AD drops Rolex

[baldyspoon]

My local AD has now stopped selling Rolex when I asked why it was because he can't shift them but they would not let him buy in less stock and told him if he did'nt buy enough stock would take away his franchise so he decided to stop anyway. Funny thing is he is now selling more Omegas than he was Rolex and Omega let him buy in less stock if he needs too so how many more Rolex AD's are going to go this way

[Tony-GB]

Very interesting. Credit crunch...?

[charliec]

Where was this ??

[Cato]

Similar story: I went to a watch dealer in the Glendale Galleria that I hadn't been to in, maybe, seven years. I noticed the lack of Rolexes, but he had JL, IWC, Cartier, Omega, et al. As I was looking at the IWCs he noticed Rolex and went off for a good ten minutes about how overrated Rolexes are. I sensed a genuine "sour grapes" attitude. He even went as far as to suggest Rolex is a racist organization by being anti Semetic (he claimed). He even asked my where I bought my Rolex and I told him Ben Bridge. Ben Bridge has a store just a few yards away and that seemed to set him off even more! It's like he was so despirate for a sale that he was losing his mind.

[dcmachead]

Originally Posted by baldyspoon

My local AD has now stopped selling Rolex when I asked why it was because he can't shift them but they would not let him buy in less stock and told him if he didn't buy enough stock would take away his franchise so he decided to stop anyway.

This suggests to me that the dealers left standing are lugging inventory around that they'd rather not--pricing power for the end consumer :)

[Welshwatchman]

Who'd be a watch dealer in these times?

My AD also despaired of the relentless price hikes by Rolex. Potentially more profit but they are just sitting in the display cabinet, SS sports version et al.

[Parachrom]

Greed, not Need. Greed will always lose you clients. When the cash value exceeds the use value, no one will buy

[wristworks]

I don't believe the AD dropped Rolex. More like Rolex dropped him. Was it an independent or chain? If your supplier demands you buy a certain amount of stock, you do so when you have the orders from your customers - simple business. Most small AD's in the UK will supply each other watches. I could buy a Rolex or Breitling or JLC from an AD who only has Omega as the other small AD's who only stock Rolex or JLC will supply to him and he will let them have an Omega - that's the way it works. If he drops Rolex he will never get them back and may lose Omega as a result. Breitling, for example, are likely to supply you ONLY if you have something like JLC or Rolex already.

[haakon59]

I am surprised that Rolex is unwilling to be flexible on this point during times of economic challenge. Will other AD's do the same? We'll have to see. So far, I am not aware of any in my local area who are doing this.

[Cato]

Originally Posted by haakon59

I am surprised that Rolex is unwilling to be flexible on this point during times of economic challenge. Will other AD's do the same? We'll have to see. So far, I am not aware of any in my local area who are doing this.

I believe Rolex is trying to go even more upscale. It wasn't too long ago a new Rolex from an AD would go for 5K. In just a few years more and more models are pushing the 10K mark. Rolex has an enoromous profit margin. Simply put, Rolex doesn't need as many ADs as it has: they are willowing the chaff.

[argee1977]

What AD is this, just wondering if there's more reason behind it or maybe another jewellers in the area taking over?

[Tony-GB]

Originally Posted by Cato

Similar story: I went to a watch dealer in the Glendale Galleria that I hadn't been to in, maybe, seven years. I noticed the lack of Rolexes, but he had JL, IWC, Cartier, Omega, et al. As I was looking at the IWCs he noticed Rolex and went off for a good ten minutes about how overrated Rolexes are. I sensed a genuine "sour grapes" attitude. He even went as far as to suggest Rolex is a racist organization by being anti Semetic (he claimed). He even asked my where I bought my Rolex and I told him Ben Bridge. Ben Bridge has a store just a few yards away and that seemed to set him off even more! It's like he was so despirate for a sale that he was losing his mind.

What a strange thing to call Rolex anti semitic.

You might have said Swiss banks are because they still have dead Jews money stashed away, but Rolex...?

