The art of negotiating with your AD

[T. Ferguson]

There have been some recent posts in threads I've been involved with where this subject has been touched on but I thought I'd start a thread specifically on the subject to gather some ideas and techniques you guys use. Hopefully this will be helpful to all of us. I suppose I could have thrown this in the open discussion area since much will apply to the myriad of negotiations we conduct in all areas of our daily lives but I am most interested in the situation pertaining to getting what you want, price and otherwise, when buying a watch. There are some factors that may be more specific to working with your Rolex dealer than say trying to get a raise out of your boss. As an example, as TRF members we walk in having a pretty good idea of the dealer's cost for the watch, or at least the current cost.

I'll kick it off with a couple of ideas that I've learned over the years, in watch buying and otherwise:

Don't begin a negotiation prematurely. I don't talk price if I've not settled on a model or know exactly how I intend to fund the purchase and am ready to pull the trigger. Have a concrete idea of the maximum you are willing to pay.

Be ready to both pull the trigger or walk away.

I've got others, some general and some specific, but I'd like to hear from you guys.

Thanks fellow members!

[doubleinfive]

It's not an art...be ready to pay full price or don't even go there at all. If the AD offers you a discount, take it and be on your way...the AD is in business to make money, if not from you then the next guy who comes along.

[azguy]

Originally Posted by doubleinfive

...the AD is in business to make money, if not from you then the next guy who comes along......

Well said, It's not a flea market in mexico city....People walk in want a diet coke, a "well done sir" when they take their current watch off and 10% off, the nerve.....

[Rameez-Q]

I find it awkward to discuss discounts, I'm quite blatant however.

Bought a BLNR, was offered 10% off when just asking to view, that was the bottom price I tried a little after and then just paid for it.

After that I went into an AD in an area I was visiting tried on a few random pieces, then the hulk was offered a 5% discount after some negotiation of price I wanted more they weren't playing ball and that was that.

I'm always set on the watch I want, I try it on make idle conversation then just talk about price, not the best but it's the most direct and least time consuming for both parties.

[Relyt]

Unfortunately there is always room to work a few percent in. I personally wish no matter what, car dealership, jewelry store etc.... The price should just be the price. I believe everyone deserves to pay the exact same thing.


Sent from my iPhone using Tapatalk

[locutus49]

Once I settle on a watch I ask if they can work with me at all on the price. Almost always the answer is yes, and I use that price as the starting off point for negotiations. I shoot for 20% off but settle for whatever they can give me.

[elcompa]

Originally Posted by locutus49

Once I settle on a watch I ask if they can work with me at all on the price. Almost always the answer is yes, and I use that price as the starting off point for negotiations. I shoot for 20% off but settle for whatever they can give me.

Yep. This is also my thing. Always works, never insulting to the seller, I get what I want, they make the sale, we are all happy.

[Boothroyd]

It certainly helps if you have established a relationship with AD, especially those that have jewelry lines. I have always gone to same AD for wedding rings, gifts, etc., which has helped in negotiating discounts on watches when the time came.

[the_Hunter]

When I bought my watch as well as my wife's I went to the AD told them what I wanted and let them know I was willing to buy today. Even pulled the amex out and put it on the case when it was time to buy my wife's. In both cases they quoted me MSRP. I made them an offer that I felt was fair. My offer was rejected both times so I left.

In both cases I called/emailed DavidSW on the way to the car :-)

I guess the big shops in Dallas get a ton of people willing to pay retail

[brandrea]

My approach is subtle but eventually you get around to discussing price. I find that if you are sincere in wanting to buy a specific piece, the AD will work with you on price. It has to be a win win for both parties.

[GB-man]

Be polite.

Establish a conversation with the sales associate.

Never ask for a discount until ready to buy.

"Is there room for price consideration on this piece" when the time is right. I find the longer you have been in the store, the more likely they will want to close. Don't loiter, I mean that I don't start talking price 5 seconds after I arrive. I inspect the watch. Have a look in the full length mirror. Ponder and ask questions. Establish that you are a collector and always in the market for a new watch. (Usually true with me sadly but I would have the same strategy even if not true. It establishes that you are a potential repeat customer). Then strike.

I usually aim for whatever they go for on trf minus 500-1000 depending on the piece. Often im prepared to accept TRF pricing.


They will likely try to offer you a smaller discount. Be polite and say I need to be here ($xxxx) to make it happen today.

If you can't come to terms, be polite and say thank you for your time today.

Last but not least, I find wearing a Patek gets you treated like gold in most watch shops.

[bdex75]

Tip #1: Never buy from an AD that says that they cannot discount because it is Rolex policy.

Tip #2: Buy a lot from the AD. Then they just offer discount right out of the chute.

Tip #3: Ask. It is not an insult to ask for a better price. These are mass produced commodities. They have room to negotiate.

