How do the Non Authorized dealers manage to secure new watches.

[HK Islandboy]

Originally Posted by joli160

I am very happy with grey dealers. Most are watch enthusiasts and very knowledgable, nice to have a chat.
They give me a better deals than any AD in my country and I find the service level really good.
Official AD's are not my cup of tea, all too often very snobbish

Here here! Everyone is happy to get a deal, but moans when they can’t get a piece that Rolex underpriced at MSRP.

Ideally demand would meet supply, but as it doesn't, Grey dealers help the market function and serve a very useful function - the Hulk sitting with an AD in Idaho for 7 months (no disrespect...just picking a place) finds a buyer in Singapore...works for all concerned. That TT DJ sitting in Manhattan because the AD can’t discoubt enough, gets sold by a grey dealer at a 30% discount, instead of the 15% the AD can offer...the market works

And, for those that accuse the grey dealers of price gouging, rest assured they are paying up for the hot pieces, either by paying middle men or by paying more for slow moving stock than they can sell it for as a price of entry for getting the SS Daytona or Skydweller

[HogwldFLTR]

Originally Posted by HK Islandboy

Here here! Everyone is happy to get a deal, but moans when they can’t get a piece that Rolex underpriced at MSRP.

Ideally demand would meet supply, but as it doesn't, Grey dealers help the market function and serve a very useful function - the Hulk sitting with an AD in Idaho for 7 months (no disrespect...just picking a place) finds a buyer in Singapore...works for all concerned. That TT DJ sitting in Manhattan because the AD can’t discoubt enough, gets sold by a grey dealer at a 30% discount, instead of the 15% the AD can offer...the market works

And, for those that accuse the grey dealers of price gouging, rest assured they are paying up for the hot pieces, either by paying middle men or by paying more for slow moving stock than they can sell it for as a price of entry for getting the SS Daytona or Skydweller

Many watches for sale by the TSs aren't pick-ups from ADs. I really have no issue with picking up a quality pre-owned watch at a discount. I'd prefer to pick it up from a TS than an individual mainly because of the history the TS has; they have a visible track record more so than someone just selling their watch on the forum. Truthfully I don't believe I've ever purchased a new watch through a TS. It may come down to splitting hairs; I don't think so.

Looking at Bob's as an example. I believe Paul only sells used watches. His prices are fairly low, imho. Where do his low prices come from? From paying low when he buys used. No-one is forced to sell to him so I don't see an ethical issue there. I feel much more conflicted on the practice of buying new watches through TSs which have been taken from the ADs where they could have been sold at MSRP. Really curious how much is paid (%) with relationship to MSRP on the average for new stock by TSs.

[904VT]

Same way you and I do. They just have a much deeper AD network and make a LOT more purchases than we do.


Think about this if an AD sells a whole bunch of slow moving models to sellers, even at minimum AD cost, they still net even (ignoring the obvious cost of carry). ADs will remember these customers that help them by scooping up slow movers (at a significant discount) and throw them a few bones (such as near top of AD client lists etc.)

Sellers are buyers too.

[Esoteric]

I spoke informally with an AD in Europe, he said that he often gets approached by Grey Market Dealers who offer to purchase his entire stock, which he refuses as he is concerned about losing his Rolex AD status. They do this to try and get his entire allocation of hot watches, e.g. 116500 Daytona's etc.

[Uppersouth]

The grey market is a useful tool for the industry to free up capital for the dealers, allow the manufacturers to have a proxy buyback program they don’t have to fund and it allows for factories to keep producing watches. Although the manufacturers may publicly loathe the grey market, they privately realize the value of this grey cog in the wheel that is the Swiss watch industry.

[Wahlberg]

Originally Posted by Esoteric

I spoke informally with an AD in Europe, he said that he often gets approached by Grey Market Dealers who offer to purchase his entire stock, which he refuses as he is concerned about losing his Rolex AD status. They do this to try and get his entire allocation of hot watches, e.g. 116500 Daytona's etc.

The numbers going on in this business is crazy. I really wonder how smaller European grey dealers (people with a stock of only 10-20 watches) are getting things done and are funding this or even surviving? Somehow I think they need to have a side business.

I assume you need the minimum of 200k euro to get a foot in the door, at least that's what I think you need to have to set up a relationship if you want to buy a few watches from an AD.

So 200k means you get 1-4 DDs, a whole bunch of TT watches (submariner, GMT, a lot of DJs, YM) and then you get a couple of regular subs/gmts/explorers. The European (watch) market isn't comparable to the US and a lot of people don't buy two tone datejusts, so how do they get rid of them?

It reminds me of retailers that have to buy old Apple products so they can get (more) new iphones and the like.

[NLYogi]

Showcase example is Gassan at Schiphol Airport Amsterdam. They sell Professional watchers 15 or 20 % below retail. A TS contact (pilot or other) will buy them on their way through the airport and when he returns, sell it to the TS. They will both make some money and the Customer pays below MSRP.

[jw0n]

Most ADs here in Malaysia requires you to spend MYR100k to be able to purchase 116710BLNR or 116610LV at retail. Want to buy 114060LN/116610LN/116710LN? That's MYR50k spend before you are "shortlisted". That roughly works out to around $25k and $12.5k USD respectively. This has to be on less popular models (i.e. Datejust and/or PM Rolexes, and only at full MSRP with no discounts) before you can be considered. Alternatively, if you have a solid reputation with a salesperson with similar purchase history, you may also "qualify".

Prices above retail? That has been a practise here for years and years and years. Yes, even with the new integrated system to Rolex.