Rolex Should Let ADs Markup New Stock

[superspectral]

We have suffered through years of hand wringing over no stock at ADs, murky or non existent waiting lists, and suspicions that many ADs are involved in back channel deals to flippers.

Rolex can’t and probably wouldn’t increase production enough to make a dent in any of these problems.

One can imagine a lot of complex schemes to cut fluppers and grey dealers out, but these seem likely only to reduce supply.

If every AD was allowed to charge any price for any piece, this would actually vastly increase the number of pieces available at market price. So for example, if greys have 800 available $15k new in box subs each day now-that might triple to 2400 in the expanded market . I expect average prices would drop a few $1k after some instability.

Customers have the ability to buy truly new watches with less waiting and a lot more transparency. The AD should be able to sell at a premium over used. This doesn’t really hurt used dealers business model of buying like and sellling high.

I hardly see how new customers would be more pissed off at markups than zero stock and 5 year waiting lists.

[Cigars&Watches]

Few thoughts come to mind for me:

Many ADs already markup their watches by having customers establish a spend history with them before they can buy the high in demand pieces. So buyers are in a way paying market prices for their Daytona or BLRO indirectly.

Some people are willing to buy at grey prices but what percentage actually do? 5%, 10%, 2%? Not a big enough percent I think to change things the way they are.

Also, I do t think most new buyers would pony up anywhere close to grey prices otherwise just go grey

[stevestil]

What would the point of buying from an AD be at market pricing? Lol


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[Sandpit]

ADs then basically replace grey dealers. Where does the extra money go? Straight into the AD’s pocket. They buy the watches at a wholesale price as it is and their markup is effectively fixed. I just can’t see how this would would. The profiteering would be on another level.

[ArtNouveau]

The day that US AD’s are allowed to sell for whatever they want is the day I will buy no more Rolex. For everyone here having a hard time getting new watches from an AD, there are hundreds of happy clients of that AD getting what they want in a reasonable amount of time.
Having AD’s becoming defacto grey dealers wouldn’t be good for anyone.

[afmars]

Rolex is no longer a manufacturer of tool watches, they are a luxury brand now. Part of what makes it a luxury brand is exclusivity. There is no problem from Rolex’s perspective. If they let AD’s charge a premium prices would end up going down on average and rolexes would be available to anyone making them less desirable I.e not good for Rolex brand.

Things like “less waiting”, “more transparency”, etc are not in the interest of the brand unfortunately.

[Andad]

I think the AD’s already have a handle on their Rolex market.

[rambo99]

it would be like rolex gifting money to ADs, lol!

[Polar Bear]

Why would you let ADs do that when Rolex can quietly raise the price 10%-15% year over year for the rest of time?

If you want to pay Market Price for a Rolex, there are already plenty of options out there

[teck21]

It used to that those that want, buy AD. Those that don’t, go grey.

Nowadays,

Those that can, buy AD. Those that can’t, go grey.

If all it took to get a Rolex was X amount (and not even a very large one by todays standards) of money, it would lose its prestige.


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[tyler_win]

Kind of a similar reason why many people dislike new car dealerships, especially in this market. They can charge whatever they like over MSRP. For everyday cars like the Prius there has been a slight bump in resale, but for sought after models like Porsche GT3s or Black Series Mercedes the resale is through the roof even above their mark ups.

Of course there's other factors in play with my example such as the chip shortage, but another light to view.

[2loaded]

Just shop at Tourneau..doh!

[dpt.calvin]

No.

[rkny]

Folks should stop spending brain power on trying to solve the unsolvable Rolex market and instead put that effort into cold calling every AD within flying distance. When one eventually gets you the watch you want, fly there and pick it up. You’ll still save thousands over gray.

[OrangeSport]

Rubbish.

[huba01]

Originally Posted by OrangeSport

Rubbish.

[WalterW]

Seriously bro? Do you want to pay 18k for a steel black submariner?

[nosignalbmwdriver]

Do emojis work here??

[GB-man]

They get plenty of stock and indirectly are selling at or often above market price by encouraging complimentary sales.

[brandrea]

Good idea, no more MSRP

[2001jesper]

Cant see that it would do anything positive for the average watch enthusiast, as you most likely would create a situation where the watches are financially out of reach for many. Also, how is a scenario where everyone pays more a better solution, just to have the AD experience?

