Rolex fines AD for 2020 Grey dealer inventory

[copperjohn]

How do they do this investigation. RolexCSI? They would need a serial number in order to track, no? Regular Joe That just bought the watch isn’t going to give that number out. And if RoCSI spots one on a website, they’d have to purchase their own product at twice retail to get the info for tracking...then what do they do with the watch? If they were really told this, maybe just a scare tactic.

I’m not sure the business of Rolex is hurt by the grey. They build a product and put it on the market and it sells. Then in the after market is sells for higher, thereby elevating the status of the product. It’s not like they are purchasing their own product in the secondary market at a higher price in order to inflate the value of their own product. Wasn’t someone else rumored to have done that..?

[Watch Rob]

Source?

[copperjohn]

Originally Posted by socalwatchcollector

Similar situation except my AD and I have been close friends for many, many years and he also takes my money with a big grin! Most of the stuff you read about shortages and this and that is all inaccurate web information. Social media-forums, and gossip are a good way to sucker people out of money. Over 90% of what you see people put out there is nonsense. They don't have the slightest clue. The grey dealers and flippers know this and use it to their advantage. I have never had an issue obtaining any Rolex at anytime. Patek is a bit different story. I have encountered some issues with Patek but never on mass produced watches such as Rolex. Not sure where this new and improved kool-aid is coming from but it must be the good stuff.

You, my friend, are unique.

[Patton250]

Originally Posted by copperjohn

How do they do this investigation. RolexCSI? They would need a serial number in order to track, no? Regular Joe That just bought the watch isn’t going to give that number out. And if RoCSI spots one on a website, they’d have to purchase their own product at twice retail to get the info for tracking...then what do they do with the watch? If they were really told this, maybe just a scare tactic.

I’m not sure the business of Rolex is hurt by the grey. They build a product and put it on the market and it sells. Then in the after market is sells for higher, thereby elevating the status of the product. It’s not like they are purchasing their own product in the secondary market at a higher price in order to inflate the value of their own product. Wasn’t someone else rumored to have done that..?

I would think Rolex would only want to investigate how these grey dealers are getting fully stickered Daytonas (and other hot models) with no name on the card.

[copperjohn]

Originally Posted by Patton250

I would think Rolex would only want to investigate how these grey dealers are getting fully stickered Daytonas (and other hot models) with no name on the card.

Understood. Though it seems all their sports models are hot models.

[TswaneNguni]

Originally Posted by socalwatchcollector

I have never had an issue obtaining any Rolex at anytime. .... never on mass produced watches such as Rolex.

[Patton250]

Originally Posted by copperjohn

Understood. Though it seems all their sports models are hot models.

It most certainly has gotten that way hasn’t it. Even OPs now.

[Deroya]

I call

[PepsiBezel]

Have to agree with at @fleetlord for actually reasons an AD might lose its status.

The AD stories about threats and fines are just chimera... especially when you think of them in the actual process of contracts and large-scale business.

[GVAZQUEZ]

Originally Posted by BumbleB

Sounds like an elaborate excuse to not sell you a hot model...


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[dysert]

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

[Patton250]

Originally Posted by dysert

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

Wow!!!! Well there you have it. Thanks for sharing.

[garyk]

Originally Posted by Jocke

A Blue TT is not so difficult to get, so this is not the ones Rolex hunting.

In June, knowing that TRF guys say the TT Bluesy isn’t hard to get, I called ADs on both coasts that I had past dealings with, Miami, Chicago, Tennessee and several in my own state. Could NOT come up with any AD who said they could get me one! So apparently at that moment, hard to get!

[101031-28]

Originally Posted by Fleetlord

Absolutely not.

AD lose their status because they won't / can't upgrade their merchandising standards, are victims of consolidation in a saturated market, are in a declining location or are not performing adequately.

Rolex will be moving more and more to chain stores because they just align better with Rolex strategy and are much easier to sell to as there is centralized control vs having to deal with a myriad of individual owners, so expect to see these independents disappear.

The grey market is a very important sales and marketing channel for Rolex, especially in today's luxury space.

Oddly enough I think Rolex was more concerned with the grey market a few years ago when watches routinely sold well BELOW MSRP.

That made the brand look trashy and put pressure on the dealer network as they were being undercut. Both are bad things.

Now those issues are both nicely resolved...so other than the sticker policy (which comes down to appeasing the dealers and helping their image by showing you can't really get NEW and untouched Rolex anywhere except from AD), Rolex lets the grey market be...

This.

[Benzsiam]

Originally Posted by Fleetlord

Absolutely not.

AD lose their status because they won't / can't upgrade their merchandising standards, are victims of consolidation in a saturated market, are in a declining location or are not performing adequately.

Rolex will be moving more and more to chain stores because they just align better with Rolex strategy and are much easier to sell to as there is centralized control vs having to deal with a myriad of individual owners, so expect to see these independents disappear.

The grey market is a very important sales and marketing channel for Rolex, especially in today's luxury space.

Oddly enough I think Rolex was more concerned with the grey market a few years ago when watches routinely sold well BELOW MSRP.

That made the brand look trashy and put pressure on the dealer network as they were being undercut. Both are bad things.

Now those issues are both nicely resolved...so other than the sticker policy (which comes down to appeasing the dealers and helping their image by showing you can't really get NEW and untouched Rolex anywhere except from AD), Rolex lets the grey market be...

I totally agree with this comment.

[ZOOK]

Originally Posted by dysert

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

I remember that thread. Emails from Rolex, the AD or the flipper?

[Beto737]

Originally Posted by dysert

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

I’ll admit, up until this story I thought all this was all about nothing. I’ve heard of Ferrari doing this, but no real cases with Rolex.

