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27 November 2016, 05:08 AM | #1 |
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Rolex Supply Chain Question
I'm looking into getting a DD40 and have secured one at $25.5K from a local dealer. However, I'm in the manufacturing / wholesale business myself which got me thinking... does anyone know how Rolex's supply chain works? Is it the typical manufacturer to distributor to retailer? I understand the average retail margin on Rolex is 40%, meaning a DD40 would be purchased by a retailer for approx $20.5K. Do they buy direct from the factory or is that from a wholesaler? That brings up my clear next question, being a wholesale business owner myself and having a resellers permit/FEIN number would I be able to purchase a Rolex at wholesale from a distributor?
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27 November 2016, 05:11 AM | #2 |
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I don't know the specifics, but I believe that all US authorized dealers get their watches from Rolex USA.
It's a more complicated story, which I'm sure someone will provide.
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27 November 2016, 05:12 AM | #3 |
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For give me if I'm wrong but it goes from manufacturer to dealer.
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27 November 2016, 03:23 PM | #4 |
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27 November 2016, 05:25 AM | #5 |
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I figured that was the case for an AD, but what about a typical watch dealer? I'm in Southern California and there are a plethora of non AD jewelry dealers who will get any Rolex for approximately 25% off retail. They all order the watch as you request it, and I assume since they aren't holding any inventory and are basically drop shipping they are willing to take that smaller margin for a guaranteed profit. I'm wondering who their supplier is.
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27 November 2016, 07:07 AM | #6 |
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It's likely that their supplier varies and is an import/export that bypasses the Rolex USA distributor chain.
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27 November 2016, 05:47 AM | #7 |
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From the factory an invoice is sent directly to AD, cost is (-38%) period
Not (-40) that was taken back about 4 to 5 years ago.. Sent from my iPhone using Tapatalk |
27 November 2016, 07:13 AM | #8 |
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They come over in large shipping containers
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27 November 2016, 08:07 AM | #9 |
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Patrick, many suppliers out there that offer 25% off. Basically, you can do this yourself and maybe even get 30% or more off. Visit the U.K. or some other country where the USD and that country' msrp benefits you, and provided they have it or can get it, figure a 15% discount on PM models, which is normal, then you get VAT back and there you go. Of course that means you have to do all the flying, haggling, etc. Thus for 30% or more, trusted sellers here have their own contacts and in the end offer you 25% off PM modeling you're in the market to buy a Rolex, I found that posting a WTB AD here to be great as trusted sellers bid on my business. This way you can get a really great deal as I did from a guy not mentioned as much here on TRF, yet his pricing was far better than the 'mainstream' trusted sellers here. :)
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27 November 2016, 10:06 AM | #10 | |
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Quote:
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27 November 2016, 11:12 AM | #11 | |
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Quote:
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27 November 2016, 12:41 PM | #12 | |
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Quote:
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27 November 2016, 01:20 PM | #13 | |
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Quote:
What about customs and duties? While formula for duty is more complex, directional rule is the 3% of value Sent from my iPhone using Tapatalk |
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28 November 2016, 01:10 AM | #14 |
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Wouldn't be applicable. Buy the watch in U.K., get 20% VAT back at the airport and you're on your way. I wouldn't declare the watch.
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27 November 2016, 03:24 PM | #15 |
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There is so much you need to learn . Grasshopper.
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28 November 2016, 03:28 AM | #16 |
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I've heard that a special green stork delivers each Rolex after their born.
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28 November 2016, 03:44 AM | #17 | |
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Quote:
How would you get 20% back when the VAT rate is 20% ? |
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30 November 2016, 07:31 AM | #18 |
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Isn't import duty only a few percent into the States? I'd just declare that esp after the huge savings you will have made.
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30 November 2016, 07:59 AM | #19 |
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^^ This. I'm all about a good deal on a Rolex, but not at the expense of violating the law.
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