Prices up over summer? Did I miss something?

[Maiden]

Originally Posted by MorningTundra

Presumably Rolex is putting a supply squeeze on the Grey Market to make ADs more competitive...


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How does Rolex squeeze the grey market? Isn't the grey market supplied by AD who are free to sell to them. Or are you saying Rolex sells directly to the grey market?

[the_natural]

Originally Posted by Maiden

How does Rolex squeeze the grey market? Isn't the grey market supplied by AD who are free to sell to them. Or are you saying Rolex sells directly to the grey market?

By slowing the supply (production), AD's have less to sell, and less reason to sell to gray market dealers because they can (presumably) move the inventory they're being sent instead of having an excess supply and having to be creative.

[the_natural]

Originally Posted by padi56

Trouble today Rolex are no longer watches they are just now little more than £££££$$$$$$.

In the era of everyone using their phone for the time-telling, wrist watches in general (as the sales figures have shown) are a less necessary or utilitarian item for an increasing number of people. And of course, any luxury item is never just about the utility, it's about the statement it makes. Rolex has been more than "just a watch" since, oh I dunno, the mid-20th century?

[Maiden]

Originally Posted by the_natural

By slowing the supply (production), AD's have less to sell, and less reason to sell to gray market dealers because they can (presumably) move the inventory they're being sent instead of having an excess supply and having to be creative.

Ok so the supply squeeze is on the AD's which in turn affects the grey market. It is not a supply squeeze on the grey market.

[lhawli]

Surely there are strategies that ROLEX can take to control this, but it seems that though they are mitigating some - it is for the most part not working.

One strategy I heard is that Rolex is forcing ADs to date and NAME warranty cards on all sales of Rolex watches, but if you have a great relationship with your AD you can still get the card unnamed. Not sure if this was a driver to control grey markets but can't they just require more stringent requirements like registrations of buyers, etc...


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[maximus1]

It looks like the resellers have learned to maximize profits and are testing the waters with CRAZY high prices.
Take a look at the price difference on the SS SKY-DWELLER available for sale on this forum. Some are asking almost 22K and some 18K for the same watch. A $4k difference for the same watch?

[Loevhagen]

Many of you forget that people actually buy at these prizes - so even the focus is on supply, buyers all create the demand. What makes people go crazy then?

[watchwatcher]

Originally Posted by sager

Crazy to think that I got a mint condition Pepsi "Z" about 4 years ago a little under 6K.

I know...and I remember a time not too long before that seeing complete sets with all three bezels in the 4's.

[MorningTundra]

Originally Posted by Maiden

Ok so the supply squeeze is on the AD's which in turn affects the grey market. It is not a supply squeeze on the grey market.

There's anecdotal evidence suggesting ADs are being discouraged from selling multiple watches to buyers they suspect of being gray market dealers.

With warranty cards being scanned and activated at the point of sale, Rolex know who's selling and buying their product in 'suspicious' volume.

ADs don't want to put their franchise license in jeopardy through excessive discounting or volume sales. This gets unwanted attention from HQ...

This is the indirect squeeze on supply to the gray market.

All conjecture and just my opinion...

[camoedoutlander]

it's interesting watching the market pricing for a sub, it keeps hopping, if i could find an AD who was willing to deal on price (like the 5% you mentioned) i would be extremely interested, with used prices, it doesn't seem to hold an advantage buying used.

[Steelke]

Last week i bought my subc date with a small discount at my AD. But the invoice is higher than the price i paid. Maybe because rolex wouldn't notice the price?

[the_natural]

Originally Posted by Steelke

Last week i bought my subc date with a small discount at my AD. But the invoice is higher than the price i paid. Maybe because rolex wouldn't notice the price?

I've wondered if this ever happens, and if so how their accounting keeps things straight -- probably not that big of a deal, really it just makes me wonder about what access Rolex has to the books that an AD could prevent Rolex from seeing how a price actually shook-out.

This world of Rolex is far more convoluted and interesting than I ever would've imagined.

[scooba]

Originally Posted by lhawli

My AD informed me that prices are still the same but their margins are not the same from Rolex, thus they are limited with the discounts they can offer.

Prices "MSRP" should not be any different at the ADs from the Rolex website, and they have been consistent.

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I think Dealer Mark up was 34% but was reduced some time ago to 32%. Not a huge difference but it is true margins have been squeezed. Benefitting Rolex Ch another 2%

[lhawli]

Originally Posted by scooba

I think Dealer Mark up was 34% but was reduced some time ago to 32%. Not a huge difference but it is true margins have been squeezed. Benefitting Rolex Ch another 2%

Makes sense. I used to get 10% off professional models and 18% off everything else (in SS of course). Now I only get 5-6% on the pros and 15% on all other.


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[dcash0615]

Rolex has no clue who is buying their watches when being purchased brand new at the AD. Swiping the card by the AD at point of sale just tells Rolex what date that watch was sold. No buyer information or price paid are transmitted when the warranty card is swiped.

Originally Posted by MorningTundra

There's anecdotal evidence suggesting ADs are being discouraged from selling multiple watches to buyers they suspect of being gray market dealers.

With warranty cards being scanned and activated at the point of sale, Rolex know who's selling and buying their product in 'suspicious' volume.

ADs don't want to put their franchise license in jeopardy through excessive discounting or volume sales. This gets unwanted attention from HQ...

This is the indirect squeeze on supply to the gray market.

All conjecture and just my opinion...

[SG56]

I've noticed it too. Keeping an eye on a sub date myself (no rush).

I got a quote from two ADs, of only two that I dealt with, and both were better for new YM than the Grey market here. And they come with perks. So I bought from AD.

So when the time comes, I might check the AD again before I pull the trigger with one of trusted sellers. I feel bad if what you guys mentioned is the case.
They are obviously trustworthy and take time to make great photos and give accurate description, BUT if their price is higher than the AD, nope. Won't do. Can't do.

[HL65]

Originally Posted by lhawli

My AD informed me that prices are still the same but their margins are not the same from Rolex, thus they are limited with the discounts they can offer.

Prices "MSRP" should not be any different at the ADs from the Rolex website, and they have been consistent.

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Can't speak to Canada or anywhere else in world but not true here in the US. Dealer margins have not changed in years.

PS Dealer's pay 62% of retail so the number is and has been 38% for quite some time not 32% as suggested above by scooba.

[MorningTundra]

Originally Posted by dcash0615

Rolex has no clue who is buying their watches when being purchased brand new at the AD. Swiping the card by the AD at point of sale just tells Rolex what date that watch was sold. No buyer information or price paid are transmitted when the warranty card is swiped.

Not buying this personally...

What about an AD I'd, location etc?

I've read of users being challenged when their warranty card is not in their name (for service)...


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[AK797]

Originally Posted by MorningTundra

Not buying this personally...

What about an AD I'd, location etc?

I've read of users being challenged when their warranty card is not in their name (for service)...


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Yes, all this info can easily be gleaned when a watch is brought in for service. In the UK Rolex have been far more proactive and have gone to the major resellers in order to trace the sale back to the guilty AD which is why we have a climate of AD fear here now and they are very cautious not to sell to profiteers, only to known locals now really, which is a complete reversal of last year's free for all behaviour.