Rolex Boutique selling over MSRP

[Jetski]

Write a letter. It's worth reporting them IMO.

[Tha Baron]

Originally Posted by Jetski

Write a letter. It's worth reporting them IMO.

Maybe call your congressman and Senators

[Starwalker]

Very common practice across Asia

[Watch This]

Originally Posted by beshannon

Why?

It is called Manufacturers Suggested Retail Price for a reason.

No one has to buy it. Not sure why this is a problem.

Not sure why most of your posts are antagonistic.

[Muxi]

That’s been known to happen, unfortunately.

[jschmidtdmd]

This was happening a lot with RM and everyone refused to believe it.

[dtwer]

Actually there was a memo, from Rolex to its AD’s worldwide, being discussed extensively online including TRF last November.

The memo specifically instructs that AD’s are to sell all Rolexes at MSRP.

I would suggest that OP you report this boutique to Rolex and see what they say.

[Geaux Tigers]

ADs in the US risk loosing their ability to sell Rolex. They do however sell preowned at market prices. Could be “preowned”.

[imgook]

No body complains when AD's sell for under the MSRP...

[lawrence1]

Originally Posted by Jetski

Write a letter. It's worth reporting them IMO.

Why of course!

This is borderline criminal!!! This AD should be charitable with all RF members and sell at MSRP or even below, even when the market is hot. Anything over MSRP and the pitchforks are out. When the economy is not as hot, or demand is lower, ADs should bend over and sell for well below MSRP to anyone that walks in, especially RF members. Of course, a scalper can ask for 1.5x or 2x MSRP and they are great, providing an invaluable service and allowing those underserved would be rolex buyers the opportunity to acquire those hard to get references.

Oh and one more thing ... the MSRP rule doesn’t apply to any RF forum member that is selling or flipping a hard to find reference in the classifieds or even seeks to trade it in to an AD at a premium over MSRP, after wearing it of course. That is perfectly OK.

Sarcasm aside, the hypocrisy is beginning to reach comical levels.

[s7horton]

Others have mentioned, but I find it hilarious that people complain of an AD possibly charging over MSRP, when NO ONE complains when AD’s discount.

Those that think the dealership should be pulled for over pricing, do you feel the same if that AD offers a 10% discount a PM model?


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[InitialAndPitch]

The law calls it ‘Resale price maintenance’ where manufacturers coerce dealers to sell at a specified price. Big penalties in some jurisdictions.

[moonshine89]

Originally Posted by lawrence1

For those of you acting outraged -

1. how much would you sell this same reference for if you owned it and wanted to sell it?

2. Would you be more outraged or less outraged if a scalper offered this same piece at the same price as the AD in question?

I think you’re missing why people are annoyed. The ADs are supposed to be the reference of what the selling price should be since they have an agreement with Rolex. If an AD starts acting like a gray dealer then what’s the point of going to an AD?


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[zjd168]

Originally Posted by Alpino

.

ADs sign an agreement with Rolex to become and stay an AD ...

They agree to sell at suggested price, price suggested by ... Rolex


If they don't respect this agreement they have no risk to go to jail of course, but they won't be AD anymore if/when Rolex become aware of the "issue".

This

[dtwer]

It may be logical to reason that if we expect a discount from AD’s then we should expect to accept AD charging prices over MSRP.

The only problem with that logic, of course, is in the degree of deviation from MSRP.

In OP’s case, he was offered a price of $5700 over MSRP. That is more than 40% markup for a non PM Daytona. Have we ever seen the same degree of discount being offered by any AD, on any Daytona reference?

[dtwer]

Originally Posted by InitialAndPitch

The law calls it ‘Resale price maintenance’ where manufacturers coerce dealers to sell at a specified price. Big penalties in some jurisdictions.

It used to be that the manufacturers could only “suggest” a minimum retail price, the U.S. Supreme Court changed that rule.

Now, manufacturers may, under appropriate circumstances, “require” a minimum retail price to be charged.

[AK797]

Originally Posted by joli160

Rolex just wants to sell watches and maximise profit.
They are not interested in anything else and certainly not in maintaining some correct business ethics.

