My AD lost Rolex

[Rani Drama]

Well i decided to stop into my AD the other day wondering if he ever did get a new Daytona in that i was put on a waiting list after i missed my chance by a couple days. Ends up he lost his dealer status from Rolex. It's a privately owned store in a small city in Canada and it was just him and his mother who passed away recently. They've had the rolex dealership since god knows when and well his store does look like going back in time. Even has an old 70's or 80's car out front and the carpets are old and green and the displays are pretty run down. He's saying that rolex said his store doesn't meet their standards but he is pretty sure it's because he's known to be a big discounter with not much overhead. He still has around 200 rolexes for sale but he can't get anything new in. Rolex stopped sending him new shipments and many orders he's had he has had to cancel. If it was the renovations that bothered rolex why wouldn't they give him a warning and some time to spruce up his shop instead they really shut him down pretty quickly. He was a sole rolex seller didn't cary any other brands just Rolex and Tudor.

Is it pretty common for things like this to happen? It makes me feel a little ill thinking that Rolex would totally abandon a long standing dealer with huge loyalty to the brand. Now there isn't even an authorized dealer in our city anymore. You'd have to go to Niagara Falls where that dealers rolex collection pales in comparison i'm telling you he has more rolexes than many international stores in major cities that i have been to. Everything from meteorite dial daytonas to even brand new oyster quartz's and he holds on to usually at least one watch if they've ever been discontinued.

[kilyung]

Sadly business supersedes loyalty these days.

[themast]

That is really bad. Apparently this is the direction that Rolex is taking in the past years and I personally do no like it.

[aeon888]

Sad to hear that. I once talked to an AD in Iowa and Rolex does have a very high standards for how their display looks like. The sales lady told me that Rolex even dictates or tells them how they want the display to look like, the wall decors behind the ROlex display, Rolex space dimensions in the store, specific location within the store, and even background lighting. Rolex is very anal on those things, I believe to maintain their luxury status symbol to the eyes of the public customers who walk in the AD.

You mentioned that your AD has run down display cases and old carpets, maybe that is the case. I don't believe it has something to do with heavy discounting from your AD since it would be hard to prove by ROlex unless they monitor and call ALL the Rolex buyers from that AD on how much they really paid for the watch. It will all be just hearsay and Rolex don't close longtime ADs on hearsay alone.

[aeon888]

By the way, since your AD has still 200 Rolexes still for sale, I believe this is the best time to get an old model BNIB from your AD. If he was heavily discounting the watches during his stint as an AD then how much more now that he isn't officially connected with Rolex anymore.

He might be willing to give out 35-40 percent off or even more now. ;)

[SWISSAHOLICS]

I know a friend who wanted to open a Pandora dealership in his store and the rep came in the store and bluntly told him that unless he changes his showcases and buys Pandora showcases that will fit into his store, he won't get the Pandora dealership. So basically, yes, these brands to end up dictating their terms on opening dealerships and even orders. Granted, carrying a Rolex has its perks as it gives your business an outstanding reputation of being a AD but at the same time, they pressure you like ways only an owner can tell you.

[mr.president1]

I'm sure this AD knew they had it coming for a while now.... And now it's happened..

Sad to hear though... Hopefully there is another AD close to you!

[Porsche958]

I'll help him liquid his older stock :) What's the store you're referring to?

[Cc1966]

Sad to hear, but Rolex has always stood for perfection so stores are expected to follow suit.

[Casey VP-26]

I am also aware of 3 AD's who were shut out by Rolex, 2 of the 3 told me that Rolex wanted them to put a separate Rolex boutique inside their stores at an estimated cost of $250,000.00 to the store, they refused, and now they no longer sell Rolex.

[Cc1966]

250k for an internal boutique? Sounds like they wanted an altar of gold!

[steveclocks]

sad story indeed.
I think rolex is limiting his sellingpoints. Part of a new policy maybe?

[aeon888]

Originally Posted by steveclocks

sad story indeed.
I think rolex is limiting his sellingpoints. Part of a new policy maybe?

Probably. Just like when I went to Von Maur mall in Omaha and was told by the sales lady that they don't carry the Burberry brand anymore because I think Burberry wants to minimize their sellers to Burberry boutiques only in the future so they can control the discounting done by most retail stores. Actually Louis Vuitton did this a long time ago when it stopped selling its LV products from online luxury stores like Saks, Bloomingdales, Nordstrom, Neiman Marcus, Barneys New York because now Louis Vuitton is sold only on Louis Vuitton boutiques and official LV online store.

This is a marketing strategy from Luxury brands to control pricing and discounts and maintain exclusivity. My 2 cents.

[mike@ec]

I had a friend who wanted to become a rolex dealer, and because her shop was on a the 2nd floor of the mall they wouldn't allow it, they indicated they wanted a 1st floor shop with a separate boutique inside their store.

[cop414]

That stinks, maybe in the long run your former AD is better off. I know of one here close by that this has happened to also.

[jdm124]

Originally Posted by Casey VP-26

I am also aware of 3 AD's who were shut out by Rolex, 2 of the 3 told me that Rolex wanted them to put a separate Rolex boutique inside their stores ...

That may be why the AD I use bought the store next door and turned it into a 'Rolexorium.'

[SWISSAHOLICS]

I know that once you lose your Rolex AD, your sales drop....Rolex is a huge plus point to your overall sales figures at the end of the year. I know guys who often come in to look at Rolex watches end up also buying an add on gift for their significant other.

