Local AD - Are you freakin' nuts?! 20% to look? Fuggittaboutit!!!

[TxHarleyGuy]

Greetings everyone,

I wanted to share with you folks here what I thought was a rather unusual (okay, freakin' ridiculous) exchange I had with a local AD here in Austin, Texas yesterday afternoon.

About two and a half weeks ago, I purchased two Rolexes from a Rolex Boutique in Houston, Texas while traveling on business. Experience was nothing short of stellar. Since then, I have decided that I would be making a third purchase; that of a GMT Master II BLNR. The boutique in Houston was happy to place me one the list (second) without requiring a requisite deposit (500.00) for same. Told me that they don't anticipate the wait being more than a few weeks time at most. Great.

Fast forward to yesterday. Having never actually seen a GMT Master II BLNR in person, I decided to drop by a local AD here in Austin, Texas to see if they by chance had one available. I knew going in that the likelihood of such would be slim to none. But what the hell, an opportunity to check out the other watches, right?

I get there and a gentleman asks if he can be of assistance. I tell him what I am looking for and he says he'll check his computer to see what he may have available or in the works on order. He comes back to tell me that he does have two GMT Master II's 'in the system' and that he can have it to me overnight for the following day. He went on to tell me - and this is where things went south rather quickly - that in order for him to acquire the piece that I would have to.......wait for it......wait for it.......give him 20% of the full retail price - NON REFUNDABLE - in order for him to get it to the store.

With all due respect, I told him (in a round about sort of way; politely of course) that he could........well, I'll spare you all the verbatim.

I mentioned that while I was intent on making a purchase, I was not going to commit to anything without my first having actually seen the product beforehand. His response was tantamount to, "It's a popular product. If you don't buy it, someone else will." I then told him if that was in fact the case, why was he requiring non refundable deposits if - as he claims - if I don't buy it, someone else will?

Perhaps this is the norm? Perhaps requiring a non refundable 20% down payment just to see a product is common place? Perhaps most folks comply without so much as giving such a second thought?

Needless to say, the experience made me appreciate/value the treatment I have been given by the Rolex Boutique in Houston all the more. Proving, without question in my mind, that not all AD's are created equal.

[texex91]

And you're surprised? I'm not.

As with any brand, some good AD's some bad AD's.

[swils8610]

I wouldn't have an issue with that. If they are going to bring it in for you I would think that's the norm.


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[HoustonRoo]

That's normal.

Why should a dealer purchase a watch with their funds just so you can see it without any sort of commitment?

Deposits are completely justified in this type of situation.

Having said that, Houston Rolex Boutique (Galleria) have excellent service.

Edit to add: thread title is misleading. They didn't ask you for a deposit to look at the watch. They asked for a deposit to obtain (purchase) a watch for you.

[Quicksilver]

Is that the norm? I've never heard of it before. By bringing the watch in he's not committing to it any way. I don't believe he is buying it from Rolex to sell to you. If he makes no sale he can return it to Rolex or, if as he says there a queue of customers, he can sell it on quickly. I think its poor service - particularly as you're already an established customer with a healthy purchasing history from this dealer.

[DeeTee]

Ehhh it's not that big of a deal. It's a BLNR, someone else will buy it.

[mtgjr]

Originally Posted by Quicksilver

Is that the norm? I've never heard of it before. By bringing the watch in he's not committing to it any way. I don't believe he is buying it from Rolex to sell to you. If he makes no sale he can return it to Rolex or, if as he says there a queue of customers, he can sell it on quickly. I think its poor service - particularly as you're already an established customer with a healthy purchasing history from this dealer.

Really?? Where did you get that from? He made it sound like that was his first dealing with that AD.

[Quicksilver]

Originally Posted by mtgjr

Really?? Where did you get that from? He made it sound like that was his first dealing with that AD.

I see that now. I misread the original post. Regardless, I still don't think the dealer should request a non-refundable deposit.

[jinikari01]

hustlin hustlin hustlin... glad you didn't take the bait.

[HoustonRoo]

Originally Posted by Quicksilver

I see that now. I misread the original post. Regardless, I still don't think the dealer should request a non-refundable deposit.

Think of it this way:

You're a shop owner. A customer that you've never seen before comes in and asks you to obtain a $9k watch for him so he can look at it.

You have to use your funds to get the watch and maybe even pay for overnight shipping since you've offered to get it overnight.

Do you do this for everyone that walks in and asks you to obtain inventory that you haven't got because they want to "look at it?"

Do you use your own funds to get something with zero commitment?

You'd go broke quickly doing business this way if you spent the shops funds buying things just so people can look at them.

[maximus1]

Sounds like he was trying to lock in his sales commission.

[Lordofrolex]

For sure they aren't created equals and i hate them all. Simple and straight to the point. Never had a good experience.

[azguy]

Call Rolex USA, ask them, it'll be interesting to hear their take on it. Please do...

[AK797]

It's a popular watch so if an AD wants a deposit then fair enough, he knows someone else will pay it.

[GB-man]

I would have said sure and gave him my Amex. If he doesn't deliver....call Amex.

[Speed]

I've experienced similar things when asking to see a model not in stock.

The "we can order it for you" is a common response I've gotten when saying I'd like to check out a particular watch.

Once I replied back "well, I'd like to see the watch first before I buy it"... A sales lady jerked her thumb behind her to point to a poster of the watch..."Well, there it is" she said!

Just so happened to be a GMTIIC LN.

[drhr]

Is/was there a return policy? What would have happened if you gave him the 20 then decided you wanted to "return" the unopened, unused watch after a minute of looking at it upon arrival?

[mtgjr]

Originally Posted by GB-man

I would have said sure and gave him my Amex. If he doesn't deliver....call Amex.