[ArizonaHD]

Originally Posted by wristworks

I don't believe the AD dropped Rolex. More like Rolex dropped him. Was it an independent or chain? If your supplier demands you buy a certain amount of stock, you do so when you have the orders from your customers - simple business. Most small AD's in the UK will supply each other watches. I could buy a Rolex or Breitling or JLC from an AD who only has Omega as the other small AD's who only stock Rolex or JLC will supply to him and he will let them have an Omega - that's the way it works. If he drops Rolex he will never get them back and may lose Omega as a result. Breitling, for example, are likely to supply you ONLY if you have something like JLC or Rolex already.

Why would you lose Omega as a result?? Omega will sign on just about any jeweler as an ad, their profit margin is huge dealers do way better selling Omega than Rolex on a dollar for dollar basis. The same can be said for JLC. Ben Bridge is not moving near the volume they once were, infact rolex is not mentioned on their website, but still is in their print ads.

[KenrickJ]

Strange thing to say indeed... most likely he's just pissed off by not being able to sell Rolexs at all or not affording them

[GMTcrazy]

Keep in mind if an AD F's up and loses the line they are probably not going to tell you. They will make up a BS story like one of the local dealers around here told me. They said they dropped it for Brightling.... yeah right...

[Bisquitlips]

I personally don't find it too hard to believe that this AD dropped Rolex. I think time will tell as other AD's will also be forced to decide between carrying Rolex or staying in business. Just my 2 cents worth. Ahem.....make that at least 3 cents worth.

[nylawbiz]

Originally Posted by ArizonaHD

Why would you lose Omega as a result?? Omega will sign on just about any jeweler as an ad, their profit margin is huge dealers do way better selling Omega than Rolex on a dollar for dollar basis. The same can be said for JLC. Ben Bridge is not moving near the volume they once were, infact rolex is not mentioned on their website, but still is in their print ads.

AD's are prohibited from mentioning Rolex on their website.

[Cato]

Originally Posted by Tony-GB

What a strange thing to call Rolex anti semitic.

You might have said Swiss banks are because they still have dead Jews money stashed away, but Rolex...?

The guy claimed that Rolex has never employed a Hebrew, especially in upper management. He also said the Rolex fortune is parked in the Vatican and is used for conspiratorial purposes. I guess he was trying to get my ire up one way or the other. What a nut!

[Dalton]

Well this is gonna be interesting, but it sounds like he's bitter, and he was probably dropped by Rolex.

[Letsgodiving]

I was in a former AD about 6 months ago that sells Omega, IWC and a couple others that I forget but no longer caries Rolex. I was looking at the Omega's and the sales lady came over and noticed my Rolex. It's an SD and she thought it was a Sub and actually said to me in a sort of sad way that everyone who comes to look at watches asks her about Rolex and went on to complement me on how it is such a classic look and excellent watch etc. I wish I had asked her why they no longer carry Rolex. They've been a jeweler here for something like a hundred years.

[cstegall]

Just curious. What happens if an AD goes bankrupt?...will the inventory they have on hand be tied up in the bankruptcy? If so, I imagine that Rolex is thinning the herd preparing for the continued slow down in the US economy during '09. I travel in some business circles outside of the US and most all of them tell me that they are very wary of the situation here and how it will affect their interests that are here...and I imagine that Rolex is no different.

I think there was a Rolex going bankrupt thread here once and, even though Rolex will not be subject to that, I do believe that their market share and distribution/sales points are going to fall of quite a bit during the next 24 months.

Just observation.

[CoopJr]

Originally Posted by Cato

The guy claimed that Rolex has never employed a Hebrew, especially in upper management. He also said the Rolex fortune is parked in the Vatican and is used for conspiratorial purposes.

Where was this AD? on a Grassy Knoll?

[CoopJr]

I knew an AD here in NJ that had 150 Rolexes sitting in his safe and that was before the meltdown. No way he was taking all of those on his own. I'm sure Rolex is like Harley. "Take what we give, take it all, do as we say or we'll yank your franchise!". Most have to swallow hard and take their lumps.

[ArizonaHD]

Originally Posted by CoopJr

I knew an AD here in NJ that had 150 Rolexes sitting in his safe and that was before the meltdown. No way he was taking all of those on his own. I'm sure Rolex is like Harley. "Take what we give, take it all, do as we say or we'll yank your franchise!". Most have to swallow hard and take their lumps.

