Rolex price increases in January/February 2008??

[wilsenior]

I was at my AD yesterday and was told that prices are expected to increase on Rolexes in the US in January or February in 2008. Can anyone confirm that price increases are expected in the next couple of months? Particularly on Stainless Steel Datejust models?

Also, my AD told me that they are not permitted by Rolex to offer discounts from Rolex's suggested retail price and only grey dealers can do so. However, I have also read on this forum that some of you have rec'vd discounts from AD's before. Can anyone comment on this disparity? Again, I was inquiring mostly on the SS Datejust models.

Thanks in advance for your comments!

[SPACE-DWELLER]

Welcome to TRF!

Only Rolex - even not the AD's - knows when the price increase will come.

Is your AD Ben Bridge, btw.?

BB's known to give this standard "we're not allowed to give discounts" reply which is total since every AD is entitled to sell Rolex watches at what ever price suits him/her.

[Welshwatchman]

Originally Posted by wilsenior

I was at my AD yesterday and was told that prices are expected to increase on Rolexes in the US in January or February in 2008. Can anyone confirm that price increases are expected in the next couple of months? Particularly on Stainless Steel Datejust models?

Also, my AD told me that they are not permitted by Rolex to offer discounts from Rolex's suggested retail price and only grey dealers can do so. However, I have also read on this forum that some of you have rec'vd discounts from AD's before. Can anyone comment on this disparity? Again, I was inquiring mostly on the SS Datejust models.

Thanks in advance for your comments!

It is safe for me to say that your AD is telling you an untruth.

Discounts are available from ADs on most models. I have obtained 11% on a sub and more on a TT Daytona.

[cbsmohai]

Yah, the BB in Austin had the gall to tell me that same story.

[Arturo]

The AD price thing is still in the air after the recent Brighton law suit at the Supreme Court in US which held that IF a manufacturer wants to hold a dealer to MRSP, they CAN. Brighton did not want its products put on sale or discounted to maintain the price echelon of its product, so this restriction was right in their dealer agreement. A Brighton dealer discounted which led to a laswuit that went the the USSC.

So far Rolex has apparently not placed such boundaries on its AD's in the dealership agreements, but I do predict that it might follow suit, as the Brighton case gives trememdous power to the manufacturer in the pricing of its products. Obviously, the AD's are bound by their own contracts with them which does not currently limit them from some degree of discount. IF Rolex wants to take the position that Brighton did, that is that MRSP has to be honored by the AD's, then under the SC case, there is no interference with the right to contract and such limitations could be enforced.

Currently, however, many AD's will give a discount. In Oregon there are several which discount generally 5% on SS models and 10% on others, but never on the grail watches like SS Daytona, Milgauss etc. Some demented AD's actually charge OVER MRSP, which I would never support as a consumer. I frankly don't mind paying MRSP under certain circumstances...especially if the dealer has a great in house RSC certified watchmaker, but NEVER more than MRSP for me. In Oregon there are no taxes so the overall deal with any discount is pretty darned good.

[wilsenior]

I have been told by both Torneau and Wempe in New York that they are not permitted to offer discounts on Rolex datejust models and that everyone pays the MSRP. I recently visited an AD in Toronto - Royal de Versailles and found they were able to offer discounts up to 19% from MSRP. Thanks for your responses, perhaps it is a NY thing but it didn't seem reasonable to me that discounts were not permitted!

[steel4me]

If ROLEX thinks their consumers have money trees growing in their backyards, they will find out very quickly that that's not the case. I bet over 90% of ROLEX's revenue comes from little guys like me who buy under $5K watches and is they start giving us hassle, there'll be mutiny!

[Arturo]

Rolex does not care about mutiny. The don't need to. I think they would be smart to continue their current philosophy, and hope they do. Also, Brighton dealt with artifacts and belt buckles and wallats and that kind of thing which is a lower price market. However, the reasons for the Brighton restriction was to maintain in the public eye that the product was exclusive, and scarce in terms of comparative price point. Scarcity, or the perception of such, is the characteristic that gives a high end product its high retail value.

One of my colleagues who represents a number of manufacturers of quality domestic products says that he is advising his client to restrict the sales to MRSP in the dealer agreements after the Brighton decision, as his client already has the "quality" market, and they want to stay there and not lose their cache. You see this with high end "blue jeans" for example. Let's take "True Religion" for example. Once you start seeing them in Costco discounted way down...blam....the magic is gone and the high end market is lost or diluted to them. The high end boutiques will run from them. The $300 jeans that carry so much cache would suddenly be considered proletariat and common.

When concept of scarcity is lost, the resale value is not strong. So be glad in some degree that Rolex dealers stick close to MRSP. It gives your watches the scarcity character that allows them to retain their value.

[CoopJr]

Originally Posted by steel4me

If ROLEX thinks their consumers have money trees growing in their backyards, they will find out very quickly that that's not the case. I bet over 90% of ROLEX's revenue comes from little guys like me who buy under $5K watches and is they start giving us hassle, there'll be mutiny!

I think Rolex will be shooting themselves in the foot with a price increase. I know that there are alot folks who can buy a Rolex no matter what the price and good for them.

