What is the typical price mark-up by Rolex AD's?

[brainbizz]

What is not accounted for is the price increases of older inventory. This may skew the 40%

[sond86]

Originally Posted by Speed

I disagree...Especially on Stainless Steel models. This is overly documented in many threads here.

Yeah true, I agree.

I'm misgeneralized my experiences when I was looking for my last watches and found discount offers were generally not hard to find, but that might.not be the case elsewhere.

[fusionstorm]

OK ladies, there's a lot of incorrect terminology being thrown around in this thread. Let's get things straight:

1) Markup percentage is defined as the percentage difference between the actual cost and the selling price.
2) Margin percentage is the percentage difference between the selling price and the profit.

We know that ADs actual cost for each Rolex they acquire is 60% of MSRP (plus whatever additional rebates they might get from Rolex for paying within 30 days and incentives for volume sales; but for clarity sake we'll ignore the additional points an AD might receive). If they were to sell every Rolex at list, then their markup percentage would be 66.67%. Their margin would be 40%.

Example - a Rolex with a $10K list price costs the AD $6K. He prices it at $10K, which is a $4K markup ($4K divided by $6K actual cost = 66.67% markup percentage). He gets a buyer unfamiliar with TRF to pay full list price. His $4K profit divided by his $10K sell price = 40% margin.

[Speed]

Whew!

Now I can sleep!