Former AD Ask Me (almost) Anything

[yxc145]

Originally Posted by M1166

If you want a SS from an AD without any prior commitment then I would say good luck. I have never sold these pieces to walk in clients. Previous purchases will allways be required even if it is just a Datejust.. why would I choose a unknown client with no prior commitment to the company over a loyal client that I have known for years?

Thank you for all the answers and feedback. I think what you mentioned is mainly in Europe. I don't think it is like this in the states.

[mobster600]

Originally Posted by M1166

Stores make more money on those Datejust/Daydate sales than all sportsmodels combined. Remember not everyone is aware of the SS collection or the rarity. Some clients don't care about that at all, they just want a nice watch that says Rolex.

Hope that answers your question ;)

True true never thought of that. Thanks!

[Lumberjact]

Originally Posted by wytrader

I think he meant it that a previous DJ purchase was necessary for demanded SS watches as opposed to you need a purchase history to buy a DJ... maybe re-read what he wrote and you quoted.

Gotcha

[TempoKing]

Originally Posted by M1166
Stores make more money on those Datejust/Daydate sales than all sportsmodels
combined. Remember not everyone is aware of the SS collection or the rarity.
Some clients don't care about that at all, they just want a nice watch that says Rolex.
Hope that answers your question ;)

Hummm.
The profit margin is the same percentage for a Datejust or a Steel Daytona
My AD makes 33% and his retail price includes the VAT sales tax of 24%
Certain hard to get models are sold for a much higher price than the MSRP
by the AD Who takes every ounce of "meat" there is for another flip
leaving the poor gray dealer with a few hundred dollars profit only...lol

[904VT]

Originally Posted by JacksonStone

My AD said it's TRF-ers with more than 11 infraction points.

Also, Rolex gets particularly annoyed by "Is it Safe?" threads. Of course, it's safe they say, it's a Rolex

[Dusko.Popov]

Originally Posted by samson66

What is the actual mark-up on these watches?

For example, what does the store pay for a Sea Dweller with an MSRP of $11,350?

Ads pay 60% of msrp.

[samson66]

Originally Posted by Dusko.Popov

Ads pay 60% or msrp.

Good Lord, nice margin!

[marcusp23]

Originally Posted by rw2008

Flip that on it's head though, how is it fair to not reward a long time customer?

You can still go with lists, call them first, offer them small discounts, etc.

But I’m just saying that the free market economy will always find a way. Gray market dealers are simply filling a gap that is created by Rolex and its ADs - to blame the gray market dealers for addressing a problem they have created themselves is silly

[Seibei]

Originally Posted by samson66

Good Lord, nice margin!

Not really, considering all their expenses.

[Dusko.Popov]

Originally Posted by samson66

Good Lord, nice margin!

That was supposed to say “60% of msrp.” I edited my original response. But yes that is a nice margin.

[pilotjim]

Originally Posted by marcusp23

....Gray market dealers are simply filling a gap that is created by Rolex and its ADs - to blame the gray market dealers for addressing a problem they have created themselves is silly

Exactly!

[AK797]

Originally Posted by longimanus88

Hello. Then, how am I supposed to do if I'm a one-watch guy who wants to buy a SS model for the long term, like a first watch to celebrate an event for example (i.e. a watch you'll never sell such as a graduation present)? Guess it might help to explain the story behind your purchase?

You can't right now if you want one of the popular models like a million other speculators and bitcoiners, but if you buy a DJ first you have more chance in future and then you can trade your DJ and be that one sports owner.

[AK797]

Originally Posted by yxc145

Thank you for all the answers and feedback. I think what you mentioned is mainly in Europe. I don't think it is like this in the states.

He means the previous purchase can be just a DJ, not previous needed to buy a DJ, we are flooded with those too.

[tyler1980]

Originally Posted by samson66

Good Lord, nice margin!

really? if you get a 20% discount on a PM watch which seems to be expected, you save more than they make

its 62 or 63% of retail though, cant remember the number.

[samson66]

Originally Posted by Seibei

Not really, considering all their expenses.

