AD offers to sell a brand new sport model at the gray market price

[jimmytamp]

Originally Posted by Luke@TRF

this is ethically wrong, and the brand should intervene.

what the private owner of the product do does not mean the business owner of the product can do the same.

otherwise Amazon can start charging people double the money for a PS5, latest Intel/AMD CPU & GPU etc which are getting flipped mad.

You might be right, but hey..it is what it is (sad but true)


https://www.instagram.com/fliegerb777/

[jimmytamp]

Originally Posted by pp4daytona

It's for GMT. It didn't go to the payment part. The deal was buying 2 Tudor watches and get the GMT at MSRP or pay around $16,000 to just the GMT. I said no.

If I were you, I would have bought those bundled.

You can always sell the Tudor and keep the GMT.


Cheers...


https://www.instagram.com/fliegerb777/

[Benzsiam]

Originally Posted by jimmytamp

If I were you, I would have bought those bundled.

You can always sell the Tudor and keep the GMT.


Cheers...


https://www.instagram.com/fliegerb777/

I agree, actually it is not a bad deal at all.

[iliketime]

if people started refusing to pay the higher prices, it is likely this mess would be over. But as long as there is someone with extra money to burn and willing to play the game, then it will continue.

[Speedbird-1]

Originally Posted by padi56

Just tell that AD politely the second word is off, and turn around and walk out of his /hers store.Now if everyone done that when met with these so called bundling stuff then perhaps we could get back to normal sales.But today as Rolex watches to many are now little more than $$$$$$££££ object things..And while there are those willing to bow down lick ars# to these so called AD bundling stuff the trend will continue. With some ADs jumping up for joy because there are many around today with more money than sense,to get one of the so called hot mass produced Rolex watches..

X2!!

[wrxdev]

Not a bad deal. Get the two Tudors and the GMT you're after.

[Goin2drt]

Originally Posted by Luke@TRF

this is ethically wrong, and the brand should intervene.

what the private owner of the product do does not mean the business owner of the product can do the same.

otherwise Amazon can start charging people double the money for a PS5, latest Intel/AMD CPU & GPU etc which are getting flipped mad.

This is unethical but the well supported grays here it is cool and capitalism. You guys are hilarious. Is it capitalism or not plain and simple.

I say great for the AD sell it for what someone is willing to pay.

[strafer_kid]

Originally Posted by peterpl

In the developed world its called free trade and the ADs are individually owned so they can pretty much set the price on anything they want.

Car dealers are doing the same thing with Porsche etc....does Porsche care? Nope.
My local tech stores are doing the same thing as you say with PS5 and AMD CPUs.....does AMD or Intel care? Nope.
Local Shoe shops are doing the same thing with Jordan/Yeezy shoes.....does Nike or Adidas care? Nope.

this is nothing but capitalism at its finest.

Pretty well sums it up! None of this price drama appears to be having any real adverse impact or negative effect upon Rolex factory output or sales. Rolex appear happy enough!

[alphasports]

Originally Posted by teck21

Many Rolex buyers wants to enjoy the money they make thanks to capitalism because it suits them, but want a socialist method of distribution because it suits them.

Gotta take the good with the bad, the bad being luxury goods go to those who can and will pay the most.

As you put it, capitalism working as intended in this case.


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Gotta agree with you here

[mfnj]

Originally Posted by pp4daytona

I think this is going too far.
I want to buy from an AD because I don’t want to pay premium. All I got is you need to bundle or pay gray market price.
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Pardon my "French", but F**k the AD's () and to a lesser degree, Rolex for allowing this to happen. As consumers we vote with our hard earned money. If you want to play their game go right ahead.

[Robf52]

Originally Posted by teck21

Many Rolex buyers wants to enjoy the money they make thanks to capitalism because it suits them, but want a socialist method of distribution because it suits them.

Gotta take the good with the bad, the bad being luxury goods go to those who can and will pay the most.

As you put it, capitalism working as intended in this case.


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This. Given the ongoing supply/demand imbalance, you've got to pay to play.

[TimeAZ]

I would rather just pay the grey market price at the AD and buy the watch without any BS or false promises and not having to magically purchase some ambiguous bundle.

