Does anyone actually know how much an AD is paying for a Rolex watch?

[Stephens]

I'd be interested to know how much an AD pays for a 11610 from Rolex, for example.

[MACRAME QUEENS]

I believe theres a 40 persons cent markup, Stephens, old sport.

BTW, nice 997

[Stephens]

Originally Posted by MACRAME QUEENS

I believe theres a 40 persons cent markup, Stephens, old sport.

BTW, nice 997

hilarious, youre my new boy. is that a keynan?

[MACRAME QUEENS]

Yeah, I'm a big Keenan guy. Nice eye.

[SLS]

40% on SS and quite a bit more on TT and precious metal pieces.
~Scott

[TempoKing]

Depending of the country, but mostly between 42 and 50 percent

[ArizonaHD]

Originally Posted by TempoKing

Depending of the country, but mostly between 42 and 50 percent

Correct

[ArizonaHD]

Originally Posted by Stephens

hilarious, youre my new boy. is that a keynan?

Don't you mean Cayenne?

[Stephens]

Originally Posted by ArizonaHD

Don't you mean Cayenne?

i am uncertain.. what is the difference?

[herfdude]

60% of RRP is AD's cost

[haakon59]

Rolex charges their dealers 58% of the msrp of each watch. Traditionally, most retailers charge 50% and this is not only true in the rest of the watch industry but in most others too. Rolex, as you can see, charges quite a premium for their product, which is part of the reason why most dealers don't like giving much of a discount on them.

[herfdude]

Originally Posted by SLS

40% on SS and quite a bit more on TT and precious metal pieces.
~Scott

Originally Posted by TempoKing

Depending of the country, but mostly between 42 and 50 percent

Originally Posted by haakon59

Rolex charges their dealers 58% of the msrp of each watch. Traditionally, most retailers charge 50% and this is not only true in the rest of the watch industry but in most others too. Rolex, as you can see, charges quite a premium for their product, which is part of the reason why most dealers don't like giving much of a discount on them.

Just out of curiousity......... where did all of you get your info on AD's cost?

Percentages are all over the place and they can't all be correct.

The 40% of RRP I indicated was the exact same number I was told by two different AD's and one gray market dealer all of which I deal with regularly.

[lacrosse1]

What is a gray market dealer??? I am not familiar with the term.
Thank you!

[Stephens]

Originally Posted by lacrosse1

What is a gray market dealer??? I am not familiar with the term.
Thank you!

Persons who are jacking prices on hard to fine items. Once upon a time when the SS daytona was hard to obtain one could find it on the grey market for 25 to 50% list (uncertain of specific %, but more than MSRP). One could not find it at an AD - which would have cost MSRP.

Where in OH are you from?

[KenrickJ]

I guess the consensus seems to be on the 50%

[Bisquitlips]

Keystone is the correct markup! 100%! They pay $3400 and you pay $6800. Let the discounts begin!

[Stephens]

Originally Posted by haakon59

Rolex charges their dealers 58% of the msrp of each watch. Traditionally, most retailers charge 50% and this is not only true in the rest of the watch industry but in most others too. Rolex, as you can see, charges quite a premium for their product, which is part of the reason why most dealers don't like giving much of a discount on them.

ok so say in a perfect world a certain Rolex costs 5000$. That dealer purchased the same watch from Rolex for 2900$. That means to me that I have 2100$ in negotiating room. (5000 - 2900). If I get that watch for 10% off 5000$, then that dealer still made 1600$ on me. (2100 - 500).

I guess the answer to the question I am about to ask is it varies from AD to AD, but what is the maximum % I could get off of the 5000$? Even at 20% off (which I believe to be a good deal) the AD still made 1100$. So at %s off in the 20 to 30% range, the AD is still making good money....

[nylawbiz]

You must also factor in the coop advertising allowance they get. That can add up to big money, dependingon the volume the AD does. Does anyone know what the coop advertising terms are?

[werc1]

wow, interesting read. never understood the markup of an AD. Maybe i'm in the wrong business

[Stephens]

Originally Posted by werc1

wow, interesting read. never understood the markup of an AD. Maybe i'm in the wrong business

but remember you'd have to move units, which currently isnt happening!

[haakon59]

I suppose that price flexibility will vary with dealers. There are some places like Las Vegas, where it is difficult to negotiate a discount. Washington State is also not all that flexible. In addition to the higher rates Rolex charges it's dealers, they officially discourage discounts. Given that the company is more prosperous and has a larger legal team than most other manufacturers, this tends to discourage AD's a bit, although they still do it. You might have an easier time by choosing a grey market dealer with a good reputation. Also, you can save on tax that way.

[onkyo]

Originally Posted by Bisquitlips

Keystone is the correct markup! 100%! They pay $3400 and you pay $6800. Let the discounts begin!

I hear you my friend..... LOUD and CLEAR!!

[lacrosse1]

Originally Posted by Stephens

Persons who are jacking prices on hard to fine items. Once upon a time when the SS daytona was hard to obtain one could find it on the grey market for 25 to 50% list (uncertain of specific %, but more than MSRP). One could not find it at an AD - which would have cost MSRP.

Where in OH are you from?

Cincinnati!

[Stephens]

Originally Posted by lacrosse1

Cincinnati!

are you James Free, Oestermans, R&P..??

JF called me today about a DSSD today and I know Ostermans had one in their case. R&P is run like the Soviet Union...

i no longer live in Cincinnati, but when i am home for the holidays i make the rounds...

[nsolga]

Is there an official rule on how much an AD can discount?

[Stephens]

Originally Posted by nsolga

Is there an official rule on how much an AD can discount?

i dont think so.. i have personally seen up to 20% off and others on here have seen more.. as long as they are making $$$ i dont think there is an "official rule" to discounting.. altho they always claim.. "oh Rolex doesnt allow us to discount.. but we will give you 7%" oh what a deal!!!