Couple questions about AD (in the USA) inventory

[TimRolex]

Hi All,

I am curious if anyone here is familiar with the stocking/inventory practices at Authorized Dealers in the USA.

When an AD receives a shipment of watches from Rolex, does the store know what is in the box beforehand, or is it a surprise, with the AD's inventory being decided/dictated by Rolex?

When an AD orders a specific watch for a customer, are they able to track and confirm when the watch will arrive and with which shipment of inventory, or is it simply "it'll get here when it gets here"?

Do dealers get a set "allocation" of each model of watch, or can they order as many they wish?

Finally, are dealer able to search other dealers' inventory for a particular watch if a customer requests something specific not in the dealer's inventory, and conduct a "dealer trade"?

I ask because I used to be in the car business (ran the new car department at a BMW dealership), and in our case we had set allocations of each model car based on our previous year's sales of those models. While we could order some units (inside the parameters of our allocation), we also were "forced" to take inventory the factory had built, regardless of our need/desire for that particular model/trim/color/options etc. We always knew when our shipments would arrive, and what cars would be included with each shipment, no surprises. Of course, if a customer wanted a specific car we didn't have, we could search dealership inventory all over the USA to find a match, contact the dealer with the vehicle in stock, and arrange a dealer trade for that vehicle.

Any insight would be appreciated! Thanks everyone, and happy holidays!

Tim

[travisb]

My AD knows when a shipment is on it's way. Unless the AD has ordered a specific watch, the contents of the shipment are not known.
If a watch has been special ordered for a customer, the rep will usually notify the AD once it has shipped.
There is no set allocation, but some pieces are not shipped as often (BLNR, SS Daytona etc) as say SS Subs, DJs etc.
Bigger chain ADs (like Mayors) are able to search other stores within THEIR company (not just any AD) inventory and can request to have a watch transferred into their store.
If a popular selling model is sold, the AD will generally reorder one for stock right away.
Hope this helps.

[NorthernPike]

I've been told by ADs here in Canada that they have an allocation. I inquired about both a WG sub and a Hulk at one AD and was told "We don't have those as they are not within our allocation." I was told by another AD that they don't know what Rolex will be sending them until it arrives.

[Racerdj]

Originally Posted by travisb

My AD knows when a shipment is on it's way. Unless the AD has ordered a specific watch, the contents of the shipment are not known.
If a watch has been special ordered for a customer, the rep will usually notify the AD once it has shipped.
There is no set allocation, but some pieces are not shipped as often (BLNR, SS Daytona etc) as say SS Subs, DJs etc.
Bigger chain ADs (like Mayors) are able to search other stores within THEIR company (not just any AD) inventory and can request to have a watch transferred into their store.
If a popular selling model is sold, the AD will generally reorder one for stock right away.
Hope this helps.

I have nothing more to add. Great answer.

[HL65]

Originally Posted by NorthernPike

I've been told by ADs here in Canada that they have an allocation. I inquired about both a WG sub and a Hulk at one AD and was told "We don't have those as they are not within our allocation." I was told by another AD that they don't know what Rolex will be sending them until it arrives.

Never have heard anything like that and that isn't at all how it works here. Rolex doesn't do allocations but some watches are a bit tougher to order and depends on size of store. The WG Sub is not one of them by the way and Travis did a good job above of explaining.

[TimRolex]

Great help guys, thank you! Seems, according to these two answers, that there might be some difference between ADs in Canada vs. USA.

The reason for my question is this: I have recently ordered, through a very well known and trusted pre-owned dealer I have bought several watches from, a new "Red Grape" 116000 OP. He quoted me a (VERY good) price, and told me his AD contact told him the watch was not in stock, but he could have it in less than two weeks, according to the Rolex rep. Two weeks passed, and I got an update saying the watch had not arrived, but should be coming with the next shipment. This was almost 6 weeks ago. Since then, according to my dealer, the AD has received two shipments, both of which they expected to contain the watch but did not.

I suspect the AD never intended to sell this watch for the quoted price, and have just been stringing me along the whole time, or the watch came in but someone else was willing to pay nearer to MSRP for it so they capitalized. In either case, I don't want to do business with them (indirectly), so I have gotten a refund, and will be buying from a trusted seller on TRF.

[TimRolex]

...I just got a call from the dealer that the AD will be getting shipment this afternoon and "my" watch should be included, would I like to still purchase, even though I have my refund? I said no thanks.

[Roma315]

I was at an AD recently and asked him about the new watches he has gotten in, I started naming specific models one was the new WG GMT II. He said they did not order that model and do not plan on it. They said they have a watch buyer who orders their watches and selects what they think will sell well in the area. They will order anything a customer wants but stock is based upon the buyer.

[TimRolex]

Interesting...so is the "watch buyer" an employee in their store, like an inventory manager? Or is this an industry "middleman?"

[Roma315]

Originally Posted by TimRolex

Interesting...so is the "watch buyer" an employee in their store, like an inventory manager? Or is this an industry "middleman?"

Unsure he would not go into detail and his facial expression seemed to tell me he told me too much and changed the subject.