Rolex AD selling at 50% off

[jtrader]

Okay so i'm on my way to meeting last night and decide to stop by one my AD's in my area. It's out of town from wear I live but I go in there when I can cus they have a pretty large selection of Rolex, Omega, Breitling, Cartier, Panerai.

Anyways when I walked in the first thing the lady I was speaking to pulls me over to one of the Rolex cases and tells me there having a sale. And half of one of their Rolex cases are all 50% off. She said the reason is, even though these are brand new rolex watches. There being sold at that price cus their warranties are in paper form instead of the plastic card. That's it. Other than that there brand spanking new. So I took a look around and I didn't see anything that I really know much about. I'm more into the SS sport models. There were a couple of women's President models, a few mens Date Just. There all gold models. There may have been a reg women's DD in there. I think the rest were Celini style models.

She wrote down a few of the models for me.


Women's
#85915 26MM 18K Champ RN Dial. Was $17,950. Now offered at 8975.00
Men's
#67389 36MM SS/18K Date Just BLK mop RN Dial Was 10,5K. Now 5,200.00
#74054 36MM Dome Bezel Date Just Blk Jubilee Dia Dail. Was 10,350.
Now 5175.00

So does anyone know anything about these watches. I'm just curious in the end why they would be selling them for so cheap?

[marcinthemiddle]

That makes NO sense at all- selling them at 50% just because the warranties are on paper?
I wonder what Rolex USA would think of an AD selling them at that price?
Bet they won't be an AD in the near future!

[77 Datejust]

I wish i was in drivn distance!

[imono]

Call and charge it!
May we have the phone number privately?

[77 Datejust]

Originally Posted by imono

Call and charge it!
May we have the phone number privately?

Good idea as that datejust is priced right!

[maxxor]

you sure she didnt say good as new?.......i find it extremely hard to believe this.....thats AD suicide....

if this is indeed the case....buy all 3 and than flip on rolexforums.com for 40% off and make yourself a quick grand.....

my guess is they are serviced 'used' watches that are good as new...

[jtrader]

Yea that's what I was wondering myself. I mean that's really low for any Rolex. But I had her pull out a few of them and I took a look and they looked flawless. I realize in this day of age that doesn't always mean brand new with no owner.

But here's what they have going on.

There were about 20 Rolexes in a case that were 50% off. The rest were all reg price, and they have a lot in stock.

All there Omega's were 30% off.
All there Breitlings were 30% off.

And they also had a case on the wall with prev owened Breitling's that were 50% off as well.

But either way I think there are some deals to be had there.

So my question is with some of these watches like the Date Just's that I just posted. If this is lagit. Could I pick one or two of these up myself and then sell them on TRF quickly. Or would I end up sitting on a Gold DD for while trying to find a buyer? I seriouslly doubt it would take very long at those prices. But I just don't wonna buy something and then have to wait 2 or 3 months to sell it.

[77 Datejust]

Theres no way to lose money at those prices!

[imono]

To Buy and Sell there is no guarantee you will make money.
There is always the possibility to loose it all.
Anyway, if I were you I'd go get a couple.
And put them FS here quickly.
If it works go and get more!
Better still if you can get them with unfilled blank warranty papers.

Good Luck!

[Rscmaine]

Lets do some math.

If these are indeed NIB never sold/never worn and you buy $40,000 retail for $20,000,

Then you mark them up to $22,000 you make 10% on your money...in an environment where jumbo CD's are paying what 1.5% annually? And you are still selling for 55% of retail.

Trust me, you will not have long to wait - some dealer here will snap them up and make n additional 10-15% just as fast.

The trick is to not be greedy.

If you can make 10% in a week any other way, more power to you.

I would jump - again after verifying to a certainty that these are truly new and not over handled display or returns.

[Rscmaine]

I found - at a local scratch and dent salvage joint in Maine - 10 pairs of Versace Rosenthal wine goblets for $30 a glass - they sell on Amazon for $325/pair http://www.amazon.com/Versace-Rosent.../dp/B000GE7CI8 and were listed on Ebay for $185/pair.

I bought all 10 pair (for $60/pair) and listed them on Ebay that day for $125/pair plur $25 shipping.

They sold within 3 hours.

The buyer was the guy who had them listed on Ebay for $185 - and he just upped his number of available units at that price.

Good for him, good for me.

[robsteve]

Originally Posted by jtrader

So does anyone know anything about these watches. I'm just curious in the end why they would be selling them for so cheap?

They may be 50% off todays price, but if they are old stock, they may have had a much lower list when they were current. When did they switch to plastic warranty cards? For example, if they are five year old stock, they might have been quite a bit cheaper back then.

Robert

[Strut99GT]

They only switched to plastic warranty cards within the last few years. These watches are an outstanding deal, period. In fact, I'm surprised they aren't already gone.

[PeteNYC13]

Originally Posted by robsteve

They may be 50% off todays price, but if they are old stock, they may have had a much lower list when they were current. When did they switch to plastic warranty cards? For example, if they are five year old stock, they might have been quite a bit cheaper back then.

Robert

__________________________________________________ _____________

I was thinking that too.
Also, Rolex 50% off, Breitling 30% off...sounds like an AD that is going out of business -if this is legit.

-Pete

[gmh1013]

An AD back in Houston last fall had a Pepsi and Coke that he was taking bids on the pair... Pepsi had the newer movement 3186 and the Coke didn't but didn't he sold both as a pair for 14900 as new old stock.
now they would have gone for closer to 16k? or so.
I wish that I could have got them.

