Rolex Wholesale / Cost ?

[DARK_KNIGHT]

Originally Posted by buz-lh

You think less or more Dark Knight?

DARK

more, much more than 40%. Rolex only "tweeks" their line and actually makes significant changes maybe every time there is a new pope in rome elected. they bought up the real watch parts makers in switzerland (thus the [dark]phoney notion of being ALL IN HOUSE). they mill their own metals so they are not subject to the whims of the markets. iron clad distribution channels.

[TempoKing]

Hummm...I like this wholesale price game. You have all forgotten the important country IMPORTER'S profit which is realistically between 25% and 30%. THEN the shop-keepers/Rolex agent's gross profit which is around 42% before they will give you any discount. Officially they are told to refrain from giving discounts at all but let's say they do, after that discount of 20% to you, they are left with 22% gross, then credit card fee 2% then taxation on the net profit another 5%, sales person commission another 3%, rent and general shop keeping expence per item sold another 2% brings the net profit from a Rolex watch next to "insignificant" and I am not going to discuss SALES TAX I am sure you took care of that or the inventory COST for having the unsold Rolex suckers standing there like all watches without date, the mid-size or the expensive ladies gold with diamonds all over etc.. Who makes the really money is the importer, the shop keeper carries Rolex in order to give his jewelry a boost and an aura of desireable credibility.
TRUST ME, the sale of expensive diamond and gem set jewelry goods is his aim when he gives you a discount on the Rolex.
HE will take you to the cleaners when ready to buy a 4 carat Tennis bracelet.
So what is the reall cost to the importer of a 16610 Submariner..????. Not more than $ 2300 dollars !! Have a nice day

[tnt]

very interesting thread!

I know what to ask on my 18k wg president purchase now

Thanks to all for sharing.

[Greg9999]

I have no firm data, but comparing to Invicta and other substantial SS watches, I would think the Rolex BOM (bill of materials) cost is approx $300 for a GMT Master II. I recall being told some of the movements are outsourced, so there is buffered margin build in there.

That does not include the COSC calibration/regulation, advertising, sales, and marketing overhead (or SG&A). So add $150 per watch (keep in mind Rolex volume is huge so you distribute those high overhead costs over all units)

So in summary, it would not surprise me if overall cost is $450 per unit. Since the dealer buy price is 60% of MSRP, to get the gross profit margin:

GMT Master II (16170)
=================
$5,200 (MSRP)
$3,120 (wholesale)
$450 (Rolex COB- cost of build)
$2,670 (profit dollars)

That is a (1- 450/3120) *100% = 86% GPM (gross profit margin).

I know, we all want to believe Rolex cost is higher. Most people assume it is. However, I am comfortable paying for my Rolex, even knowing the mark-up is extreme. "Value", especially with luxury goods, cannot be measured in dollar terms. It is in perceived value to the consumer.

Given that, as an executive of a large electronics company, I would love to capture that value and GPM, in the often commoditized market I manage. Most of my products are 40-50% GPM (MSRP = 2x COB)

Disclaimer: this is my estimate based on my business background- which is not in watches. I am open to feedback.

[TempoKing]

That is a (1- 450/3120) *100% = 86% GPM (gross profit margin).

We have both arrived almost in the same conclusion via a different method.

[thedips]

very interesting .. bump again for more comments and ideas.... i sent a little wishlist to my ad friend so ill see what were working with.

[DoxaDavid]

Give or take as been posted the markup from cost is close to 40%and it is across the board for all models. Rolex tells their dealers what their discount level is and I know this for a fact if a dealer is caught giving more discount than they allow, they will and have canned them. Their allowed discount levels are 5% for SS, up to 10 % for TT and 15% for all gold/platinum. If a dealer has a very good customer, they can get permission to discount an all precious metal watch to 20%. I'm not saying some dealers don't offer greater discounts but they don't flaunt it if they are smart.

As to how much they are making, people need to remember what kind of costs are involved to be dealer. A leased/owned space, employee's salaries, health insurance, taxes, advertising, risk insurance, interest for carrying inventory, maintenance of property and on and on.. It takes a lot of $$$ to run a store so don't be so quick to knock them for their margins. Takes a lot of sales to just pay the overhead so I understand if they discount their watches beyond what they do, they don't make enough to keep in business. I am not just talking about the watches but in general. Not to say I wouldn't ask for a discount, just that everyone is entitled to make a profit and most people don't take into account what it really takes to be in business. Sorry for the ramble..



David

[Wolfgang427]

Originally Posted by rocklee_27

I thnik 40% mark up doesn't apply to all rolex model, the Ad will make more profit on high end model vs low end ones, that's why you got greater discount on high end one than the other, do you thinks so??

