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Old 23 March 2019, 10:44 AM   #61
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This. Tourneau and Ben Bridge lost Rolex when the Boutique opened. Deutsch got the exclusive for ponying up the money for the Boutique, no misconduct from the others.
Ben Bridge is a chain whose owner is “the” AD, not all of their locations have had Rolex ever. May or may not be true but the Memorial City location told me it was a corporate decision versus a Rolex decision for them to consolidate at the Willowbrook location. Karat 22 was taken off the Rolex website in January but still had stock, the owner told me they were trying to work things out.
This new report may be them, IW Marks on Bellaire, Lewis Jewelers in Clear Lake are, or Thomas Markle at Memorial City and The Woodlands. It’s not Deutsch. I’m going to guess IW Marks.
I think your guess is probably correct; if not, my guess is Clear Lake. Hope I’m wrong.
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Old 23 March 2019, 10:47 AM   #62
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It’s easier to police fewer independent “boutiques”, and the “boutiques” are less likely to screw around since Rolex is 100% of their revenue.

This assumes Rolex cares about the gray’s buying out the backdoor - which I’m not sure they do.
Im in the same boat.. majority of people here seem to think they want to completely eradicate the greys.. I don’t think so personally.. free advertising and hype and a lot of the reasons why Rolex is so hot and selling through today is because of the greys.

Do they want to limit it or control it more? Sure. But I’m not convinced Rolex wants to completely shut out greys.. of course they have to give the impression they do though either way
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Old 23 March 2019, 10:47 AM   #63
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One of the possible reasons of the closure could be selling to the greys.
Or the opposite, not enough to greys, ie not enough comparative demand to many Cities.
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Old 23 March 2019, 10:48 AM   #64
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No way IW Marks loses their AD status. They sell a ton.
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Old 23 March 2019, 10:52 AM   #65
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Then you know they are super nice & honest. I’m really sad for them & hate to lose them.


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Yes, really nice people there. I got my hulk there.
They told me they sold over 130 pieces last year..i guess that’s not too bad of a number.
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Old 23 March 2019, 10:56 AM   #66
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No way IW Marks loses their AD status. They sell a ton.


Iw mark is the one that told me to pay in full and can have what i wanted in a year or less..i did not do it in the end. But i heard ad could lose the license by doing so..
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Old 23 March 2019, 11:32 AM   #67
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San Jose, CA will be losing one soon. Not sure the reason.
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Old 23 March 2019, 01:17 PM   #68
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i think it was more the fact they kept their mall location because they were a mono brand store and the others were not. Fits in better that area of the mall if you are going to have a mall location. That boutique has been there for a while i think and were there at the same time as other AD's who sold Rolex.

The AD they put in in that tiny strip mall outside of memorial city hospital has to be on the chopping block too. You cant even get in there to park let alone walk inside. Its ridiculous and they have terrible stock even by current standards.

honestly i think they are only an AD because the hospital looks like a giant crown
Sorry to hear about the trouble parking. Not sure how recently it was but now they have reserved parking spots immediately in front and the thing just to the left is an entrance for a free parking garage. For me it has been a lot more convenient that navigating through galleria traffic and then the mall.

As a moderate spender, I think I am better served by smaller family owned places than the Boutique who has more whales to take care of. I don’t want to hijack the thread, but I have gotten many watches from smaller places while still waiting for my first call from the boutique.

Let me know next time you are in town. Would love to have a beer and talk watches.
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Old 23 March 2019, 01:50 PM   #69
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i think it was more the fact they kept their mall location because they were a mono brand store and the others were not. Fits in better that area of the mall if you are going to have a mall location. That boutique has been there for a while i think and were there at the same time as other AD's who sold Rolex.
This is not the case. The Deutsch owned Boutique is only about 3 years old. When they came into the Galleria both Tourneau and Ben Bridge were Rolex dealers and both had them pulled, presumably Deutsch’s reward for putting up Boutique money. The Galleria is hardly a typical mall, it’s basically the Fifth Avenue/Rodeo Drive of Houston with almost all of the luxury brand stores in it. Houston has lots of medical tourism as well as international business travellers so plenty of customers for high end purchases along with the wealthy locals.
Another bit of Houston Boutique lore, the store took on some heavy water damage in late 2017. They stayed open for the holiday season then closed down for a couple of months in early 2018 to be rebuilt from scratch. Their temporary place was a tiny spot near Saks with nothing but walk up display counters.
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Old 23 March 2019, 02:33 PM   #70
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San Jose, CA will be losing one soon. Not sure the reason.
Davidson & Licht ?
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Old 23 March 2019, 03:17 PM   #71
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Davidson & Licht ?