Tip #4 : Keep in mind that the leather mat that they set the watch on probably cost them $1500 and that fancy case where you like to drool on, probably tens of thousands. That fancy crown on the wall. LOTS. Don't insult them by haggling like it is a "Mexican flea market". Anywhere between 10-15% is fair. 20% is really good.

Tip #5: Be prepared to walk out the door. There is another AD and lots more watches right down the road.


Sent from my iPhone using Tapatalk

[Abdullah71601]

Step one is always to know you want the product. Not the brand, this exact ref#.

Once you have decided on the exact watch you want, you have to determine the market value. Market value isn't the online value, or trusted seller value, it's the common price in your locality. (As an example, I can get a BLNR any day of the week in the middle east for around 8300 USD, whereas an Australian may be paying above MSRP). Go to several AD's who have your chosen watch and do a preliminary negotiation. Be polite, talk the talk, and try to nudge them down to their "best price".

Once you know the ball park best price for your locality, work the AD's against each other. You can usually get another couple percent by saying Joey Bagadonuts down the road will give it to you for $XX.

Don't be unrealistic in the final stages of the negotiation - Don't expect a certain percent discount because someone online said you should get it. The AD knows about what Joey Bagadonuts can offer you. You know what the local market price is. You're trying to whittle off a few bucks to get to the best and final offer.

Be prepared to walk out the door if the AD won't budge or you think there may be more room tonegotiate. Go to Joey Bagadonuts and work the same negotiation with him. Then go to the other AD's. A cycle or two will get you the best price in your locality.

Enjoy the process! If you go into it as a painful chore, you'll likely not do well. Be patient, don't let the AD use your eagerness against you.

[jjnd08]

Originally Posted by the_Hunter

When I bought my watch as well as my wife's I went to the AD told them what I wanted and let them know I was willing to buy today. Even pulled the amex out and put it on the case when it was time to buy my wife's. In both cases they quoted me MSRP. I made them an offer that I felt was fair. My offer was rejected both times so I left.

In both cases I called/emailed DavidSW on the way to the car :-)

I guess the big shops in Dallas get a ton of people willing to pay retail

That's surprising. I've been offered discounts without even trying at ADs in Dallas. When I bought my AP, I got a really solid discount - competitive with what you see from our trusted sellers.

[cedargrove]

Originally Posted by T. Ferguson

Don't begin a negotiation prematurely. I don't talk price if I've not settled on a model or know exactly how I intend to fund the purchase and am ready to pull the trigger.

Be ready to both pull the trigger or walk away.

I agree with these two points.

The key for me is conviction. The seller needs to be convinced that you will walk if you don't get your price, but also convinced that you will buy, then and there, if you do get your price.

[Mr. K]

I just tell my AD what I want and ask how much I owe them. Prepared to pay full retail. If they discount I never counter.

Works for me. I pay, thank them and that's all.

[cedargrove]

Originally Posted by Mr. K

I just tell my AD what I want and ask how much I owe them. Prepared to pay full retail. If they discount I never counter.

Works for me. I pay, thank them and that's all.

I suspect many people who buy Rolexes do it this way. I very much appreciate it, because it allows some of us to get good discounts. Thanks.

[Tri-Tip]

Not much different than buying a car. Similar to what Abdullah said, work the dealers against each other. I usually go to a car dealer a decent distance from my home where I generally wouldn't buy and work them down and see at what point they let me walk out the door empty handed. Then I use that knowledge at the dealers closest to my home.

[Demosthene]

The local AD marks up their prices about 25% and is willing to negotiate down to recommended retail from experience.

[joli160]

I had a few times when i asked in a real polite way that no discounts were possible, not even a little. Getting a little discount simply makes me feel good and I would have bought. I don't care anything for goodies which an AD offers to throw in. Looking for a watch and not a wallet.
Nowadays I feel reluctant to even ask an AD and look to shop in the grey market straight away.
Depending on the model an easy 15 to 20% without haggling and sofar all my experiences with grey sellers have been very good. Just buy the seller.

[the_Hunter]

Originally Posted by jjnd08

That's surprising. I've been offered discounts without even trying at ADs in Dallas. When I bought my AP, I got a really solid discount - competitive with what you see from our trusted sellers.

I am going to assume you purchased your AP at the same place I was shopping... big place in North Park...

Maybe they didn't think I was a real buyer, maybe they need to cover the cost of the fancy new boutique. I was offered a discount on a AP ROC (was not ready to buy and just wanted to know what MSRP was) but that was from a different sales person

No skin off my back either way.

[Highland Ranger]

I ask for their best price noting what is on the tag.

Usually nets between 5-20% depending on model and metals.

Least is on steel, two tone a bit more and precious metal most.

There are exceptions - - for models like a white faced stainless daytona - expect little to nothing.

[mannyv11]

Originally Posted by Demosthene

The local AD marks up their prices about 25% and is willing to negotiate down to recommended retail from experience.