Why not? You get a bigger discount on a $20,000. watch then a $5,000. watch because one is 4 times the cost of the other.

[larryjanssen]

Actually dealer cost would be around $ 6500 - Probably about right, Rolex would then likely make a gross profit of $5000 - $ 5500 on that amount.

High-end fashion with an exclusive name is lucrative!

[aleron]

With all this talk of "getting a better discount" now we know the wholesale cost, don't forget that Rolex and their AD's mark-up their product as much as they do simply Because they can!

If you put yourself in the shoes of the AD, and someone comes into your store and says "I know you have 40% on your watches, so I want 20% off my SS Subdate"...

Solution A: Give the discount and tell the next customer you have no SS Subdates in stock...

Solution B: Say 'seeya buddy' and sell it at full retail price almost as quick...

Its basic supply & demand
Rolexes are popular, and the demand dictates that they can sell it at full MSRP, regardless of the mark-up, and to be honest who would blame them, I'd do it too!
So as much as I'd like 15% off my Subdate, I've accepted it aint gunna happen!

[etp095]

Originally Posted by aleron

With all this talk of "getting a better discount" now we know the wholesale cost, don't forget that Rolex and their AD's mark-up their product as much as they do simply Because they can!

If you put yourself in the shoes of the AD, and someone comes into your store and says "I know you have 40% on your watches, so I want 20% off my SS Subdate"...

Solution A: Give the discount and tell the next customer you have no SS Subdates in stock...

Solution B: Say 'seeya buddy' and sell it at full retail price almost as quick...

Its basic supply & demand
Rolexes are popular, and the demand dictates that they can sell it at full MSRP, regardless of the mark-up, and to be honest who would blame them, I'd do it too!
So as much as I'd like 15% off my Subdate, I've accepted it aint gunna happen!

i just got a 18.25% discount on a ss sub/date(z series w/crb) last saturday.it was the first thing i've ever bought from this ad.i could have bought a pepsi or coke gmt(d series) for the same discount.i might go back and buy the pepsi,might get a better disount.worst he could say is no.

[Flyboy]

I have a couple of cost prices for 2007.
A SS Daytona in the UK is £2,090 + vat, so £2,455.75 to the AD.

[TempoKing]

[QUOTE=thedips;422568]hey there had a question.. i tried also search function with no luck.. if someone can forward me or link me to a list of wholesale cost to most rolex watches? in particular the sport models..?

is there a way to calculate that? is there a list somewhere? has this been discussed in great lenght and i just happen to miss it? any helps thanks...116520 SS DAYTONA BLACK/WHITE $11800



