How do the Grey Sellers get inventory?

[NattyBumppo]

TRF,

How can the grey sellers who post on the classified forum keep their stock constantly refurbished? A couple of them have websites and it seems like they have 3-5x more watches that my local AD!

I just don't get it. I have called around looking for a couple hard to find SS models and all I get is the 1-2 year wait song and dance.

Should I just give in to the Grey side and pay them their premium??

The best,

NB

[Sal_UKSheffield]

They buy them from ADs.... simples

[RolexNorth]

Some think there's collusion between the AD and the grey market retailer. AD get's the model, call grey market dealer who buys it at retail who then turns around and resells at huge mark-up. When the watch sells, they split the profit with the Rolex AD.

Also, some people get on the Rolex AD's list for the model. When the call comes in and they go to pick it up, they just turn around, go to a grey market dealer and sell it to them for a profit.

Two things could help this situation. Make every Rolex Boutique a corporate store. Then flood the market with the models people want.

[tyler1980]

If AD's sold at market prices then they would have plenty of stock too. Secondary resellers price items at the maximum price they can get. When the market is equalized then inventory doesn't fly off the shelves. The only balanced market is the secondary one.

Uber surge pricing at AD's is the solution. You get a multiplier to the base price depending on demand. Prices updated daily.

[GB-man]

They make tacos. ADs love tacos. They trade. The better the tacos the better the watches.

[texasmade]

Originally Posted by Sal_UKSheffield

They buy them from ADs.... simples

This. Some of the larger greys are essentially online retail sites for AD’s since Rolex prohibits online sales for AD’s.

[NattyBumppo]

Originally Posted by texasmade

This. Some of the larger greys are essentially online retail sites for AD’s since Rolex prohibits online sales for AD’s.

This must be a component of it. Also, I would imagine that the AD who sells to these guys must get a kick back. Otherwise it would make sense to sell to people in your community to increase the jewelry store’s customer base.

[bmrisko]

Originally Posted by NattyBumppo

This must be a component of it. Also, I would imagine that the AD who sells to these guys must get a kick back. Otherwise it would make sense to sell to people in your community to increase the jewelry store’s customer base.

This....and as mentioned above, tacos.

[cht]

Easy.

They buy a hand full of models that ARE NOT selling at the AD for 10% or so over cost.

Then they ask in return for purchasing a bunch of models that aren't selling at the AD, that they get a couple desireable models to sweeten the deal.

[Swiss Mad!]

Originally Posted by NattyBumppo

TRF,

How can the grey sellers who post on the classified forum keep their stock constantly refurbished? A couple of them have websites and it seems like they have 3-5x more watches that my local AD!

I just don't get it. I have called around looking for a couple hard to find SS models and all I get is the 1-2 year wait song and dance.

Should I just give in to the Grey side and pay them their premium??

The best,

NB

Depends how much you really really want a piece.
My natural instinct is to say No! be patient, the watch you want will become available eventually, just depends how long you are prepared to wait.
It goes against every bone in my body to pay extortionate premiums to the greys but that's just me, if you really want one now and can afford it, then I'd reluctantly say go for it.

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[JR16]

Originally Posted by tyler1980

If AD's sold at market prices then they would have plenty of stock too. Secondary resellers price items at the maximum price they can get. When the market is equalized then inventory doesn't fly off the shelves. The only balanced market is the secondary one.

Uber surge pricing at AD's is the solution. You get a multiplier to the base price depending on demand. Prices updated daily.

I’ve heard this argument before, but if Rolex increases their prices but kept supply the same, why wouldn’t grays just proportionally increase their prices ? People will still pay. Disposable income in the US will be higher this year than in recent past. I think this strategy only works if Rolex significantly increases its supply to its ADs. Just my 2 cents / pence


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[joli160]

Originally Posted by cht

Easy.

They buy a hand full of models that ARE NOT selling at the AD for 10% or so over cost.

Then they ask in return for purchasing a bunch of models that aren't selling at the AD, that they get a couple desireable models to sweeten the deal.

X2

[Swiss Mad!]

Originally Posted by RolexNorth

Some think there's collusion between the AD and the grey market retailer. AD get's the model, call grey market dealer who buys it at retail who then turns around and resells at huge mark-up. When the watch sells, they split the profit with the Rolex AD.

Also, some people get on the Rolex AD's list for the model. When the call comes in and they go to pick it up, they just turn around, go to a grey market dealer and sell it to them for a profit.

Two things could help this situation. Make every Rolex Boutique a corporate store. Then flood the market with the models people want.

Flooding the market is not the answer.
All this will do is devalue the brand and second hand risidules will go through the floor.
People pay a premium for things that are hard to get - if the AD's are full of stock and there are no wait lists, the used market collapses and to every single member of this forum that asks the question 'how much will it be worth...?' you can answer 'nothing'
Take Omega as an example. Walk into any Omega AD and you can buy just about any current model you want - and if they don't have it they can get it within a week, no problem.
Now try and sell that same Omega after less than a year and then don't be surprised if you are offered about half of what you paid for it retail.
As we all know it's a completely different story with Rolex. Try and sell a Sub date after a year and you should be able to get minimum your money back or probably a bit more. If you have a Sea Dweller/JC DSSD/SS Daytona then name your price...

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[tyler1980]

Originally Posted by JR16

I’ve heard this argument before, but if Rolex increases their prices but kept supply the same, why wouldn’t grays just proportionally increase their prices ? People will still pay. Disposable income in the US will be higher this year than in recent past. I think this strategy only works if Rolex significantly increases its supply to its ADs. Just my 2 cents / pence


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if you price anything at the maximum price the market will bear then the secondary market goes away. Price a SS daytona at 20k retail and you can get one at an AD and AD's will still sell them. They are not flying off resellers shelves at that price but they are selling them. If there is an equilibrium then the amount of supply doesn't matter and inventory will be available.

