Former SA spills the beans...

[ronricks]

Originally Posted by 77T

Ron - are you basing this claim on speculation?


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No because the stock they were unloading included models that had been discontinued for over a year. That means they were hoarding them or keeping them for the right customer. I actually predicted on here two years ago that this AD would be losing their status simply because they fit the exact profile of the type of AD's Rolex has been removing smaller family owned or mom and pop type jewelry stores. Rolex has been culling these for a few years now.

[sprmario2k3]

If we end up in even a slight recession over the next 12 mos, the market is going to soften up substantially. Luxury goods in general and "hot" collectible/investment consumer goods specifically do not do well during recessions.

I listened to these videos and some others that are similar, and really what I learned is just to be courteous, try and establish some rapport, and be genuine. I fit the lower upper class that I am sure is the bread and butter for AD's. I have some decent disposable income and I can afford some nice things, but I am not ever going to be a significant customer to any AD.

My boss just picked up a black dial SS Daytona last month after a year on the list at his AD. I know he also has a Submariner Date as well and he spends a decent amount on jewelry for his wife. On the other side, one of the other higher comped employees here has several Rolex's between him and his wife, and they go grey for every purchase with probably a comparable spend history in aggregate.

Having inventory in the safe, makes sense only if they are above retail in value and they can be leveraged into additional spend.

[ronricks]

Originally Posted by Krash

Storing watches in a vault for their “best of the best customers” is believable.

But if you’re trying to tell me they’re just hoarding watches for months and months, and not selling them to anyone, then that becomes less believable to me.


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Then why would they have fully stickered watches that have been discontinued for over a year pop up on their website conveniently after losing AD status? Its not hard to put two and two together here.

[77T]

I see your reasoning Ron - but it's still speculation.

Keeping half a million $ of inventory off the sales floor for years is ludicrous in a small family outfit.

Plus, Rolex would have called them to task for that.

Maybe - Maybe Not

(Edit: especially since most are DJs)
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[brandrea]

Originally Posted by Xelor5513

Kat, what stood out to me is the claim: "there's a vault full of beautiful watches."
Many of us on the "wait list" play the game of checking in and making nice small talk, and giving our SA the benefit-of-the-doubt, while the reference we seek may actually be in "the vault" just waiting for the right situation … :

Yep. I met with someone yesterday who said the same thing.

[Krash]

Originally Posted by ronricks

Then why would they have fully stickered watches that have been discontinued for over a year pop up on their website conveniently after losing AD status? Its not hard to put two and two together here.

It’s not believable because these jewelers are just like any other business. They have to pay staff, rent, etc. They have bills to pay.

They have no financial incentive to hoard watches. It would be like the pizza parlor down the street making pizzas and then not selling them…Can’t stay in business that way…

Plus, not every jeweler loses its AD status anyway, so that’s not a very good argument.


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[ronricks]

Originally Posted by 77T

I see your reasoning Ron - but it's still speculation.

Keeping half a million $ of inventory off the sales floor for years is ludicrous in a small family outfit.

Plus, Rolex would have called them to task for that.

Maybe - Maybe Not

(Edit: especially since most are DJs)
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That's not what am saying. They were hoarding the good stuff not everything. When they lose their AD status and all the sudden things like two discontinued SS white dial Daytona's, a Batman, Discontinued Milgauss etc pop up on the website its not hard to see what was going on. Nowhere did I infer they were hoarding all their watches.

[ronricks]

Originally Posted by Krash

It’s not believable because these jewelers are just like any other business. They have to pay staff, rent, etc. They have bills to pay.

They have no financial incentive to hoard watches. It would be like the pizza parlor down the street making pizzas and then not selling them…Can’t stay in business that way…

Plus, not every jeweler loses its AD status anyway, so that’s not a very good argument.


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Huge difference between things like SS Daytona's, GMT, etc and pizza's. It makes perfect sense especially for those that had done business there.

[Kinnakeet]

Speaking for large chain AD’s, not family owned. They might not have all desirable watches always and at one time in the safe, but they do have some. I’m sure of it.

[Krash]

Originally Posted by ronricks

Huge difference between things like SS Daytona's, GMT, etc and pizza's. It makes perfect sense especially for those that had done business there.

Nope. You need positive cash flow to stay in business. You can’t buy inventory and then not move it. You’ll go bankrupt. It’s business 101.


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[ronricks]

Originally Posted by Krash

Nope. You need positive cash flow to stay in business. You can’t buy inventory and then not move it. You’ll go bankrupt. It’s business 101.


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They were making plenty of money selling Datejusts, Day Dates, ladies models and even the less popular SS stuff hoarding a few Daytona's, GMT's etc isn't going to break the bank. This isn't hard to understand.

[ClintonM3]

I shared the following story before. I'll share again.