[Goin2drt]

Originally Posted by padi56

Just tell that AD politely the second word is off, and turn around and walk out of his /hers store.Now if everyone done that when met with these so called bundling stuff then perhaps we could get back to normal sales.But today as Rolex watches to many are now little more than $$$$$$££££ object things..And while there are those willing to bow down lick ars# to these so called AD bundling stuff the trend will continue. With some ADs jumping up for joy because there are many around today with more money than sense,to get one of the so called hot mass produced Rolex watches..

Sadly people need to do the same with EVERY gray as well and that will never happen. If the AD isn't doing this then it will just be the numerous grays.

[Twovalvekid]

Talking to various ADs in the NE and here in central Atlantic, Rolex proper would be very interested in an AD that offered pieces in this manner.

[Bigblu10]

Originally Posted by pp4daytona

It's for GMT. It didn't go to the payment part. The deal was buying 2 Tudor watches and get the GMT at MSRP or pay around $16,000 to just the GMT. I said no.

Worst case scenario you could have flipped the two Tudor watches to one of the resellers here on the forum. Especially if they were two of the more in demand like the black bay blue dial blue bezel. Ultimately you can always find another AD in your area to do business with, depending on your locale.

[1791]

I don't blame the AD for bundling or selling to greys. They have every right to maximize their profit. It's business nothing personal.

[ArtNouveau]

As long as I’ve been buying Rolex in the US (30+ years) I have always been told that the US dealer agreement says not to sell over MSRP, bundling is not taboo. By anti-trade laws they can’t make them but they can certainly cut them off and/or drop them completely. The AD contract is in RolexUSA’s favor.
Anecdotally two AD’s in my area were dropped in the last year or so. At least one of them was quietly offering above MSRP deals, I had one suggested to me by them. Whatever, they lost the cash cow. I generally think “report to Rolex” is a useless waste of time but I’d be tempted to drop an email to RolexUSA about your over MSRP offer.

[cgaites]

Originally Posted by 1791

I don't have a problem with this policy. Let the AD set the price for new watches. It would put inventory back in the AD displays.

I too wish Rolex would just let ADs charge market price for new watches. If they did, then there would be stock in the cases, and you could actually see and try on the watches before you bought them. The experience of purchasing a Rolex would actually feel like a luxury as opposed to the current demeaning slog. If someone wants a new GT3 from a Porsche dealership, they can buy one pretty much any time for market price (MSRP + ADM). The supply of GT3s gets allocated via a market pricing mechanism as should be the case in a capitalist economy.

As someone earlier in the thread said, why do a bunch of people (prospective Rolex buyers), who presumably earned their money in a capitalist system, want ADs to employ a socialist style method for selling their wares? If the AD wants to discount from market price for their loyal customers, they still can. Maybe Rolex is just scared of rocking the "Rolex's hold their value" boat?

[powerfunk]

Originally Posted by Luke@TRF

this is ethically wrong, and the brand should intervene.

what the private owner of the product do does not mean the business owner of the product can do the same.

otherwise Amazon can start charging people double the money for a PS5, latest Intel/AMD CPU & GPU etc which are getting flipped mad.

I'd argue it's only unethical if they contractually agreed that they wouldn't do that. Amazon does start charging double the money for products when their demand increases all the time. Remember that cheap $35 watch roll on Amazon that shot up to $60 in a couple days?

I have no problem with any reseller selling their products for market price. And...that's what happens unless they have some obligation not to. What if there was no MSRP at all? Then what price would be "ethical" to you? There's nothing inherently "morally just" about the MSRP's that companies set imho.

[Wcdhtwn]

I had the owner of an AD in Houston try to sell me a Daytona for gray market prices a few years ago. The only way this made sense to me was if the owner bought the Daytona then tried to use his store’s customers to unload at the higher price. I was not happy and never returned to the AD. I didn’t turn them in or complain to Rolex, I’m sure they tried this with others.

No idea if it’s related to this situation, probably not, but they lost their AD status not too long after.

[shapiroeric]

Originally Posted by teck21

Many Rolex buyers wants to enjoy the money they make thanks to capitalism because it suits them, but want a socialist method of distribution because it suits them.

Gotta take the good with the bad, the bad being luxury goods go to those who can and will pay the most.

As you put it, capitalism working as intended in this case.