It all makes sense though, why would any AD give a customer instantly several thousands for free not doing anything but ordering a watch ?

Well, no, their first priority is to protect the brand, and that is why they introduced the stickers off and warranty withheld policies etc, esp here in the UK first because we had been been griping about the grey flipper problem the longest.

They would not have bothered if they only cared about profits and not about the abuse they were constantly getting online across all the forums. The measures were ineffective as we all know, and caused outrage to many who had not yet felt the imbalance, like the USA, but the point was that they wanted to be seen to be trying to help their genuine customers and not just cashing in.

[beshannon]

Originally Posted by lawrence1

Sarcasm aside, the hypocrisy is beginning to reach comical levels.

Exactly and sadly that is what this forum is being reduced to

[miatang]

Its probably not good practice but not illegal. Hong Kong AD's do it all the time.

[s7horton]

Originally Posted by dtwer

It may be logical to reason that if we expect a discount from AD’s then we should expect to accept AD charging prices over MSRP.

The only problem with that logic, of course, is in the degree of deviation from MSRP.

In OP’s case, he was offered a price of $5700 over MSRP. That is more than 40% markup for a non PM Daytona. Have we ever seen the same degree of discount being offered by any AD, on any Daytona reference?

The model in question here is a PM, not SS. When you consider a 20% discount on a PM model (which used to be considered normal), it’s actually more than the $5700 mentioned above. So yes, we have seen that level of discounting.


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[brandrea]

Originally Posted by Fleetlord

Hmmm...

https://www.businesstimes.com.sg/con...for-hot-models

Interseting read, thank you for posting this.

Hopefully others will take the time

[beshannon]

Originally Posted by brandrea

Interseting read, thank you for posting this.

Hopefully others will take the time

Good article that clarifies nothing

instructing them to stick to the recommended prices

Or what?

Sounds like gentle prodding, wink wink nudge nudge . . .

Rolex needs to either make an example of some large dealers or continue to allow their dealers to feed the secondary market. They have had it both ways for far too long and this is the result of their failure to manage their business.

[jimcameron]

Originally Posted by Ken B

This is why I no longer own Rolex's.. the entire market for them has gone over the edge. People keep paying stupid prices and Rolex continues to slow production. No need to play those games. This “status” symbol is not for me.

There are too many excellent alternatives without the drama. I haven't bought a Rolex in 35 yrs.

[Batmannr1]

Originally Posted by DrRec

I just called Rolex Boutique asking about the availability of the Daytona 116519LN
For my surprise the Boutique has the watch available, but R$22.000 over retail, approximately US$5.700...
I just couldn‘t believe it...
AFAIK Rolex BOUTIQUE should charge MSRP
Has anyone heard about Boutiques charging over MSRP?

Was it the Rolex Boutique in Shopping Iguatemi?
I was there in december last year and the staff were helpful and forthcoming.

[FTX I]

Originally Posted by brandrea

Interseting read, thank you for posting this.

Hopefully others will take the time

+1

[brandrea]

Originally Posted by beshannon

Good article that clarifies nothing



Or what?

Sounds like gentle prodding, wink wink nudge nudge . . .

Rolex needs to either make an example of some large dealers or continue to allow their dealers to feed the secondary market. They have had it both ways for far too long and this is the result of their failure to manage their business.

Perhaps it's this Brian

I'm not familiar enough with the source to say one way or the other but there appears to be enough empirical evidence to suggest that it would be in Rolex best interests to clamp down on selling above OR below list ... which as you know I support

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[Weinboyz]

Originally Posted by Geaux Tigers

ADs in the US risk loosing their ability to sell Rolex. They do however sell preowned at market prices. Could be “preowned”.

My same Thought!!!!

[SlideRacker]

ADs can get around this by forcing you to bundle with a PM. Depending on which PM you choose it can generate even more profit margin than if they simply sold you the SS at market price.

[aleeboy]

Offering to pay a handsome premium in a subtle manner is the surest and quickest way for an AD to magically have stock.

I've seen this in several markets.

[jcross]

My AD told me that Rolex is very serious about no discounts and no up charging on their watches. He also told me they pulled the plug on almost 600 AD's that keep breaking their agreement.