No, it’s my AD. Joe escobar


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Old 23 March 2019, 03:28 PM   #72
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Sad to hear about another dealership/Rolex issue.

On the bright side.
It makes room for newer emerging watch brands.
Your dealer just has to work harder now, and I hope they can overcome.
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Old 23 March 2019, 03:47 PM   #73
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Here is some feedback today from an AD in Salt Lake City, UT. (OC Tanner) I travel there from CA and have family that lives there. I had my name on the list for a couple of watches for about two years (Dayton was one)

Today, my friend calls me from the showroom floor to tell me that they got rid of the list. And that each sales person is establishing an unofficial list, and when a shipment arrives, each sales person will present their top two buyer and then the manager will ultimately decide who the watch will go to.

Since I am a CA resident, they will NO LONGER sell certain watches to me. I have to arrive in person and show proof of residence to be able to purchase. Although I have purchased watches and services watches with them in the past. My out of State status disqualified me from buying.

Their response: Rolex is tracking the serial numbers of watches that are sold by AD and watching the secondary market (TRF/Chrono24/eBay/etc) and tracing the original sale to the AD and reducing their shipments or losing their franchise all together.

Your AD may have fallen victim to a series of untracked sales to grey market dealers or lost it to reasons unknown to you and all of us.




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Old 23 March 2019, 03:51 PM   #74
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They will likely be moving to only botiques rather than AD’s model. It’s really the only way to control the gray market.
the easiest way to control the grey market is to increase supply to the point were equilibrium is established at a price close to MSRP.
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Old 23 March 2019, 03:59 PM   #75
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correct

Furthermore a business can legally sell or not sell to whoever they want as long as they dont discriminate on race, sex, religion, or any other protected class.

May be against Rolex rules, but its not illegal. I can exclusively sell my products below market price to flippers all i want and exclude legitimate collectors if it floats my boat.... doesnt matter what the product is.
this is not true, at least not in the US. From the Federal Trade Commission website:

"Reasonable price, territory, and customer restrictions on dealers are legal"
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Old 23 March 2019, 05:43 PM   #76
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this is not true, at least not in the US. From the Federal Trade Commission website:

"Reasonable price, territory, and customer restrictions on dealers are legal"
so how does this apply to it being illegal to tell a customer they dont have a watch and then sell it to a secondary dealer instead?

that was what was being implied as illegal as if a customer has a "right" to buy a product from a private business if they have it in stock They dont... plus "reasonable price" is a market price. It only gets into a grey area with price gouging essentials supplies in front of a hurricane or something. Not luxury watches. There is no way you would win a case against an AD for not selling you a Rolex
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Old 23 March 2019, 05:49 PM   #77
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Sorry to hear about the trouble parking. Not sure how recently it was but now they have reserved parking spots immediately in front and the thing just to the left is an entrance for a free parking garage. For me it has been a lot more convenient that navigating through galleria traffic and then the mall.

As a moderate spender, I think I am better served by smaller family owned places than the Boutique who has more whales to take care of. I don’t want to hijack the thread, but I have gotten many watches from smaller places while still waiting for my first call from the boutique.

Let me know next time you are in town. Would love to have a beer and talk watches.
I like that AD, they seemed fairly nice. I think they are in the Woodlands too. Just that particular location is terrible
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Old 23 March 2019, 05:52 PM   #78
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This is not the case. The Deutsch owned Boutique is only about 3 years old. When they came into the Galleria both Tourneau and Ben Bridge were Rolex dealers and both had them pulled, presumably Deutsch’s reward for putting up Boutique money. The Galleria is hardly a typical mall, it’s basically the Fifth Avenue/Rodeo Drive of Houston with almost all of the luxury brand stores in it. Houston has lots of medical tourism as well as international business travellers so plenty of customers for high end purchases along with the wealthy locals.
Another bit of Houston Boutique lore, the store took on some heavy water damage in late 2017. They stayed open for the holiday season then closed down for a couple of months in early 2018 to be rebuilt from scratch. Their temporary place was a tiny spot near Saks with nothing but walk up display counters.
good to know. I agree with the boutique being there as an exception to the mall contractions that are going on because its the galleria so it makes sense. There location is prime too as they are in the luxury part of the mall

Wasn't sure with the timing of the other AD's for sure. I was never a fan of Tourneau. And the BB galleria store, well it looks way more downmarket by comparison. Its location in the mall and the other brands they carry probably isn't what Rolex likes to see.