But there are a large amount of folks who are on the fence financially when it comes to purchasing a Rolex. 5K is their limit and 6K is not affordable. A 10% price increase puts a Sub Date with tax and no discount at almost 6K here in the USA. I'm sorry...but they are not worth that.

And for WilSenior, I purchased a GMT and a DD from 2 different AD's (quite some time ago) and was offered 10% and 15% respectively without even asking. Torneau sux.

[steel4me]

yeah, I mean push comes to shove, MSRP is the MAX they should be asking for. But with their current policy on allowing AD's to give small discounts, ROLEXES are selling like hot cakes out of the oven, then why mess with a good thing?

[leethal21]

I too have been to Royal de Versailles in Toronto and they offered me a 19% discount. They do not have the watch in stock that I want untill Feb, but told me the pricing I received before x-mas would still stand.

[BuffaloRolex]

Rolex is actually more lax than many luxury items. Chanel sunglasses spring to my mind, as dealers are disallowed from discounting them at all.

Also, similar to Rolex quality control, Chanel reps routinely visit sales outlets to ensure proper product placement and to verify that standards have been met. Not at all uncommon for Chanel to pull its licenses from locations that underperform or showcase the product in a substandard manner.

[nsolga]

I had heard that the small discount policy was a more recent thing with Rolex. i.e. 10-15% off. Seems fair to me. Discounts are lower on lower end prices so the SS models will have less and gold / platty will be more able for discount minus the grail factor. Supply and Demand my friends! I'm just glad I got my rolex prior to this year's price increase/next years really.

[Arturo]

I agree, and in the past, I think many luxury companies hesitated to do so fearing a "right to contract" argument if litigated. Now, after the Brighton case, I think any luxury manufacturer could put the brakes on any discounts if they want. L

ike I said, my colleague is advising his clients to do so to protect brand exclusivity. There will always be people who can afford the Rolexes. Like breast implants, if they want them, they will get them. Plastic surgeons are doing the best they ever have, and their work is cash on the table...no insurance coverage for most cosmetic fixes like this. Likewise, If a person wants a Rollie, that person will get one. The last thing Rolex is worried about is pricing us out of the market.

[Timber Loftis]

Brand exclusivity is BS. There's not an item out there that I would blindly pay retail price for, not jewelry, not a watch, not even the sexy chanel sunglasses.

Rollie is like any company, if they turn their nose up and act as if pricing is beneath them, I hope to see them go the way of the dodo.

This year I've made sure to get discounts on most everything I got, from a car (offer low bit and don't tell them you're paying cash until after they accept) to tahitian pearls for the wife (hit Macy's on the exact right day, as their sales have wonky hours) to my Explorer II (ebayed it for significant discount, so much so that the seller was a bit upset, again it's all timing). The only thing I bought this year that I didn't negotiate the price on was my daughter's delivery and medical costs.

And tell that AD to shove it. Personally I'm against all AD's, why work with the old guard when the interwebb gives you so many ways to circumvent the system?

[steel4me]

Originally Posted by Timber Loftis

And tell that AD to shove it. Personally I'm against all AD's, why work with the old guard when the interwebb gives you so many ways to circumvent the system?

Timber Loftis, Congratulations on your little baby girl!!! It must be so much fun holding and adoring this precious blessing!!!

Kids are the true measure of time that a watch can never ever do .....

I think the only reason I go through the AD is that the web is risky for a rollie purchase, even though 99% of my shopping is done from the web, but then again those 99% of things are all $10 or less and not a $5000 SEA DWELLER

Another is that even on the web, the price is approaching what my AD offers ... ok, may be $200-$300 lower on the web but then it doesn't justify the risk ... I trust my AD blindly and he has always lived up and beyond my expecations. So when he blesses a watch, I buy it sight unseen, if I had to.

You just don't know who to trust on the web ....

[Arturo]

Hey, I am just telling you what the SC recently did. Lovely guys these Bush appointees. Family values and all you know...the family values of the rich that is.

Rolex won't go the way of the Dodo given its universal brand power. Just won't cause there are lots and lots of people who will pay mrsp.

[Timber Loftis]

Web shopping certainly has its risks. I've been cheated on purchases as big as a laptop computer. But, even then I didn't pay the price. I use paypal but back it with a credit card, so I have a way to put the brakes on any sale gone bad. Credit cards will remove a charge even if you were defrauded normally.

Maybe I'm just glib because of the incredible luck I had getting my Exp II off eBay. But coming here and having the forum as a resource of info certainly gets you past 75%+ of the issues you face being an online rollie shopper.

I don't mind it when these appointed judges reserve business rights for a manufacturer. In many ways they are reaffirming the "right to contract" that has spent decades getting over what was done to it after it was Locknerized. But, I don't like it when they preserve the business rights of companies, yet fail to preserve those same rights for individuals. Examples abound, but I guess the single biggest glaring unfairness is in the bankruptcy code, which screws individuals (especially after some other court decisions a few years back and changes in the code) but lets companies off the hook with the whole reorganization BS. When an individual stakes their credit on the line they are "in for a penny in for a pound" for the debt, but businesses... not so much.

