Authorized dealer selling only to local residents?

[Oystersteel92]

Originally Posted by DocOc

I recently encountered an authorized dealer who’d only sell the hard-to-come-by Rolex sports models to local residents.

Is this permissible? Legally? Or by Rolex?

On March 12th 2020 I walked into my local AD (in an MSA of just over 500,000 people) and said I wanted a SS Daytona. They expressed a desire to sell only to locals but said they get calls from out of state all the time. I left my business card which proved I worked for a local employer. Got a call and a Daytona the next day. Definitely happens.

[BNA/LION]

Originally Posted by DocOc

I recently encountered an authorized dealer who’d only sell the hard-to-come-by Rolex sports models to local residents.



Is this permissible? Legally? Or by Rolex?

I am currently looking to buy a new house directly across the street from a local AD. I'm gonna get All the hard-to-come-by Rolex sports models! They Better Be Neighborly!

[afmars]

This is the standard practice and you would do the same if you owned an AD.

[Calatrava r]

ADs I know say it is Rolex policy to sell only within their market area over the counter. They can ship to long time customers but Rolex prefers the in-store buyer's experience. Notice when ADs put their inventory of watches online, the link to Rolex only goes to the Rolex website and does not list models in stock at the store.

[Nairn1980]

Originally Posted by DocOc

I recently encountered an authorized dealer who’d only sell the hard-to-come-by Rolex sports models to local residents.

Is this permissible? Legally? Or by Rolex?

Of course, it’s his stock!!!!

[jlovda]

Does that mean I'm stuck dealing with one AD within 50 miles that doesn't have (or not offered from the vault) anything for a small time buyer?

[Nairn1980]

Originally Posted by jlovda

Does that mean I'm stuck dealing with one AD within 50 miles that doesn't have (or not offered from the vault) anything for a small time buyer?

You’d have to persuade another AD to sell to you.
Depends if there is much in it for them.

[VonSomething]

Originally Posted by Oystersteel92

On March 12th 2020 I walked into my local AD (in an MSA of just over 500,000 people) and said I wanted a SS Daytona. They expressed a desire to sell only to locals but said they get calls from out of state all the time. I left my business card which proved I worked for a local employer. Got a call and a Daytona the next day. Definitely happens.

Definitely sounds plausible.

[Speedsleev]

SOP around here for sure.

[SydR]

AD I got my Sub from only sold to the local area. They gave me a break then I said I had lived near them for 16 years and only just moved away but had them top of my list due to their reputation.

[nachopc]

Originally Posted by DocOc

I recently encountered an authorized dealer who’d only sell the hard-to-come-by Rolex sports models to local residents.



Is this permissible? Legally? Or by Rolex?

This is exactly what my AD is doing, apparently he is following instructions from Rolex. I had to prove my address in order to get the watch.


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[Marcjvr]

The reality is money talks and BS walks.

You can walk in there and tell them you are not a local but just here for a bundle deal...ask for a diamond encrusted ladies Datejust, a platinum DayDate and then tell them to throw in a new Sub and they will do that deal faster than you can say “out of town visitor”

[Cesarmsi]

That how it works....... to supply locals with hard to get watches, and to reward relationships

[Cesarmsi]

That how it works....... to supply locals with hard to get watches, and to reward relationships

[Danny83]

Well once they get enough supply this wont happen.

[Doc Savage]

Originally Posted by NeedMoreCoffee

Is it legal for a private business to set their own policies? I would say yes...

And good for them.

If you sell to the public, you aren't really a private business. That's why there are legal limits to whom a business can discriminate.

Originally Posted by VintageVagabound

Within reason...the AD can limit customers to local or regional but cannot avoid sales based on race, religion, ethnicity, or sexual orientation . The reality is that you can be from Timbuktu and if you offer to buy eight diamond crusted lady datejusts from some random AD, they’ll sell you whatever you want.

There are a number of protected classes in the US at the federal level, and some states have protected additional groups.

[Zsprings]

Originally Posted by Macnavara

In the uk Rolex wont allow new watches to be posted....they have to be collected in person.....seems like a different policy in the US.
This rule of having to collect is going to make vat refunds a thing of the past in the uk as it can only be refunded if posted overseas to the purchasers address....forcing you to pay the duty on receipt

Good point,.. and now I read, the tax law is changed in UK (from Jan 2021), so that tourists may not get a VAT (up to 20%) tax refund after making a purchase in duty free, as they (board) return to China or US or wherever.

