Another AD closing thread....

[subdownunder]

In my city we have three Rolex AD's, one national chain and 2 independent stores.

I visited one of the local stores two days ago and was surprised to find that they are no longer a Rolex AD.

I sort of know the owner and in a conversation with him he said that Rolex have insisted he spend up to $1 million refurbishing the Rolex side and increase floor space according.

He followed this up by saying that given he already had empty cases and the investment was not worth the return he decided to say no.

This raises the question is Rolex now pressuring independent AD's with unreasonable demands to reduce their distribution network?

On another note he said he has a supply of various Rolex and Tudor models he recently received or has been keeping, however he is not prepared to sell them individually without significant purchases of other jewellery or watches; in my case the offer was 2 full priced Grand Seiko watches and a piece of diamond jewellery.

Personally I could not get angry or blame him, but wondered why not sell them to the Grey Dealers? or could Rolex take legal action against him?

BTW. I declined

[tmoy810]

Out of curiosity, what was the peice being offered if you purchased two full priced grand seikos and the diamonds?

The demands for renovations are not uncommon business practice.

I had friends that own/owned Shoe stores that sell Nike/Jordan’s when Nike started rebranding they demanded their authorized resellers remodel their boutiques. Store owners had to choose wether it was worth it to remodel just to get access to the few pairs of limited/hot shoes they would get in return.

The ones that stayed open pretty much started selling for above msrp or started forcing bundling of other shoes/T-shirts in order to get access to limited releases. It’s scary how similar the trajectory of the watch market is to the sneaker/reseller market.

[KathleenL]

Originally Posted by subdownunder

In my city we have three Rolex AD's, one national chain and 2 independent stores.

I visited one of the local stores two days ago and was surprised to find that they are no longer a Rolex AD.

[snip]

On another note he said he has a supply of various Rolex and Tudor models he recently received or has been keeping, however he is not prepared to sell them individually without significant purchases of other jewellery or watches; in my case the offer was 2 full priced Grand Seiko watches and a piece of diamond jewellery.

[snip]

Maybe the AD status was revoked because Rolex suspected something "funny" was going on because they send him watches that he doesn't sell (doesn't activate the warranties).

[notaflipper]

Smales in Perth I'm assuming?

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[Rolexforthewin]

If he's giving those ultimatums, I'm glad to see he's no longer carrying Rolex!

[Wahlberg]

Originally Posted by subdownunder

On another note he said he has a supply of various Rolex and Tudor models he recently received or has been keeping, however he is not prepared to sell them individually without significant purchases of other jewellery or watches; in my case the offer was 2 full priced Grand Seiko watches and a piece of diamond jewellery.

Good riddance to this guy.

[Bmats]

Originally Posted by Rolexforthewin

If he's giving those ultimatums, I'm glad to see he's no longer carrying Rolex!

I guess I’d rather have the AD be overt about it. It’s better to know—buy this and get that, rather than spend a bit here and there and maybe (but not guarantees) you’ll get that Pepsi.

[Calatrava r]

I guess he can do whatever he wants now that he is not an AD. I thought Rolex demands that their unsold product be returned to Rolex (which they essentially buy back) when an AD loses status.

[CarlOver]

Originally Posted by Calatrava r

I guess he can do whatever he wants now that he is not an AD. I thought Rolex demands that their unsold product be returned to Rolex (which they essentially buy back) when an AD loses status.

Maybe he “punched the warranty” and it looks sold to Rolex. Porsche dealers have done this regularly. At least in the past they did.

[Cigars&Watches]

"On another note he said he has a supply of various Rolex and Tudor models he recently received or has been keeping, however he is not prepared to sell them individually without significant purchases of other jewellery or watches; in my case the offer was 2 full priced Grand Seiko watches and a piece of diamond jewellery. "



Another blow to some who think AD's predominantly sell to greys. AD's make a ton more money bundling with other sales and jewellery not to mention having to make their VIP client base happy first!!

[johnwigan]

Good news I would say.

[zewill]

Originally Posted by Calatrava r

I guess he can do whatever he wants now that he is not an AD. I thought Rolex demands that their unsold product be returned to Rolex (which they essentially buy back) when an AD loses status.

Wonder if you could make them pay market price for those

[Dayton ssb]

An AD in another City nearby has become remodeling the Rolex Space. 1 million is a lot to spend when cases do stay empty.


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