Is this an AD conflict of interest?

[Sublovin]

I will start by saying that I am a watch collector, not a watch investor. Anyone who has seen my posts over and over knows I am in it for the interest in watches, not my savings account. This is not about market prices per say, just something I recently began giving more thought to.

Some AD’s sell used watches, and some don’t. For the ones who don’t, that I know of....they will still take certain watches on trade, but then wholesale them. For those who sell used watches, I recently began wondering if there is a conflict of interest. I was in an AD last week and they had a “used” BLNR....for $13,500. I found this interesting because I thought to myself, why would they EVER sell a new one...so long as the price of used is higher than MSRP? You follow?
This is a new thing for Rolex with the exception of the occasional steel Daytona back in the day. I realize MSRP is “suggested”, but I know this dealer doesn’t sell new pieces above that....makes you wonder....
I’m not saying it’s wrong, and I assume Rolex doesn’t care, just makes you think about the fact that anytime they sell a steel Rolex for MSRP they are literally giving away potential profits. We know that many dealers are making money on grey market/back door deals, but this is a very in your face way of doing it.
Just thinking...

[dori]

This isn’t news chief


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[RJRJRJ]

If the watch was originally sold from the same AD, it's definitely not a good look. Most dealers are probably smart enough to avoid doing that.

[Vvvlllooo]

Car dealers do the same thing..supply and demand..capitalism

[Sublovin]

Originally Posted by dori

This isn’t news chief


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Ha! I realize it’s not breaking news Chief! Just thinking out loud as it is a very in your face way for an AD to do business. I fully support capitalism, but could see how this might turn some people to go the AD up the street who doesn’t do it. Thanks for your thought filled contribution though...

[Calatrava r]

All ADs are moving in the direction of selling "used" Rolex, even if its off to side in a small unmarked area. Too much money in it not to. Plus, the immediate trade eliminates the third party middle man and more sales of new pieces can occur (as if they need the business incentive on the hot pieces).

[Sublovin]

Originally Posted by RJRJRJ

If the watch was originally sold from the same AD, it's definitely not a good look. Most dealers are probably smart enough to avoid doing that.

Right, I was thinking that. Would like to see the warranty card for the GMT. Kinda funky if it’s from them.

[tacotaco]

Same thing happened to me about a few weeks ago
Went to my local AD with whom I have been cultivating a relationship
Bought a few sub $1000 accessories and jewelry

The sales rep tells me he just purchased a ceramic Daytona from a customer for $20k and they are now selling it for $23k

I examine the watch (absolutely gorgeous btw) and looks verrrry new ( as if only the stickers were removed)

So my guess is that the ADs ARE getting the watches but they in turn make them “used” and sell them pre-owned

Don’t blame them but don’t think this practice will be sustainable unless rolex opens the vaults and flooding the market (unlikely)


So as the motto still remains after countless threads bemoaning the shortage or the outrageous prices.....”pay to play”

[schoolboy]

Yeah I thought of the same thing a while back.

But Rolex can’t fix it unless they bombard us with tons and tons of hot watches

But then Rolex won’t be the hottest thing is luxury sports watches, and I don’t think they want that

So for now we wait

Either on a waiting list, or for something to “fix” the market

[dori]

Originally Posted by Sublovin

Ha! I realize it’s not breaking news Chief! Just thinking out loud as it is a very in your face way for an AD to do business. I fully support capitalism, but could see how this might turn some people to go the AD up the street who doesn’t do it. Thanks for your thought filled contribution though...

It’s is what it is. Your thinking out loud won’t change this practice. This is just a pointless thread, with no meat to bite on, so I really don’t know what’s your problem with my comment. However, I think you might have a too much free time

Happy now?


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[jctrolex]

Originally Posted by Sublovin

Right, I was thinking that. Would like to see the warranty card for the GMT. Kinda funky if it’s from them.

I walked into a very well known AD about 3 weeks ago they had a “pre owned” mint Batman for $18,000 while there is no SS sports model in their new stock case. Interesting enough there is no box and paper so it’s impossible to tell who the first owner was. A mint Rolex with some stickers still on the bracelet but no box and papers??? Are we getting the picture?

[Nairn1980]

Originally Posted by Sublovin

I will start by saying that I am a watch collector, not a watch investor. Anyone who has seen my posts over and over knows I am in it for the interest in watches, not my savings account. This is not about market prices per say, just something I recently began giving more thought to.

Some AD’s sell used watches, and some don’t. For the ones who don’t, that I know of....they will still take certain watches on trade, but then wholesale them. For those who sell used watches, I recently began wondering if there is a conflict of interest. I was in an AD last week and they had a “used” BLNR....for $13,500. I found this interesting because I thought to myself, why would they EVER sell a new one...so long as the price of used is higher than MSRP? You follow?
This is a new thing for Rolex with the exception of the occasional steel Daytona back in the day. I realize MSRP is “suggested”, but I know this dealer doesn’t sell new pieces above that....makes you wonder....
I’m not saying it’s wrong, and I assume Rolex doesn’t care, just makes you think about the fact that anytime they sell a steel Rolex for MSRP they are literally giving away potential profits. We know that many dealers are making money on grey market/back door deals, but this is a very in your face way of doing it.
Just thinking...

Yup as others have said, old news.
They however can’t just register their new watches and sell preowned so it will be a genuinely preowned piece that they have purchased or taken as a trade.
$13500 is also a great price all things considered. Here in the UK a preowned BLNR would be at least that’ figure in £££ (close to $17k)

[tom2517]

Originally Posted by dori

It’s is what it is. Your thinking out loud won’t change this practice. This is just a pointless thread, with no meat to bite on, so I really don’t know what’s your problem with my comment. However, I think you might have a too much free time

Happy now?