116718 18K GMT MASTER GREEN HAND $16950



116710 SS GMT MASTER GREEN HAND $6350


114270 SS EXPLORER I $3450


16570 SS EXPLORER II $4100


16600 SS SEADWELLER WITH KIT $4550


14060 SS SUBMARINER NO DATE $3950


16610 SS SUBMARINER WITH DATE $4750


16610LV SS SUBMARINER "GREEN" $5650


16613 18K/SS SUBMARINER $6250


16613 18K/SS SUBMARINER SERTI DIAL $7750


16618 18K SUBMARINER $16700


16618 18K SUBMARINER SERTI DIAL $18000


16622 SS/PLATINUM MENS YACHTMASTER $6750


168622 SS/PLATINUM MIDSIZE YACHTMASTER $5850


169622 SS/PLATINUM LADIES YACHTMASTER $5350


169623 18K/SS LADIES YACHTMASTER $5550


16628 18K YG YACHTMASTER $16500


16628 18K YG YACHTMASTER MOP $17500


16623 18K/SS MENS YACHTMASTER $6950


16623 18K/SS MENS YACHTMASTER MOP $8050


116519 WG DAYTONA STRAP $14500


116519 WG DAYTONA STRAP DIAMOND DIAL $15500


116509 WG DAYTONA ON BRACELET $21000


116509 WG DAYTONA ON BRACELET DIAMOND DIAL $22500


116509 WG DAYTONA ON BRACELET PAVE DIAMOND DIAL $32500


116518 YG DAYTONA STRAP $13500


116518 YG DAYTONA STRAP DIAMOND DIAL $14600


116528 YG DAYTONA ON BRACELET $18900


116528 YG DAYTONA ON BRACELET DIAMOND DIAL $20100

116528 YG DAYTONA ON BRACELET MOP ROMAN DIAL $20500


118238 YG PRESIDENT BRACELET $16500


118238 YG PRESIDENT BRACELET DIAMOND DIAL $17900


118238 YG PRESIDENT BRACELET METEORITE DIAMOND DIAL $21000


118348 YG PRESIDENT BRACELET DIAMOND DIAL BEZEL $26000


118348 YG PRESIDENT DIAMOND BEZEL "GREEN" PAVE DIAMOND DIAL
$31500


118388 YG PRESIDENT DIAMOND BEZEL/ DIAL/ LUGS
$28000


118239 WG DAY DATE PRESIDENT BRACELET $17800


118239 WG DAY DATE PRESIDENT BRACELET DIAMOND DIAL $19500


118209 WG DAY DATE OYSTER BRACELET $16200


118346 PLATINUM MENS PRESIDENT DIA DIAL DIA BEZEL $38000


18946 PLATINUM MASTERPIECE METEORITE $53000


18946 PLATINUM MASTERPIECE MOP DIAMOND $52500


18946 PLATINUM MASTERPIECE DIAMOND DIAL $52000


116200 MENS NEW STYLE SS SMOOTH OYSTER BAND $3750


116200 MENS NEW STYLE SS SMOOTH JUBILEE BAND $3850


116234 MENS NEW STYLE SS/WG BEZEL OYSTER BAND $4400


116234 MENS NEW STYLE SS/WG BEZEL JUBILEE BAND $4450


116234 MENS NEW STYLE SS/WG BEZEL JUBILEE BAND DIA DIAL
$5550


116234 MENS NEW STYLE SS/WG BEZEL JUBILEE BAND SODALITE
DIAMOND DIAL $7250


116234 MENS NEW STYLE SS/WG BEZEL JUBILEE BAND MOP DIA
DIAL $7050


116264 MENS NEW SYTLE SS/WG TURN-O-GRAPH BEZEL OYSTER
BAND $4600


116264 MENS NEW SYTLE SS/WG TURN-O-GRAPH BEZEL JUBILEE
BAND $4650


116261 MENS NEW STYLE SS/ROSE TURN-O-GRAPH BEZEL
JUBILEE $6250


116139 MENS NEW STYLE WG DATEJUST STRAP $11300


116139 MENS NEW STYLE WG DATEJUST STRAP DIAMOND DIAL $12400


116138 MENS NEW STYLE YG DATEJUST STRAP $10800


116233 MENS NEW STYLE 18K/SS DJ JUBILEE BAND $5950


116233 MENS NEW STYLE 18K/SS DJ JUBILEE BAND DIA DIAL
$6950


116233 MENS NEW STYLE 18K/SS DJ JUBILEE BAND MOP ROMAN
$6850


116233 MENS NEW STYLE 18K/SS DJ JUBILEE BAND MOP
DIAMOND $8450


178240 MIDSIZE NEW STYLE SS SMOOTH BEZEL DATEJUST OYS BAND
$3650


178240 MIDSIZE NEW STYLE SS SMOOTH BEZEL DATEJUST JUBILEE
BAND $3750


178274 MIDSIZE NEW STYLE SS/WG BEZEL DATEJUST JUBILEE
BAND $4350


178274 MIDSIZE NEW STYLE SS/WG BEZEL DATEJUST OYSTER
BAND $4300


178274 MIDSIZE NEW STYLE SS/WG BEZEL DATEJUST JUBILEE
BAND DIAMOND DIAL $5450


178273 MIDSIZE NEW STYLE 18K/SS DATEJUST JUBILEE $5450


178273 MIDSIZE NEW STYLE 18K/SS DATEJUST JUBILEE DIA
DIAL $6500


178159 MIDSIZE NEW STYLE WG PRESIDENT DIA LUGS BEZEL MOP DIA
DIAL $28500


178279 MIDSIZE NEW SYTLE WG PRESIDENT $14950


178279 MIDSIZE NEW SYTLE WG PRESIDENT DIAMOND DIAL $16000


77080 MIDSIZE SS NO DATE OYSTER BRACELET $2650


177200 MIDSIZE SS NO DATE OYSTER BRACELET $2850


176200 LADIES SS NO DATE OYSTER BRACELET $2750


114200 AIR KING NEW STYLE SS SMOOTH BEZEL $3050