[Brenngun]

For those who have a conspiratorial view point. It's helpful to keep in mind that not every single Rolex AD is located in an area with a high enough wealth demographic to sell out their stock. Some have a customer base that prefer certain models and may not buy SS as frequently.

The grey market gives them an avenue to move excess inventory. The watches change hands through a simple sale. I doubt that kickbacks are part of the process as it would mean instant loss of AD rights. I doubt that any AD would want to jeopardise that.

[Manager_pete]

If everybody would refuse to pay the premium for the hot new SS models from the grey dealers the waiting lists with the AD would get so much shorter, it doesn't seem to be any shortage on any models with the grey dealers

I don't understand why people support this kind of business

[Rrpdc]

Originally Posted by NattyBumppo

Also, I would imagine that the AD who sells to these guys must get a kick back. Otherwise it would make sense to sell to people in your community to increase the jewelry store’s customer base.

+1 there has to be a total kickback. I don't buy they also take some of undesirable models etc. there has to be a kickback or white envelope being passed back and forth.

extremely frustrating to see greys with multiple sky d, blnr etc and ad's have wait list.

I think there is a place for greys to sell preowned watches but buying the stock then charging ridiculous premiums is frustrating to say the least.

I was in one ad last week, they told me that rolex had purchased a ss model from a grey dealer. they came back to the ad and questioned why they had sold the watch to this person. I am sure it is hard for rolex to crackdown but I was surprised that had purchased a rolex back off the market. this is just per salesman at ad but no other proof.

[ronricks]

Originally Posted by NattyBumppo

TRF,

How can the grey sellers who post on the classified forum keep their stock constantly refurbished? A couple of them have websites and it seems like they have 3-5x more watches that my local AD!

I just don't get it. I have called around looking for a couple hard to find SS models and all I get is the 1-2 year wait song and dance.

Should I just give in to the Grey side and pay them their premium??

The best,

NB

A lot of them get stock from Greece, Italy, Spain, etc.

[Speed]

Originally Posted by NattyBumppo

Should I just give in to the Grey side and pay them their premium??



The best,



NB

How badly do you want the watch in question?

If the answer is “very” bad. Pay, and enjoy. If it’s whatever...go without.

[Rrpdc]

Originally Posted by Speed

How badly do you want the watch in question?

If the answer is “very” bad. Pay, and enjoy. If it’s whatever...go without.

if you want it bad and love wasting money !

[meganfox17]

Originally Posted by NattyBumppo

How...don't..get .it..called..look..hard... find..wait..song..dance..give in..pay..best

[mvera339]

Originally Posted by ronricks

A lot of them get stock from Greece, Italy, Spain, etc.

This is very true. I bought one from a grey seller and the warranty card showed it coming from an Italy AD.

A few months back, I went to my local Rolex boutique and discussed this with him. Explaining to him how much cheaper I got the watch. He then told me it’s going to get difficult for the grey seller. Told me for all warranty cards they will only be “activated” by swiping the card at an AD. I’m wondering if this is true or not. My last two watches have been from the boutique so I’m not quite sure about the warranty card issue.

Can anyone chime in on this ?

[mountainjogger]

Originally Posted by GB-man

They make tacos. ADs love tacos. They trade. The better the tacos the better the watches.

:c lap:

[AS1]

Originally Posted by Manager_pete

If everybody would refuse to pay the premium for the hot new SS models from the grey dealers the waiting lists with the AD would get so much shorter, it doesn't seem to be any shortage on any models with the grey dealers

I don't understand why people support this kind of business

because they want the watches, don't want to wait and can afford to pay for them. that's the market...

[NattyBumppo]

Originally Posted by Swiss Mad!

Depends how much you really really want a piece.
My natural instinct is to say No! be patient, the watch you want will become available eventually, just depends how long you are prepared to wait.
It goes against every bone in my body to pay extortionate premiums to the greys but that's just me, if you really want one now and can afford it, then I'd reluctantly say go for it.

For example, lets take a Hulk. The AD charge $9100. Plus sales tax 9737. The grey market is 10-10.5k. Obv no sales tax. If you go ahead and buy now from a grey before the rumored "price hike", then you basically break even.

Thoughts????

[gegarrenton]

I'm happy to see any kind of crackdown on the grays personally. The anecdote about Rolex buying one and confronting the AD is perfect.

[DoctorA]

Like the “VIP” customers who buy a lot from ADs, grey dealers help the ADs move some of their slow movers with the purchase of the hot items

The other way they get their inventory is through regular owners who get those hot items and sell them to grey dealers for some profit

[HL65]

Problem right now is supply on more sought after SS pieces has been rather tight. Discounts on those watches has evaporated. Most AD’s are selling at full retail because they can right now. So now you are seeing them sell at premiums as even the grey dealers are paying retail now at least here in the USA. It seems Rolex would like to make it harder on resellers and the market is clearly reflecting that now. Wonder how long this continues and if the market stays like this or changes.

[Swiss Mad!]

Originally Posted by NattyBumppo

For example, lets take a Hulk. The AD charge $9100. Plus sales tax 9737. The grey market is 10-10.5k. Obv no sales tax. If you go ahead and buy now from a grey before the rumored "price hike", then you basically break even.

Thoughts????

Yes but as soon as Rolex announce a price rise - the grey dealers increase their already overinflated prices by a similar amount so it's a lose lose situation for the consumer..you & me.

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[Speed]

Originally Posted by Rrpdc

if you want it bad and love wasting money !

Wasting money...

Well then, buy a swatch Vs. a Rolex. And avoid "wasting" a TON of money.