Former AD Ask Me (almost) Anything

[M1166]

After having lurked a bit on this forum I thought it would be nice to perhaps give some insight into the industry from an AD's perspective.

Title says it all. I have worked for several AD's so any questions feel free to ask and Ill try to answer them as honestly as I can.

Due to obvious privacy related issues won't disclose names, companies and locations.

[rw2008]

Interested in hearing your insight on current supply issues of SS models for Rolex, AP and Patek. And whether or not this is the current situation or here to stay.

[RazorD]

Very nice of you to offer a peek behind the curtain. What’s the typical commission rate in each watch? Just curious.


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[pilotjim]

Store owner or sales staff?

[Big Dogg]

If I’m trying to develop a relationship with an AD, is it important that I go to the same salesperson for each purchase? Or on the other side, if one company, Ben bridge for example, has multiple locations can I purchase at multiple locations and still be cultivating that relationship? Obviously I am trying to get access to the rare models.

[nch209]

I'll bite...

How tight does Rolex control the Roldeco items?

...And where is the "earth" have you been an AD?

[brandrea]

Welcome

[MrPorter_008]

This is great, thanks. Here are my questions.

1) How do ADs decide who to give SS pieces to?
2) Waitlist, how does it work?
3) What is the best approach to getting an SS piece without prior purchase history at the AD?
4) Do allocation of SS pieces depend on AD's sales volume?
5) How do gray market sellers get their pieces? (may not be relevant here?)

[jb335]

Do you get annoyed when I try a watch on and start taking photos of it on my wrist?

[M1166]

Originally Posted by rw2008

Interested in hearing your insight on current supply issues of SS models for Rolex, AP and Patek. And whether or not this is the current situation or here to stay.

I don't see it changing anytime soon I'm afraid. It is upsetting for us as much as it is for you guys. My guess is that even pieces like rolesor Daytona and Oyster Perpetual 39 Grey dial will become scarce or even waiting list.. the last part is just my guess.

[M1166]

Originally Posted by RazorD

Very nice of you to offer a peek behind the curtain. What’s the typical commission rate in each watch? Just curious.


Sent from my iPhone using Tapatalk

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%.

[M1166]

Originally Posted by pilotjim

Store owner or sales staff?

Sales and Management.

[Seibei]

Hi, welcome, and thank you for posting here.

My question is, do Rolex dealers have to sell a certain number of the less popular types in order for them to get the Steel sports models that are so popular at the moment? Is it true that a Rolex AD has to sell about 7 less popular models for every 3 steel sports types that they get from Rolex?

Is there something that determines the number of popular steel models a dealer gets from Rolex and if there is, what is it?

I am asking these questions because I would like some insight into the current situation where Rolex steel sports seem to be very hard to get.

[Valhala]

Thank for the insight and welcome

[M1166]

Originally Posted by Big Dogg

If I’m trying to develop a relationship with an AD, is it important that I go to the same salesperson for each purchase? Or on the other side, if one company, Ben bridge for example, has multiple locations can I purchase at multiple locations and still be cultivating that relationship? Obviously I am trying to get access to the rare models.

Very good question! It is better to have a relationship with one store and one person. I used to know my clients by heart and their families, dogs, interests. If something came in a delivery and I remembered a conversation with Mr X about Mrs X's birthday I would ring and offer that to him. It helps us to know you over a long period of time to better gage what we can do for you. Otherwise you are as much of a stranger to me as I am to you!

Larger companies understand that you might want to shop in a different branch if they happen to have more stock available. My advise: 1 store, 1 person if your aim is to build a relationship.

[mobster600]

My question is about the allocation of SS, TT and PM AD's have or are REQUIRED to have.

Why is the proportion so heavy in TT. Everytime I see the majority (~over 50%) of the case TT models......WHY.....when the majority of American sales are SS and PM. It makes no sense........

My hunch is the AD's dont sell ANY TT and they just sit around in the case while SS and PM are not even hitting the case and are already sold..........I know Im right, i just need a confirmation LOL!!!

[AK797]

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

[M1166]

Originally Posted by nch209

I'll bite...

How tight does Rolex control the Roldeco items?

...And where is the "earth" have you been an AD?

Must admit I'm not familiar with the term "Roldeco" could you elaborate on that?