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Gotta say this is spot on....good post

[alphadweller]

Pay gray price for a new piece at the AD? Wow, that's a first for me but they have a business to run and they sit on many hard to sell models. They can't choose what they receive from Rolex and can't live on selling hot watches alone at retail price. They have to find a way of moving the less desired pieces. I guess Rolex could make more sports steel and less classic and PM, but it seems they chose not to. Ultimately that's the strategy they've adopted. Produce less desirable models than the demand for them. Does it pay off? Looks like it, even if it means more frustration to many. Let's remind ourselves that this is luxury, a want, not a need.

[faz]

Originally Posted by 1791

I don't have a problem with this policy. Let the AD set the price for new watches. It would put inventory back in the AD displays.

Originally Posted by Goin2drt

I say great for the AD sell it for what someone is willing to pay.

Originally Posted by TimeAZ

I would rather just pay the grey market price at the AD and buy the watch without any BS or false promises and not having to magically purchase some ambiguous bundle.

Originally Posted by cgaites

I too wish Rolex would just let ADs charge market price for new watches.

Originally Posted by powerfunk

I have no problem with any reseller selling their products for market price.

I agree with all of the above. I have always said, ADs should sell the watch for whatever value market is willing to pay for it. Rolex can have some corporate owned boutiques around and sell at their MSRP, but the minute they sell the watch to some "Jack and Jill's jewelry store", that store should be able to sell it at any price the market is willing to pay.

[drrd]

Originally Posted by TankTom

Watches of Switzerland here in the UK are selling a hulk for £16k odd (inclusive of VAT) which implies it is a brand new watch.

Hulk is no longer current so WOS can then sell it at whatever price they want (pseudo-used if need be).

WOS won't risk their relationship with Rolex and sell current models above list.

They can just ignore a request to purchase a Rolex, until you loosen up your wallet a little on other stuff of course. So you know there are ways round that little problem.

[mykii]

I wish I was given the option of bundling. Can't even do that anymore at my AD! The net result is you get nothing :(.

[hambone1983]

Originally Posted by teck21

If you wanna talk ethics, is it ethical for customers to buy any watch they want just to flip it, thereby depriving somebody else the chance to buy the watch at MSRP to enjoy?

Simple yes or no.


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yes. Nothing remotely unethical about it.

[iTreelex]

Originally Posted by padi56

Just tell that AD politely the second word is off, and turn around and walk out of his /hers store.Now if everyone done that when met with these so called bundling stuff then perhaps we could get back to normal sales.But today as Rolex watches to many are now little more than $$$$$$££££ object things..And while there are those willing to bow down lick ars# to these so called AD bundling stuff the trend will continue. With some ADs jumping up for joy because there are many around today with more money than sense,to get one of the so called hot mass produced Rolex watches..

When I first joined this forum I thought PADI was a lil grumpy. Turns out now he's my fave person on here. Well said!

[Atone]

i'd take the two tudors in a heartbeat to get a pepsi

[ArtNouveau]

Originally Posted by Wcdhtwn

I had the owner of an AD in Houston try to sell me a Daytona for gray market prices a few years ago. The only way this made sense to me was if the owner bought the Daytona then tried to use his store’s customers to unload at the higher price. I was not happy and never returned to the AD. I didn’t turn them in or complain to Rolex, I’m sure they tried this with others.

No idea if it’s related to this situation, probably not, but they lost their AD status not too long after.

I would not doubt if it was the same dealer I mentioned. I bought an Omega from them when they were a dealer for those too and occasionally stopped in to chat. He went to the back and brought out a brand new 116500 black dial, had a story about how he had traded to another dealer for it but had to pay over wholesale. His asking price was $17K which was maybe 1-2K off the going price then. I declined but the whole thing was kind of weird. Pretty sure the “traded watch” would have mysteriously come with their dealer stamp on the warranty card.
I don’t think that was the only reason they lost their franchise but I’m sure word got around if they were doing this often.

[fwhawk]

Originally Posted by teck21

If you wanna talk ethics, is it ethical for customers to buy any watch they want just to flip it, thereby depriving somebody else the chance to buy the watch at MSRP to enjoy?

Simple yes or no.


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Yes that's ethical. Once you own the piece you can do what you want with it.