Yeah but we are talking about something the size of, well a watch, that costs as much as a car. They don't need a giant lot and service area and huge showroom and tons of technicians and mechanics. They need a jewelery store the size of a Starbucks and make $4,000 + on a stainless watch like a Sea Dweller.

If you focus only on the 40% margin, maybe that's not that great. But when you look at the cost of these items and the expenses needed to show and sell them, I think that's a very healthy margin.

I will grant you that now than supplies have dried up so badly things have changed but I think 40% of each watch selling for anywhere from $8,000 - $30,000+ is pretty darn good.

[EDL7]

Are you a woman..? lol..

[DocHorton]

Originally Posted by AK797

Why do you think demand has risen to unprecedented and unsatisfiable levels in recent months?

I can answer that....world economy, especially U.S. has been booming the last few years. A lot of new wealth....U.S. alone added 700,000 Millionaires last year. I suspect the rest of the world is similar. More money equals more people with funds to buy so demand has risen while supply has remained steady or even dropped.

https://www.cnbc.com/2018/03/21/us-a...s-in-2017.html

[mountainjogger]

Originally Posted by EDL7

Are you a woman..? lol..

WHAT!!!:th umbsdow

[mountainjogger]

Originally Posted by EDL7

Are you a woman..? lol..

Point of this question??? Why would it matter???

[justdate]

But the money you would lose on the DJ may as well just buy the SS brand new from grey, won’t lose any more than a DJ!!

I think buying something you don’t really want to get something else is a bit of a false economy with these things.

[Ballzzz]

Did you sell to greys?

[Valhala]

60%... so of course they have wiggle room even for stainless

[dangerhsun]

Originally Posted by M1166

Haha sadly not as good as it used to be. Back in the 90s 5% was normal (or so I have been told by senior colleagues)

Currently it depends on the company. Some don't give out any commision at all against a higher basic wage. Industry standard is around 1%.

I was told it's around 3%. But they don't give commission on certain watches. For example, there won't be commission offered on the new GMT. Certain SS models essentially sell themselves.

[904VT]

Originally Posted by Seibei

Not really, considering all their expenses.

Yet the finance industry gets scruntinized over basis points

[JacksonStone]

Originally Posted by mountainjogger

Point of this question??? Why would it matter???

Technically, it doesn't. However, I have seen some members get offended when others referred to them as "he," saying something along the lines of, "Why do you assume I'm a man?" So perhaps EDL7 just wanted to know the proper way to refer to the OP.

[Galibier]

Originally Posted by longimanus88

Hello. Then, how am I supposed to do if I'm a one-watch guy who wants to buy a SS model for the long term, like a first watch to celebrate an event for example (i.e. a watch you'll never sell such as a graduation present)? Guess it might help to explain the story behind your purchase?

This was me. Walked into an AD and explained why I wanted my Sub. I had a call within a month saying they had one for me. It’s never being sold and hopefullly passed down. They were amazing too and seemed genuinely happy to have sold me my dream watch.

[Galibier]

Originally Posted by Valhala

60%... so of course they have wiggle room even for stainless

Why would they wiggle when 99.9% are willing to pay MSRP?

[jrs146]

Originally Posted by longimanus88

Hello. Then, how am I supposed to do if I'm a one-watch guy who wants to buy a SS model for the long term, like a first watch to celebrate an event for example (i.e. a watch you'll never sell such as a graduation present)? Guess it might help to explain the story behind your purchase?

There is always the gray market. You will pay more but guy will still get what you want.


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[Betterthere]

Interesting thread and I will probably follow for a while but I am on the side of haven't really picked up much new information. Last time I bought a SS rolex in states, I just walked in cold and bought it.

[wytrader]

Originally Posted by Galibier

This was me. Walked into an AD and explained why I wanted my Sub. I had a call within a month saying they had one for me. It’s never being sold and hopefullly passed down. They were amazing too and seemed genuinely happy to have sold me my dream watch.

This is exactly it. Every AD however coldhearted they are made out to be here is made up of human who want to walk home with a smile on their face (smile not smirk people!). If you walk in with the right believable story you will get your desired watch as they too enjoy the smiles on our faces and the emotion these watches provide. If you walk in going I read about the Daytona this weekend and I hear its the batshit of watches, give me one of those there may be an issue.