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wesdaniel · 16 December 2011, 09:58 AM

I apologize in advance if this question has been asked before; I didn't see it specifically referenced, but could have missed it.

I'm looking at purchasing a NIB Rolex from one of the recommended online sellers I found here in the forums, but am not understanding how the business of these sales works.

So, I've been told that there is room for negotiation at an AD of about 5% - 25%. I've been looking at a Datejust Turnograph that (I believe) retails around $9,900. My local AD has offered me a 15% discount, bringing the price down to about $8,500. This online seller is offering the same watch at $7,000 - about a 30% discount from retail.

How is it possible that we can buy a legit Rolex at this large of a discount? I mean, since this seller isn't an AD, there had to be a middleman somewhere between him and the factory who (I would assume) had to make some kind of a profit.....

Where's the hook? What am I missing?

Also, I'm assuming that, for most folks here, you'd save the $1,500 and buy from the online seller as long as they are well reviewed and trusted?

Thanks in advance.

F&Iguy · 16 December 2011, 10:22 AM

its the gray market, from what I have read they have (friends) at AD and buy them out the back door to my understanding. many people on here know way more about it then me the new guy

GradyPhilpott · 16 December 2011, 11:39 AM

The word is that the gray market watches are mostly from overseas and ADs want to get rid of them at about cost to make room for more, as Rolex contracts with ADs to receive a given amount of watches per year.

There is probably a lot more to the story, but that's a synopsis of what I've gathered over time.

The gray dealer has a very low overhead and can pass the savings on to the customer.

robrobin · 19 December 2011, 12:47 AM

Most of what's been said above is accurate. In addition to that, some smaller AD's are collectors. When I am ready to move vintage pieces we trade nib Rolexes for the pieces they want. They make a little profit and in the process get something for their personal collection. Another avenue is to buy before the price increase at say 20% off and then wait it out a bit. So your effective discount is considerably more. Rolex has been pretty consistent with increases yearly. There are no easy ways to get Rolexes at a deep discount. You just have to be creative. Hope that helps.
Rob

F&Iguy · 19 December 2011, 08:41 AM

thanks rob! good to know more about how it all works in the rolex world i'm still very new

wesdaniel · 19 December 2011, 11:14 PM

Thanks, Rob (and everybody else)! That explains a lot!

Gaijin · 19 December 2011, 11:36 PM

I don't look a gift horse in the mouth. The trusted sellers here have their ways to get BNIB Rolex. I have bought 2 new and 1 used here. How they do it I have no idea. Saved a bunch of money from and AD though.

I used to be strictly an AD purchaser however my favorite and only AD closed a few years back. The trusted sellers here have filled in nicely.

16 December 2011, 09:58 AM	#1
wesdaniel 2024 SubLV41 Pledge Member Join Date: Dec 2011 Real Name: Wes Location: California Watch: Varies Posts: 1,347	Help Me Understand - Discounted New Rolexes I apologize in advance if this question has been asked before; I didn't see it specifically referenced, but could have missed it. I'm looking at purchasing a NIB Rolex from one of the recommended online sellers I found here in the forums, but am not understanding how the business of these sales works. So, I've been told that there is room for negotiation at an AD of about 5% - 25%. I've been looking at a Datejust Turnograph that (I believe) retails around $9,900. My local AD has offered me a 15% discount, bringing the price down to about $8,500. This online seller is offering the same watch at $7,000 - about a 30% discount from retail. How is it possible that we can buy a legit Rolex at this large of a discount? I mean, since this seller isn't an AD, there had to be a middleman somewhere between him and the factory who (I would assume) had to make some kind of a profit..... Where's the hook? What am I missing? Also, I'm assuming that, for most folks here, you'd save the $1,500 and buy from the online seller as long as they are well reviewed and trusted? Thanks in advance.

16 December 2011, 11:39 AM	#3
GradyPhilpott 2024 SubLV41 Pledge Member Join Date: Sep 2008 Location: New Mexico Watch: Seiko #SRK050 Posts: 34,460	The word is that the gray market watches are mostly from overseas and ADs want to get rid of them at about cost to make room for more, as Rolex contracts with ADs to receive a given amount of watches per year. There is probably a lot more to the story, but that's a synopsis of what I've gathered over time. The gray dealer has a very low overhead and can pass the savings on to the customer. __________________ JJ Inaugural TRF $50 Watch Challenge Winner

16 December 2011, 10:22 AM	#2
F&Iguy "TRF" Member Join Date: Sep 2011 Location: WA state Watch: EXP 39mm Posts: 278	its the gray market, from what I have read they have (friends) at AD and buy them out the back door to my understanding. many people on here know way more about it then me the new guy

19 December 2011, 12:47 AM	#4
robrobin "TRF" Member Join Date: Aug 2007 Real Name: Rob Sacco Location: Disney World, FL Watch: Pepsi Rolex GMT Posts: 2,505	Most of what's been said above is accurate. In addition to that, some smaller AD's are collectors. When I am ready to move vintage pieces we trade nib Rolexes for the pieces they want. They make a little profit and in the process get something for their personal collection. Another avenue is to buy before the price increase at say 20% off and then wait it out a bit. So your effective discount is considerably more. Rolex has been pretty consistent with increases yearly. There are no easy ways to get Rolexes at a deep discount. You just have to be creative. Hope that helps. Rob

19 December 2011, 08:41 AM	#5
F&Iguy "TRF" Member Join Date: Sep 2011 Location: WA state Watch: EXP 39mm Posts: 278	thanks rob! good to know more about how it all works in the rolex world i'm still very new

19 December 2011, 11:14 PM	#6
wesdaniel 2024 SubLV41 Pledge Member Join Date: Dec 2011 Real Name: Wes Location: California Watch: Varies Posts: 1,347	Thanks, Rob (and everybody else)! That explains a lot!

19 December 2011, 11:36 PM	#7
Gaijin 2024 ROLEX DATEJUST41 Pledge Member Join Date: Feb 2007 Location: Japan Watch: ing your back. Posts: 16,179	I don't look a gift horse in the mouth. The trusted sellers here have their ways to get BNIB Rolex. I have bought 2 new and 1 used here. How they do it I have no idea. Saved a bunch of money from and AD though. I used to be strictly an AD purchaser however my favorite and only AD closed a few years back. The trusted sellers here have filled in nicely.

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