How is this possible?

[BlakeA]

New to the Rolex game, but I am curious about Rolex watches being sold on this forum. I just looked at what was available on the sale forum in terms of Rolex 114060. I see a new one with stickers asking MSRP $7500. There is another for slightly more than that bought this month.
When I bought mine for MSRP a month ago, I had to pay about $640 in tax. In what scenario can someone buy one and then turn around and sell it with stickers on for MSRP?

[beshannon]

Because they bought it at a discount

[chad362wiley]

Discount, no tax cuz shipped out of state.

[schoolboy]

You’re correct OP.

That’s something that I have wondered too.

With the high demand for SS sports models, and ADs are still selling them at a discount?

Can somebody explain why they would sell one at a discount if there are people ready to buy them at regular price?


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[BlakeA]

If there is a "shortage" of SS sports models, and an AD can sell them for MSRP as fast as they get them, why would they sell to a flipper for a discount? I realize this is somewhat of a rhetorical question. I just thought someone might be able to shed a little light on this.

[beshannon]

Originally Posted by BlakeA

If there is a "shortage" of SS sports models, and an AD can sell them for MSRP as fast as they get them, why would they sell to a flipper for a discount? I realize this is somewhat of a rhetorical question. I just thought someone might be able to shed a little light on this.

I buy 5 pieces at a discount, 4 are hard to sell models and one is a popular model.

I did the AD a favor by freeing up dollars for inventory.

Welcome to capitalism around the globe.

[Pavlos]

Buy from AD

[watchmework]

Discount double check.

[Largoshark]

Originally Posted by schoolboy

You’re correct OP.

That’s something that I have wondered too.

With the high demand for SS sports models, and ADs are still selling them at a discount?

Can somebody explain why they would sell one at a discount if there are people ready to buy them at regular price?


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Grey dealers buy in bulk. The AD's don't mind selling at a slight discount when they can unload a bunch of less desirable watches that normally just sit in the case, along with a few SS sports models. Also, I imagine there's an established relationship between the AD and grey dealer, so it's an easy, consistent sale for the AD...this is all just my assumption.

[CoveWatch]

Originally Posted by Largoshark

Grey dealers buy in bulk. The AD's don't mind selling at a slight discount when they can unload a bunch of less desirable watches that normally just sit in the case, along with a few SS sports models. Also, I imagine there's an established relationship between the AD and grey dealer, so it's an easy, consistent sale for the AD...this is all just my assumption.

yup! I've heard of dealers buying 30 up to 60+ watches in one sitting... if you're a dealer, would you want to lose that customer? Probably not and you'd probably give them what they wanted.

[schoolboy]

Originally Posted by CoveWatch

yup! I've heard of dealers buying 30 up to 60+ watches in one sitting... if you're a dealer, would you want to lose that customer? Probably not and you'd probably give them what they wanted.

Woooooooooow

That’s insane.

No wonder the grey market is so strong.


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[DARK_KNIGHT]

Originally Posted by schoolboy

Woooooooooow That’s insane. No wonder the grey market is so strong.

If we have figured this out, then Rolex , SA , has too. So, it´s a symbiotic, although unofficial relationship between the big (4) ---------


ROLEX ------- AD ------- GREY ------- YOU/ME/THEY/THEM.

[05carbondrz]

Originally Posted by DARK_KNIGHT

If we have figured this out, then Rolex , SA , has too. So, it´s a symbiotic, although unofficial relationship between the big (4) ---------


ROLEX ------- AD ------- GREY ------- YOU/ME/THEY/THEM.

You/me/them should be changed to “Suckers”.

[Colorado1492]

Yes was recently in south florida and was told the same by a friend who works for a big AD. Greys come in once month and will be 20-50 watches (ie. datejusts mostly) at a time for access to the favs like daytonas.

[jcdeng]

I always wonder how do grey dealers get rid of the less popular models they bought from the AD.

[Speedbird-1]

Maybe bought 2 years ago.