Wow i wouldn't even walk into that store. Demand must be crazy down there if they are asking for 25% over retail.

[green_dial]

What if you need to place a deposit and wait for the watch to come in store?

Negotiate before or after the deposit has been taken?

I was quoted a 6 month lead time on a 15202, so they said they need a deposit to secure one? Sales technique or legitimate reason?

[T. Ferguson]

Originally Posted by Demosthene

The local AD marks up their prices about 25% and is willing to negotiate down to recommended retail from experience.

Originally Posted by mannyv11

Wow i wouldn't even walk into that store. Demand must be crazy down there if they are asking for 25% over retail.

I'm surprised the Geneva let's them get away with that practice. Really surprised.

[mannyv11]

Originally Posted by T. Ferguson

I'm surprised the Geneva let's them get away with that practice. Really surprised.

i was actually thinking the very same thing.

[jjnd08]

Originally Posted by the_Hunter

I am going to assume you purchased your AP at the same place I was shopping... big place in North Park...

Maybe they didn't think I was a real buyer, maybe they need to cover the cost of the fancy new boutique. I was offered a discount on a AP ROC (was not ready to buy and just wanted to know what MSRP was) but that was from a different sales person

No skin off my back either way.

In fairness, I've never looked at Rolex there - only AP and JLC. I have been offered discounts without asking at other ADs in Dallas.

If you go back to the place in North Park, let me know; I can tell you who to ask for.

[Mr. K]

Originally Posted by cedargrove

I suspect many people who buy Rolexes do it this way. I very much appreciate it, because it allows some of us to get good discounts. Thanks.

You are welcome... I think.

The owner always gives me a discount, I just never (and will never) counter. If he charged full retail, I'd still buy from him. 13 years and at least a dozen Rolex watches that I can remember, maybe a few more, there is a strong mutual respect.

Purchased watches from him to celebrate getting married, buying a new house, passing tests, job promotion, first child (bought 2 then) and other occasions.

[Demosthene]

Originally Posted by T. Ferguson

I'm surprised the Geneva let's them get away with that practice. Really surprised.

Could have been a product of the high exchange rate at the time.
It was a Grande Reverso 976 listed at $10500 Aud which was pretty much 10000 Usd at the time.
I ended up buying one from DavidSW instead.

[SubKing]

I have been buying rolex watches from different AD's all over the country for 15 years now and average about 4 new rolex pieces a year. I have learned some really valuable lessons along the way...

First off, The Ad's that act snooty, I know to stay away from. Just by walking in, I can tell what experience I am going to have. I like to make power plays and create relationships with my AD's..

Knowing people get you very far. I usually know the store owner personally before I walk in, or I am introduced to the owner by a close friend. I work directly with the people in charge, That really helps with discount. The sales people want to make a large commission, where management and owners want to move product..

There are several factors that have to do with what kind of discount you are given. One of the main factors IMO is how many pieces a year can they expect you to buy from them? If the answer is 3 to 4 pieces consistently, then the Ad will want to keep you happy.

Some have said if you wear a patek, that helps.. I find no truth to that. I don't wear my patek when I go in for a new rolex. I wear a rolex lol. A patek tells them two things, 1. that you know your watches and 2, that you have lots of money that you spend else where on brands they do not have. If they have patek then that's a different story. I tend to only wear brands in the store that the AD carries.


Now I want to clear the air about Ad's saying they cannot discount rolex.. It's not that they can't, its that they are scared to. So many AD's have had rolex pulled from them in the past few years. Rolex has downsized their points of sales by 20% across the board. By law, rolex cannot tell an AD what they have to discount their watches for.. They can only "suggest" hence the term, "suggested retail price". If you tick rolex off and they don't like your discounting practices, then they will pull the line from you. Rolex's entire point of not wanting AD's to discount is because rolex feels it de-values the brand. Rolex wants to kill the gray market as well, they feel that also devalues the brand.

The model rolex you are shopping has everything to do with how big or how little your discount will be. Keep in mind the profit margins on an all steel sub retailed for 8550 is a lot less than a an all gold model retailed at 38k... So expect a smaller discount on the less expensive models..

Cash is king. It really is. Paying with Cash can save you a lot on your purchase. I have dealt with some tough shops in my time, but once you set green cash down infront of them, they really don't want you to walk out. They will also save on the CC fees by you paying cash. Also, having an out of state address to ship the watch to can save you on the tax as well.

Normally on a steel sub hulk or blk dial, I can get 25% off. but that is only because I have established a relationship with the AD and buy actively. So it's not impossible, just depends on some of the factors stated above. always be classy, your approach is everything, don't push them to go beyond a discount they are not comfortable with, Keep in mind, Rolex only allocates a certain amount of watches to these AD's per year, so they don't want to give it away cheap if they won't get many. There is always someone else willing to pay more than you are.