New Rolex AD mandate?

[crazyfingers]

I was offered an 18% discount right away on a white dial Explorer II at an AD in my city last year even though I've never bought from them before.

[ArthurPE]

MSRP on a Sub is $6k iirc (at least that's what the appraisal they sent was)
first dealer, no movement, even though I told him I don't want to look, just give me an unopened one and I'll buy it...

drove 5 minutes...
second, at first nothing, told them I had bought there before, they asked my name, came back a minute later... 17.5% discount...deal done

[Denver Dick]

It's all about $$$$$$$$$. If a Rolex AD is also an AD for a number of other luxury brands (Omega, Tag, etc.) and not moving enough Rolexes, I would not be surprised if he found his AD status in jeopardy, especially if he's giving big discounts. On the other hand, if a Rolex AD is concentrating on pushing Rolexes out the door and ordering lots of inventory, Rolex will not be quick to bust his chops over discounts, again, as long as he's moving those little pieces of metal out the door.

Back when I was with Texaco, distributors and retailers who really "moved the juice" could get away with quite a bit. However, if a retailer was concentrating on sales from in his convenience store and performing tune-ups (things that did not make any money for Texaco), Texaco would look for any little slip-up to try and de-brand him. Like I said, it's all about $$$$$$$$$$$$$$$$ . . .

[Finley]

My local AD offered me 10% up front without me even asking. Another local AD (chain store) would not commit to any kind of discount without me agreeing to purchase. Of course, I can't agree to purchase without knowing the bottom line, so that was not a successful tactic for them.

[Mystro]

I have never paid retail. I dont think I can. Its a sickness. I get a deal or I dont get.

[scooba]

I just bought a bnib from my ad 16610 sub date with 18% discount fact no b/s you need to ask

[spuds]

Originally Posted by scooba

I just bought a bnib from my ad 16610 sub date with 18% discount fact no b/s you need to ask

Where?

[envuks]

I got my SS GMTc two years ago at an AD... Family friends and he gave me 20% off... So it's not unheard of, just fairly rare.

Another friend of mine was given 10% off a SS Daytona from this AD... He is closer with the fam than I though. Anything is possible.

[Watch Professor]

I found the same story with Mayors when visiting Florida. They offered no tax if shipped home. But, I did get a 15% discount on a GMT IIC----are you ready? at Tourneau.

[SUPERDOC]

Something I recently learned about my AD, who does give great discounts..
Apparently a few years ago, he was not moving much inventory...and ROlex corporate threatened to pull his AD status and give it to a rival local jeweller who had a better location (inside a busy shopping mall)...


My AD cut Rolex a cheque ( for an amount that I know but would not disclose), and held his status...so when he discounts, it just cuts into his profit taking...but as far as Rolex is concerned, the watches move. and new inventory gets ordered...

So, I don't know if Rolex corporate really cares that much about the AD discounts...in fact on the price guide it even states that these are "suggested" retail prices and that Dealers may sell for less....

[brandxbrand]

All this talk about Rolex threatening account pulling if they discount.... Anyone with wholesale knowledge knows that this is illegal.

It's been a little while since I was in sales, but there is a law that prevents a vendor from demanding their account to sell at a certain price. This is why we have MSRPs - Recommended being the key word. It's up to the retailer to discount, not Rolex. Sure, they can get un-happy about it, but they sure for one cannot pull an account as a result of it otherwise any AD with half mind (and a lawyer) would slap them with a well worded letter.

If anyone knows the name of this particular law, please let me know... It's killing me

[kingel]

You're actually not correct. wholesalers can pull the brand. You're talking about the Sherman act from the early 1900's, but the Surpreme Court severely weakened that act in 2007 in a case involving a leather manufacturer suing to maintain it's prices with retailers. After that case, companies have a much stronger ability to enforce their pricing if they feel it is damaging the brand by lowering pricing. Still, it's limited to how much they can do to the retailer and it's still not concrete what's really the law. It basically still stands that the wholesaler can only recommend the pricing. However, no wholesaler is required to sell their goods to a retailer, so if you start hurting the brand by discounting, the wholesaler is perfectly within their legal rights to take the brand..all they have to say is they decided to sell to someone else. They just don't mention the discounting as an issue. If you've ever seen the huge contracts that Rolex AD's have to sign with Rolex (which I've looked over) Rolex has so many protections in place, that they can pull the line for any reason. So while Rolex can't force an AD expressly to stick to a price, the AD also knows if they make Rolex mad by dicounting, Rolex can claim a 100 different reasons to pull the line. And lets face it, what jeweler is going to have the money and time to fight Rolex in court for years.