[SearChart]

Originally Posted by mr.president1

I'm sure this AD knew they had it coming for a while now.... And now it's happened..

Sad to hear though... Hopefully there is another AD close to you!

Perhaps he didn't have the funds to do something about it?

[beshannon]

Originally Posted by Rani Drama

He's saying that rolex said his store doesn't meet their standards but he is pretty sure it's because he's known to be a big discounter with not much overhead. He still has around 200 rolexes for sale but he can't get anything new in. Rolex stopped sending him new shipments and many orders he's had he has had to cancel. If it was the renovations that bothered rolex why wouldn't they give him a warning and some time to spruce up his shop instead they really shut him down pretty quickly.

Sounds to me like they did give him a warning.

Being a dealer is not a birthright.

[SUBversive]

It's too bad but happens. It happened to an AD around here that has been the watch business since practically the horse and buggy days. The issue is the discounting. And ADs do have notice. Th other issue is top brand status. Rolex wants to be the top dog in the case and that means no omega and Patek. Both of which the AD here sold and sells. Ross Simons in the New England area was an omega AD also and gave that up many years ago to stay in the rolex fold.

[Billywiz]

Originally Posted by kilyung

Sadly business supersedes loyalty these days.

yep...real shame...its more than just the Rolex business they do it also legitimizes the standing of the store if its a Rolex dealer (in consumer minds) so quite damaging to loose I would think for many reasons.

[bottom of the ninth]

Happened here in Iowa also... only 1 AD left in the whole state!

[Andrew NYC]

Interesting story and very sad to hear.

I was in a Rolex AD in San Diego two weeks ago and got the same story from them. They had been a locally owned and operated jewelry store for more than 100 years. They had been a long standing Rolex AD and had quite a bit of Rolex branding outside and inside the store. The store and their displays were all in good repair and the shop was pleasant as were the sales people.

When I inquired as to their selection of Rolex watches I was told that they too were losing their AD status from Rolex. When I asked why I was told that they were not placing large enough orders year-over-year and they could not afford to make the significant and costly renovations to their stor, displays, etc. that Rolex had mandated. They seemed genuinely disappointed (as was I) that they would no longer be selling Rolex. We talked about how unfortunate it was due to the growing rarity of people having a strong local and personal relationship with local stores these days. I recall growing up in ME that there was one independently owned jewelry store in my town that was a Rolex AD. As a kid I would go down and stare into the window displays and counter cases at the sparkling Rolex watches back in the early 80s. It's what really ignited my passion for watches and when I got my first serious job out of college I went and bought a Sub at another local AD where I then lived.

In the age of internet retailers, big-box stores, corporate boutiques it seems challenging, if not impossible, to have a strong local merchant relationship. I think Rolex (and other companies) are short-sighted in their strategies. I can appreciate the desire to more carefully manage and control the "consumer experience" but it's sad and somewhat unfair to punish the locally owned and operated businesses that helped build your brand.

I left the San Diego AD somewhat disheartened. Not sure if this was due to the end of an era for this store and its customers or the fact that I didn't pull the trigger on the 2-tone GMT when offered at a sizable discount. Nonetheless, I am afraid we'll see more rather than less of this trend as time progresses. I still very much believe in supporting local businesses as they are what made this country strong and successful.

-andrew

[77T]

A Rolex authorized dealer signs up with the knowledge that there are minimum requirements to maintain. For what it's worth, low-volume sellers will not generate enough new capital to fund those requirements. It is what it is, sadly, for many dealers.

[cop414]

Originally Posted by SUBversive

It's too bad but happens. It happened to an AD around here that has been the watch business since practically the horse and buggy days. The issue is the discounting. And ADs do have notice. Th other issue is top brand status. Rolex wants to be the top dog in the case and that means no omega and Patek. Both of which the AD here sold and sells. Ross Simons in the New England area was an omega AD also and gave that up many years ago to stay in the rolex fold.

Hmmm, never thought about that. When I purchased my Seamaster from an AD they also had Rolex, this was about 6 years ago. When I was looking for my Sub they were the first ones that I called and I was told that they were no longer a Rolex AD, too bad, nice Mom and Pop kind of place. Big old dog sleeping behind the show cases.

[james1787]

We had an AD in town that stopped selling Rolex several years ago. I don't know of the reasoning behind them discontuing carring Rolex. Now the closest one AD is in the mall by us a few towns over.

[diver2012]

Does it stink...really?

If I owned a brand like Rolex I wouldn't want my products being stocked in a shop that looked like it was stuck in the 70's.

[wohlfecc]

What a store signs up for may be one thing, but the Rolex MO of adding new requirements at short notice is something entirely different.

The company now requires independent repairmen to pony up $15k (!) for a Rolex-approved pressure tester, among other kit, to maintain parts accounts. They reserve the right to show up unannounced for shop inspections and can cancel an account with no appeal if their standards are not met.

High standards are one thing, but seriously?

[10XRolex]

I'm sure he wasn't blind sided about losing Rolex.

However he may have been when Rolex insisted that he renovate his store to Rolex spec. Sign a new lease for a predetermined time if he does lease. And then be prepared to buy 40 or so watches.

If he didn't want to follow those rules then he potentially will lose the line like he did.

Business is business and friends are friends.

[1flossedm3]

This is really sad if true.