Exhibition models

[Thor95]

I was told by a SA at AD that eventually they’re going to sell the exhibition models as used for market value. Also, that the expect to have new watches in the cases soon.

[Trailboss516]

Great! I sure look forward to it.

[Tim Plains]

They would be better off using all of their watches for a month as exhibition models if that's the case.

[Laostuh]

Another "My AD said" thread.

[dcash0615]

Your SA at your AD informed you incorrectly. Rolex will not allow any AD to sell above retail, even the exhibition models that actually have working movements. In some cases, Rolex will allow them to eventually sell the exhibition pieces as new at no more than MSRP. Or Rolex will ask that they send them back to Rolex. I’m most cases the AD doesn’t even have the warranty card for an exhibition piece. Typically the warranty card is sent later to the AD if Rolex approves selling it and doesn’t want it back.

[minute_man]

Originally Posted by dcash0615

Your SA at your AD informed you incorrectly. Rolex will not allow any AD to sell above retail, even the exhibition models that actually have working movements. In some cases, Rolex will allow them to eventually sell the exhibition pieces as new at no more than MSRP. Or Rolex will ask that they send them back to Rolex. I’m most cases the AD doesn’t even have the warranty card for an exhibition piece. Typically the warranty card is sent later to the AD if Rolex approves selling it and doesn’t want it back.

Exactly this

Originally Posted by Tim Plains

They would be better off using all of their watches for a month as exhibition models if that's the case.

Many actually do that.

[Chewbacca]

Everyone knows SAs are the first to be privy to, and know, Rolex IP destruction and management protocols.

[BNA/LION]

Originally Posted by Laostuh

Another "My AD said" thread.

Ha! I heard from a guy who knows a guy that knows a guy at Rolex who said they are going to, "insert whatever here"

[Nairn1980]

Originally Posted by dcash0615

Your SA at your AD informed you incorrectly. Rolex will not allow any AD to sell above retail, even the exhibition models that actually have working movements. In some cases, Rolex will allow them to eventually sell the exhibition pieces as new at no more than MSRP. Or Rolex will ask that they send them back to Rolex. I’m most cases the AD doesn’t even have the warranty card for an exhibition piece. Typically the warranty card is sent later to the AD if Rolex approves selling it and doesn’t want it back.

This

[toolr]

Originally Posted by Thor95

I was told by a SA at AD that eventually they’re going to sell the exhibition models as used for market value. Also, that the expect to have new watches in the cases soon.

BB or AGJ?

[dannyp]

Originally Posted by dcash0615

Your SA at your AD informed you incorrectly. Rolex will not allow any AD to sell above retail, even the exhibition models that actually have working movements. In some cases, Rolex will allow them to eventually sell the exhibition pieces as new at no more than MSRP. Or Rolex will ask that they send them back to Rolex. I’m most cases the AD doesn’t even have the warranty card for an exhibition piece. Typically the warranty card is sent later to the AD if Rolex approves selling it and doesn’t want it back.

I think that what you're saying is true insofar as today's policy. However, there are two things I could theoretically see shifting this to what the OP said:

1. The return of the non-functioning exhibition watches to Rolex to have the modifications reversed, at which point they can be sold (but not as new).

2. The working exhibition pieces getting too shopworn to be sold as new.

[train-time]

Originally Posted by dcash0615

Your SA at your AD informed you incorrectly. Rolex will not allow any AD to sell above retail, even the exhibition models that actually have working movements. In some cases, Rolex will allow them to eventually sell the exhibition pieces as new at no more than MSRP. Or Rolex will ask that they send them back to Rolex. I’m most cases the AD doesn’t even have the warranty card for an exhibition piece. Typically the warranty card is sent later to the AD if Rolex approves selling it and doesn’t want it back.

Perhaps Rolex doesn't allow ADs to sell at market, but many Rolex ADs have a pre-owned section and they do exactly that. What's to stop them from moving the piece to the pre-owned section with the card dated and selling it at market. No doubt that this was not very smart of the SA to say what they said, but it does happen.

I know of at least one that sells new hard-to-get new pieces at market through some sort of leveraged transaction. May not be allowed, but it does happen. They have no waiting list and this is the only way to get one the hard-to-get pieces.

[inadeje]

Originally Posted by Tim Plains

They would be better off using all of their watches for a month as exhibition models if that's the case.