[veilstylez]

Wait Ive heard this 3 times from 3 different ADs about the increase in Feb. BB knew about the increase last year and they said they will always know before it happens.

[CPCC]

The weak dollar to the euro has all but assured the price increase.

[CoopJr]

Originally Posted by cpcc

The weak dollar to the euro has all but assured the price increase.

That's my fear

[FlyingMoose]

You didn't try to negotiate medical costs?

It's extremely easy to get half off or more. Go to the accounting office and tell them you'll pay right then if they take it as full payment.

Note: this only applies if you're paying for all of it yourself, if insurance is involved, you're probably already getting a good price. Also, if it's something where you have to pay up-front, it may be different.

Insurance companies usually get 2/3 or more off the listed price for medical services, the prices are artificially inflated to give them a reasonable amount after this discount.

(sorry for hijacking the thread xD)

[abigsecret]

Originally Posted by Timber Loftis

There's not an item out there that I would blindly pay retail price for, not jewelry, not a watch, not even the sexy chanel sunglasses.

Do you step into a Levi's store, and tell them you'll take the jeans if you get 20% off?? Really I want to know, because I guess I'm stupid paying all this money for all these things that I shouldn't....

Oh, and do you go into a nice restaurant, and tell the waiter, "I'll take this steak, but only if I can pay $14, instead of $19"?
Because if that's possible, I'll try that too!

[Arturo]

I think the issue is kind of specific to a high end luxury item with unquestionable quality and and a tremendously powerful trade name like Rolex, BMW, Mercedes, Lexus etc. Cars tradidionally do have movement, and I am agressive about finding cost and making sure the salesman is paid decently on top of cost. No need not to have a win win.

I just think that Rolex has no need to be kind to discounters, and will probably follow the very strong laws that support manufacturers in enforcing MRSP. The Rolex brand is so very powerful....certainly one of the strongest "brands"in the world in terms of "secondary meaning" in the legal sense I was not suggesting that Rolex should interfere with the AD's markets. Probably not. Power is not doing what one can, but what one should. However, the point is that now they CAN if they want, and it will take time to see if other manufacturers of high end products follow the Breitling example.

I don't think you see many discounts on Pateks or the really high end watches, and Rolex could do the same thing if if chooses....at least in America. I don't know if other countries have this notion that we have here of a "right to contract". As I said, that right is certainly not without limits in the US.

[sleedawg]

I don't think the AD has strict discount or don't discount rules sent down from Rolex USA/corp. I do think they have strict rules about how to advertise and strict rules about how to distribute pricing information. The discount really is up to the AD. From my own personal experience and hearing from other people on the watch boards and from friends who've picked up Rolexes, the rule of thumb on discounts are 10-15% on Stainless watches (including sports watches), 15-20% on two-tones, and 20% on all gold/platinum. The exception being the Milgauss or Daytona. Cash is king as nobody wants to get stuck with the 1.5-2% they get charged by Visa/MC or 3% w. AMEX. It's up to the AD if the AD would be willing to ship out of state for no collection on tax which the purchaser is responsible for reporting on their annual state tax return.

I think THE factor to consider is if the AD is a family run business or a big corporate chain. I hate Tourneau with a passion. I figure Ben Bridge or Jareds would probably rub me the same way also if I went in to visit. The AD I deal with in New Jersey is a family run business that discounts and treats each customer with respect. I've always been a supporter of the smaller family business and they've rewarded me with better discounts and service. Think about the big corporation and the employee who may be paid hourly vs. the family member or few non-family employees who are definitely commissioned and have a vested interest in keeping the store open. Which do you think will discount or try to get you that discount and which values your individual sale more?

Anyways. Back on topic. My AD is suspecting a hike in Feb but has heard no official word. He said the hikes has traditionally been in Feb or Oct/Nov.

[chuanlim]

Originally Posted by Arturo

Hey, I am just telling you what the SC recently did. Lovely guys these Bush appointees. Family values and all you know...the family values of the rich that is.

haha. i admire your political slant. bush has really damaged the world respect for Good Old Uncle Sam. IMHO

sorry if its Off topic guys but i couldnt resist.

[chuanlim]

i just bought my rollie from an AD, and got a good discount from him. :)

[Downing]

Originally Posted by cpcc

The weak dollar to the euro has all but assured the price increase.

Bingo.

The only good thing about a weak dollar is it may actually force us to start manufacturing things again instead of just doing each other's laundry like we've been doing for the past 50 years.

[CoopJr]

Originally Posted by sleedawg

The AD I deal with in New Jersey is a family run business that discounts and treats each customer with respect.

I'm heading down there tomorrow to have a look around
I want to price out an EX 1, a ND Sub and the GMTc.

[sleedawg]

Coop,

Just a heads up. I was there earlier today haggling over a Daytona. They have no more ND Subs. They'll probably have to order one for you. Someone else that I referred picked up their last ND Sub. They do have the Explorer I and GMTc in the display case.

Steve

Originally Posted by CoopJr

I'm heading down there tomorrow to have a look around
I want to price out an EX 1, a ND Sub and the GMTc.