AD gets 'visited' by Rolex

[mjrennie]

My AD told me an interesting story last week.

Apparently, one of the head honcho's from Rolex, I presume Rolex UK (or whetever it's called) visits ADs to ensure Rolex watches are being
'presented' properly. My AD is very swish, with it's own Rolex Room (very nice it is too). They told me that a number of places had lost the Rolex AD status because they were not up to scratch.

It got me thinking, what is behind it? Perhaps it is about maintaining the image of high-endishness or perhaps they were clamping down on discounters. The variation in disount availablity between Ads is pretty marked, in my opinion.

Just thought I'd pass it on.

Michael.

[Dweller of the Sea]

This is the future for many AD´s.
They will probably also use mystery shoppers, get get rid of the AD´s with "inproper" discounts.

[mjclark32]

Originally Posted by Dweller of the Sea

This is the future for many AD´s.
They will probably also use mystery shoppers, get get rid of the AD´s with "inproper" discounts.

They probably do that already.

[Speed]

But according to many on TRF, the "average" discount on a new SS Rolex is 25%.

Hahahahaha

[Puffy]

Originally Posted by Speed

But according to many on TRF, the "average" discount on a new SS Rolex is 25%.

Hahahahaha

where do i sign???!!!

[Dan Pierce]

Independent watchmakers w/ Rolex parts accounts are routinely checked twice a year w/ unannounced visits. Everything from lighting, flooring, storage, and overall organization are critiqued.
dP

[Chris B]

Probably just another one of those things that sounds as if it should true, but isn't.

[tulsaokusa]

I wanna sign up to be the secret shopper! I wonder what kind of budget Rolex gives them?

[Numismatist]

It seems Rolex is heading to the boutique method of sales, but recognizes that it just can't switch to it overnight.

So what to do? Root out the bad performing ADs and replace them with boutiques while maintaining the good ADs long enough to eventually replace them too. , or at least force them to behave in a certain specific Rolex way.

[TSW]

Originally Posted by Dan Pierce

Independent watchmakers w/ Rolex parts accounts are routinely checked twice a year w/ unannounced visits. Everything from lighting, flooring, storage, and overall organization are critiqued.
dP

Correct!

[JACBMW]

Hmm, so whats next? Background checks to a potential buyer to make sure he/she has elite status to wear the brand? I can hear it now, No Rolex for you...the Rolex Nazi ala Seinfeld.

[texex91]

Most major watch brands do this as well. AD told me Cartier, Rolex, Omega and Panerai all have QC on dealers.

Said on the last visit by Cartier, that the shopper asked questions like, "would you buy Cartier or Rolex", "which do you think is a better watch and why".

[Solidarity]

Originally Posted by JACBMW

Hmm, so whats next? Background checks to a potential buyer to make sure he/she has elite status to wear the brand? I can hear it now, No Rolex for you...the Rolex Nazi ala Seinfeld.

You're through AD... Pack it up. No more Rolex for you... NEXT!

[Numismatist]

Don't laugh, to buy the highest end Vacheron or Patek, you have to be invited by the CEO to even be considered...

[JACBMW]

Originally Posted by Numismatist

Don't laugh, to buy the highest end Vacheron or Patek, you have to be invited by the CEO to even be considered...

Wow, I will never be invited

[Dan2010]

Originally Posted by JACBMW

Wow, I will never be invited

I DON'T WANT to be invited myself.

[GeorgeK]

Elitist BS....
Rolex is losing the image of a tool watch that is good from the jungle to Wall street, in favor of sissified customers who go beserk at the mere sight of a swirl or scratch.

And they seem to actuall *want* that.
What next? "Sorry Sir but you do not convey the image of a Rolex owner"

[dddrees]

Originally Posted by Dan Pierce

Independent watchmakers w/ Rolex parts accounts are routinely checked twice a year w/ unannounced visits. Everything from lighting, flooring, storage, and overall organization are critiqued.
dP

Ray Croc was notorius for checking out McDonalds stores unanounced back in the day. That's when hard work and quality meant something and McDonalds had to work hard to get that dollar. This tends to keep people on their toes and it often does raise the quality of the overall product when it is all said and done. The person tends to only think about themself, as the store thinks only about their store, but the manufacture has to think about the entire brand.

[DG123]

Rolex Boutiques are owned and operated by independent AD's, not Rolex.

Originally Posted by Numismatist

It seems Rolex is heading to the boutique method of sales, but recognizes that it just can't switch to it overnight.

So what to do? Root out the bad performing ADs and replace them with boutiques while maintaining the good ADs long enough to eventually replace them too. , or at least force them to behave in a certain specific Rolex way.

[Numismatist]

Originally Posted by DG123

Rolex Boutiques are owned and operated by independent AD's, not Rolex.

Sure, but this method Rolex has total control, no other brands in store, etc.

[esm]

I thought it was the common knowledge that every Rolex AD has it's own Rolex Sales Representative.....

I know Mr Rolex is very strict on the lighting, display, placement of their products, as well as which brands can be next to the Rolex display etc...

