AD discount...what is the max allowed ??

[President]

Less than £3000?

[JJ Irani]

Originally Posted by President

Less than £3000?

No, tosser, less than US$6,000...and if you convert that into Pounds, yes, just under £3,000 too!!

Cheers - JJ

[montecristo]

I have an idea how much you paid now. Considering you didn't have to go to HK to get it for that price, I'd say you did well

[JJ Irani]

Originally Posted by montecristo

I have an idea how much you paid now. Considering you didn't have to go to HK to get it for that price, I'd say you did well

And if any one of you guys come here and take the watch out of Auckland Airport DUTY FREE....you can get an even better deal!!

[SeaGoer]

All AD's are playing the game! Can't say I blame them, either! It's called business! Some play it better and with more refined etiquette than others but they all play it. Standard discount is 5% on a SS ot TT and 10% on the YG or WG variety. From there on is how well you play the game and how well you are informed of your options. As far I have experienced this process myself, chain stores tend to be less agressive than individual entities. The more I get involved in this Rolex thingie the more I believe that good discounts from AD's are out there if you are willing to do your homework, find the AD's within reasonable driving distance to you, and pay them a visit.
Here in the States there is a definite attempt to fortify a monopoly evironment to protect the Rolex USA list pricing. One sees examples of the same business interest operating various stores, all Rolex AD's, under separate trading names and within the same terittory to fortify fixed retail pricing. The consumer goes from store to store, finds the same pricing and possibly believes that this is the pricing! Rolex USA seemingly helps the sustainability of this environment by not publishing the list of their dealers! This leads back to doing your homework before you buy. Call Rolex USA, find the AD's in the area(s) you are interested and take it from there!
Afterall, the hunt is arguably as good as the kill.

I think I said enough; thanks for listening

[dfn8tly]

No one seems to want to answer Chris's (Blue Bull) question so I'll jump in.

The official Rolex USA position is that there will be NO discounting. Therefore, there is no maximum allowed.

Now, I'm NOT a lawyer but many of us know their are federal and state laws in the U.S. that preclude a manufacturer/distributor from inhibiting fair trade and competetive practices. This means you cannot legally set a price for which the product must be sold. That's why you see the term "Manufacturer's Suggested Retail Price - MSRP". In theory, if you undercut another dealer or "lowball", which diminishes perception of the products value, you simply find that when it's time for a contract renewal you don't get one.

Another major transgression is "trans-shipping" or selling to a non-authorized (gray) dealer.

All of this being said, the manufacturer/distributor has to tread lightly on these issues or they destroy their own dealer structure. Rolex sales management are geniuses at walking this fine line.

Chris, I hope this helps.

[Blue Bull]

Thanks for your replies,Richard and Pete ... Considering what you said,we have to make the following conclusions:

Want to buy from an AD,you will have to shop around,cash in hand ,if you want the largest discount.

Perhaps there is some merit in buying from an unauthorised dealer.If you can find it for much less,at them and they provide you with a good backup service/warantee,why not ?

One benefit of the used market is that it is absolutely free.The seller can sell at any price ,they want.Market related,not arteficially inflated.Here,more care must betaken,but perhaps the best value can be found.

In my own situation,I have found that,the best for me is to hunt the best price from different ADs.The best situation for you,will depend,where you live on "Mother Earth".We all strive to find the best value for our money.Very simple really.The choice of model is emotional,the deal is business .

Different ADs in the same area,working together,on giving the same discounts and Rolex "guarding" the value of their product,by pulling the plug and not renewing the contract ,on ADs that give larger discounts......Sorry,thats price fixing !!!! Its not fair trade,its not a free market ..

[sevoguy]

Originally Posted by JJ Irani

Amazing discounts are available here in Auckland, and even better if you take it out of the country TAX FREE!!

Now THAT'S what I want to hear
Sevoguy

[Blue Bull]

Originally Posted by sevoguy

Now THAT'S what I want to hear
Sevoguy

I can just feel Rolex contributing to the hike in tourism numbers to NZ .. !!