[DoctorsOrders]

I kind of like this idea of ADs only catering to local residents. Imo it would really help SAs form a relationship with their clients and ensure they are collectors not flippers.


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[Doc Savage]

Originally Posted by DoctorsOrders

I kind of like this idea of ADs only catering to local residents. Imo it would really help SAs form a relationship with their clients and ensure they are collectors not flippers.


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Unless the flipper/gray dealer lives in the AD's area, which I suspect is the case much of the time.

But I agree with you that the idea of ADs building relationships with clients is definitely positive.

[DoctorsOrders]

Originally Posted by Doc Savage

Unless the flipper/gray dealer lives in the AD's area, which I suspect is the case much of the time.

But I agree with you that the idea of ADs building relationships with clients is definitely positive.

You make an excellent point! Though I’d hope that if the relationship was established with a flipper/grey the SA would realize what is going on. The question then is, will the AD promote the relationship because they want $$$ or will they limit the flipper/greys purchases?

[173rdabn]

Sell or not, their choice.

[enjoythemusic]

Originally Posted by padi56

Any retail business can sell or not sell to whoever they want too.

^^^ this.

[tom2]

Yes, it is very much possible.

[supernova]

Rolex watches are not an essential item to survive so yes they can sell or not sell to whoever they want. And what you described is actually very common practice among ADs.


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[djdm]

Originally Posted by DocOc

I recently encountered an authorized dealer who’d only sell the hard-to-come-by Rolex sports models to local residents.

Is this permissible? Legally? Or by Rolex?

My AD does this.

[Delawareguy]

I had my GMT2 stolen about a year and a half ago. I quickly realized that it was going to be difficult to replace my watch and sort of backed off. I figured I would wait the market out. I had heard that Rolex was going to start releasing more sport watches this fall, but was too busy to do anything. I finally stopped in at my local AD in mid December. I told him my story and that I was interested in a non date Sub, as I was sick of adjusting the date every month. He assured me he would see what he could do. Last Thursday (mid January) he called and let me know there was a non date Sub with my name on it. I jumped in the car with my checkbook and had it on my wrist in 20 minutes. Given that we don't have sales tax, I have to assume they get pounded by flippers constantly, yet I was able to get a very popular watch in less than a month. I think the fact that I am local, and an end user, and an all around good guy with a good story, helped me move to the top. I'm ecstatic to have a big hunk of stainless steel on my wrist again. Cheers!

[EEpro]

Originally Posted by Delawareguy

I had my GMT2 stolen about a year and a half ago. I quickly realized that it was going to be difficult to replace my watch and sort of backed off. I figured I would wait the market out. I had heard that Rolex was going to start releasing more sport watches this fall, but was too busy to do anything. I finally stopped in at my local AD in mid December. I told him my story and that I was interested in a non date Sub, as I was sick of adjusting the date every month. He assured me he would see what he could do. Last Thursday (mid January) he called and let me know there was a non date Sub with my name on it. I jumped in the car with my checkbook and had it on my wrist in 20 minutes. Given that we don't have sales tax, I have to assume they get pounded by flippers constantly, yet I was able to get a very popular watch in less than a month. I think the fact that I am local, and an end user, and an all around good guy with a good story, helped me move to the top. I'm ecstatic to have a big hunk of stainless steel on my wrist again. Cheers!

Great story, congrats!


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[Aquinas]

As long as ADs decide independently not to sell to out-of-territory customers, they should be good.
If we were talking about agreements between ADs to refrain from marketing outside their territories or about watch producers restricting their distributors from competing outside their territories - that would be about as legal as bundling a Pepsi with a few grams of coke, so to speak.

[kieselguhr]

This business model would not make any sense in Las Vegas, Dubai, every international airport, and other tourist traffic heavy locations.

[Simon_jrees]

Originally Posted by DocOc

I recently encountered an authorized dealer who’d only sell the hard-to-come-by Rolex sports models to local residents.

Is this permissible? Legally? Or by Rolex?

Yes. A lot of AD's ask if you're local, they prefer you to be in a certain mile radius.