Was in Hong Kong, walked into one of the most prestigious hotels where there is an AD. As I was walking in, I must have been talking to my kids who are English only speakers. So the SA greeted me in English. The conversation was the usual.... waiting list... high demand... short supply.... blah blah blah. Meanwhile, in the sit down area, I can hear a mainlander tourist shopping. His SA was rather loud, and I can hear him shouting to an assistant in Mandarin to bring out a few Daytonahh out of the safe. They probably didn't know I understand Mandarin. So yeah, high rolling tourist got Daytona as a walk in. Meanwhile, I was also a tourist and was told they have nothing to sell me.

After that experience, I know there is no transparency with AD/SA. With many layers of lies and deceptions. These YouTube videos reaffirms my view on AD/SA.

[TickTockChuck]

Originally Posted by KatGirl

Me, too, all except for my eBay watch store, which I told my SA all about. I don’t sell Rolexes, though.

Kat


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"Ebay watch store", I thought there was something behind your keen enthusiasm. You must be a very active buyer/seller! Cheers.

[77T]

Originally Posted by ronricks

They were making plenty of money selling Datejusts, Day Dates, ladies models and even the less popular SS stuff hoarding a few Daytona's, GMT's etc isn't going to break the bank. This isn't hard to understand.

Where did you get that info?

Have you been visiting them every couple of weeks like I do?


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[Jerrocop]

I know I'm late to the party on this discussion but having watched the video I don't think the guy is legitimate. It's doubtful any of what he says is from personal experience. As far as I'm concerned it's clickbait and he's just trying to get views with a controversial video. Anyone of us on this forum could make a video making the same claims. Nothing new here.

[MRBolton]

Originally Posted by Jerrocop

I know I'm late to the party on this discussion but having watched the video I don't think the guy is legitimate. It's doubtful any of what he says is from personal experience. As far as I'm concerned it's clickbait and he's just trying to get views with a controversial video. Anyone of us on this forum could make a video making the same claims. Nothing new here.

I made a comment, and his response back showed that he was familiar with the management chain at Tourneau.

However, he did say in the video that you couldn't get on the list by calling ahead of time for a vacation. That's not true, at least in 2022 when I called ahead to score a Submariner LV.

He also said that the most expensive watch that they ever had was a $100k Paul Newman Daytona. I've seen a John Mayer 116508 at the Whaler's Village store for $155k or something in 2022. I guess he was at the Wailea store then.

I wish he would've told us whom they sell the stainless Daytonas to, seeing as he claimed they do not lean on spend history.

[SavGADawg]

As someone else alluded to, these weren't exhibition pieces. I was in that store within the last few months and their Rolex exhibition cases were virtually empty. They lose their status and boom, they have 24 "previously owned, never worn, with stickers, etc." Rolex and Tudors for sale.

hmm...

Originally Posted by KatGirl

They could very well have been their exhibition pieces. Remember, when they receive their orders from Rolex, each week, they have already paid for them. The number of exhibition pieces at my AD is 24. Since that Atlanta AD lost its status, they would have to activate the warranties, thus becoming the first owner, and can mark them up to sell as preowned, but never worn.

Kat


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[soxfan39]

Originally Posted by Carguy87

For stores that also sell jewelry or other brands they may keep Rolex commissions low because they sell themselves. The management can use Rolex allocations as rewards for top salespeople to be able to allocate high demand pieces to their highest spending clients of jewelry or other high margin watch brands.

Operating this way ensures the top salespeople continue to push jewelry and other brands out the door so they can keep getting allocations for their loyal clients. If I’ve sold someone $100k worth of jewelry at say a 60% markup and getting 25% of that as commission, they’ve already put $15,000 personally in my pocket, so I’ll gladly sell them a Rolex for a tiny commission to keep them coming back for everything they need.

Look at the hot water Hermes is in over their Birkin bag line. It’s all because they were blatant enough to tell you to your face if you don’t spend X amount in the store you won’t be “worthy” of one. Worthy was in fact the exact word used by an SA at an Hermes store in Vegas last year when I visited and inquired about the process of being allocated a bag for my wife.

Rolex AD’s are smarter than that, so they use the imaginary wait list, but the truth is it’s the same “pay to play” scenario where the biggest spenders get allocated the hardest to get pieces.

As for the thing about checking with the regional manager, if he works for a big chain AD like Bucherer he could have meant the regional manager within his AD network, not an actual Rolex employee. I’m sure the only thing they have to communicate with Rolex directly for is the acquisition/allocation of an off catalogue piece for a serious collector.

THIS exactly

[ronricks]

Originally Posted by 77T

Where did you get that info?

Have you been visiting them every couple of weeks like I do?


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Its not surprising they lost their AD status for many reasons. You seem to have all the answers not sure why you are asking me?

[Krash]

Originally Posted by ronricks

Its not surprising they lost their AD status for many reasons. You seem to have all the answers not sure why you are asking me?

You’re talking about an outlier. A single case where an AD lost its status, and you’re basing your argument on that. Everyone else is talking about all the other ADs out there.


