Rolex Dealer Leaves

[KJM11379]

I was out shopping with the family yesterday and we stopped in at my favorite Rolex dealer, Sam Yampell Jewelers in Haddonfield, NJ. I wanted to try a few pieces on and let the wife look at some jewelry. To my surprise there were no Rolex watches in any of the cases, just a few trade-ins. I grabbed my sales guy and asked what the deal was. He told me that after 64 years of selling Rolex they simple could not keep up with the demands that Rolex was placing on them. 64 years selling Rolex has got to be one of the longest tenured AD's in the USA. He told me that Rolex wanted all new display cases and new modifications to the store, which the AD refused. He said Rolex also wanted 80-90 sales a month out of the store which they could no longer manage, due to the price increases and economy. So they just gave up there AD. Sam Yampell is in a historic district on a very busy (pedestrian and Motor vehicle) main street in a very affluent area. It just does not make sense to me to place these requirements on one of your most trusted and busiest dealers.

[Numismatist]

I agree, but you may find that a Rolex 'boutique' soon opens nearby...controlled by...Rolex...

[mjclark32]

80-90 rolex sales per day sounds ridiculously high. 3/day, more when you factor in they're not open Sunday's. I wonder what the other demands were?

[dddrees]

Thats to bad. Sorry to see when something like that has to happen.

[padi56]

Originally Posted by mjclark32

80-90 rolex sales per day sounds ridiculously high. 3/day, more when you factor in they're not open Sunday's. I wonder what the other demands were?

If you read the post it states 80-90 a month which is still a very high amount for any watch sales no matter what the brand.

[Watch Professor]

To use a tired cliche, Sign of the times. AD's are disappearing and boutiques are replacing them, not only for Rolex but for other brands as well.

[Lisa]

Is Rolex trying to increase their level of exclusivity even more?

[watchf]

Originally Posted by Numismatist

I agree, but you may find that a Rolex 'boutique' soon opens nearby...controlled by...Rolex...

[

So its sort of like giving unreasonable demands in the hope of closing down AD before starting up their own boutique nearby then. If that is the case the AD probably can't keep up with whatever demands thrown at them.

[Brushpup]

Originally Posted by Lisa

Is Rolex trying to increase their level of exclusivity even more?

Yes indeed. They are going at it full speed if you ask me. So sad really, but this is the way they are going like it or not. Shame to see independents have the squeeze put on them.

Boutiques and chain stores.....Booohh!

[CashGap]

Originally Posted by KJM11379

I was out shopping with the family yesterday and we stopped in at my favorite Rolex dealer, Sam Yampell Jewelers in Haddonfield, NJ. I wanted to try a few pieces on and let the wife look at some jewelry. To my surprise there were no Rolex watches in any of the cases, just a few trade-ins. I grabbed my sales guy and asked what the deal was. He told me that after 64 years of selling Rolex they simple could not keep up with the demands that Rolex was placing on them. 64 years selling Rolex has got to be one of the longest tenured AD's in the USA. He told me that Rolex wanted all new display cases and new modifications to the store, which the AD refused. He said Rolex also wanted 80-90 sales a month out of the store which they could no longer manage, due to the price increases and economy. So they just gave up there AD. Sam Yampell is in a historic district on a very busy (pedestrian and Motor vehicle) main street in a very affluent area. It just does not make sense to me to place these requirements on one of your most trusted and busiest dealers.

Refreshing to hear a dealer who doesn't feel the need to embellish the story.

This is bad for the small independent, great for the brand, great for the target customer, bad for folks in the small ends of the customer distribution.

[globalmedia33]

Damn, that's sad.

[DG123]

I believe "Roles Boutiques" are owned and operated by the stronger independent merchants. I do not think Rolex Corprrate owns any retail stores.
Rolex corporate expects its authorized distributor retailers to keep up with the times, buy the latest display materials, buy a good selection of Rolex watch inventory, have their floor saelspeople well trained etc....
Smaller low volume single store independent merchants struggle to meet all of Rolex corporate's demands. Consumers complain about a local shoe store or hardware store or jewlery store which closed their doors, but at the same time consumers must admit they have done their own shopping online or at the large chain stores.

[Lane from s.c.]

Stories like this turn me off from rolex. I love my gmt and would never part with it but If something did happen to it, hearing this makes me want something else.

Lane

[Art 1]

I heard the same form another family owned AD. Rolex would not let them bring in Breitling. They couldn't keep up with the demands. Nothing wrong with selling Breitling, Omega, Panerai and Ball. But Rolex seems to bring people into the store.

There is a Rolex boutique and a Rolex AD in the local mall. That AD was selling 4 or 5 a day a few years ago. Now that the Rolex store is there they seem to be getting the bulk of the sales. I know the manager at the AD, they run the store for Rolex. Soon this AD will not be selling Rolex in this mall, only the Rolex boutique. This seems to be the trend of Rolex and some other watch companies. Omega for one.

[globalmedia33]

I was wondering how come Rolex doesn't demand to have more knowledge salesperson?

[Cristell]

That's a shame, I purchased a Rolex there and was thinking of going back soon for another. They have a great sales staff and more than fair prices, sorry to hear the news.