[Poom]

Would that really happen that Rolex will wrongly issue paper instead of card for the new one? I don't think so.

[Eric89]

#74054 36MM Dome Bezel Date Just Blk Jubilee Dia Dail. Was 10,350.
Now 5175.00

I want that watch bad and at that price I would have to buy it. Its ashame Im not closer or I would drive over and pick it up. Would you happen to be willing to give me the name/info of this place? You can PM me with it if you want and Ill give them a call to see if their are willing to do it over the phone. As far as the you buying and selling them again, Im sure you could do it. Assuming they are all really BNIB, at those prices you could definitly stand to make some money in the resale game. Heck, Id buy the one I was talking about above from you should you decide to flip them.

[MikeyTX]

Notice ...................JTrader has not responded to requests for the AD's phone number. AD must have some pretty quick hit men ........................

[seedgun]

The correct term for this is disintermediation. another term is arbitrage. In this day and age, when we can cut out a middleman due to either ecommerce or someones desire to sell at either a lower profit or a loss and then another scoops it up and sells it for a profit it is disintermediation. We have seen it in a lot of industries when the value chain is flattened and the velocity of commerce is hastened. At those prices i'd buy just to resell.
Great fleeting opportunity which is the basis of all profit.
All the best,
Andy

[HL65]

That is a great deal considering they are selling for 10% below their cost. It also makes no sense unless they were unpopular sellers and Rolex gave the AD a better price than the standard price of 40% off. Interesting.

[Naples09]

Must be this place, Alvin Goldfarb Jewelers. Its the only PAM dealer outside of Seattle. The PAM site shows only two AD's in the state.

http://www.alvingoldfarbjeweler.com/

[buyrolexnow]

Originally Posted by SteelerFan1965

That is a great deal considering they are selling for 10% below their cost. It also makes no sense unless they were unpopular sellers and Rolex gave the AD a better price than the standard price of 40% off. Interesting.

If you do the math correctly, you will find that the watch sold at 50% off is sold for 30% less than cost.

Example: a watch purchased for $10,000 is marked up 40% to $14,000. If that watchs price is not increased and sold at a 50% discount for $7,000 then the retailer has just sold the watch for $3,000 less than he paid for it. Thus 30% less than cost.

This should indicate only one thing. That store is on its way out of business one way or another.

[HL65]

Ok--So--$10k watch retail is bought by the AD for $6k. If the watch is sold at a 50% discount to the retail price
it sold for $5k. Thus the AD lost $1k on the watch--which is more than a 10% loss of his cost of $6k--actually
about a 16.6% loss--yes far greater than 10%. Definitely out of business sale!!

[buyrolexnow]

Originally Posted by SteelerFan1965

Ok--So--$10k watch retail is bought by the AD for $6k. If the watch is sold at a 50% discount to the retail price
it sold for $5k. Thus the AD lost $1k on the watch--which is more than a 10% loss of his cost of $6k--actually
about a 16.6% loss--yes far greater than 10%. Definitely out of business sale!!

No. You don't subtract 40% from retail, you add 40% from cost.

A $10,000 retail watch is $7,142 cost.

$7,142x1.4= $10,000ish

If that watch is sold at $5,000 then the loss is $2,142. If you take the loss divided by the cost it comes out to a 30% loss from cost.

[HL65]

Derrick--chill out dude--An AD gets 40% off of list price--leaving 60% of list price--that is according to the AD. To me--my math says--AD paid 6k for 10k watch and sells for 5k equals 1k loss. I will stick with my math--you stick with yours--at the end of the day --life goes on. Best.

[mdtddd2007]

true that...its simple math

[snowbird]

Originally Posted by Naples09

Must be this place, Alvin Goldfarb Jewelers. Its the only PAM dealer outside of Seattle. The PAM site shows only two AD's in the state.

http://www.alvingoldfarbjeweler.com/

Could be but . . . I was in that place a few months ago and it didn't have the look of a struggling jeweler to me, pretty sizeable store with lots of Rolex (even the Cellini line).

[emagni]

I could be wrong but I believe the last year Rolex used paper based warranty paper was 2006 and they started to use the plastic warranty card at the end of 2006 or beginning of 2007. Without knowing the series no. or beginning character it's hard to know what year the case was manufactured which is a close indicator to what price range it could be. I think everyone here have an idea of how many price increases we had since 2006. You can view rolex price history: http://www.minus4plus6.com/PriceEvolution.htm

There is also a big price difference between the newer solid links datejust versus the hollow links version. About $1550 difference between the two when the new one was introduced. Not considering the weak dollar, inflation, and AD's vested capital for all those years; they still maybe making some profit if not break-even. $5775 for the TT datejust back in 2004 for hollow link and $7325 for solid link when it was introduced in 2005.

[brandxbrand]

I remember when Jack Kelmer closed down in Philly. 50% off for a few days there too, if not more.

[newtamparealestate]

Originally Posted by SteelerFan1965

Derrick--chill out dude--An AD gets 40% off of list price--leaving 60% of list price--that is according to the AD. To me--my math says--AD paid 6k for 10k watch and sells for 5k equals 1k loss. I will stick with my math--you stick with yours--at the end of the day --life goes on. Best.

If an AD dealer makes 40%, that is figured in different ways.

If its factored 40% above wholesale cost, its based on there purchase price. Not deducted from the retail.

If the watch costs the dealer 5000.00, then the retail based on 40% would be $7000.00

Its not 40% taken from $7000.00 as that would be $2800 and thats not correct.