Anyone can buy the Rolex they desire today and without wait, just not via an AD. There is no shortage. If you are so eager to pay market price, then just go grey already today

[enjoythemusic]

Or as an alternative, since there's a Crown for every achievement, we go full Thunderdome.

Five customers enter, the one who leaves Thunderdome alive earns the Rolex. Added benefit, it naturally frees up customer demand back to 'neutral' over time. Win-win.

[zzenrocker]

Predictably, those here that can buy from ADs defend MSRP, those that can't want an even playing field. Similar to an auction, having an open market would very quickly establish transparent pricing. As it exists today, it would be hard to find a more distorted, manipulated market than the current Rolex sales channel

[worldofoyster]

you are nuts, this will mess up the market big time

[GoingPlaces]

For those that can regularly obtain a Rolex for MSRP, this wouldn't work. For those that have been relegated to the grey market, this would be a good thing. Being able to walk into an AD, try on a few watches and walk out would be a refreshing change. The questions is, are there enough people willing to pay inflated numbers? Either way some people wouldn't happy and the shortage problem doesn't really get solved as prices will likely get even more outrageous.

Not sure if this ever happens, but if it does the greys get crushed.

[Ichiran]

My AD sold popular Rolex at market price a few years ago, until Rolex HQ stopped that practice. I bought my brand new Batman at a premium then from said AD, with no wait, full 5-year warranty and a peace of mind knowing the watch is 100% genuine. I would do so again if this is allowable by Rolex HQ.

[hondacb1002]

Originally Posted by Ichiran

My AD sold popular Rolex at market price a few years ago, until Rolex HQ stopped that practice. I bought my brand new Batman at a premium then from said AD, with no wait, full 5-year warranty and a peace of mind knowing the watch is 100% genuine. I would do so again if this is allowable by Rolex HQ.

I agree. Part of what makes me hesitant to go grey is having to deal with any kind of issues with what I assume will be a new watch. I'm afraid of getting a super clone movement, or having some parts swapped out for clone parts from a grey market flipper. And for those who call me paranoid you should see what happens in the car industry with luxury rentals. People swap parts out all the time and put in inferior parts. Imagine going grey years down the line getting the watch serviced and having to deal with an issue of parts not being original or a super clone movement....? F that! I would rather pay a grey market price at an AD and know its real. versus not even being able to buy at an AD, and not being able to completely trust the grey market.

[dtwer]

This a classic example of a solution looking for a problem.

[SaintMickey]

Originally Posted by superspectral

We have suffered through years of hand wringing over no stock at ADs, murky or non existent waiting lists, and suspicions that many ADs are involved in back channel deals to flippers.

Rolex can’t and probably wouldn’t increase production enough to make a dent in any of these problems.

One can imagine a lot of complex schemes to cut fluppers and grey dealers out, but these seem likely only to reduce supply.

If every AD was allowed to charge any price for any piece, this would actually vastly increase the number of pieces available at market price. So for example, if greys have 800 available $15k new in box subs each day now-that might triple to 2400 in the expanded market . I expect average prices would drop a few $1k after some instability.


Customers have the ability to buy truly new watches with less waiting and a lot more transparency. The AD should be able to sell at a premium over used. This doesn’t really hurt used dealers business model of buying like and sellling high.

I hardly see how new customers would be more pissed off at markups than zero stock and 5 year waiting lists.

No way. I got three at MSRP this year. WHY would I want the AD doing what the Grey Market does. Silly.

[cgaites]

Yes! 1000 times yes. Cut the bull and have a true free, undistorted market. I have no problem paying $13K or whatever for a black Sub if that is what the market will bear. I'm a capitalist. However, I'm not putting that kind of money at risk by going grey and potentially getting a fake watch / super clone. A few extra thousand dollars is a small price to pay to know 100% that I'm getting a genuine watch. Plus there is the added benefit of cutting down on the elitism and snobbery associate with the brand.

Unfortunately this will never happen. Rolex is smart enough to realize that as long as pricing in the AD channel is less than that in the secondary market, then demand in the AD channel will remain infinite. Who doesn't want to be paid thousands of dollars to take a Rolex off their ADs hands? If ADs were allowed to sell over MSRP, I suspect secondary market prices would collapse as the cross channel arbitrage opportunity disappears and speculators flee the market. If I'm right, the damage to the Rolex brand would be substantial.

Oh well, one can dream...