You missed the point. OP wants an out in case he doesn't like the way it looks in person or on his wrist. He's not worried about the AD delivering the watch.

[TxHarleyGuy]

My hat's off to you fellas. For, after reading some of the responses, y'all seem to be bigger folks than I. For I just can't see the logic in laying down a 20% non refundable deposit on something I would like to see prior to purchase. Not going to happen in this lifetime.

[mjclark32]

The way I'm reading it I agree with the OP that it was a bit ridiculous to have the deposit be non refundable.
The shop wasn't purchasing the watch from RolexUSA, they were transferring it from one of their other locations (the way I'm reading it). Transfers shouldn't be a big deal. If you don't buy it maybe they charge you for the shipping
And, like the salesman said, if the OP didn't buy it someone else would so wheres the harm of the inventory transfer?
A refundable deposit would have been acceptable IMO.

[TxHarleyGuy]

Originally Posted by mjclark32

The way I'm reading it I agree with the OP that it was a bit ridiculous to have the deposit be non refundable.
The shop wasn't purchasing the watch from RolexUSA, they were transferring it from one of their other locations (the way I'm reading it). Transfers shouldn't be a big deal. If you don't buy it maybe they charge you for the shipping
And, like the salesman said, if the OP didn't buy it someone else would so wheres the harm of the inventory transfer?
A refundable deposit would have been acceptable IMO.

Correct.

[myc ritz]

Any dealer that does any reasonable volume should have no problem bringing in this piece.

[GB-man]

Originally Posted by mtgjr

You missed the point. OP wants an out in case he doesn't like the way it looks in person or on his wrist. He's not worried about the AD delivering the watch.

I should have been more clear. amex would get you your money back regardless of circumstance in my experience. If I'm ever asked for a "non refundable deposit" by some salesman I say sure but credit card only

[Corsair66]

Originally Posted by TxHarleyGuy

My hat's off to you fellas. For, after reading some of the responses, y'all seem to be bigger folks than I. For I just can't see the logic in laying down a 20% non refundable deposit on something I would like to see prior to purchase. Not going to happen in this lifetime.

Nope, not me. I'm with you 100%. Not in a million years am I going to pay upfront just to look at a piece. If it costs the AD money to obtain it, too bad - that's his cost of doing the business he chose. I'll eventually find another AD with the watch in stock (never be in a hurry to purchase anything, as it puts one at a disadvantage) and see it there.

Buy grey, anyway. Nothing that happens at even the best of ADs is worth their premium over grey. Like nearly all brick and mortar shops these days, they're for showrooming only.

[Tools]

Originally Posted by TxHarleyGuy

. . .

Perhaps this is the norm? Perhaps requiring a non refundable 20% down payment just to see a product is common place? Perhaps most folks comply without so much as giving such a second thought?

. . .

No.... It's a 20% down payment for them to order it in for you.

While it's certainly more than I would pay if I was not intending to purchase, a Dealer has a right to charge such a price to ensure the potential buyer is serious and not just a looker, as you imply you are. I would go elsewhere too, given the same situation.

[Chewbacca]

@tex

i hear your concerns but;

#1 seriously 'looking' at a $10k watch should mean being prepared to spend $10k without much worry... which means a 20% deposit should not be an issue. its a 21 day hold on a credit card with no obligation at worst (but see #2)

#2 who cares about their "non-refundable" verbal legalese (assuming it was a pressure tactic). its their written return policy that matters in your state or the fine print on their sales contracts. any more info on this?

#3 grind the dealer to make a deal based on a selling price deal - ignore the deposit - they'll know you mean business and may give you a good price. then get the watch. look at it. wear it. then return it before leaving the store if you don't like it right there and then. if anything, they'll want to keep the deal and show you something else and perhaps at an even better price.

at the end, i think you have several outs if you're not happy.

now, go get the watch from this cowboy AD... or one of our TS'.

[darkside7]

Which ad in Austin? You got my curiosity going.

[phillycheez]

While I get they have to buy the watch first... Why would the sales person say if you don't buy it, someone else will.. Which is true.

Who cares if they have to purchase it.. You will sell it in less than a week later.

[TxHarleyGuy]

UPDATE:

Just got off the phone with Rolex USA and they too were equally taken aback at the local AD's 'non refundable' deposit policy just to get the watch into their store for me to see. They said that it was in no way reflective of Rolex USA and they were disappointed that their AD was requiring such of me. They went so far as to ask which AD it was and stated that they would be contacting them at the close of our phone call.

Fast forward 20 mins or so:

I receive a call from a 'manager' at the local AD here in Austin, Texas. He did make mention that he was contacted by Rolex USA and that they suggested he call me regarding a watch I was interested in purchasing but wanted to see first. He told me that he would have the watch made available to me by 10:00 a.m. tomorrow morning and that I could come in to see it at whatever time was convenient to me. No mention of a non refundable deposit or percentages therein.

I asked the manager why no deposit as was required of me yesterday? He went on to tell me that he apologized for my being told such. Interesting.

[T. Ferguson]

Originally Posted by TxHarleyGuy

My hat's off to you fellas. For, after reading some of the responses, y'all seem to be bigger folks than I. For I just can't see the logic in laying down a 20% non refundable deposit on something I would like to see prior to purchase. Not going to happen in this lifetime.

The AD in Austin wasn't being unreasonable. Look at it this way, the AD in Houston agreed to put you on the list for one WHEN he got one in. Now, had you asked him to buy one and have it overnighted so you could look at it next day, that probably would have required a deposit from him too.

The situation could have been resolved if you had told the salesman to please call you when he happens to get one in so you have a chance to come down and look at it. Maybe he was being a little aggressive in trying to lock in a sale but you did tell him you were serious about buying the watch. He offered to get it to you tomorrow, but he wanted a some assurance you were serious.