[77T]

Don't forget the grey market dealers also buy the PM's that don't sell very quickly and also get discounted by the AD. For example, buy this YG GMT, WG Daytona and Pt. DD and I will pitch you two hard-to-get SS Professionals when they come in.

This is how the AD moves out the stale inventory and has the unintended consequence of lengthening the delivery timeframe of SS models to those on the wait list.

The grey market dealer has a global market to sell into. TRF, eBay and Chrono24 provide reach that the local AD is restricted from reaching by Rolex's contract with them.

[schoolboy]

Originally Posted by 77T

Don't forget the grey market dealers also buy the PM's that don't sell very quickly and also get discounted by the AD. For example, buy this YG GMT, WG Daytona and Pt. DD and I will pitch you two hard-to-get SS Professionals when they come in.

This is how the AD moves out the stale inventory and has the unintended consequence of lengthening the delivery timeframe of SS models to those on the wait list.

The grey market dealer has a global market to sell into. TRF, eBay and Chrono24 provide reach that the local AD is restricted from reaching by Rolex's contract with them.

This is starting to make a little bit of sense.

However, if an AD has trouble moving PM pieces, lets them go at a discount, wouldn't the grey dealer also have trouble selling the PM pieces?

I can see this working if the discount on the PM pieces for the grey dealer is so big that the grey can still sell at a significant discount to the public and make a profit.

[DARK_KNIGHT]

Originally Posted by jcdeng

I always wonder how do grey dealers get rid of the less popular models they bought from the AD.

Selling To the general public .


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[77T]

Originally Posted by schoolboy

This is starting to make a little bit of sense.



However, if an AD has trouble moving PM pieces, lets them go at a discount, wouldn't the grey dealer also have trouble selling the PM pieces?



I can see this working if the discount on the PM pieces for the grey dealer is so big that the grey can still sell at a significant discount to the public and make a profit.

The hard to move items in one market (say US) might be easier to move in another (say EU). The grey seller has access to hundreds of thousands of eyeballs hour-by-hour while the AD has a few dozen a day.

All I know is what the ADs do with the PM’s for SS’s dealmaking.


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[zengineer]

Both ADs and Greys need to discount most watches to move them. The ADs are not permitted to mark up the hot SS models so they are artificially limited. The Greys don't have those handcuffs on so they can sell a SS sport model at a big markup allowing them to discount t slow sellers and still come out ahead. ADs cant take advantage of the heat.

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[enjoythemusic]

It's MAGIC!

[AEC]

Where's the rule that says a seller has to sell for more than he paid?

[Rashid.bk]

Not trying to be rude but I sort of don't get what you are asking. Are people buying watches at discounts, yes, and selling them here for msrp or higher, yes. What's the issue, that you paid full price, yeah and....

[Etschell]

Originally Posted by BlakeA

New to the Rolex game, but I am curious about Rolex watches being sold on this forum. I just looked at what was available on the sale forum in terms of Rolex 114060. I see a new one with stickers asking MSRP $7500. There is another for slightly more than that bought this month.
When I bought mine for MSRP a month ago, I had to pay about $640 in tax. In what scenario can someone buy one and then turn around and sell it with stickers on for MSRP?

you should have been here in 2015. much cheaper....

[schoolboy]

Originally Posted by 77T

The hard to move items in one market (say US) might be easier to move in another (say EU). The grey seller has access to hundreds of thousands of eyeballs hour-by-hour while the AD has a few dozen a day.

All I know is what the ADs do with the PM’s for SS’s dealmaking.


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Oh ok.

That’s a very good point.

Thanks for sharing what you know


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[schoolboy]

Originally Posted by zengineer

The ADs are not permitted to mark up the hot SS models so they are artificially limited. The Greys don't have those handcuffs on so they can sell a SS sport model at a big markup allowing them to discount the slow sellers and still come out ahead.

Alright.

[The Libertine]

Originally Posted by watchmework

Discount double check.

I see what you did there!

[watchmework]

Originally Posted by The Libertine

I see what you did there!

Hahaha