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[WilsdorfNDavis]

Originally Posted by Fleetlord

Rolex won’t produce to meet demand. It’s not in their best interests to. That would be a mistake. In fact, they are pulling back distribution in the face of their success, which is the right strategy.

Patently false.


Rolex is actively INCREASING their production, spending over a billion dollars on new production facilities:


"Rolex SA will create three temporary production facilities that will begin churning out luxury watches in 2025, as the world’s largest maker of high-end timepieces seeks to boost output amid unprecedented demand for its products. Construction on the facilities in the canton of Fribourg starts later this year, Rolex said in an email. The capacity follows plans to spend 1 billion Swiss francs ($1.1 billion) on a major new production site in Bulle, also in the canton of Fribourg, that is expected to commence operations in 2029.”

[77T]

Originally Posted by ronricks

Its not surprising they lost their AD status for many reasons. You seem to have all the answers not sure why you are asking me?

Ron - all I asked was if you were speculating. You made the following statements that were not factual - of course I asked you.

I've known the founding two families (now one family) for 20+ years. TRF had a GTG hosted by them. Did you not get an invite?

Originally Posted by ronricks

These were watches that had been sitting in the safe for months. They were hoarding them over time and had long been paid for by the AD. They weren’t recent allocations. AD’s have watches it’s up to them who gets them.

Originally Posted by ronricks

They were making plenty of money selling Datejusts, Day Dates, ladies models and even the less popular SS stuff hoarding a few Daytona's, GMT's etc isn't going to break the bank. This isn't hard to understand.

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[ronricks]

Originally Posted by 77T

Ron - all I asked was if you were speculating. You made the following statements that were not factual - of course I asked you.

I've known the founding two families (now one family) for 20+ years. TRF had a GTG hosted by them. Did you not get an invite?







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How do discontinued (which means they had been there for quite a while) fully stickered models show up on their website literally the week after they lost their AD status? Where were the watches being kept? Certainly not out in the cases for anyone to purchase. Btw there are strong rumors there will be a new Rolex AD in metro Atlanta more specifically Sandy Springs in the not too distant future. What you are trying to sell us about this situation makes no sense considering the circumstances. Sorry.

[77T]

Not selling anything to you.
You're the one selling a story that makes no sense.

If you look closer you'd realize no AD "hordes" inventory for years just on the off chance they lose their contract with Rolex.

That's ludicrous. I'm thinking you've never had to run a business unit and make payroll and net profit.


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[ronricks]

Originally Posted by 77T

If you look closer you'd realize no AD "hordes" inventory for years just on the off chance they lose their contract with Rolex.



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You are twisting my words. I didn’t say they hoarded for years plural I said months. They clearly held back some of the better pieces as most AD’s do to dangle as carrots for their VIP customers. Otherwise they wouldn’t have watches that were discontinued at watches and wonders 2023 brand new with stickers in April of 2024 on their website Additionally, never did I say they were doing this specifically in case they lost their AD status as that makes no sense. Either way, they won’t have to worry about it anymore and again considering the business model Rolex has been shifting to the last several years it’s no shock their contract got pulled.

[Fleetlord]

Originally Posted by WilsdorfNDavis

Patently false.


Rolex is actively INCREASING their production, spending over a billion dollars on new production facilities:


"Rolex SA will create three temporary production facilities that will begin churning out luxury watches in 2025, as the world’s largest maker of high-end timepieces seeks to boost output amid unprecedented demand for its products. Construction on the facilities in the canton of Fribourg starts later this year, Rolex said in an email. The capacity follows plans to spend 1 billion Swiss francs ($1.1 billion) on a major new production site in Bulle, also in the canton of Fribourg, that is expected to commence operations in 2029.”

Source? I see the quote, but where from?

[Fleetlord]

Originally Posted by Fleetlord

Source? I see the quote, but where from?

Could be all women's datejustd being made fir all we know.

[Krash]

Originally Posted by Fleetlord

Source? I see the quote, but where from?

Where is your source? You’re the one making claims that can’t be backed up. According to the latest Morgan Stanley report, Rolex sales are up. First time they reached $10 billion. Also, total units increased to 1.24 million. That’s up from 1.2 million in 2022.




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[Fleetlord]

Originally Posted by Krash

Where is your source? You’re the one making claims that can’t be backed up. According to the latest Morgan Stanley report, Rolex sales are up. First time they reached $10 billion. Also, total units increased to 1.24 million. That’s up from 1.2 million in 2022.




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I thought you blocked me years ago? How did that change?

Thanks for the article though.

[KatGirl]

Originally Posted by Jerrocop

I know I'm late to the party on this discussion but having watched the video I don't think the guy is legitimate. It's doubtful any of what he says is from personal experience. As far as I'm concerned it's clickbait and he's just trying to get views with a controversial video. Anyone of us on this forum could make a video making the same claims. Nothing new here.

That sounds familiar.

Kat


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