The Rolex Forums   The Rolex Watch

ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX


Go Back   Rolex Forums - Rolex Forum > Rolex & Tudor Watch Topics > Rolex General Discussion

Reply
 
Thread Tools Display Modes
Old 9 December 2008, 02:23 AM   #1
baldyspoon
"TRF" Member
 
Join Date: Oct 2008
Location: uk
Watch: Rolex 114060
Posts: 725
AD drops Rolex

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
baldyspoon is offline   Reply With Quote
Old 9 December 2008, 02:32 AM   #2
Tony-GB
"TRF" Member
 
Tony-GB's Avatar
 
Join Date: Apr 2008
Real Name: Tony
Location: Oxfordshire, UK
Watch: 116680 & 116622
Posts: 3,953
Very interesting. Credit crunch...?
__________________
"...why oh why, didn't I take the blue pill...?"

http://www.helenanddouglas.org.uk/

www.cheetah.org
Tony-GB is offline   Reply With Quote
Old 9 December 2008, 02:37 AM   #3
charliec
"TRF" Member
 
Join Date: Nov 2008
Location: UK
Posts: 969
Where was this ??
__________________
Milgauss GV
DSSD
SS Daytona White
Mid-size DJ
Tudor 18ct Prince
charliec is offline   Reply With Quote
Old 9 December 2008, 04:45 AM   #4
Cato
Banned
 
Join Date: Oct 2008
Location: Land of the Lost
Watch: 116610LN
Posts: 2,201
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.
Cato is offline   Reply With Quote
Old 9 December 2008, 04:54 AM   #5
dcmachead
Member
 
Join Date: Jul 2008
Location: Washington, DC
Watch: Rolex SS Daytona
Posts: 122
Quote:
Originally Posted by baldyspoon View Post
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 :)
dcmachead is offline   Reply With Quote
Old 9 December 2008, 05:02 AM   #6
Welshwatchman
"TRF" Member
 
Welshwatchman's Avatar
 
Join Date: Apr 2006
Real Name: Paul
Location: Wales, UK
Posts: 14,578
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.
__________________
..33
Welshwatchman is offline   Reply With Quote
Old 9 December 2008, 05:13 AM   #7
Parachrom
"TRF" Member
 
Join Date: Jul 2008
Location: canada
Posts: 721
Greed, not Need. Greed will always lose you clients. When the cash value exceeds the use value, no one will buy
Parachrom is offline   Reply With Quote
Old 9 December 2008, 05:16 AM   #8
wristworks
Banned
 
Join Date: Nov 2007
Location: GB
Posts: 220
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.
wristworks is offline   Reply With Quote
Old 9 December 2008, 05:19 AM   #9
haakon59
"TRF" Member
 
haakon59's Avatar
 
Join Date: Sep 2006
Location: Seattle
Posts: 1,571
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.
haakon59 is offline   Reply With Quote
Old 9 December 2008, 06:38 AM   #10
Cato
Banned
 
Join Date: Oct 2008
Location: Land of the Lost
Watch: 116610LN
Posts: 2,201
Quote:
Originally Posted by haakon59 View Post
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.
Cato is offline   Reply With Quote
Old 9 December 2008, 06:40 AM   #11
argee1977
"TRF" Member
 
argee1977's Avatar
 
Join Date: Oct 2008
Real Name: Ryan
Location: England
Watch: AP ROC
Posts: 1,462
What AD is this, just wondering if there's more reason behind it or maybe another jewellers in the area taking over?
__________________

PANERAI, MORE THAN A WATCH, LESS THAN A KITKAT
argee1977 is offline   Reply With Quote
Old 9 December 2008, 06:45 AM   #12
Tony-GB
"TRF" Member
 
Tony-GB's Avatar
 
Join Date: Apr 2008
Real Name: Tony
Location: Oxfordshire, UK
Watch: 116680 & 116622
Posts: 3,953
Quote:
Originally Posted by Cato View Post
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...?
__________________
"...why oh why, didn't I take the blue pill...?"

http://www.helenanddouglas.org.uk/

www.cheetah.org
Tony-GB is offline   Reply With Quote
Old 9 December 2008, 07:49 AM   #13
ArizonaHD
"TRF" Member
 
Join Date: Nov 2008
Location: USA
Posts: 472
Quote:
Originally Posted by wristworks View Post
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.
ArizonaHD is offline   Reply With Quote
Old 9 December 2008, 08:12 AM   #14
KenrickJ
Member
 
Join Date: Nov 2008
Location: us/pt
Posts: 207
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
KenrickJ is offline   Reply With Quote
Old 9 December 2008, 08:23 AM   #15
GMTcrazy
Banned
 
Join Date: Jan 2008
Location: Makati/FL
Posts: 301
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...
GMTcrazy is offline   Reply With Quote
Old 9 December 2008, 08:34 AM   #16
Bisquitlips
2024 Pledge Member
 