114234 AIR KING NEW STYLE SS WG BEZEL $3550


179160 LADIES NEW STYLE SS DATEJUST OYSTER BAND $3500


179160 LADIES NEW STYLE SS DATEJUST JUBILEE BAND $3650


177200 LADIES NEW STYLE NO DATE OYSTER $2950


179174 LADIES NEW STYLE SS WG BEZEL JUBILEE BAND $4150


179174 LADIES NEW STYLE SS WG BEZEL OYSTER BAND $4150


179174 LADIES NEW STYLE SS WG BEZEL JUB BAND DIA DIAL $5300


179174 LADIES NEW STYLE SS WG BEZEL JUB BAND MOP DIA $6900


179174 LADIES NEW STYLE SS WG BEZEL JUB BAND MOP DIAL $5150


79163 LADIES OLD STYLE 18K/SS DATEJUST OYSTER BRACELET
$4000


179173 LADIES NEW STYLE 18K/SS DATEJUST JUBILEE $4950


179173 LADIES NEW STYLE 18K/SS JUB BAND DIA DIAL $5950


179173 LADIES NEW STYLE 18K/SS JUB BAND MOP DIAL $5850


179173 LADIES NEW STYLE 18K/SS JUB BAND MOP DIA DIAL
$7550


179173 LADIES NEW STYLE 18K/SS JUB BAND METEORITE DIA
DIAL $7350


179138 LADIES NEW STYLE YG DIAMOND BEZEL DIAL $18000


179238 LADIES NEW STYLE YG DIAMOND LUGS DIAMOND DIAL $15000


179178 LADIES NEW STYLE YG 18K OYSTER BAND $10800


179178 LADIES NEW STYLE YG 18K OYSTER BAND DIA DIAL $11800


179178 LADIES NEW STYLE YG 18K PRESIDENT BAND $12400


179178 LADIES NEW STYLE YG 18K PRESIDENT BAND DIA DIAL
$13400


179166 LADIES NEW STYLE PLATINUM PRESIDENT $20500


179166 LADIES NEW STYLE PLATINUM PRESIDENT DIA DIAL $21500


80299 LADIES WG MASTERPIECE 32 DIA BEZEL DIA DIAL $24000


80299 LADIES WG MASTERPIECE 32 DIA BEZEL MOP DIA DIAL $25500


80299 LADIES WG MASTERPIECE 32 DIA BEZEL MOP DIA DIAL 2 ROW
DIAMOND BRACELET $39900


80319 LADIES WG MASTERPIECE 12 DIAMOND BEZEL $15250


80319 LADIES WG MASTERPIECE 12 DIA BEZEL MOP ROMAN $16100


80319 LADIES WG MASTERPIECE 12 DIA BEZEL DIA DIAL $16250


80319 LADIES WG MASTERPIECE 12 DIA BEZEL MOP DIA DIAL
$17900


80309 LADIES WG MASTERPIECE SAPPHIRE BAGGUETTE BEZEL
SODALITE DIA DIAL $27500


80318 LADIES YG MASTERPIECE 12 DIAMOND BEZEL $13750


80318 LADIES YG MASTERPIECE 12 DIA BEZEL MOP ROMAN $14700


80318 LADIES YG MASTERPIECE 12 DIA BEZEL DIA DIAL $14750


80318 LADIES YG MASTERPIECE 12 DIA BEZEL MOP DIA DIAL
$16000

[TempoKing]

The above are some discounted prices that you could compare with your sources.

[Keith F.]

I bought my EXP II white dial for $3995.00 and my TT/SS Black Sub for $6250.00 + Tax from my AD about a month ago. I tried to get a deal on an LV Sub and they told me $5500.00. That didn't seem like a deal to me, really after spending over $10,000.00 in a 2 week period? used was same price. So much for the % theories.

[esm]

Originally Posted by seanneok11

bump

Hey? It wasn't even your OP to start with....

[mjclark32]

[HRV]

Originally Posted by mjclark32

It's a new CD. bump

[Kingair]

Originally Posted by HRV

It's a new CD. bump

x 3 . . .

HAGOne

[southtexas]

Wow. Regarding the prices quoted in #43, and if they were current for 2008, (some) have more than doubled since that time.

[bandeauxgirl]

Great thread! good to know this information.

[ExplorerChris]

40% was what I had heard

[Keith1]

37.5% in the US.

[Nidal]

38% goes to dealer, 62% to rolex corp. on bnib


Nidal

[Time Exposure]

Originally Posted by Nidal

38% goes to dealer, 62% to rolex corp. on bnib


Nidal

Hmm, so a little different that it was when this thread originated 6 years ago.
What's with digging up old threads?

[lapince]

Originally Posted by veilstylez

I know for sure that wholesale for Rolex is 40% off. So its 60% of MSRP.

Not sure at all, you loose much more on precious metal sport watches than on SS sport models, and an SS daytona or sub in mint condition count no more than 20% off. All depends on the state of the watch, what model, some vintage pieces go for 10 times the price of new, it's much more complicated than just 40% less...