[Nine11]

Originally Posted by JJ Irani

If both the same watches were bought in Hong Kong, why this large discrepancy in price from two different buyers???

JJ

I wasn't in the store in Hong Kong when the watch was purchased. I used a U.S. Dealer. He obviously wanted to earn something. Still, the local AD wouldn't budge off the 5125 list. 5125 with a 5 percent Maryland tax equals 5381. I paid 4650 delivered. So if you remove the tax that I would of paid from the 4650, I paid 4430 for the watch. A 13.5 percent discount off of the 5125 list price.

The watch came with double open papers and the Hong Kong AD as the seller on the paperwork. Not bad, I'm happy. The US Dealer has sold countless watches to members of the 6speedonline forum. One bad deal on that forum and you're toast. Similar to this one. One of them was a 1 million dollar Patek. Here is his link if anyone is interested. The guy is a straight shooter.

http://www.thewatchcollectorny.com/

[Blue Bull]

Originally Posted by Nine11

I wasn't in the store in Hong Kong when the watch was purchased. I used a U.S. Dealer. He obviously wanted to earn something. Still, the local AD wouldn't budge off the 5125 list. 5125 with a 5 percent Maryland tax equals 5381. I paid 4650 delivered. So if you remove the tax that I would of paid from the 4650, I paid 4430 for the watch. A 13.5 percent discount off of the 5125 list price.

The watch came with double open papers and the Hong Kong AD as the seller on the paperwork. Not bad, I'm happy. The US Dealer has sold countless watches to members of the 6speedonline forum. One bad deal on that forum and your toast. Similar to this one. One of them was a 1 million dollar Patek. Here is his link if anyone is interested. The guy is a straight shooter.

http://www.thewatchcollectorny.com/

Mario,what you should do now,is to go and show the new ss Sub to the AD,that did not want to give you any discount from list.Tell him,you got it from an AD,at a MASSIVE discount .... Next time you want to buy a Rolex,he WILL give you a discount !!!

[Nine11]

Originally Posted by Blue Bull

Mario,what you should do now,is to go and show the new ss Sub to the AD,that did not want to give you any discount from list.Tell him,you got it from an AD,at a MASSIVE discount .... Next time you want to buy a Rolex,he WILL give you a discount !!!

I gave them the opportunity to sell me a watch, I tried on an LV, a TT, and then the SS which is the one I selected. I gave them the 4650 price out the door and they wouldn't budge. They said they didn't work on commission and really acted like they didn't care if I bought my watch elsewhere.

They were the same AD that didn't know what a Z serial meant or how to extend the bracelet for diving. A real shame. I don't really think they would care if I came back and showed them the watch. They knew I was serious and couldn't care less. BTW is was a cash deal, screw'em.

[montecristo]

Originally Posted by Blue Bull

Mario,what you should do now,is to go and show the new ss Sub to the AD,that did not want to give you any discount from list.Tell him,you got it from an AD,at a MASSIVE discount .... Next time you want to buy a Rolex,he WILL give you a discount !!!

Common sense tells me if I can get rolex with more discount from one AD than other, I won't set foot in the expensive AD ever again.

[ROLEX4EvEr]

When I purchased My DJ in NYC, I got a 0% discount and in Maui I bought my wifes DJ I got a 0% discount. That does suck!!

[Blue Bull]

Originally Posted by montecristo

Common sense tells me if I can get rolex with more discount from one AD than other, I won't set foot in the expensive AD ever again.

Next time I buy,I will go to the expensive ones again ....They will remember me,with the Rolex,on the wrist,I did not buy from them,the previous time.... They dont enjoy that,but I do .... It kills the 'Snobbish' dealer on the spot.

[ezmoney46]

You know when the time comes for me it might very well be a trip to Kiwi land!!

[Blue Bull]

Originally Posted by ezmoney46

You know when the time comes for me it might very well be a trip to Kiwi land!!