[Polarexplorerii]

Originally Posted by worldofoyster

i highly doubt it.

same

[ragsk]

When I picked up my new Cermit on Thursday, I too was vetted in that a senior manager had to approve me getting one even though I am an existing customer. This is a newly introduced system.

[donas]

If that is true (which I doubt it is) that is a slippery slope. The merchant sells to the buyer, the end. It is not determined by the AD what a customer does with their own property after purchase. I bought a DSSD and really disliked it once I owned it, the AD can be held responsible because I didn't enjoy my purchase and sold it?

As far as the post referencing an AD calling a customer demanding they return the watch already purchased, I'd tell them to pack sand. They can't force a person to return anything, it is no longer theirs. This whole concept has become insane; it's a watch, nothing more, nothing less.

[dtwer]

Originally Posted by Harry-57

My AD says they do this. The customer always gets the benefit of the doubt because people buy, sell and flip for all sorts of reasons. And who cares anyway? Just some people on some forums who cant get the watches they want. No big deal outside these forums.

But people who obviously buy to flip and gouge can potentially hurt the AD, so they will not get another model that is in demand. They will be politely told that the list for such a watch is closed. Obviously, they are welcome to spend as much as they want to on anything else, including Rolex watches that are not hot.

They do have some quiet intervals and they are in the habit of checking the second hand market on line. Once you routinely start browsing, you begin to notice the new arrivals. When I went to collect my CHNR they had just spotted one. It wasn't difficult because the seller had even posted a photo of the sales receipt! This individual was listed for three other hot models. He won't get any of them from my AD. They won't humiliate him because they still want his money. But his Daytona, BLRO and something else (I forget) will never turn up.

This bears repeating. Outside of a disproportionally small group of us watch people on a watch forum, the great majority of people who buy Rolexes really couldn’t care less who sells what to who at what price.

For the majority, they see the watch, they like it, they can afford it, they buy it. Then they go about the other important things in their life.

In this regard, I am of the opinion that the “outrageous” gray prices on Rolex actually help, not hurt, Rolex. When the prevailing market price of a new Kermit is valued at $28k, it is a $28k watch for most people.

[Rashid.bk]

It's on the internet, stated by a person on a forum who's shown a massive of amount of evidence to support this claim in the form of a well written paragraph.
Therefor I have no other option but to believe it, it is truth.

[superpop]

Rolex could easily fix this problem by letting the AD add an ADM or additional dealer markup. For whatever reason they do not want to do this and so you get what we have here, which is a layer of scumbags that mark the watch up and sell it for what the AD could have sold it for in the first place. An ADM would fix the problem and bring about equilibrium. Ask yourself why Rolex would not do this.

[Me4u2night]

Originally Posted by dysert

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

I’d like to hear more about this.

[Fleetlord]

There have been some isolated reports of Rolex looking into situations where serial numbers have been blatantly posted online in a sales AD.

My thought on this is that is instigated by another dealer who is bitter about the grey market, randomly scans sales posts, finds one that is careless with info, then reports to Rolex...then they have to do "something" to keep up appearances.

I have seen this in other limited access industries...not even luxury.

Dealers call up and complain...Why is this on the internet for sale undercutting or costing me sales??? Do something about it!!!!!

[donas]

Originally Posted by superpop

Rolex could easily fix this problem by letting the AD add an ADM or additional dealer markup. For whatever reason they do not want to do this and so you get what we have here, which is a layer of scumbags that mark the watch up and sell it for what the AD could have sold it for in the first place. An ADM would fix the problem and bring about equilibrium. Ask yourself why Rolex would not do this.

Interesting view, a dealer should be allowed to inflate the price as they see fit, but if an individual does the same they are "scumbags".

[EEpro]

Originally Posted by dysert

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

All for a few bucks

[sfbatman007]

It has to be a multi pronged approach A simple solution. Hold the warranty card for a year. We know watches sold without warranty cards are a tough sale. This should deter some flipping flippers.

Second, buy watches from these flippers and see where they are coming from.

Terminate the AD if found guilty of backdoor sales.

[donas]

Originally Posted by sfbatman007

It has to be a multi pronged approach A simple solution. Hold the warranty card for a year. We know watches sold without warranty cards are a tough sale. This should deter some flipping flippers.

Second, buy watches from these flippers and see where they are coming from.

Terminate the AD if found guilty of backdoor sales.

If I'm the purchaser of the watch, the watch and everything associated with it is mine upon transfer of funds. The merchant has no right to seize my property. I believe this has been challenged already and the practice stopped. Again, slippery slope. How long does a person have to possess a watch or any other item before he is "allowed" to sell his own property? I'm in the minority here, but blame Rolex 100% for not meeting demand. It hasn't always been like this, I recall visiting ADs and the cases were full with anything you'd like to see --- and get this, anyone was allowed to buy them!!

[alex.cicollo]

Originally Posted by dysert

When the CHNR was first released a Rolex forum member bought their first CHNR and promptly placed for sale on this forum. In posting the photos you could see the number that runs down the side of the warranty card. I was interested in purchasing the watch and then the seller was contacted by the AD and had to return the watch because someone from Rolex contacted the AD and threatened them with loss of their franchise. Met the seller at the AD and tried to purchase the watch from them. The owner told me they had been instructed to return the watch to Rolex and that the warranty was no longer valid and they could not sell it to anyone. The AD also blacklisted the client from any future purchases from them. I have the emails to prove it.

Wow... what a story! What surprises me is that Rolex is then actually reading this forum and perusing the “for sale” section... !!