I'm sure there will be "undercover" Rolex customers to make sure all is adhered to

[DG123]

It's a two way street.
Rolex is asking AD's to open Rolex Boutiques. In return, Rolex is promising the AD's that they will have an exclusive territory, without competition from discount retailers.
The risk to the AD is the expense of owning and operating a boutique.
To make the boutique concept successful Rolex needs to design and produce saleable models. If consumers don't like the new models then the boutique concept will fail.

Originally Posted by Numismatist

Sure, but this method Rolex has total control, no other brands in store, etc.

[Danand]

Originally Posted by dddrees

Ray Croc was notorius for checking out McDonalds stores unanounced back in the day. That's when hard work and quality meant something and McDonalds had to work hard to get that dollar. This tends to keep people on their toes and it often does raise the quality of the overall product when it is all said and done. The person tends to only think about themself, as the store thinks only about their store, but the manufacture has to think about the entire brand.

I was going to point out a similar thing-almost any decent franchise will do the same, it is a form of quality control and I would think any brand worth protecting (image wise) should do this.

[The GMT Master]

Yes, many dealerships have been losing their status recently. If Rolex aren't having their product displayed in the right place, in the right way and being sold at the right price, then they're understandably going to be annoyed. They have a brand image to maintain - if a dealership isn't willing to invest the necessary amount to keep the displays looking good, or isn't giving enough space, why should Rolex let them sell their watches?

It's a tough market out there, and only the strongest will survive. Exactly the same thing happened in the last big recession in the early '90s, dealerships were dropped in order to maintain prestige. If a dealership isn't up to scratch, then so be it - that's business folks!

[Sixxgrand1]

Originally Posted by GeorgeK

Elitist BS....
Rolex is losing the image of a tool watch that is good from the jungle to Wall street, in favor of sissified customers who go beserk at the mere sight of a swirl or scratch.

Agreed, I am well tired of reading posts about scratches and swirls..good point...

[Dweller of the Sea]

Boutiques who only sell one brand, is the future of the business, just wait and see in 10-20 years. Many high end malls allready have many one-brand-boutiques.

Looks like Rolex is going the same way as Omega started, some years ago. They also closed alot of AD´s (and still do), and are opening there own. Currently Omega has over 200 boutiques worldwide, and they are opening more each month.

[Boothroyd]

Originally Posted by Dan Pierce

Independent watchmakers w/ Rolex parts accounts are routinely checked twice a year w/ unannounced visits. Everything from lighting, flooring, storage, and overall organization are critiqued.
dP

Also, do they wear glove when presenting watch to prevent fingerprints, do they have green-leather blotter with Rolex logo to rest watch on, rather than lay watch on display case, etc. etc. All manner of presentation and business requirements.

Several AD's in Minneapolis have lost the line based on failure of such spot checks in past years. One couldn't by back into Rolex line even with a $5M offer..true story.

[Jason71]

Originally Posted by Boothroyd

Also, do they wear glove when presenting watch to prevent fingerprints, do they have green-leather blotter with Rolex logo to rest watch on, rather than lay watch on display case, etc. etc. All manner of presentation and business requirements.

Several AD's in Minneapolis have lost the line based on failure of such spot checks in past years. One couldn't by back into Rolex line even with a $5M offer..true story.

Well, I will tell you that it is one of my pet peeves when'd a sales associate carelessly handles my watch while I carefully inspect and try-on their watch. I have had them treat my watch very poorly before. These ADs SHOULD lose their AD status.

[DCgator]

Originally Posted by The GMT Master

Yes, many dealerships have been losing their status recently. If Rolex aren't having their product displayed in the right place, in the right way and being sold at the right price, then they're understandably going to be annoyed. They have a brand image to maintain - if a dealership isn't willing to invest the necessary amount to keep the displays looking good, or isn't giving enough space, why should Rolex let them sell their watches?

It's a tough market out there, and only the strongest will survive. Exactly the same thing happened in the last big recession in the early '90s, dealerships were dropped in order to maintain prestige. If a dealership isn't up to scratch, then so be it - that's business folks!

My AD told me they put up the expense of store renovation into a boutique, not Rolex. Other brands cannot be sold in the same case as Rolex. Rather, the store has to look like it is an exclusive AD, image and all. Other brands sold will have to be on a separate section in the store, perhaps dividers/sectional walls will be used to separate from the Rolex line. But that's the deal they were given by Rolex in order to say an AD.

[MortgageGuy]

Originally Posted by Numismatist

It seems Rolex is heading to the boutique method of sales, but recognizes that it just can't switch to it overnight.

So what to do? Root out the bad performing ADs and replace them with boutiques while maintaining the good ADs long enough to eventually replace them too. , or at least force them to behave in a certain specific Rolex way.

Sad but true... I think this is what will be happening and is happening sooner than later... Who loses? The consumer IMO.

Originally Posted by JACBMW

Hmm, so whats next? Background checks to a potential buyer to make sure he/she has elite status to wear the brand? I can hear it now, No Rolex for you...the Rolex Nazi ala Seinfeld.

Yup, this starts right after Bazel 2012