What is the typical price mark-up by Rolex AD's?

[tictocChuck]

What is the typical price mark-up by Rolex AD's?

I haven't seen this discussed, unless it's considered taboo or as secret as the formula for Coca-Cola, but was wondering if anybody might have some ideas.

Logically the margins would increase from the basic all steel to the diamond encrusted platinum models. As it says on my official Rolex price list, "The retail prices are suggestions only, jewellers may sell for less."

This might make AD's squirm, but I see no harm in knowing the approximate percentage mark-up for us buyers. I respect the fact that AD's take a risk in bringing in a product into their inventory which may sit for months or even years, as well they have overhead costs.

Thanks to all. Cheers.

[zak98]

double what they pay for the timepiece. would be my guesstimate.

[moviefreak]

40%...

[Pep04]

I believe it is 45%. But, keep in mind that rent, taxes, advertising, holding a large inventory creating a huge investment and other cost factors are anything but cheap.

[gimpex]

I believe it has been discussed before and accepted that the ADs buy at 40% off from MSRP

[InVision]

Originally Posted by gimpex

I believe it has been discussed before and accepted that the ADs buy at 40% off from MSRP

Yep

[Grissom]

I do recall it being 40%, with an additional 3% if paid within 30 days (3% net 30).....

[Engi]

45% - 50%

Engi

[HL65]

It is exactly 40%. If they pay within 30 days they get an extra 2% off. So maximum they can make is 42% of the retail listing price.

[Mockingbird]

I believe it's 40%. Do you see why it's hard to get a discount now?

[tulsaokusa]

Originally Posted by SteelerFan1965

It is exactly 40%. If they pay within 30 days they get an extra 2% off. So maximum they can make is 42% of the retail listing price.

[tictocChuck]

Thanks everyone! 40% + 2% seems to be the consensus. Nice to know for reference when the Rolex urge strikes. I respect that AD's need to make a living, so there has to be give & take when negotiating. Although with AD's that won't budge a nickel, you have to wonder about a $4000 retention on a $10000 watch. A 15-20% discount seems like a reasonable compromise. Cheers

[GradyPhilpott]

Markups of 100%+ are not uncommon in retail.

45% to 50% to me sound like a steal already.

[conrail]

I've read 40% other places as well, so I think thats a fair MINIMUM markup to assume. Lord knows it probably goes higher.

[RolexPete32]

It is 40%.

[HL65]

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

[tulsaokusa]

Originally Posted by SteelerFan1965

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

[Speed]

Originally Posted by tictocChuck

Thanks everyone! 40% + 2% seems to be the consensus. Nice to know for reference when the Rolex urge strikes. I respect that AD's need to make a living, so there has to be give & take when negotiating. Although with AD's that won't budge a nickel, you have to wonder about a $4000 retention on a $10000 watch. A 15-20% discount seems like a reasonable compromise. Cheers

That may seem reasonable to you. However, Rolex retail sales don't play by the same rules.

Actually the reason you don't have to wonder is because after the AD (from whom you have likely never purchased a watch) tells you your price is MSRP and not a penny less...(unless you are talking a WG or YG watch) and you walk out in a huff...someone else walks in and pays full price for the watch.

[frank777]

Sounds like a sweet deal . So, my question is how do I become a AD

[CAllen]

An AD was willing to come down $500 off list on a no date Sub this afternoon. Does that sound about right? I have read discount is tight on SS and popular models.

[HL65]

It is if you are selling jewelery--diamonds, necklaces, earrings etc, where your mark up is 60-70%. Once you factor in your fixed and variable expenses of running a top tier jeweler-which means top tier area--which means high rent and operating expenses--factor in discounts etc.....What does one's bottom line actually look like? Lastly--factor in a recession's impact on the luxury retail sector???

[Speed]

Originally Posted by CAllen

An AD was willing to come down $500 off list on a no date Sub this afternoon. Does that sound about right? I have read discount is tight on SS and popular models.

Tight to non-existent, depending on location...and if your AD has not eaten in a while.

Las Vegas - SS Rolex Sport Model - 0% discount

Small Town USA - SS Watch that has been sitting in the case for eons, something > 0% discount.

TRF Classified Section - SS BNIB Rolex, sometimes up to 25% discount. Best deals around. Hands friggin' down.

[SCA]

Originally Posted by SteelerFan1965

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

[CAllen]

I have been lurking around TRF for a few weeks waiting for a well taken care of, recent model (or BNIB, LNIB) no date Sub - no joy. Oh well, keep on waiting.

[Speed]

You'll have better luck / faster success with a Date Sub...but hold out for what you want.

[sond86]

I think a lot about getting a discount it is based on approach.

I'd expect if you Just walk in and asking for a discount to be quoted full MSRP

If you are seriously interested and serious about buying and let the salesperson know its the right one and you would like to buy it and politely ask, if you can get a better price, one may have a decent chance at getting a discount.

[springer]

Originally Posted by SteelerFan1965

Let me try this one last time--just for fun. It is 40% off of retail price with an extra 2% if paid for within 30 days--exactly-not a guess-simply a stated fact.

100% correct. Anyone that did not state 40% is guessing.

IT IS 40%!!!!!!!!!!!!!!

[sea-dweller]

An ex-colleague worked at a well known AD when he attended college, he confirmed that the mark-up was 40%.

[Irrigate]

Just called my watch guy 40% and rebates 2 to 6 percent on your sales volume.

[Speed]

Originally Posted by sond86

I think a lot about getting a discount it is based on approach.

I'd expect if you Just walk in and asking for a discount to be quoted full MSRP

If you are seriously interested and serious about buying and let the salesperson know its the right one and you would like to buy it and politely ask, if you can get a better price, one may have a decent chance at getting a discount.

I disagree...Especially on Stainless Steel models. This is overly documented in many threads here.