What do AD’s make

[Marlin01]

Hi guys, just intrigued to know. What does a typical AD make on the sale of a new Rolex sold to a customer - is it something that’s know or a trade secret lol.

[GoingPlaces]

Originally Posted by Marlin01

Hi guys, just intrigued to know. What does a typical AD make on the sale of a new Rolex sold to a customer - is it something that’s know or a trade secret lol.

Why do you care?

[ArtNouveau]

I think dealer invoice is 63% of MSRP…give or take a few percentage points.

[Easy E]

About 35% on a Rolex, about 300% on the crap they make you bundle to “build a relationship.”

[worldofoyster]

32%

[Big Tex Rolex]

Originally Posted by easy e

about 35% on a rolex, about 300% on the crap they make you bundle to “build a relationship.”

lol !!

[Big Tex Rolex]

I read somewhere once that there was a “40% markup”, so who knows … it seems we are all over the place on this one.

Whatever it is, it must be worth it to them to go through all of this !!! Startup cost, dedicated store square footage, disgruntled / frustrated customers …

[Cloudchaser]

It has traditionally been a wholesale cost of 62% of MSRP.

[Cwillis0001]

Originally Posted by Easy E

About 35% on a Rolex, about 300% on the crap they make you bundle to “build a relationship.”

Good one.

[brandrea]

Originally Posted by ArtNouveau

I think dealer invoice is 63% of MSRP…give or take a few percentage points.

Originally Posted by Cloudchaser

It has traditionally been a wholesale cost of 62% of MSRP.

In and around here is what we’ve seen here on the forum.

Frankly, I’m surprised it’s so low considering the overheads that many of these dealers have to absorb, especially the boutiques where they don’t have other product lines to sell

[RKunz]

Of all the watch brands the big R is the smallest margin for ADs.

[blueslover]

The 35-40 range sounds right, there used to be a time you could get a 15-20% discount off them at ADs.

[Edfrozen]

37.5% is the correct amount

A typical Rolex dealer sells over $10,000,000 a year in Rolex watches
Do the math. $3,750,000 in gross profit

[Seddyspaghetti]

Interesting to know!

[wiem0014]

Originally Posted by Edfrozen

37.5% is the correct amount

A typical Rolex dealer sells over $10,000,000 a year in Rolex watches
Do the math. $3,750,000 in gross profit

This is really interesting info that I have not heard before. Out of curiosity, where did you get the $10m Average data from? Do you have any idea what the average number of watches they sell to get to $10m?

[SS Oyster]

Originally Posted by Edfrozen

37.5% is the correct amount

A typical Rolex dealer sells over $10,000,000 a year in Rolex watches
Do the math. $3,750,000 in gross profit

In your scenario, $10M is revenue, $3.75M is gross margin, not profit. You have to take out all costs (overhead, labor, marketing, etc.) before getting to gross margin, then remove taxes and a few others to get to net profit: depending on area, that might end up being only $1M per year.


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[VogelPhoenix]

Originally Posted by wiem0014

This is really interesting info that I have not heard before. Out of curiosity, where did you get the $10m Average data from? Do you have any idea what the average number of watches they sell to get to $10m?

Rolex' annual revenue was reported to be USD 13 billion in 2021. That would make it $20B for the dealers. There's about 2000 ADs, giving $10M revenue on average.

[just1time]

Originally Posted by Easy E

About 35% on a Rolex, about 300% on the crap they make you bundle to “build a relationship.”

[TswaneNguni]

Considering market conditions,ADs make too little and the secondary/grey/used/ pre-owned market too much .

[nachopc]

Originally Posted by Edfrozen

37.5% is the correct amount

A typical Rolex dealer sells over $10,000,000 a year in Rolex watches
Do the math. $3,750,000 in gross profit

This is correct !


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[beshannon]

Originally Posted by Marlin01

Hi guys, just intrigued to know. What does a typical AD make on the sale of a new Rolex sold to a customer - is it something that’s know or a trade secret lol.

Welcome to the forum. Why don't you ask one and then tell us!

[Kiri]

Between 1% and 99%

[stubim]

Originally Posted by VogelPhoenix

Rolex' annual revenue was reported to be USD 13 billion in 2021. That would make it $20B for the dealers. There's about 2000 ADs, giving $10M revenue on average.

This is a good example of the difference between Mean and Average

A typical AD is not going to be selling $10 million in watches per annum

[Explorer2polar]

UK AD's is 37.5 %

[Cigars&Watches]

Don't forget that having the Rolex sign on the front door gets people into the showroom where they will spend a lot on other gifts, jewellery, etc. and not just on Rolex watch itself.. which is especially paying off in our current climate.

[cbalster]

If you spend 62.5 and make 37.5 that’s a gross return of 60%. There are other expenses of course involved on top of stocking inventory. Gotta keep the lights on and pay the staff. It’s a good business when it’s good. It’s pretty bad when it’s bad and can swing quick. My local AD has been around for 100+ years and has a tumultuous history including bankruptcies…. But I think they’ve been minting it the last 5 years or so.

[Divingdeep87]

Here in Denmark you can see the yearly results for companies. My closets AD in a city with 350000 people made 1.8 million usd in profit in 2021 before taxes (they are heavy here in Denmark) in 2020 he made 1.3 million usd in 2019 he made 1 million.. So they made more money than ever. They also have omega, tudor, glashuette and maybe tag heuer + jewelry

[RyanJ]

I think higher volume stores either get better costs from Rolex or more of the in demand watches. I highly doubt it is the same costs for every AD across the country unless inventory is playing a huge role too.

But.. Admittedly.. I really do not know, just guessing.

[VogelPhoenix]

Originally Posted by stubim

This is a good example of the difference between Mean and Average

A typical AD is not going to be selling $10 million in watches per annum

"mean" and "average" are synonymous; maybe you are thinking of median and average?

[JR16]

Originally Posted by Cigars&Watches

Don't forget that having the Rolex sign on the front door gets people into the showroom where they will spend a lot on other gifts, jewellery, etc. and not just on Rolex watch itself.. which is especially paying off in our current climate.

Exactly- having a Rolex account isn’t just about selling Rolex watches (unless you have a stand alone boutique I suppose)- there’s other downstream revenue . In hosptials certain programs/services just break or even lose a little money but result in profits in other departments/service lines - “loss leaders”.


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