010, 11:57 AM

Quote:

Originally Posted by sond86

I think a lot about getting a discount it is based on approach.

I'd expect if you Just walk in and asking for a discount to be quoted full MSRP

If you are seriously interested and serious about buying and let the salesperson know its the right one and you would like to buy it and politely ask, if you can get a better price, one may have a decent chance at getting a discount.

I disagree...Especially on Stainless Steel models. This is overly documented in many threads here.

sond86 · 8 November 2010, 12:43 PM

Quote:

Originally Posted by Speed

I disagree...Especially on Stainless Steel models. This is overly documented in many threads here.

Yeah true, I agree.

I'm misgeneralized my experiences when I was looking for my last watches and found discount offers were generally not hard to find, but that might.not be the case elsewhere.

sea-dweller · 8 November 2010, 10:18 AM

An ex-colleague worked at a well known AD when he attended college, he confirmed that the mark-up was 40%.

8 November 2010, 03:53 AM	#1
tictocChuck Member Join Date: Oct 2010 Real Name: Chuck Location: Seattle Watch: Rolex Submariner Posts: 256	What is the typical price mark-up by Rolex AD's? What is the typical price mark-up by Rolex AD's? I haven't seen this discussed, unless it's considered taboo or as secret as the formula for Coca-Cola, but was wondering if anybody might have some ideas. Logically the margins would increase from the basic all steel to the diamond encrusted platinum models. As it says on my official Rolex price list, "The retail prices are suggestions only, jewellers may sell for less." This might make AD's squirm, but I see no harm in knowing the approximate percentage mark-up for us buyers. I respect the fact that AD's take a risk in bringing in a product into their inventory which may sit for months or even years, as well they have overhead costs. Thanks to all. Cheers.

8 November 2010, 03:56 AM	#2
zak98 "TRF" Member Join Date: Oct 2007 Location: TN Watch: Rolex Posts: 2,166	double what they pay for the timepiece. would be my guesstimate. __________________ Z- Submariner; P- Airking; R- DateJust; M- GMTII; C0 - Milgauss GV Breitling SuperOcean Heritage 46 Omega Speedmaster Racing Panerai PAM390

8 November 2010, 03:56 AM	#3
moviefreak "TRF" Member Join Date: Nov 2008 Location: in my house... Posts: 5,524	40%... __________________ Cheers, Eduardo Be a WIS not a WUSS... and remove all the stickers..

8 November 2010, 04:00 AM	#4
Pep04 "TRF" Member Join Date: Oct 2009 Real Name: Pep Location: Miami Watch: GMTIIc, Pam320 Posts: 2,773	I believe it is 45%. But, keep in mind that rent, taxes, advertising, holding a large inventory creating a huge investment and other cost factors are anything but cheap. __________________ "Beer is proof that God loves us and wants us to be happy." -Benjamin Franklin Prick #8

8 November 2010, 04:46 AM	#7
Grissom "TRF" Member Join Date: Oct 2010 Real Name: Nathan Location: US, Latin America Watch: GMT IIc 18K/SS Posts: 3,349	I do recall it being 40%, with an additional 3% if paid within 30 days (3% net 30)..... __________________ *(Member NAWCC since 1976)* 116713LN GMT-IIc 18k/SS (Z) + 116520 SS Daytona (M) + 16700 GMT Master (A) + 16610LV Submariner (V) + 16600 Sea Dweller (Z) + 116400 Milgauss White Dial (V) + 70330N Tudor Heritage Chronograph Grey w/Black Sub Dials (J) + 5513 Submariner Serif Dial (5.2 Mil) Who else needs an Intervention? (109 297) (137 237) (73 115) (221) (23) (56) (229) P-Club Member #5 RIP JJ Irani - TRF Legend

8 November 2010, 04:04 AM	#5
gimpex "TRF" Member Join Date: Mar 2010 Real Name: Greg Location: Austria Watch: Sub C LV / Exp II Posts: 609	I believe it has been discussed before and accepted that the ADs buy at 40% off from MSRP

8 November 2010, 04:52 AM	#8
Engi "TRF" Member Join Date: Jan 2008 Location: Everywhere Posts: 1,434	45% - 50% Engi

8 November 2010, 04:59 AM	#9
HL65 TRF Moderator & 2024 SubLV41 Patron Join Date: Dec 2007 Real Name: Ken Location: SW Florida Watch: One on my wrist. Posts: 64,009	It is exactly 40%. If they pay within 30 days they get an extra 2% off. So maximum they can make is 42% of the retail listing price. __________________ *SPEM SUCCESSUS ALIT*

8 November 2010, 05:08 AM	#11
Mockingbird "TRF" Member Join Date: Nov 2009 Location: -- Posts: 2,097	I believe it's 40%. Do you see why it's hard to get a discount now?