BB in the galleria looked the same as BB in memorial city mall and neither were too impressive. That one lost status last time i was there, but the time before that when i was there they still carried Rolex. Dont make it out to Memorial City too often so i dont know when that happened.
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Old 23 March 2019, 07:04 PM   #79
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does he have any inventory he wants to get rid of?
The good stuff has surely already gone to the greys.

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Old 23 March 2019, 10:10 PM   #80
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The good stuff has surely already gone to the greys.

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Old 23 March 2019, 10:56 PM   #81
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the easiest way to control the grey market is to increase supply to the point were equilibrium is established at a price close to MSRP.


I respectfully disagree. Plenty of supply, just look at the gray market and Chrono24, what ever you want is there BLRO, BLNR, Daytona’s etc. see the gray market is a new middle man. Rolex-some to AD-many to gray dealers-then to consumer. If the gray market vanished, most would be able to get the piece they want in a couple months time.


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Old 23 March 2019, 11:17 PM   #82
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I respectfully disagree. Plenty of supply, just look at the gray market and Chrono24, what ever you want is there BLRO, BLNR, Daytona’s etc. see the gray market is a new middle man. Rolex-some to AD-many to gray dealers-then to consumer. If the gray market vanished, most would be able to get the piece they want in a couple months time.


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I think you're ignoring the possibility that many of those watches for sale on the grey market were initially purchased only because of the lack of availability at MSRP.

We have a vending machine at work that sells a certain type of potato chip that isn't typically available in my state. The entire row would always be gone within a couple hours of the machine be restocked. So the vendor started doubling up on that potato chip, filling two rows instead of one. Ever since, both rows remain nearly full for days.

Point is, perceived lack of supply just creates a bank run scenario, artificially inflating demand and exacerbating that perception of limited supply.
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Old 23 March 2019, 11:25 PM   #83
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I think you're ignoring the possibility that many of those watches for sale on the grey market were initially purchased only because of the lack of availability at MSRP.



We have a vending machine at work that sells a certain type of potato chip that isn't typically available in my state. The entire row would always be gone within a couple hours of the machine be restocked. So the vendor started doubling up on that potato chip, filling two rows instead of one. Ever since, both rows remain nearly full for days.



Point is, perceived lack of supply just creates a bank run scenario, artificially inflating demand and exacerbating that perception of limited supply.


Sure, supply is playing a role to be sure. But to say it’s only a supply issue when all one has to do is to look at the gray market. The market has become bifurcated. I mean I bought my first Daytona in 1998 or so, and even then it was a 2 year waiting list. If you look at when things started getting real tight, it’s really only in the last 4 years with new gray dealers popping up everywhere. Demand has gone up, but likely steadily since the recovery. Now the recession back in 2009, did not hit the Rolex buying crowd nearly as hard as others, so I have no reason to believe that there was an explosion in demand especially in an era where folks wearing watches have been steadily declining.


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Old 23 March 2019, 11:36 PM   #84
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Sure, supply is playing a role to be sure. But to say it’s only a supply issue when all one has to do is to look at the gray market. The market has become bifurcated. I mean I bought my first Daytona in 1998 or so, and even then it was a 2 year waiting list. If you look at when things started getting real tight, it’s really only in the last 4 years with new gray dealers popping up everywhere. Demand has gone up, but likely steadily since the recovery. Now the recession back in 2009, did not hit the Rolex buying crowd nearly as hard as others, so I have no reason to believe that there was an explosion in demand especially in an era where folks wearing watches have been steadily declining.


