5% Increase on Rolex prices in the UK from the 1st of October

[Eric-London]

I agree this is a wait and see move. If things don’t go well in March (Brexit time) for the pound, we could very well see another increase from 5-10%.

[RayShepherd]

All rumours have some truth to them

[emtee]

Originally Posted by AK797

Rolex SA get paid in CHF so their revenue is constant, it is the ADs and the different country's Rolex affiliates that have to deal with fluctuating currency issues, which is why Rolex is supposed to try to even out disparities, but they are usually in no hurry as it is not on their dime.

So you’re saying that a UK AD and a US AD may pay Rolex different amounts for the same watch? So Rolex say ‘well regardless of how much it costs to get our product to market in any given country we expect to be paid the same amount for each watch’

So if it costs £1000 to get a watch in a UK display case but £1200 to get a watch in a US display case Rolex want the US AD to absorb that extra cost? So the UK dealer gives Rolex £1000 but the US dealer gives them £1200 to have the same watch in their window?

Of course I’m just using arbitrary numbers to illustrate my point...

So therefore that would explain the difference in MSRP as it’s more expensive for a US AD to import the same watch as a UK AD therefore they need to charge a higher MSRP to make the same profit as a UK AD?

Still doesn’t explain why MSRP is cheaper in UK vs other EU countries as import costs should be the same?

[tyler1980]

Originally Posted by emtee

So you’re saying that a UK AD and a US AD may pay Rolex different amounts for the same watch? So Rolex say ‘well regardless of how much it costs to get our product to market in any given country we expect to be paid the same amount for each watch’

So if it costs £1000 to get a watch in a UK display case but £1200 to get a watch in a US display case Rolex want the US AD to absorb that extra cost? So the UK dealer gives Rolex £1000 but the US dealer gives them £1200 to have the same watch in their window?

Of course I’m just using arbitrary numbers to illustrate my point...

So therefore that would explain the difference in MSRP as it’s more expensive for a US AD to import the same watch as a UK AD therefore they need to charge a higher MSRP to make the same profit as a UK AD?

Still doesn’t explain why MSRP is cheaper in UK vs other EU countries as import costs should be the same?

its two separate things. One is the wholesale cost in a common currency (CHF) to dealers, and the other is RRP in Local currency which is the end purchaser price. VAT rates are not consistent either in the EU and the EU and UK are on different currencies which fluctuate, all prices include tax.


Whats is also possible is Rolex charges a standard rate in CHF to buy all watches, regardless of destination and before import fees and other expenses as thats not their concern. So some countries with higher import fees or higher VAT rates are working with smaller margins.

I ran the numbers on actual retail price (excluding tax) and the retail price for the watch itself was 25% less in the UK VS US in CHF. That assumes Rolex is charging the local RRP Minus dealer margin and minus taxes. That may not be how they do it at all.

[emtee]

Originally Posted by tyler1980

its two separate things. One is the wholesale cost in a common currency (CHF) to dealers, and the other is RRP in Local currency which is the end purchaser price. VAT rates are not consistent either in the EU and the EU and UK are on different currencies which fluctuate, all prices include tax.


Whats more probable is Rolex charges a standard rate in CHF to buy all watches before import fees and other expenses. So some countries with higher import fees or higher VAT rates are working with smaller margins.

Good point. I hadn’t thought of that. So basically Rolex don’t give a sh*t as long as they are getting the same price per unit regardless of where the product ends up being sold. Except they do otherwise they wouldn’t care about RRP and wouldn’t dictate RRP.

I guess none of us really know what their strategy is regarding regional pricing but it’s interesting to try understand the logic behind it.

I guess they must know something we don’t otherwise I’d be in charge of the biggest watch brand on the planet!

[tyler1980]

Originally Posted by emtee

Good point. I hadn’t thought of that. So basically Rolex don’t give a sh*t as long as they are getting the same price per unit regardless of where the product ends up being sold. Except they do otherwise they wouldn’t care about RRP and wouldn’t dictate RRP.

I guess none of us really know what their strategy is regarding regional pricing but it’s interesting to try understand the logic behind it.

I guess they must know something we don’t otherwise I’d be in charge of the biggest watch brand on the planet!

either way the UK end purchaser price based on other markets is low comparatively which is all that really matters to someone buying or trying to buy a watch.