8 November 2010, 06:09 AM	#12
tictocChuck Member Join Date: Oct 2010 Real Name: Chuck Location: Seattle Watch: Rolex Submariner Posts: 256	Thanks everyone! 40% + 2% seems to be the consensus. Nice to know for reference when the Rolex urge strikes. I respect that AD's need to make a living, so there has to be give & take when negotiating. Although with AD's that won't budge a nickel, you have to wonder about a $4000 retention on a $10000 watch. A 15-20% discount seems like a reasonable compromise. Cheers

8 November 2010, 06:51 AM	#14
GradyPhilpott 2024 SubLV41 Pledge Member Join Date: Sep 2008 Location: New Mexico Watch: Seiko #SRK047 Posts: 34,460	Markups of 100%+ are not uncommon in retail. 45% to 50% to me sound like a steal already. __________________ JJ Inaugural TRF $50 Watch Challenge Winner

8 November 2010, 06:59 AM	#15
conrail "TRF" Member Join Date: Sep 2010 Location: Boston Posts: 3,177	I've read 40% other places as well, so I think thats a fair MINIMUM markup to assume. Lord knows it probably goes higher. __________________ "Oh, you give a f****' aspirin a headache, pal!"

8 November 2010, 07:22 AM	#16
RolexPete32 "TRF" Member Join Date: Dec 2008 Real Name: Peter Location: Canada Watch: You know... Rolex Posts: 1,520	It is 40%.

8 November 2010, 07:30 AM	#17
HL65 TRF Moderator & 2024 SubLV41 Patron Join Date: Dec 2007 Real Name: Ken Location: SW Florida Watch: One on my wrist. Posts: 64,009	Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact. __________________ *SPEM SUCCESSUS ALIT*

8 November 2010, 08:22 AM	#21
frank777 "TRF" Member Join Date: Aug 2010 Real Name: Frank Location: AUS Watch: DJ Black dial diam Posts: 141	Sounds like a sweet deal . So, my question is how do I become a AD __________________ Frank _______________________________________________ Rolex DJ 116234 Black Diamond Dial V Series Jaeger Lecoultre Grande Date

8 November 2010, 08:32 AM	#22
CAllen "TRF" Member Join Date: Oct 2010 Location: Newton, MA Posts: 3	An AD was willing to come down $500 off list on a no date Sub this afternoon. Does that sound about right? I have read discount is tight on SS and popular models.

8 November 2010, 08:36 AM	#24
HL65 TRF Moderator & 2024 SubLV41 Patron Join Date: Dec 2007 Real Name: Ken Location: SW Florida Watch: One on my wrist. Posts: 64,009	It is if you are selling jewelery--diamonds, necklaces, earrings etc, where your mark up is 60-70%. Once you factor in your fixed and variable expenses of running a top tier jeweler-which means top tier area--which means high rent and operating expenses--factor in discounts etc.....What does one's bottom line actually look like? Lastly--factor in a recession's impact on the luxury retail sector??? __________________ *SPEM SUCCESSUS ALIT*

8 November 2010, 08:45 AM	#25
CAllen "TRF" Member Join Date: Oct 2010 Location: Newton, MA Posts: 3	I have been lurking around TRF for a few weeks waiting for a well taken care of, recent model (or BNIB, LNIB) no date Sub - no joy. Oh well, keep on waiting.

8 November 2010, 08:59 AM	#26
Speed "TRF" Member Join Date: Aug 2009 Location: USA Posts: 19,706	You'll have better luck / faster success with a Date Sub...but hold out for what you want.

8 November 2010, 09:47 AM	#27
sond86 "TRF" Member Join Date: Jun 2006 Real Name: Gym Rat Location: USA Watch: Rolex Posts: 1,327	I think a lot about getting a discount it is based on approach. I'd expect if you Just walk in and asking for a discount to be quoted full MSRP If you are seriously interested and serious about buying and let the salesperson know its the right one and you would like to buy it and politely ask, if you can get a better price, one may have a decent chance at getting a discount.

8 November 2010, 10:18 AM	#30
sea-dweller "TRF" Member Join Date: Oct 2007 Real Name: Dennis Location: Bay Area - 925 Posts: 40,018	An ex-colleague worked at a well known AD when he attended college, he confirmed that the mark-up was 40%. __________________ TRF Member #6699 (since September 2007)

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)