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Yep, another thread about ADs......

[Speedbird-1]

Originally Posted by dori

It’s is what it is. Your thinking out loud won’t change this practice. This is just a pointless thread, with no meat to bite on, so I really don’t know what’s your problem with my comment. However, I think you might have a too much free time

Happy now?


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You, certainly found enough, to bite on.


Slightly less friendly than you could have been, I think.

[HogwldFLTR]

There are advantages for dealerships buying back watches for both the dealers and customers. I see no conflict of interest there at all. Why shouldn't they sell used watches. It's a market segment and they have every right to participate.

[Brew]

Judging from all the scarcity threads, you'd think new pieces never make it to customers vs. friends and family (to be re-purchased and re-sold used).

[grimps]

AD's will stop selling used stock if the prices drop like a few years ago , Who's gonna buy a Hulk for retail price if there was one nearly new $1000 below in the window .
It's just a sign of the times and the AD's are in the perfect positions to do trades as they would always be the first point of contact for a new watch

[watchmaker]

I genuinely wish there was as many threads addressing the price situation pre-2015(ish) when people still expected a discount from an AD for buying a new watch.

It’s was (largely speaking) a buyers market for decades. It has been a sellers market for just a few years now. Ride it out, things will revert.

Nobody needs a Rolex so as far as I’m concerned the market, ADs and pricing can do what it wants though. If I can’t afford one any more my life is in no way worse off.

[watchmaker]

(Please delete; double post)

[dnpina]

I dont mind when they sell a pre-owned watch at a discounted from msrp going price. How can I mind if they sell a pre-owned watch at the current inflated going price?

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[AK797]

Originally Posted by HogwldFLTR

There are advantages for dealerships buying back watches for both the dealers and customers. I see no conflict of interest there at all. Why shouldn't they sell used watches. It's a market segment and they have every right to participate.

There is no conflict when used prices are below retail as was the norm before the hype, the problem now is one of honesty, are these watches really being sold back to the AD, esp now when greys will offer so much more profit, or are ADs just flipping them to themselves so they can sell them at grey prices and double their profits while Rolex get none of this add on? Some are honestly selling genuinely used watches but the temptation to pretend they are used by selling them to friendly parties is very great. If all ADs were to do this then there would never be a new hot watch available to anyone at retail ever again.

[Brew]

Insofar as an AD has no duty to you to sell you a watch at MSRP, I don't think this can really be a conflict of interests. The AD's interest is to maximize profits, which they are apparently doing quite nicely . . . .

[RHJ]

Originally Posted by watchmaker

I genuinely wish there was as many threads addressing the price situation pre-2015(ish) when people still expected a discount from an AD for buying a new watch.

It’s was (largely speaking) a buyers market for decades. It has been a sellers market for just a few years now. Ride it out, things will revert.

Nobody needs a Rolex so as far as I’m concerned the market, ADs and pricing can do what it wants though. If I can’t afford one any more my life is in no way worse off.

This exactly!

[brandrea]

Originally Posted by AK797

There is no conflict when used prices are below retail as was the norm before the hype, the problem now is one of honesty, are these watches really being sold back to the AD, esp now when greys will offer so much more profit, or are ADs just flipping them to themselves so they can sell them at grey prices and double their profits while Rolex get none of this add on? Some are honestly selling genuinely used watches but the temptation to pretend they are used by selling them to friendly parties is very great. If all ADs were to do this then there would never be a new hot watch available to anyone at retail ever again.

Well said my friend. This is exactly why my AD doesn’t play the in used game, the optics look horrible IMO.

[Sublovin]

Originally Posted by dori

It’s is what it is. Your thinking out loud won’t change this practice. This is just a pointless thread, with no meat to bite on, so I really don’t know what’s your problem with my comment. However, I think you might have a too much free time

Happy now?


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Real happy....
No meat to but on, yet you bit (posted) twice. Too much free time, yet you have almost 400 posts in a year. Where I’m from, they call that irony, chief!
I don’t mind a little snark....but think it through!

[Sublovin]

Originally Posted by brandrea

Well said my friend. This is exactly why my AD doesn’t play the in used game, the optics look horrible IMO.

Kinda my thought as well. I’m all for free markets, and ultimately, I don’t care....but for a reputable brick and mortar store....it’s a bad look! When used Ian selling higher than new, and they are current production pieces, the lines between “new” and “used” can become blurred.

[brandrea]

Originally Posted by Sublovin

Kinda my thought as well. I’m all for free markets, and ultimately, I don’t care....but for a reputable brick and mortar store....it’s a bad look! When used Ian selling higher than new, and they are current production pieces, the lines between “new” and “used” can become blurred.

Indeed they do.

[GoingPlaces]

I see no conflict. It's a free market situation. The AD is simply trying to monetize an opportunity in a market with tight supply.

[Auto16610]

If people don't like the content then don't click on it. Especially don't reply to it. My AD has a wonderful display of used vintage pieces. What a pleasure visiting them. It's ok to have conversations about our passion for shiney objects we love! So my thought is what would it be like if Rolex let AD's sell their new watches for whatever price they wanted and let the free market do its thing? Say mark a new Daytona at $17,000. Maybe the AD down the street lists it for $16,500? Your thoughts?

[golden_time]

On the whole, those looking to sell used professional models are advised to sell them privately. Places like watch finder will inevitably offer more money, and sell them on for more money. With Rolex steadily closing accounts, AD's need to be very careful.
It is massively unlikely they are taking new models and in turn selling them preowned. It's simply not worth losing a multimillion pound/ dollar watch brand.