Spending History

[inadeje]

Originally Posted by afmars

This.

From reading these forums one would think ADs just plug your spend history into an equation and BAM allocation or not. especially all the nonsense about jewelry counting and Rolex not counting or penalizing, etc, It’s all made up and speculatinf. In the real world you will be allocated a watch if you are liked by the right person and have some spend history. That’s it. You may have spent a fraction of what some other whale has spent but get the watch before them for a variety of reasons.

Andrew, as this thread is revealing, you’re not wrong. But there is no “one size fits all”. The general underlying rule is “genuineness” of said relationship. One member has a personal/professional relationship where he helps out the AD, so this is compensated against actual spend (see he only spends about 10k annually). Whereas, others have the high spend, but with a lesser personal aspect. However, the crossover is always the same - the relationship is genuine, albeit in different ways, but always displaying clear authentic camaraderie.

Happy Holidays

[JacksonRain]

Originally Posted by padi56

How long is a piece of string but most of the AD VIP stuff mainly exists in internet land..

Padi, there are literally AD VIP events...I know as I've been to one.

There are vip invitations for new releases as well. The jewelers have their VIP clients. It something that exists and it's not limited to internet forum talk.

[PureCoconut]

Originally Posted by screwly

i would just ask the particular ad you do business with. I’m sure they are all different with their requirements.

+1

[Gab27]

From the economics side, it would probably vary not just by individual location, but also your spending habits.

If you buy just high-demand Rolexes, you probably are not going to be considered to have nearly as much business value as someone who is buying other items that may, A) not be as easy to move, and B) may yield higher net returns.

In other words, the person who buys $50,000 in jewelry + $10,000 in Rolexes over a set time may be valued more than the person who buys $100,000 in Rolexes over the same duration.

Obviously, different ADs will consider things differently, and the tools they use here to do this will probably vary as well.

[inadeje]

Originally Posted by JacksonRain

Padi, there are literally AD VIP events...I know as I've been to one.

There are vip invitations for new releases as well. The jewelers have their VIP clients. It something that exists and it's not limited to internet forum talk.

100% correct. I have been to several, usually once a year. These are invite only, usually personalized with actual time slots per VIP in which your SA and his/her general manager dedicates personal time to “you”. There’s usually a personal viewing room which is part of the VIP event, in which you and you alone (with SA and manager) look over the new releases or any other piece they know you’re waiting for. There’s a personalized gift (name usually engraved onto) and Rolex book or literature (not just brochures), sometimes a bottle of champagne and chocolates. After the personalized meet/greet and viewing one can mingle at a small wet bar they’ve specially set up. However, most VIPs are quite secretive and leave after the personalized viewing. I usually hang out after my viewing and chat with my SA for an hour or so. They hold these events in different locations, depends on the year. Usually at one of their flagship ADs (which may not be the one you usually frequent).

[Gab27]

Originally Posted by Screwly

Here’s a question…. Does the money buying a Rolex count towards the spend or is the spend just other miscellaneous items???

I would expect the most savvy ADs to use some type of a weighted formula instead of just raw figures (there is an entire industry dedicated to this).

$10,000 spent on a stainless Daytona, versus $10,000 spent on a lower-demand ladies Rolex, versus $10,000 spent on necklaces would all be treated very differently when factoring in not only net profits but the difficulty in moving those respective items/odds they could rapidly sell it to another customer with a quick call. Length of an existing financial relationship and approximated odds of future purchases could also play a role, as could a myriad of other variables. (Obviously this sort of thing would necessitate ADs spending a little time/money up front, but it would benefit them considerably down the road...hence their need to be savvy and have longer-term vision.)

[Slimpee]

Originally Posted by NebHusker23

I'm sure this has been mentioned a lot, but how much spending history makes a VIP client to an AD??

I dunno but Gooooo Biiiig Redddd!

[train-time]

Major metropolitan market in the US would most likely be over $200K. My AD in the D.C. market specifically mentioned a minimum of $225K to qualify for a SS Daytona at retail. One could get it for less but the Daytona would end up costing you about market price. Also, the spend can't be over years, it would have to be current period.

[Watchwoody]

I’ve spent 70k this year and I’m pretty sure they barely even consider me a client.


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[Letitsnow]

Originally Posted by inadeje

I’m in Miami, my spend has been between 40 and 120k annually for the past 6/7 years. In my case the lower year spends were because the AD couldn’t get what I wanted so I didn’t spend. Other years you could say that we were “in synchronization” in so much as when he got what I wanted I was always there ready to pay (this is an often overlooked criterion on this forum) with immediate willingness. SAs need quick fire VIPs that are available and can act quickly with funds, since the SA is also on a stopwatch to unload the piece to a qualified buyer in a short timeframe. Why? Well if he/she doesn’t the opportunity is given to another SA at the AD. I’ve explained how watches are allocated at ADs on other threads. Read those please.