Bisquitlips's Avatar
 
Join Date: Sep 2008
Real Name: Richard
Location: USA
Watch: YM Deep Space
Posts: 12,521
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.
__________________
Rolex Yacht-Master 40mm (SS-YG / Deep Space MOP) 16623
Breitling Aerospace Titanium / 18K with UTC.
Omega Speedmaster 3510.50
Oris TT1 Pro Diver Regulator 43MM
Bisquitlips is offline   Reply With Quote
Old 9 December 2008, 08:53 AM   #17
nylawbiz
Member
 
Join Date: May 2008
Real Name: Brian
Location: New York
Watch: too many
Posts: 705
AD's Websites

Quote:
Originally Posted by ArizonaHD View Post
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.
nylawbiz is offline   Reply With Quote
Old 9 December 2008, 08:55 AM   #18
Cato
Banned
 
Join Date: Oct 2008
Location: Land of the Lost
Watch: 116610LN
Posts: 2,201
Quote:
Originally Posted by Tony-GB View Post
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!
Cato is offline   Reply With Quote
Old 9 December 2008, 09:19 AM   #19
Dalton
TechXpert
 
Dalton's Avatar
 
Join Date: Mar 2008
Real Name: Dal
Location: Seattle
Watch: 168000
Posts: 1,614
Well this is gonna be interesting, but it sounds like he's bitter, and he was probably dropped by Rolex.
Dalton is offline   Reply With Quote
Old 9 December 2008, 09:34 AM   #20
Letsgodiving
"TRF" Member
 
Letsgodiving's Avatar
 
Join Date: Jul 2007
Real Name: Mike
Location: Virginia, US
Watch: SD 16600
Posts: 4,319
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.
__________________
The fool, with all his other faults, has this also - he is always getting ready to live. - Epicurus (341–270 BC)
Letsgodiving is offline   Reply With Quote
Old 9 December 2008, 09:58 AM   #21
cstegall
"TRF" Member
 
cstegall's Avatar
 
Join Date: Jun 2007
Location: Texas
Watch: YMII
Posts: 106
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.
__________________
7 people asked me today if I was rodeo or circus. Clown profiling should be illegal.
cstegall is offline   Reply With Quote
Old 9 December 2008, 11:10 AM   #22
CoopJr
"TRF" Member
 
CoopJr's Avatar
 
Join Date: Oct 2007
Real Name: Coop
Location: U.S.A.
Watch: Subs
Posts: 6,455
Quote:
Originally Posted by Cato View Post
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 is offline   Reply With Quote
Old 9 December 2008, 11:12 AM   #23
CoopJr
"TRF" Member
 
CoopJr's Avatar
 
Join Date: Oct 2007
Real Name: Coop
Location: U.S.A.
Watch: Subs
Posts: 6,455
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.
CoopJr is offline   Reply With Quote
Old 9 December 2008, 11:43 AM   #24
ArizonaHD
"TRF" Member
 
Join Date: Nov 2008
Location: USA
Posts: 472
Quote:
Originally Posted by CoopJr View Post
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
ArizonaHD is offline   Reply With Quote
Old 10 December 2008, 01:24 AM   #25
baldyspoon
"TRF" Member
 
Join Date: Oct 2008
Location: uk
Watch: Rolex 114060
Posts: 725
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
baldyspoon is offline   Reply With Quote
Old 10 December 2008, 01:37 AM   #26
The GMT Master
"TRF" Member
 
The GMT Master's Avatar
 
Join Date: Jul 2008
Real Name: Chris
Location: England
Posts: 8,150
Quote:
Originally Posted by baldyspoon View Post
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
The GMT Master is offline   Reply With Quote
Old 10 December 2008, 02:14 AM   #27
CoopJr
"TRF" Member
 
CoopJr's Avatar
 
Join Date: Oct 2007
Real Name: Coop
Location: U.S.A.
Watch: Subs
Posts: 6,455
Quote:
Originally Posted by ArizonaHD View Post
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
CoopJr is offline   Reply With Quote
Old 10 December 2008, 07:33 AM   #28
BTSinAustin
"TRF" Member
 
BTSinAustin's Avatar
 
Join Date: Jan 2008
Real Name: Brian
Location: Austin, TX
Posts: 268
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.
BTSinAustin is offline   Reply With Quote
Old 10 December 2008, 07:43 AM   #29
BigHat
Banned
 
Join Date: Sep 2007
Real Name: Matt
Location: Arlington, VA
Watch: Lange One MP
Posts: 4,043
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.
BigHat is offline   Reply With Quote
Old 10 December 2008, 08:40 AM   #30
Passion4Rolex
Member
 
Join Date: Nov 2008
Real Name: Ant
Location: UK
Watch: Omega Speedmaster
Posts: 94
Icon7

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!
Passion4Rolex is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

My Watch LLC

WatchesOff5th

DavidSW Watches

Takuya Watches

OCWatches

Asset Appeal

Wrist Aficionado


*Banners Of The Month*
This space is provided to horological resources.





Copyright ©2004-2024, The Rolex Forums. All Rights Reserved.

ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX

Rolex is a registered trademark of ROLEX USA. The Rolex Forums is not affiliated with ROLEX USA in any way.