Does anyone know the margins on day-date gold and platinum

[Jsan20]

My ad told me the margins on all rolex are 38% off msrp. I find this hard to believe on gold and platinum. Do you know the real answer. I had a friend buy a day-date 2 from an ad at 35% off. I don't think an ad would sell one only to make 3%. Thanks for your help.

[brandxbrand]

unless you were their with him, have seen the receipt, or of the AD was on its very last day of a closing down sale, i think you've been duped.

nobody, not even a car dealership, is going to work on 3% gm$, where or not the item costs $10, 20, or even 50k.

[kilyung]

Originally Posted by Jsan20

My ad told me the margins on all rolex are 38% off msrp. I find this hard to believe on gold and platinum. Do you know the real answer. I had a friend buy a day-date 2 from an ad at 35% off. I don't think an ad would sell one only to make 3%. Thanks for your help.

Depending on the age of the watch, it didn't necessarily cost the AD 62.5% of the current retail price.

[MortgageGuy]

Originally Posted by kilyung

Depending on the age of the watch, it didn't necessarily cost the AD 62.5% of the current retail price.

Exactly. Sell NOS and 35% becomes 20% or less quickly. I would be willing to bet this is what happened with your friend.

[z32turbo]

Completely agree with Mike and Adam.

[thomaspp]

AD pays 55 to 60% of list my in opinion/experience but discount will largely depend on demand for certain watch.

[DJJon]

I think the OP's claim could be possible, depending on how hungry the AD was.

We know the AD Discount was 40% for years, then just recently was lowered to 35% in lieu of a market list price increase.

ASSuming (we all know about that) that this watch was sitting in his vault/case prior to say the last two +5% market price increases, then comparing his cost then to the List Price now means he could be selling a watch that:
A. Listed for $20,000. back then, for which he paid $12K
B. Now lists for $22,050. after 2 consecutive 5% List Price increases.
C. He can sell for 35% off the current list @ $14,332. and the AD still makes 16%.
Not very good given how long he had to hold on to it. but not out of the realm of possible.

Sooner or later turning inventory into cash will drive the AD to part with the piece. Many an aggressive watch buyer has found a sweet spot like this over the years.

[Gaijin]

Originally Posted by DJJon

I think the OP's claim could be possible, depending on how hungry the AD was.

We know the AD Discount was 40% for years, then just recently was lowered to 35% in lieu of a market list price increase.

ASSuming (we all know about that) that this watch was sitting in his vault/case prior to say the last two +5% market price increases, then comparing his cost then to the List Price now means he could be selling a watch that:
A. Listed for $20,000. back then, for which he paid $12K
B. Now lists for $22,050. after 2 consecutive 5% List Price increases.
C. He can sell for 35% off the current list @ $14,332. and the AD still makes 16%.
Not very good given how long he had to hold on to it. but not out of the realm of possible.

Sooner or later turning inventory into cash will drive the AD to part with the piece. Many an aggressive watch buyer has found a sweet spot like this over the years.

All that is well and good , but try finding an AD or even a grey that will do that. Not likely.

[ra's ag]

I've never encountered a Rolex AD willing to give me 35% off msrp even when I offered to pay cash. The only time I see watches discounted that far are gray market or second hand. If anyone knows of one please PM me the info.