There’s another less known criterion about VIPs and its that your SA may get allocated a piece that isn’t on your wish list. He/she knows this but may propose it anyway because he/she needs help moving it fast, or a given buyer he/she had isn’t available or doesn’t have the money at that exact time. In these cases, the VIP may step up and help out anyway (I’ve been in this situation and ended up liking the piece and keeping it). You’d logically say “why wouldn’t the store just put the watch in the display and sell it that way?” - Well, that would be a good question. The problem is that the AD has rigid rules that certain pieces must be sold only to “qualified” clients. The “qualified” means VIP…only = high spend ratio

I’d say that in Miami you need at least a 50k annual spend to get watches worth 1.5x retail on the grey market. 100-130k for watches 2.5x (pepsi/blnr) to 3 times retail (eg Daytona). However, if you spend 130k it won’t be in one day (usually) so as you progress through that spend amount you’ll get pieces along the way which will gradually build up to the crescendo pieces (those worth 3x or more retail).

I don’t only buy Rolex from the AD. I also buy high margin (for them) jewelry and other watch brands from time to time. I never buy the same watch twice (well I did once, a BLNR but I told him I’d given the other as a gift to my brother- I had). Trying to get multiple same pieces is sure fire way of burning the relationship.

I hope that my synopsis wasn’t too convoluted

This is one the main reason to choose Boutiques versus Jewelry.... spending 25% of those moneys in the boutique will give same results.


Anyway I know people in Miami that got an Pepsi and an Starbucks after bought a DateJust this year.... with not other additional purchases. So, there is other ways to get the watches in Miami without spend those figures

[Letitsnow]

Originally Posted by mrN

It would totally depend on location and relationship. This year alone I got 8 watches from my AD (7 of them are Rolex and one FP Journe) and every single one is a hot watch (including 2 Daytonas, BLNR, Hulk, etc)

So I probably spent over $100k but the two years before that I spent zero with them because I was living in a different country.


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You spent 100K in Rolex or in jewerly/different watches?

[Fleetlord]

Originally Posted by Letitsnow

This is one the main reason to choose Boutiques versus Jewelry.... spending 25% of those moneys in the boutique will give same results.


Anyway I know people in Miami that got an Pepsi and an Starbucks after bought a DateJust this year.... with not other additional purchases. So, there is other ways to get the watches in Miami without spend those figures

From an indy or chain?

[subby718]

Originally Posted by Watchwoody

I’ve spent 70k this year and I’m pretty sure they barely even consider me a client.


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Controversially, this is why I will always go grey. I do not have this kind of money to spend with an AD to only hopefully be considered for a Rolex. I would rather just cut the BS and a lot of expense and go grey.

[norcalctr]

I'm in Cali and not even close to spending 200k. Guess time to go grey.

[Nav01L]

Well unfortunately the select committee on luxury watch allocation practices doesn’t publish its guidelines to the general public and all that are subjected to them are bound by secrecy, so no one who knows can say and no one who says truly knows.

But seriously though, as there are neither committees nor guidelines or other types of standards around this, the OP‘s question is about as easily answered as „how many dinners do I have to take her out fire before she’ll fall in love with me“.

Dome nice evenings at upscale eateries may help endearing one to that particular lady, but in an entirely arbitrary process, no generally applicable rule can be derived and no success can be guaranteed for any particular approach.

The same is true with ADs. Ultimately, it depends on whether or not the person holding the power of allocation wants to allocate you a watch or not. What it takes to woo them into doing that depends on the person, whether they’re in a good mood and what they had for dinner the night before, and about a myriad of other factors. Sure, spending brings you to their attention, but so do other things like being likable, having similar interests to discuss, etc. etc. In a market like the current one, many stars have to align, it’s not just about how much money you can drop. That is of course an important consideration, it can also be an incentive to milk you. So while sufficient spend may eventually get all the hot watches, they may have ultimately cost you much more than someone else who got them from the same place under different circumstances.

[Letitsnow]

Originally Posted by Fleetlord

From an indy or chain?

From an authorized dealer.

[Nairn1980]

Originally Posted by brucethemanlee

1k to $1m per year… or more ????

No one really knows because depends on location of AD and their clientele

Bottom line… if one needs to ask if he/she is a vip, they’re probably not

This

[Nairn1980]

Originally Posted by Letitsnow

From an authorized dealer.

He means independent or chain authorised dealer

[ryangambrill]

Up to or more than $1M annual spend with an AD is required for VIP status.


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[Letitsnow]

Personally I think Rolex doesn't like a bit this kind of collateral business... buy an Omega or unrelated items to able to allocate an Rolex.... and I think the Boutique business model will slowly replace the traditionally multivendor jewelers

[Letitsnow]

Originally Posted by Nairn1980

He means independent or chain authorised dealer

Oh.. I understand, I prefer do not identify the dealer since I want to avoid them trouble. You know how some haters react....

I can tell you that I saw it personally, and sometimes having a good relation with the AD manager is more powerful that spent 100K.

There so many people in Miami that spent more than 1M in the AD that if they only account the spent to allocate hot watches, 10 people will have the whole year inventory.

[teck21]

Originally Posted by Letitsnow

Personally I think Rolex doesn't like a bit this kind of collateral business... buy an Omega or unrelated items to able to allocate an Rolex.... and I think the Boutique business model will slowly replace the traditionally multivendor jewelers

Rolex does not like the bundling business, in which customer A buys item X in order to buy Rolex Y. That’s supermarket practice, not befitting of genuine luxury.