Harley Davidson is nothing like that, The oldest HD dealer in the state has his agency right down the street from my shop, He is a personal friend, he is in my store all the time. HD works with you in good and bad times. The largest Rolex dealer in my state was not an authorized dealer for many years, but he sold brand new Rolex watches with blank warranty papers as well as pre owned watches. How did he get his watches... simple other dealers that wanted to maintain AD status and the illusion of success to Rolex USA. That dealer was handed AD status on a silver platter a few years ago.

Last year he told me that he was seeing a major shift before the last two price increases to other brands because 5K which is now 6K for a new Sub was simply too expensive for a stainless steel divers watch

[baldyspoon]

Funny a lot of people think Rolex dropped the AD and not the other way round, but was talking to the manager of a big AD and he said if it was not for head office he would drop Rolex as has loads sitting in safe he can't shift yet selling lots of Omega and sold seven PO limited edition Quantum of Solace in three days and no problem selling Rado,Oris and Breitling but can't shift Rolex

[The GMT Master]

Originally Posted by baldyspoon

Funny a lot of people think Rolex dropped the AD and not the other way round, but was talking to the manager of a big AD and he said if it was not for head office he would drop Rolex as has loads sitting in safe he can't shift yet selling lots of Omega and sold seven PO limited edition Quantum of Solace in three days and no problem selling Rado,Oris and Breitling but can't shift Rolex

Indeed, Omega seem to be flying out of the shops at the moment. They offer phenomenal value for money, which Rolex really doesn't offer at the moment

[CoopJr]

Originally Posted by ArizonaHD

Harley Davidson is nothing like that,

Really? They don't come in and tell you how much square footage the addition they require you to build will be? They don't tell you how much clothing you have to sell and how it will be displayed? Youre telling me that the dealers actually take all those Buells because they are good sellers? That during the winter months when things are slow, they allow the dealers to take less bikes? The dealers in your part of the country must be different from the ones I have purchased mine from. Because they were told that they had to expand and build in these Boutiques for the HD clothes made in China. Just saying that this is what I have been told...I coulda been lied to.

"The new Bowman location would more than double the amount of shop and commercial space the Harley-Davidson dealership now occupies on Locksley Lane in North Auburn. Even with the expansion, Holmes said the size of the building barely would meet the minimum requirement of 28,000 square feet required by the Harley-Davidson corporation."...http://www.auburnjournal.com/detail/...source=archive

[BTSinAustin]

One of my best friends is an AD. The agreement he had to sign this year was much longer and more severe than previous one. There is language to cover the bankruptcy issue as well as the stock has a lean on it.

But he is the only AD in a huge region and sells a ton so he sighed and then signed.

[BigHat]

Well, the price that comes with being a Rolex AD is extreme. Sounds to me it was a "You can't fire me, I quit" scenario. Rolex is far from perfect fighting the GM, but the other brands cited are largely available ALL over the internet. He may have been selling fewer Rolex watches (fact of life in this economy) and precluded from discounting them significantly by Rolex. Now he gets to sell against razor thin margins all over the place. Tough spot to be in.

None of us here really know what's up with "Big Brother" Rolex but if you recall from last summer there was lots of talk of them shrinking their retail base in order to better control the retail part of the business. I suspect they love the opportunity to shutdown someone they wanted to shutdown six months ago, but didn't have a good reason to do so.

[Passion4Rolex]

Interesting threads here!

I think Rolex are trying to (UPMARKET) their watches even more! They probably dont like the fact that some AD's are not good enough for them, or their watches are surrounded by other brands like Omega Tag etc.... Yeah and the fact they cant sell the numbers!
So the result: Rolex becomes harder to find, more expensive, and....
People start to want one even more! because they become more and more exclusive
If this happens people would pay the extra 1 or 2K for that exclusive watch Just beacuse they seem to be the crem de la crem of all Watches in a AD!

Enjoy a Rolex whilst its on your wrist, because I think in a few years from now they'll be so exclusive to the public! Only the very well off will be seen with one, and all of the Rolex forum guys of course!