[ingoodtime]

I don't necessarily think the boutique sales approach is a great thing for the customer. Prices will most likely be msrp or higher, particularly on new in demand items. I have been to AD's that have very knowledgeable staff and other stores with no so knowledgeable staff. While having staff that is well educated on a product is good, many buyers are not WIS so would the knowledge matter? Let's say it does...ok...so they (Rolex) may increase sales to that customer base. Now, how about sales lost due to the lack of any meaningful discount? Many people have to scrimp and save to be able to purchase a Rolex but for some, the idea of having to spend even more ( could be several thousands with no discount) may just be the deterrent that kills the idea of buying. I remember when BMW was a pretty exclusive car. Now, they are a dime a dozen. Is this what Rolex wants to prevent? Control pricing to keep the price high and the watch sighting moderate in the wild? DeBeers has the right idea with their diamonds....controlling the market place. Is Rolex going to use that technique and will it backfire on them?

[Lisa]

Originally Posted by Brushpup

Yes indeed. They are going at it full speed if you ask me. So sad really, but this is the way they are going like it or not. Shame to see independents have the squeeze put on them.

Boutiques and chain stores.....Booohh!

This is sad. Does turn me off the brand a little, but I guess Rolex could care less about people like me - people who appreciate quality but have their limits on paying for perceived prestige/exclusiveness.

[East Bay Rider]

http://www.gray-jewelersri.com/history.html

The same thing happened to my (former) AD. They'd been selling Rolex forever but Rolex didn't like them selling all the other high end brands. PP, Blancpain, Omega, IWC, etc. The store wasn't a fancy place but the owners really know their stuff.
Rolex came in and took everything back.
Damn shame. We need more places like that.

[train-time]

One local Rolex AD brought in Breitling several months ago and Rolex cancelled their AD status. Another AD was forced to spend a small fortune in remodeling (at the peak of the recession) and build a Rolex "shrine" with all types of exotic cabinetry and wall trim. The Rolex rep said that if they didn't remodel and create a mini boutique-like shrine in their store that Rolex would add another AD in the same market area.

[Justjosh]

Just had this conversation with another forum member yesterday about Rolex pulling themselves from family owned ADs.
It is a bummer

[watchf]

Originally Posted by East Bay Rider

http://www.gray-jewelersri.com/history.html

The same thing happened to my (former) AD. They'd been selling Rolex forever but Rolex didn't like them selling all the other high end brands. PP, Blancpain, Omega, IWC, etc. The store wasn't a fancy place but the owners really know their stuff.
Rolex came in and took everything back.
Damn shame. We need more places like that.

I am curious why the other high end brands have no issue with them selling Rolex but Rolex take issue with them selling these brands.

[Lisa]

Originally Posted by watchf

I am curious why the other high end brands have no issue with them selling Rolex but Rolex take issue with them selling these brands.

Placating a bully, maybe?

Or maybe because these other brands know that Rolex draws customers into the store like no other brand?

[Johny]

next thing the "boutiques" will be selling rolex branded denims etc.

[TheDude]

Interesting thread. Jives with what a lady at Mayors told me a while back.

She was boasting that the ADs were dwindling and saying I would be unable to find a discount. (and I should buy from her at full price)

It would seem that Rolex is more than happy to deal only with large jewelry chains. Sadly, customers are bearing the brunt of abuse that stems from said chains when they realize they are unchallenged in the marketplace.

This seems borderline anticompetitive, but I doubt small mom and pop jewelers are going to challenge Rolex.

Sent from my Nexus S 4G using Tapatalk

[The GMT Master]

Its been happening everywhere - we've had the talk from a Rolex rep very recently asking us to heavily increase our stock levels. I think it's basically survival of the fittest - they're deliberately setting the bar high so that the weaker ADs will either go voluntarily or not reach their targets and be pulled. Its going to be a very hard time for ADs

[Numismatist]

There's a great article in this issue of WatchTime about Nicholas Hayek's thoughts on the sad state of watch sales in the USA. He believes (and names Tourneau) as a bad example of how crappy the salesfolks are at ADs (lack of knowledge, etc.) and thinks a revamp is in order to 'sell' properly to the USA customer and give a much better and thoughtful experience.

This is just the start of the revamp imho. Sad to see what may have been a great AD disappear, but the whole thing does have to be re-thought (at least in the USA).

[kmleffler]

Does anyone on TRF really believe that Rolex would force Wempe in NYC to stop selling other high-end watch brands such as; PP, AP, Blancpain, Omega, etc. I don't think so.

[6352]

Originally Posted by padi56

If you read the post it states 80-90 a month which is still a very high amount for any watch sales no matter what the brand.

Except for a Swatch.

[Wisconsin Proud]

This has a similar feel to it as these professional sports teams who want the cities to build new stadiums or they will move out of town.

Rolex wants new displays, more prominent space, more stock on hand, "or we'll move out".

Rolex is a big draw. We have an independent jeweler here in NE Wisconsin with stores in Green Bay and Appleton. From what I heard, this gives them territotrial rights to the entire populated areas of NE Wisconsin with the closest Rolex dealer about 80 miles away. But they too have the pressures from Rolex to sell and upgrade as they do from other brands they sell.

I heard Fred Meyer no longer sells TAG Heuer. Maybe the same pressures from them.

In the end, customers will pay more for their new watches fromboutiques. Alot of people think this is very good for Rolex and Omega to have boutiques.

Those same people are the ones running to the "forum AD" for better discounts. They want the exclusive monicker on the brand they own but don't want to pay for the boutique experience.