To make it a bit easier with regards to my Geograohical location; Europe (thats about it for my whereabouts 😉)

[Etschell]

does the ad violate lists to appease big time customers even if they are late to request the watch?

what model is sold the most per year in units at the ad?

[rw2008]

Wait, sales people make 1% commission? That’s way, way lower than I would have guessed. What’s the point?

[nch209]

Originally Posted by M1166

Must admit I'm not familiar with the term "Roldeco" could you elaborate on that?

To make it a bit easier with regards to my Geograohical location; Europe (thats about it for my whereabouts 😉)

Roldeco... Rolex's own advertising line of materials and displays...

[rw2008]

If there are any, what is typical policy regarding ADs selling to greys?

[M1166]

Originally Posted by MrPorter_008

This is great, thanks. Here are my questions.

1) How do ADs decide who to give SS pieces to?
2) Waitlist, how does it work?
3) What is the best approach to getting an SS piece without prior purchase history at the AD?
4) Do allocation of SS pieces depend on AD's sales volume?
5) How do gray market sellers get their pieces? (may not be relevant here?)

The toughest questions to answer because it is a case by case and company by company scenario. In my honest experience there are no set rules. I have seen Green Submariners used to close 300K deals, Daytona's for even higher amounts. And in some companies the "waitinglist" is non existant. Some stores give each sales person a yearly allocation of SS pieces and it is for the sales person to decide who to sell it to (after company approval of that client) other companies it is first come first serve, but mostly we take into account the loyalty of our clients and based on their purchase history we compile a list.

Also buying only high demand watches will work against you. Because these days AD's are also looking at how many "normal collection" pieces you have shown interest in.

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?

Allocation do not depend on sales volume.

With regards to the Greys... this is why we have lists and black lists and checks etc. We need to ensure that we protect Rolex's best interest as well as our clients'. Some companies have turned a blind eye to greys as long as they spend. Other companies are very strict and even if they have a suspicion that you might want to resell they won't consider you for these watches. Again the key word is loyalty. I personally dislike the grey market because it has ruined the industry.

So if you walk or phone an AD and ask for an entire list of SS pieces, you have effectively shot yourself in the foot.

[M1166]

Originally Posted by jb335

Do you get annoyed when I try a watch on and start taking photos of it on my wrist?

Never! We love it when clients are as excited about watches as we are. Snap away! We do the same on delivery days

[Etschell]

Originally Posted by rw2008

Wait, sales people make 1% commission? That’s way, way lower than I would have guessed. What’s the point?

how is this possible. you sell 1 million worth of watches and get 10k?

ouch.

[M1166]

Originally Posted by Seibei

Hi, welcome, and thank you for posting here.

My question is, do Rolex dealers have to sell a certain number of the less popular types in order for them to get the Steel sports models that are so popular at the moment? Is it true that a Rolex AD has to sell about 7 less popular models for every 3 steel sports types that they get from Rolex?

Is there something that determines the number of popular steel models a dealer gets from Rolex and if there is, what is it?

I am asking these questions because I would like some insight into the current situation where Rolex steel sports seem to be very hard to get.

Each store gets an allocation per year for these pieces. Some companies are larger than others so they might get more a year which they then distribute equally amongst their stores.

Have not worked in the buying department so not sure on exact figures for an entire company.

Some stores get 2 daytonas per year, some get 4. It genuinely is that scarce.

[Fleetlord]

Originally Posted by Etschell

how is this possible. you sell 1 million worth of watches and get 10k?

ouch.

OP says he is in Europe, so I would think the AD pays a higher base.

In the US it's higher commission with lower base.

[M1166]

Originally Posted by mobster600

My question is about the allocation of SS, TT and PM AD's have or are REQUIRED to have.

Why is the proportion so heavy in TT. Everytime I see the majority (~over 50%) of the case TT models......WHY.....when the majority of American sales are SS and PM. It makes no sense........

My hunch is the AD's dont sell ANY TT and they just sit around in the case while SS and PM are not even hitting the case and are already sold..........I know Im right, i just need a confirmation LOL!!!

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 ;)

[M1166]

Originally Posted by AK797

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

Demand keeps growing by the day. Production does not.

[watchmework]

I’m sorry OP, but I’m not buying that you actually worked in Rolex ADs before, not until some of the more specific questions start getting answered. I could have answered what was responded to this far and I’ve never worked in an AD, unless TRF counts as one.