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vruser · 16 May 2015, 06:08 AM

Guys, I met a person who claims that he can buy a watch or two from a dealer at approx 50% retail. I am not going to buy from this character (first of all I don't even have money for a 50% sale at this point regardless, and I don't really trust him anyway) but it got me thinking: Do dealers mark up watches to something like this percentage (50%)? I ask out of curiosity, since I have no idea how much these guys are charged by Rolex! It sounds like BS to me, but then I'm no businessman so maybe this is normal for all products. (I'm not pointing any fingers at dealers either as everyone has to make a buck I know.)

Vivalas · 16 May 2015, 06:15 AM

AD's make around 36%.

SemperFi · 16 May 2015, 08:26 AM

Quote:

Originally Posted by Vivalas

AD's make around 36%.

That sounds about right.

HL65 · 16 May 2015, 08:39 AM

Quote:

Originally Posted by Vivalas

AD's make around 36%.

They pay 62% of retail. Clearly they have expenses to run their business so their true margin is a much different number.

So to OP sorry nobody is buying new Rolex for 12% less than what an AD is.

joli160 · 16 May 2015, 09:21 AM

The guy who claims that is talking rubbish

zama · 16 May 2015, 09:22 AM

I think it would very brand to brand but the Rolex numbers above are on the mark.

fishingbear · 16 May 2015, 09:41 AM

37% gross is correct. The thing about ADs is when they give these 40+% discounts on watches they have been sitting on display or in vault for years and one has to take into consideration that the dealer cost has shrunk with increased MSRP.
Case in point: an M serial sitting for 8 years now at 40% of CURRENT MSRP is still a great profit for them based on their cost basis from when the watch was originally purchased.
The PM models are the only pieces I ever see these type discounts.

watchnutty · 16 May 2015, 09:41 AM

maybe he meant pre-owned?

spinn74 · 17 May 2015, 05:55 AM

I've been seeing a lot on this. Can anyone confirm that the AD currently pays 62% of retail? Do they have any other incentives?

HL65 · 17 May 2015, 07:02 AM

Quote:

Originally Posted by spinn74

I've been seeing a lot on this. Can anyone confirm that the AD currently pays 62% of retail? Do they have any other incentives?

That is correct and no more incentives. They used to pay 60% and get 2% back of paid within 30 days but that changed few years ago.

mike · 17 May 2015, 07:05 AM

Quote:

Originally Posted by joli160

The guy who claims that is talking rubbish

You're very kind. What he's doing is flat out lying. I'd guess what you'd get from him is FAKE.

FTX I · 17 May 2015, 07:06 AM

Quote:

Originally Posted by mike

What he's doing is flat out lying. I'd guess what you'd get from him is FAKE.

I thought the same.

16 May 2015, 06:08 AM	#1
vruser "TRF" Member Join Date: Nov 2012 Location: NZ Posts: 17	AD prices? Guys, I met a person who claims that he can buy a watch or two from a dealer at approx 50% retail. I am not going to buy from this character (first of all I don't even have money for a 50% sale at this point regardless, and I don't really trust him anyway) but it got me thinking: Do dealers mark up watches to something like this percentage (50%)? I ask out of curiosity, since I have no idea how much these guys are charged by Rolex! It sounds like BS to me, but then I'm no businessman so maybe this is normal for all products. (I'm not pointing any fingers at dealers either as everyone has to make a buck I know.)

16 May 2015, 09:21 AM	#5
joli160 2024 SubLV41 Pledge Member Join Date: Apr 2013 Location: NL Watch: Yachtmaster Posts: 14,761	The guy who claims that is talking rubbish __________________ Day Date 18238, Yachtmaster 16622, Deepsea 116660, Submariner 116619, SkyD 326935, DJ 178271, DJ 69158, Yachtmaster 169622, GMT 116713LN, GMT 126711.

16 May 2015, 09:22 AM	#6
zama "TRF" Member Join Date: Feb 2012 Real Name: Craig Location: Sydney Watch: 4 Broken glass Posts: 5,808	I think it would very brand to brand but the Rolex numbers above are on the mark. __________________ Day Date 118206, Daytona 116509 & 116505, AP 25859ST Gone but not forgotten and genuinely missed..... Root Beer GMT, Sub, TT Daytona, YG DD Bark, Datejust(2 his & hers), AP RO, PP Aquanaut, Lange 1, Heuer Monza, Piaget Altiplano, GP Chrono, Seamaster, Tudor Sub, Tudor Chrono, Tudor Black Bay Bronze

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16 May 2015, 06:15 AM	#2
Vivalas "TRF" Member Join Date: Jun 2013 Real Name: Stephen Location: UK Watch: AP Posts: 2,646	AD's make around 36%.

16 May 2015, 09:41 AM	#7
fishingbear 2024 SubLV41 Pledge Member Join Date: May 2011 Real Name: George Location: Alabama Watch: GMTsSubLVEx2SDDayt Posts: 4,549	37% gross is correct. The thing about ADs is when they give these 40+% discounts on watches they have been sitting on display or in vault for years and one has to take into consideration that the dealer cost has shrunk with increased MSRP. Case in point: an M serial sitting for 8 years now at 40% of CURRENT MSRP is still a great profit for them based on their cost basis from when the watch was originally purchased. The PM models are the only pieces I ever see these type discounts.

16 May 2015, 09:41 AM	#8
watchnutty "TRF" Member Join Date: Apr 2015 Location: Florida Posts: 347	maybe he meant pre-owned?

17 May 2015, 05:55 AM	#9
spinn74 "TRF" Member Join Date: Jan 2012 Real Name: Dante Location: NJ Watch: 5167 Posts: 199	I've been seeing a lot on this. Can anyone confirm that the AD currently pays 62% of retail? Do they have any other incentives?

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