Not really, because if they maintained that philosophy it would mean that every watch that was sold would be sold used. The current system allows keeping a single batch or assortment that remains for exhibition and new watches that arrive are unsealed and sold.

[Tim Plains]

Originally Posted by inadeje

Not really, because if they maintained that philosophy it would mean that every watch that was sold would be sold used. The current system allows keeping a single batch or assortment that remains for exhibition and new watches that arrive are unsealed and sold.

Exam. Why would you, as a business, sell something for $10,000 when you can just as easily sell it for $15,000? The only reason they don't now is Rolex corporate policy. The only AD downside to selling Rolex at market value is people wouldn't buy other things first to get that Rolex.

[dcash0615]

Originally Posted by train-time

Perhaps Rolex doesn't allow ADs to sell at market, but many Rolex ADs have a pre-owned section and they do exactly that. What's to stop them from moving the piece to the pre-owned section with the card dated and selling it at market. No doubt that this was not very smart of the SA to say what they said, but it does happen.

I know of at least one that sells new hard-to-get new pieces at market through some sort of leveraged transaction. May not be allowed, but it does happen. They have no waiting list and this is the only way to get one the hard-to-get pieces.

All preowned pieces that AD’s sell come from existing customers via trade ins, or buying on the resell market. They do not come from exhibition pieces which are owned by Rolex. Selling an exhibition piece that is owned by Rolex is not possible. AD can’t sell that exhibition piece until Rolex invoices them for it and sends them the warranty card. At that time the AD is required to sell it at no more than MSRP.

Yes, some AD’s do sell above MSRP through bundling with other higher margin items (jewelry) or they sell the Rolex above retail by doing two invoices, one at MSRP, and another invoice for the remaining balance. Or the balance charged over MSRP is paid in cash or other form of payment off the books. This would make it difficult for Rolex to know if an AD is selling over MSRP. However, if Rolex were to find out, their Rolex authorization would be a risk.

[dcash0615]

Originally Posted by dannyp

I think that what you're saying is true insofar as today's policy. However, there are two things I could theoretically see shifting this to what the OP said:

1. The return of the non-functioning exhibition watches to Rolex to have the modifications reversed, at which point they can be sold (but not as new).

2. The working exhibition pieces getting too shopworn to be sold as new.

Valid points made, but not how I see Rolex every handling these situations.

Rolex would never send an exhibition piece back to the AD after making it functional so the AD can sell as preowned. Rolex does not sell preowned watches.

Should an exhibition piece show too much wear to sell as new, Rolex will request that the AD send the watch back to Rolex.

[train-time]

Originally Posted by dcash0615

All preowned pieces that AD’s sell come from existing customers via trade ins, or buying on the resell market. They do not come from exhibition pieces which are owned by Rolex. Selling an exhibition piece that is owned by Rolex is not possible. AD can’t sell that exhibition piece until Rolex invoices them for it and sends them the warranty card. At that time the AD is required to sell it at no more than MSRP.

Yes, some AD’s do sell above MSRP through bundling with other higher margin items (jewelry) or they sell the Rolex above retail by doing two invoices, one at MSRP, and another invoice for the remaining balance. Or the balance charged over MSRP is paid in cash or other form of payment off the books. This would make it difficult for Rolex to know if an AD is selling over MSRP. However, if Rolex were to find out, their Rolex authorization would be a risk.

Obviously, they could not sell an exhibition piece until they get the warranty card and are invoiced for the watch if that is how Rolex plans for them to eventually move these exhibition pieces. From what I know these pieces are completely functional and if so then something has to happen with them, either they go back to Rolex or Rolex decides to replace the piece with something else and allows the AD to sell it. It would be easy for them to document a sale of a high market value piece in some person's name and eventually have it find its way to their pre-owned inventory. I was actually told this was being done by a SA at another AD that was a close personal friend of a SA at the AD that was doing this (not exhibition pieces).

I was allocated a SS Daytona, brand new in my name by trading in a new model Sub-Date and amount of cash (more than MSRP of the Daytona) and you are right, there were two receipts for the transaction. The wait time for the Daytona was a little over a week. I know of other collectors that encountered similar deals at the same AD.

No doubt this type of activity puts the AD at risk, but in this particular market this AD has little competition and can get away with it. It's not like Southern California with an AD at every exit of the 5. We are located in a major market, but Rolex pulled all the other long-term mom & pop shops over that past several years and to go elsewhere would put one in an area with established ADs with mega-buck customers and it would be fruitless to try to get any attention, much less a watch.