[bondtoys]

Originally Posted by emtee

So you’re saying that a UK AD and a US AD may pay Rolex different amounts for the same watch? So Rolex say ‘well regardless of how much it costs to get our product to market in any given country we expect to be paid the same amount for each watch’

Of course!

Rolex ADs pay for their watches in local currency for for a certain % less from the suggested retail price (some here say 38% less).

The UK currency lost massively against all major currency and hence prices for Rolex watches became the cheapest in Europe.

[Oryx]

This is 100% confirmed. ADs have been formally notified.

[exador]

Originally Posted by bondtoys

Rolex ADs pay for their watches in local currency.

That’s not usually how it works. Otherwise Rolex SA has been losing money in the UK since Brexit announcement...

[Oryx]

Originally Posted by exador

That’s not usually how it works. Otherwise Rolex SA has been losing money in the UK since Brexit announcement...

Rolex have still been making money - just not at the same level as before.

Rolex AD's do pay based on local currency prices - in the UK for sure.

[ocN55]

Is this board confirming that this increasing is only in the UK? (for now)

[jvacc]

Asked about getting a Submariner at Heathrow T5 - sounds next to impossible. They told me get an average of 1 sub/month to sell. At this point I think its a better customer experience if they stop selling Sports models at T5 all together (or close the T5 stores)

[rgwarden]

Originally Posted by Number3

It’s irrelevant as I can’t get anything I want anyway!

This ☝️
A price increase on what, datejusts full of diamonds? There’s no SS stock here anyway!


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[Eric-London]

It's looking like the price increase will be virtually worldwide shortly, no doubt by varying percentages.

[subtona]

finally

[Horationelson]

My AD confirmed this today (department store in Central London). I just popped in for a chat and they brought it up without me even asking.

[tommy91]

Originally Posted by Yogi20

If they had a 20% increase but you could actually buy SS models everybody would be happy

Exactly, 5% just isnt going to make a difference. I have given rolex a break for now. Just cant be bothered with the rolex games. In my case Rolex are just putting me off the brand.

[Buzzlite]

I think SS will go up 8-10%

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[rambo99]

Originally Posted by Eric-London

It's looking like the price increase will be virtually worldwide shortly, no doubt by varying percentages.

nothing will change, grey market price will stay the same and it would be still impossible to get a hulk from an AD

[coolaking]

Originally Posted by rambo99

nothing will change, grey market price will stay the same and it would be still impossible to get a hulk from an AD

I think you'll find grey market price will also go up 5% +

[Hollie_Rollie]

Originally Posted by Eric-London

It's looking like the price increase will be virtually worldwide shortly, no doubt by varying percentages.

Is this speculation ?


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[Rizone]

Is possible increase only on watches produced after Sept 30th or all in stock stuff also?

[mercman]

Originally Posted by rambo99

nothing will change, grey market price will stay the same and it would be still impossible to get a hulk from an AD

Not true, I asked my AD to get me a Hulk about 2 months ago, I got the call last Friday to say he had one for me.

[Haywood_Milton]

Originally Posted by Rizone

Is possible increase only on watches produced after Sept 30th or all in stock stuff also?

Watches in stock will usually be re-priced as well. They are certainly intended to be.

[rambo99]

Originally Posted by Haywood_Milton

Watches in stock will usually be re-priced as well. They are certainly intended to be.

may be that's the reason why the current shortage, ADs hold up their sports models until 1st oct when they can make 5% extra profit!

[Haywood_Milton]

Originally Posted by rambo99

may be that's the reason why the current shortage, ADs hold up their sports models until 1st oct when they can make 5% extra profit!

Optimists would be disappointed. There may appear to be a handful more which appear after 1st October, but nothing significant in the face of current demand.

[rambo99]

would people already joined a wait list been affected by the new msrp?

[Art 1]

Originally Posted by rambo99

would people already joined a wait list been affected by the new msrp?

Yes

[Jacobson]

Sales guy @ one of my local ADs claims it's not 5% across the board, some refs could be as high as 8%-10%.

He's just a sales person, so will wait and see on Monday

[rambo99]

can't wait!