Rolex is comfortable with ADs requiring purchase histories and relationship building.

So yes, Rolex does not mind if an AD will sell only to customers who have bought Omegas for example.

But Rolex will mind if they form part of an explicit deal.

This is why there are AD games are about vagueness and VIPness.

Most boutiques are still owned by chains that sell other brands, so spending history on non-Rolex product will still apply.

Rolex does after all prop many other brands up, and understands the importance of that role.


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[GGGMT]

Originally Posted by NebHusker23

I'm sure this has been mentioned a lot, but how much spending history makes a VIP client to an AD??

Answer: none. I wanted into a major AD (top 5 in us) this summer. Never been into that AD. Kibitzed with the SA for an hour. Got a call 3 weeks later and bought 124270. And the SA told me: Rolex is encouraging them to branch out to new customers and NOT sell to repeats in order to bring new people into the ‘Rolex experience.’ Put that into your AD pipe and smoke it.


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[Easy E]

I can say with great certainty that 85k over 2.5 yrs amounts to zilch with my current AD.

[Sub*Man]

Originally Posted by inadeje

I’m in Miami, my spend has been between 40 and 120k annually for the past 6/7 years. In my case the lower year spends were because the AD couldn’t get what I wanted so I didn’t spend. Other years you could say that we were “in synchronization” in so much as when he got what I wanted I was always there ready to pay (this is an often overlooked criterion on this forum) with immediate willingness. SAs need quick fire VIPs that are available and can act quickly with funds, since the SA is also on a stopwatch to unload the piece to a qualified buyer in a short timeframe. Why? Well if he/she doesn’t the opportunity is given to another SA at the AD. I’ve explained how watches are allocated at ADs on other threads. Read those please.

There’s another less known criterion about VIPs and its that your SA may get allocated a piece that isn’t on your wish list. He/she knows this but may propose it anyway because he/she needs help moving it fast, or a given buyer he/she had isn’t available or doesn’t have the money at that exact time. In these cases, the VIP may step up and help out anyway (I’ve been in this situation and ended up liking the piece and keeping it). You’d logically say “why wouldn’t the store just put the watch in the display and sell it that way?” - Well, that would be a good question. The problem is that the AD has rigid rules that certain pieces must be sold only to “qualified” clients. The “qualified” means VIP…only = high spend ratio

I’d say that in Miami you need at least a 50k annual spend to get watches worth 1.5x retail on the grey market. 100-130k for watches 2.5x (pepsi/blnr) to 3 times retail (eg Daytona). However, if you spend 130k it won’t be in one day (usually) so as you progress through that spend amount you’ll get pieces along the way which will gradually build up to the crescendo pieces (those worth 3x or more retail).

I don’t only buy Rolex from the AD. I also buy high margin (for them) jewelry and other watch brands from time to time. I never buy the same watch twice (well I did once, a BLNR but I told him I’d given the other as a gift to my brother- I had). Trying to get multiple same pieces is sure fire way of burning the relationship.

I hope that my synopsis wasn’t too convoluted

Well written and spot on 100%. Even in Charlotte, if you’re not spending $50k annually you’re not on a radar.

We have a local billionaire who dropped $400k on a Diamond after a boozy lunch at my AD. Imagine competing against that level of spend… We’re there now.


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[RJRJRJ]

Originally Posted by padi56

How long is a piece of string but most of the AD VIP stuff mainly exists in internet land..

I’m genuinely curious as to when the last time you stepped into an AD and inquired about a popular model. You talk to us like we are bunch of dummies and liars, but I don’t know where that sentiment comes from.

[Danny83]

Honestly its not so much the spend. Depends who you are My friend good friend plays for the Astros, he got me and him a Submariner with a text to his SA also green op I forgot about from his Houston AD. He has about a 200k spend history over 3 years of all desired sports watches. These days the SA all google who you are before they sell you anything. Its kind of like getting a job to get one if you put on a convincing story they will call and vouch for you.

[Harry-57]

Originally Posted by Screwly

Here’s a question…. Does the money buying a Rolex count towards the spend or is the spend just other miscellaneous items???

In my AD yes. If you are only buying stuff you like and building a collection which includes Rolex, it's a win win.

There's more to it than spend history, but it is a significant component. I can say this confidently because I have discussed it with my AD and I know their attitude and models. I suggest that the OP discusses it with their AD(s). We can only guess.

[m j b]

6 digits, annually, on jewelry. There's a bigger markup on jewelry and they're all about profit.

One of my ADs told me this, directly, without embarrassment (the first sentence).

I'm in the 3 digit category. No Rolex for me.

[subby718]

Originally Posted by easy e

i can say with great certainty that 85k over 2.5 yrs amounts to zilch with my current ad.

This is ridiculous!

I assume you wanted the £85k worth of jewellery/watches and a Rolex off the back of that spend would have been beneficial? I really hope you haven’t spent that purely to acquire a Rolex through the AD channel?