Margin for a grey dealer on specific SS pieces

[Harry-57]

Originally Posted by sallyhats

Someone will feel wronged who has some sort of clout and want to boycott them.

Would it not be more appropriate to boycott the AD? Rolex don't ask or tell an AD how and where to sell their stock. They can't. It is at the discretion of the AD. If the AD wants to be an AD they have to stock and sell an agreed quota. It is not Rolex's place or right to audit them. They don't work for Rolex.

The manufacturer can withdraw AD status if they see fit. Maybe if enough people boycotted the ADs who are considered the biggest offenders, they might end up with an AD more to their liking. That would take some will and organisation. I can see how it might feel better to just sit in a forum throwing stones.

[TswaneNguni]

Rolex : What they dont teach you at business school .



(Even if Mommy got you a spot )

[daOnlyBG]

Originally Posted by TswaneNguni

Rolex : What they dont teach you at business school .



(Even if Mommy got you a spot )

Shockingly, what Rolex is doing is taught at basic economics courses.

[2nastie]

Makes me wonder how individuals end up purchasing luxury watches and items.

Very very basic economics that not only applies to business but day-to-day life.

The price of the item is irrelevant. Majority of the retail and business world makes money on percentage bases for the amount of work and risk they take. Basic necessities like food with high demand and volume equals lower percentage in return. Riskier and expensive items typically higher percentage returns. Less skilled labour, lower percentage. Higher skilled labour, higher percentage.

Greys make it on percentage as well. If the secondary market is selling for X. Then the Grey has to buy it at X - Y%. Higher demand, more available model like a Sub will yield a lower percentage return. If the percentage return doesn't make sense then the grey won't sell that item. If something isn't desirable, then they will not buy it or buy it at a much lower price and expect a greater percentage return on their money (or bundle to get something that does make money).

It isn't rocket science. If you aren't in business, it applies to you as well. You won't perform your job, if the pay doesn't equal the value of your skill and time. Just like a grey doesn't sell a watch if it doesn't make money.

Especially with the hotter models and the "crazy" prices everyone sees, people seem to think greys automatically makes windfall with the presumption that they buy it at MSRP. At times, sure they do. But the majority of them pay above MSRP to secure the watch and inventory in order to sell. Or they have to bundle with other watches that would be at a "loss" in order make an overall profit on the transaction.

[mountainjogger]

Originally Posted by TswaneNguni

Rolex : What they dont teach you at business school .



(Even if Mommy got you a spot )