How much profit does an AD make selling a new Rolex?

[Juantxo]

Originally Posted by Spartacus

I think the more important question is, why some ADs say Rolex does not allow discounts while clearly other ADs are discounting.

1) Because Rolex is more strict at enforcing the pricing policy. That is, Rolex may stop selling watches to an AD if caught discounting, and they will.
2) Because Rolex offers smaller margins to the AD.
3) Many brands actually foster gray market sales as their prices are steep at the AD level. And the AD must move the merchandise.
4) Have you noticed how many Patek Philippe watches are carried by gray market dealers. Often they are the most plentiful brand available at the secondary market, and they manufacture some 50,000 watches a year vs some 800,000 Rolex.