NZ .... very nice and beautiful country,extremely nice people ... Official Religeon : Rugby (NZ and SA rugby ties go back more than a century ... ) and now it seems,great pricing on Rolex,too ...

[Spencer]

Seems as though many US AD's do not discount at all. the best I've seen in the US is TT 10% and YG 15%.

I was in Cabo San lucas, MX last week and they were doing 5% SS, 10% TT, and 15% YG.

[Blue Bull]

Originally Posted by Spencer

Seems as though many US AD's do not discount at all. the best I've seen in the US is TT 10% and YG 15%.

I was in Cabo San lucas, MX last week and they were doing 5% SS, 10% TT, and 15% YG.

Perhaps big brother Rolex USA are keeping a very,very close eye on them ?? If that is so,they are just supporting the grey industry,indirectly.Remember,Rolex already made their profit,when they sold the watch to the AD or indirectly to the grey market ..

Buy grey in the USA ?? The answer, perhaps ... ??

[oldbreadstinks]

Originally Posted by President

The there's something else you can squeeze!

yeah but when there's a girl usually its the buyer's balls that squeezed, provided the sales rep is stunning.

[JJ Irani]

Guys,

You must bear in mind that right now the NZ economy is booming. Our NZ Dollar has risen like hell in the last few months....now 1NZ$ = 70 US¢ which is very good news for importers who are having a ball.

Also, we are almost on par with the Aussie Dollar (1NZ$ = 90A¢) so that too is good for business.

JJ

[montecristo]

Originally Posted by JJ Irani

Guys,

You must bear in mind that right now the NZ economy is booming. Our NZ Dollar has risen like hell in the last few months....now 1NZ$ = 70 US¢ which is very good news for importers who are having a ball.

Also, we are almost on par with the Aussie Dollar (1NZ$ = 90A¢) so that too is good for business.

JJ

If your country's currency hyper-inflates, its not a good thing for your economy either, people will stop buying NZ stuff.

[jac67]

Firstly, we should not confuse Gross Profit with Net Profit. To say the AD "pockets" 40-45% is ridiculous!

By the time you deduct the two biggest expenses in any business - Wages and Rent, then everything else like insurance, power, theft etc. etc. you will be lucky to make between 10-20% net.

Non-business people (and I don't wish to offend anyone) tend to miss the point when mark-ups and Gross Profits are discussed.

Even my own senior staff in my retail business comment on daily/weekly turnover amounts as "Profits". When wages are paid at around $25/hr plus super etc. and rent at $1,300/sqm/pa, that's a huge bite out of my cherry.


John.

[kyo]

Let me preface this by saying I'm not a rolex expert, and I work in a completely unrelated field.

I just wanted to comment about the legality of "price fixing"

Having dealt with this extensively in the retail world.. I can say it is 'mostly' legal.

Companies have the ability to dictate what the minimum price for their products can be. This prevents companies from 'devaluing' their products by severely undercutting pricing. However, this must be a constant, and it must be applied evenly to everybody. They can't tell one retailer one thing, and tell somebody else another. The retailers must also agree to meet these pricing requirements.. however, the company doesn't have to do business with any retailer unwilling to comply to this.

As for how much profit retailers see.. in many fields, 100% markup is considered 'keystone' and is the optimal goal. This means that they paid 50% of the price they are selling it for. That's a good markup and a good return on investment assuming it doesn't take them forever to turn a product. Other industries vary from anywhere from 25% markup to 300% or more. I imagine watches like Rolex fall somewhere in the middle ground.. whereas jewelry stores can see up to 250% on a ring.. I imagine they would get somewhere around 90-100% on a watch (which would fall in line with the previously mentioned 40-50% of the retail price, being taken up by their cost)

Overall, that's actually pretty fair pricing considering the investment the AD's are making.. it's a business, they deserve to make money.

In the end, I'd rather buy from somebody I trust to be there to take care of me later.. so quit worrying so much about what their making, and spend more time enjoying your watch

Kyle (kyo)