That being said, I think Rolex lets some discounting go on- they know their jewelers have to move product, and so does Rolex, but once it starts to hurt the brand in a widespread way, or a store goes from giving it to good customers and just starts discounting for everyone walking through the door, Rolex will step in.

[buyrolexnow]

Very well said!

Hopefully the people on this forum will finally understand that the wide spread discounting has hurt the brand and Rolex will do something about it.

[drtooth73]

The discounts I have seen:
AD: SS 18%, TT/Gold 35%
Grey Dealer: 25% on SS
I guess the employees get 25% off, and once per year they get 40-60% off.

[Tek]

That was exactly what the AD here told me, no more than 10%, then I asked how would Rolex find out and they said Rolex do an audit every 6months, and if they found out they would have their autharization pulled. I'm not sure if it's true or not, but they would not sell for anymore than 10% dis.

[wjrw592]

I was in an AD in PA looking at a 16610 and the max discount was 3% + no tax for a total savings of 10% ; they also had 4 TT YM & they were willing to give 10% on that or
12% on a TT Daytona so I guess it all depends on stock. Some discounting must be
allowed as I've read that AD's buy for 57% of MSRP on average.

Do you think it has anything to do with the mfg age / serial Letter V vs Z?

[buke45]

Rolex knows the prices the watches were sold because they audit the ADs periodically and they have to show the Rolex rep the receipts for the watches sold since the last audit. It is all writtern out on the AD contract.

[sturgeon123456]

GST is 5% across canada. It is a Government Sales Tax.

[jldc]

I may not be the best negociator, but my recent experience at 4 ADs in Texas and Las Vegas was not good for discounting. I was told in multiple locations that there was "never" any discounting on sport models.

[greekbum]

Discounts are not for everybody and not everybody gets them or is entitled to get them.Its just how business is run.I know many grey dealers and they usually buy common for around 40% off MSRP.They make there 10-20% and thats life.I have gotten 20-40% on SS models from AD's that are still in business.This is not B.S. and 1 was a SS Daytona for a friend last year. Different cities, countries etc is also very different results. Its a weak economy and deals on new and old are out there.Keep in mind many jewelry stores are surviving on we buy gold in most parts of the country.Time is money and you can spend allot of time trying to shop around and get a discount so sometimes it is not worth it.

[Rolex Junky]

In Europe you'll be lucky if you can get a 10% discount at an AD; and thats only on jewel incrusted or precious metal watches. I dont think Rolex will take it lightly if they find out AD's are giving up to 20-25% discount. Should they get caught i'm pritty sure Rolex will terminate all business with them.

[rolexnovice]

The AD I visited said because Subs are so sought after Rolex isn't offering a discount.

[HL65]

I guess I am lucky then..............enough said.

[Tk52174]

I got my sub lv at msrp last month, because they said they don't discount any discontiuned model. The best deal I ever got is from an ad in Jamaica, I got a dssd for $7800 last year.

[Jim232118]

I have found that stores who move the most product give the greatest discount. AD's in the Caribbean hot spots have always given very good discounts without even asking.

[RRGHOST1]

My local AD gives 10% on SS models and 15% on TT's if you are paying cash.

[vzmax]

I just got a friend of mine 20% off a DateJust II with no tax since it was shipped out of state. I'm a past customer.

[C. Davidson]

Originally Posted by chillviper

I was wandering through the mall and stopped by a Mayor's that I usually browse their Rolex selection. Late last year, and prior, they had always quoted me at least a 20-25% discount, even on SS models. They said that just recently, Rolex has warned them that if they discount, they will have their authorization pulled.

Has anyone else heard of this new strong-arming from Rolex or is perhaps just at specific chains? They indicated it was nationwide and fairly recent.

It always seems to me (from articles I've read from WatchTime, Watch Journal, 24/00, Revolution, etc...) that Rolex is highly concerned with value retention. If their watches can be found easily for big discounts, the public perception would be that Rolex SRP prices are overvalued, and thus Rolexes are overvalued. If discounts are difficult to obtain on Rolexes, their public percieved value is increased, hence more justification for a luxury purchase. Then, the Rolex SRP is a good value and not just an inflated number.

Having AD's get their accounts pulled has been in the news the last decade. It wouldn't surprise me that Rolex would end one account (who couldn't sell it without giving steep discounts), in favor of opening another account that agreed more with Rolex on their pricing values. What jeweler wouldn't want Rolex if they came knocking at the door? Hello, Mr. Million dollar account!

But what do I know? Im just a watch dork.

[handyhsl]

ADs do give discount, even for the most popular models like GMTIIC / Sub.
It all depends on the AD, the economy, and your nego skills.
As for Rolex audit, the ADs can get away because they can write higher amount in the receipt and say "our customers pay cash".. so the payment can't be traced.