Rolex fines AD for 2020 Grey dealer inventory

[kittansett]

AD reports of Rolex USA purchasing new 2020 model Grey dealer inventory. They trace the watch to the issuing AD, and fines the AD for the amount that was sold/paid by Rolex USA from the GD. AD runs the risk of losing the AD status if they refuse. This is their way of sanctioning the AD for selling to flippers. I think that it's about time that Rolex USA does something about the highly sought after models showing up with the GD. AD network learned about this, and are very careful to not be caught by Rolex. They said that they really have to know their customers, especially on these newly release models that most don't even have yet.

[dmash]

More ‘AD said this without definite proof’..

*yawn*

[worldofoyster]

i highly doubt it.

[rolex818]

Fo real?!?


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[BumbleB]

Sounds like an elaborate excuse to not sell you a hot model...


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[G.D.BeanCounter]

I have only seen a handful listed in the US through the normal channels, and all those seem to still be listed. This may make it more or less believable if Rolex actually wanted to set an example or even cares to.

[boogiebot]

I call bull. How are they going to enforce this if an individual buys the watch and sells it to a grey?? I hate the fact that I can’t get a new watch right now either, but to think that Rolex can or would stop this is a bit far fetched


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[KatGirl]

ADs commonly sell excess inventory to Grey market dealers. But, it seems to me, that with the high demand for new releases by consumers, they shouldn’t have any excess stock. So I’m confused ....

[dpt.calvin]

ibtl

[broham84]

Originally Posted by dmash

More ‘AD said this without definite proof’..

*yawn*

Originally Posted by worldofoyster

i highly doubt it.

It’s true, they started doing it in HK.

[WestCoastS]

Love it if true!

[Rado63]

I don't see how an AD can exist without sales to secondary market dealers or gray dealers or flippers. How do you explain the fact that no AD has Steel sports in the case? No watches to sell but still in business?

[dmash]

Originally Posted by Rado63

I don't see how an AD can exist without sales to secondary market dealers or gray dealers or flippers. How do you explain the fact that no AD has Steel sports in the case? No watches to sell but still in business?

But his AD said so!

[Fleetlord]

Absolutely not.

AD lose their status because they won't / can't upgrade their merchandising standards, are victims of consolidation in a saturated market, are in a declining location or are not performing adequately.

Rolex will be moving more and more to chain stores because they just align better with Rolex strategy and are much easier to sell to as there is centralized control vs having to deal with a myriad of individual owners, so expect to see these independents disappear.

The grey market is a very important sales and marketing channel for Rolex, especially in today's luxury space.

Oddly enough I think Rolex was more concerned with the grey market a few years ago when watches routinely sold well BELOW MSRP.

That made the brand look trashy and put pressure on the dealer network as they were being undercut. Both are bad things.

Now those issues are both nicely resolved...so other than the sticker policy (which comes down to appeasing the dealers and helping their image by showing you can't really get NEW and untouched Rolex anywhere except from AD), Rolex lets the grey market be...

[daOnlyBG]

Originally Posted by dmash

But his AD said so!

[rolexonlywatch]

I thought Rolex only fines AD where they sell Rolex watches under msrp.


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[Dan417]

There is some truth to that is all I’m going to say. Happy trading


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[chris242]

If it’s true, I think it would be a great thing. Finally working on getting their watches directly to the end consumer vs filling extra pockets along the way.

Off topic here and it may habe been discussed in another thread, but I’m kind of disappointed that we had leaks from rolex, just so used to them running such a tight ship.. but amongst the pandemic and introducing them in a new fashion, I suppose it was to be expected.


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[chris242]

Originally Posted by KatGirl

ADs commonly sell excess inventory to Grey market dealers. But, it seems to me, that with the high demand for new releases by consumers, they shouldn’t have any excess stock. So I’m confused ....

There’s definitely no excess stock.. just insider deals amongst “preferred clients” getting them, flipping directly to grey and the AD gets a cut.
I’m convinced it’s what’s going on.


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[TswaneNguni]

Problem is still the awful flipper man .
Rolex cant do much if client sells to the trusted used watch dealer .
Rolex or ADs can blacklist flipper man ,preventing future deals but that's about it...

Fining an AD caught supplying the trusted used watch dealer ,wont deter .
Just rip the agency from under their feet ..what should be done .

[chris242]

Revoke AD status, that’ll slow them down!


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[iTreelex]

But my AD said that Rolex will only be selling their watches to flippers so...

[Tanuki]

Originally Posted by Rado63

I don't see how an AD can exist without sales to secondary market dealers or gray dealers or flippers. How do you explain the fact that no AD has Steel sports in the case? No watches to sell but still in business?

This is what I have been saying for years. If there really was a shortage in supply how could ADs stay in business? Why would they keep paying all those employees to just stand there all day? There would have been layoffs with just a skeleton crew... Never made any sense!

[Soultime]

Didn't it happen in the UK when the Pepsi first came out?
I am sure it was reported on here.

[Bizcut1]

Feel good post - let's see some real evidence this happened. I think you're playing to the crowd here...

Methinks it really just happened in the OP's location however...

[TswaneNguni]

Originally Posted by Tanuki

This is what I have been saying for years. If there really was a shortage in supply how could ADs stay in business? Why would they keep paying all those employees to just stand there all day? There would have been layoffs with just a skeleton crew... Never made any sense!

ADs do not just sell Rolex .

[Tanalasta]

High demand models now require managerial approval to allocate / sell to customers. And that customer needs to be known or vetted. It’s bad form for all involved if the customer chooses to flip the watch. Some will now refuse to allocate an in demand model to a customer they have flagged as a flipper.

I think times are changing.

The whales and VVIPs who buy one of everything can probably still get away with it.

Of course all hearsay but that’s what I’m
Hearing.

[georgekart]

Do you want me to show you an AD that has it's own used/vintage store selling a brand new Cermit now. Oh and it operates under two names (their own AD website and a different one just for that store alone) and on their own website they don't list the new watches for sale but on the other website they list even the new watches and all the other listings are same as the AD website. Oh and on that second website they say the store is registered to another AD. If Rolex cares about ADs flipping watches, seems to me they would collaborate to make sure two ADs don't come together to flip new hot pieces. And here's the kicker. Their used/vintage store is less than 5 minutes walk away from two of their AD stores. Does that sound like Rolex cares about flipping watches to you? To me seems like the only ones who care are ADs, because if you buy a watch to flip, they could have made more money themselves.

[Oxfordian]

I hope that this is true, if Rolex are starting to buy stock from grey dealers and trace the watch back then this may make a few more watches available for genuine buyers at the AD. If Rolex do take away the AD's franchise then that will send a few shockwaves through the network.

Based on this story I wonder if the activity by WoS group in the UK is to try to ensure that people are stopped from flipping, maybe one of their stores has been caught out or one of the watches sold through them was at a grey dealer within days of being sold?

Finally, for those that assume that SS Professional models are the only watches sold by AD's, they are not, AD's sell plenty of 'normal watches' not everyone wants one of the hot professional watches. As an example whilst I was registering my details with my WoS AD a couple at the next table were there buying 'his and hers' DJ's, both TT versions so a good £20,000 sale. On another table a young lady was looking at a DJ for herself, couldn't see what style but possibly around another £5-6k.

My SA has a pretty full appointment book so getting in to see them is a planned call in rather than just drop in, this suggests that the AD is very busy even in these strange times.

[HogwldFLTR]

Originally Posted by dmash

More ‘AD said this without definite proof’..

*yawn*

+1