When we see a price increase - does the AD see a price increase?

[TimeOnMyHands]

Curious as to if anyone knows in regards to Rolex pricing...

When we see Rolex price increases - do the AD's also pay more for Rolex as of the price increase date? If yes - how would that affect inventory on hand? Or would they pay more from Rolex on a new order and simply enjoy more profit on watches they have...? Thoughts..

[kilyung]

No impact to existing AD inventory but any future orders would cost more.

[Urosfan]

I'm in no rush to see the increase lol

[Frosty]

When I got my GV at Ben Bridge Jewelers last year, they told me the price increase would happen on Friday, and all in stock Rolex watches would increase. I checked and they did raise the prices, but, they would give me a deal on an in stock watch.

[T. Ferguson]

I would imagine it can happen in any number of ways. Not too long ago Rolex increased dealer prices without raising MSRP, effectively reducing dealer margins. So I suppose they could raise the MSRP with or without also increasing the price sold to dealers. But I'd think the usual way it happens is they raise both dealer prices and MSRP.

[landroverking]

Originally Posted by kilyung

No impact to existing AD inventory but any future orders would cost more.

Many ADs mark up current stock to the new MSRP.

[TimeOnMyHands]

Thanks for the comments!

[T. Ferguson]

Originally Posted by landroverking

Many ADs mark up current stock to the new MSRP.

Yep, some will. Some will give you a better discount against the new MSRP on stock purchased before the price increase (even though it isn't really any better) than what you might have received before the increase. I think this is one of the "acceptable" discounts Rolex tolerates.

[77T]

Wholesale to AD is ordinarily adjusted upward as the MSRP is adjusted upward. There are always exceptions, but that is the general process...

[Touring]

Originally Posted by T. Ferguson

Yep, some will. Some will give you a better discount against the new MSRP on stock purchased before the price increase (even though it isn't really any better) than what you might have received before the increase. I think this is one of the "acceptable" discounts Rolex tolerates.

I spoke to Rolex Canada today about MSRPs because of a discrepancy I noted during my recent NOS purchase. Apparently, the price is up to the discretion of the AD once a model has been discontinued. Hence, the $6870 and $7350 price tags I came across while shopping for my 16570 as well as the $6700 for a 14060m.

I presume the policy is similar in the US.

[T. Ferguson]

Originally Posted by Touring

I spoke to Rolex Canada today about MSRPs because of a discrepancy I noted during my recent NOS purchase. Apparently, the price is up to the discretion of the AD once a model has been discontinued. Hence, the $6870 and $7350 price tags I came across while shopping for my 16570 as well as the $6700 for a 14060m.

I presume the policy is similar in the US.

Interesting, I hadn't even thought about pricing policy on discontinued models. I suppose Rolex HQ would have less concern what a dealer sells those for.

[Andad]

When the AD's are advised of a price increase they will be replacing their current stock with stock that has a higher cost price. Some might sell current stock at the old price and some might put old stock up to the new retail price. This is the AD's choice IMO.
On discontinued models I am sure Rolex do not allow AD's to sell above retail.

[Touring]

Originally Posted by directioneng

On discontinued models I am sure Rolex do not allow AD's to sell above retail.

Not according to the rep I spoke with at Rolex HQ Canada nor my experience searching for NOS. I guess that's why they use the term "MSRP". Or perhaps as with most other things up here, we're just getting fleeced on the price.