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It was for sure not as crazy as it gets. I rembered maybe only daytona is hard to get. Look at nowadays, black sub..hulk..batman..
Another reason maybe that a few years ago, iwc, panerai were also hot watches, took some market share from rolex. Nowadays rolex just seems kinda monopoly in their SS line price range.
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Old 23 March 2019, 11:39 PM   #85
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Sure, supply is playing a role to be sure. But to say it’s only a supply issue when all one has to do is to look at the gray market. The market has become bifurcated. I mean I bought my first Daytona in 1998 or so, and even then it was a 2 year waiting list. If you look at when things started getting real tight, it’s really only in the last 4 years with new gray dealers popping up everywhere. Demand has gone up, but likely steadily since the recovery. Now the recession back in 2009, did not hit the Rolex buying crowd nearly as hard as others, so I have no reason to believe that there was an explosion in demand especially in an era where folks wearing watches have been steadily declining.


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That was the point with the potato chips- FOMO inflates demand. If these watches were easily had at MSRP, demand from FOMO would drop, and greys would no longer be buying them up either. How many incoming threads have you seen where the buyer purchased only because it was a difficult to find watch, and it was available? If the watch sat in display cases, that person probably wouldn't have bought it.
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Old 24 March 2019, 12:09 AM   #86
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They sent a shipment of stock on a Monday then sent a letter later in the week basically saying “ you will not be an AD after April 30th”. They were already 10s of thousands into a remodel just to please Rolex which is lost now. This AD is a super nice honest business; it really angers me they are doing this to so many.


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It’s a concern to see the honest ADs going out of Rolex business! Because that means worse games by ADs are ahead!!
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Old 24 March 2019, 12:26 AM   #87
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It was for sure not as crazy as it gets. I rembered maybe only daytona is hard to get. Look at nowadays, black sub..hulk..batman..
Another reason maybe that a few years ago, iwc, panerai were also hot watches, took some market share from rolex. Nowadays rolex just seems kinda monopoly in their SS line price range.

Used to be just the Daytona, then Rolex realized they could "halo" all their professional watches. It's all about getting people excited who then buy TT and PM, which is all that's available, and where the margin is.

I think they stumbled into this strategy when demand for SS went through the roof 2-3 years ago and they were unprepared. Now they are milking it.
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Old 24 March 2019, 12:31 AM   #88
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I can understand if you don't live in Houston how this might not appear to be a great location, but it absolutely is.

The parking is a challenge but I believe there is valet service service right there, and it's no worse that having to park at a large mall to visit one store.

From a commercial standpoint it's an ideal location that is right in the heart of affluent Memorial and the nearby villages, and right along the commuter route for everyone who works in the city and lives in the fastest growing suburbs of Katy, west Houston, etc.

They've also gone all-in on the Rolex corporate showroom, which was probably a 7-figure investment. Obviously an AD with a vision for their future and where Rolex is going as a brand.


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I like that AD, they seemed fairly nice. I think they are in the Woodlands too. Just that particular location is terrible
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Old 24 March 2019, 01:03 AM   #89
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I think if you take the emotion out of it and look at this honestly you can't believe that this AD was a positive for Rolex. I'm sure many of you Houston people didn't even know this dealer existed; I know I didn't until a few years ago when I looked up all of the area AD's on the Rolex website. When I saw the address, I thought it was a mistake, and when I checked Google Maps I really thought it was a mistake. To say this is not an area that you would expect to go shopping for luxury goods would be a major understatement. It's an area littered with check cashing places, pawn business, sketchy wholesale places, "spas" and a lot of retail that specializes in counterfeit luxury items (purses, perfumes, etc). I'm guessing they've been an AD for a very long time and Rolex probably wanted them to move to a more appropriate area for their brand.

In fairness, the inside of the store was nice enough, and the people were extremely warm and kind when I visited. Unfortunately in my experience there was only one person at the store (obviously family store and lots of people working there) who appeared to know anything about watches. I visited just prior to the inventory madness and right around the time the Deep Sea blue was just starting to deliver. They had one in the case and I tried to buy it but was told it was already committed to a client, as I guessed it probably was.

I'm sorry the OP lost his favorite dealer, but utterly predictable. I'm sure Rolex has laid out the rules of the AD game and you can either choose to play the board or find another game. The bottom-line is the brand is only as good as their worst dealers and the owners who don't have deep enough pockets to make the investment in facility, and ultimately their own future, are probably the ones most likely to feed the grey market.
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Old 24 March 2019, 06:26 AM   #90
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San Jose, CA will be losing one soon. Not sure the reason.

Darn... I was going to see them too...
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