Is my AD full of it?

[tbonesteak]

Originally Posted by alex_moreno111

Disagree all you want my friend. I've seen a Rolex invoice. I speak of what Ive experienced. I thought just like you. It almost broke my heart! lol

Regardless of overhead, which everyone has (AD or grey), how can their margins be smaller when they get the watch for less than grey and then sell it for more than grey (excluding a few one offs, I.E. Daytona)?

[JRR]

Originally Posted by gegarrenton

I find it odd how many people outright expect a discount.

Why is that? Isn't it normal for someone to walk into a MB or BMW dealership, and expect a discount? Unless we are of course dealing with a vehicle in which the dealership may only get one or two a year.

[alex_moreno111]

But if its that simple why don't you call Rolex NY and order it? Corporate won't sell it to you but I'm pretty sure they will transfer you downstairs to the boutique and voila! Simple!

Originally Posted by JRR

Thank you sir. This item is not stocked or in a showcase. It would simply be ordered directly from Rolex NY, and then shipped. A very simple transaction.

[JRR]

Originally Posted by tbonesteak

Regardless of overhead, which everyone has (AD or grey), how can their margins be smaller when they get the watch for less than grey and then sell it for more than grey (excluding a few one offs, I.E. Daytona)?

Matt, I hear your point loud and clear my friend... I am a business owner myself, and you do make perfect sense in your assessment. Let us not drink the Kool-Aid.:)

[alex_moreno111]

Few things, I think that you are looking at it on a single item scale. From what I've seen Lets say the AD has only one store, Rolex alone will take between 600-800k to have a nice showcase. Add other brands, add labor, add leases. Thats one store imagine multiple locations because Rolex will never let you move your inventory from locations. Do you see what I mean? Grey? yes they have but not as close because the majority buy cheap and sell high unless they get their hands on a desirable model which still they make a decent profit without the related costs. Again I'm not knocking Grays. I've bought from gray dealers too. Im just presenting some valid points in regards to discounting. Thats all!

Originally Posted by tbonesteak

Regardless of overhead, which everyone has (AD or grey), how can their margins be smaller when they get the watch for less than grey and then sell it for more than grey (excluding a few one offs, I.E. Daytona)?

[gegarrenton]

Originally Posted by JRR

Why is that? Isn't it normal for someone to walk into a MB or BMW dealership, and expect a discount?

Say what? Absolutely not. I'd be much more inclined to expect a Rolex dealer to give a discount than a BMW dealer. Most MB and BMW dealers have no haggle price structure these days anyways.

But the greater point is I don't know why people expect a discount. Would you rather they just raised the price and discounted that? You'll end up in the same boat.

[alex_moreno111]

Nice! I guess I will try that next time at a restaurant when I order a bottle of Kool Aid, wait I meant wine!!

Originally Posted by JRR

Matt, I hear your point loud and clear my friend... I am a business owner myself, and you do make perfect sense in your assessment. Let us not drink the Kool-Aid.:)

[Rrpdc]

Originally Posted by JRR

Hi folks. I have unfortunately not been able to be active here for a while. Back in 2016, I searched high and low for an AD that would negotiate substantially. I finally found one, bought my first Rolex, and have been referring many family, friends, and Forum members to them with great success.

Fast forward to yesterday, I contacted the owner with a request for a friend, and below was his reply - which is totally out of character. My question is if there is any truth to his response, or is he full of it, like the "typical" Rolex AD is?

"All Rolex's on serious backorder and allocation. Especially models like the Sky Dweller's. I’m afraid the days of any substantial discounts, even for good customers, is over."

I am sure he is speaking in general for ss or tt. Ad Full of it if for pm.

[JRR]

Originally Posted by Rrpdc

I am sure he is speaking in general for ss or tt. Ad Full of it if for pm.

Right! I remember hearing the same story time and time again throughout the years from most AD's. However, this one was different, but now it appears like he has jumped ship like all others. If they are receiving special sales and rarity tactics from Rolex, it may have worked decades ago, but not nowadays for an informed consumer with common sense.

[JRR]

Originally Posted by gegarrenton

Say what? Absolutely not. I'd be much more inclined to expect a Rolex dealer to give a discount than a BMW dealer. Most MB and BMW dealers have no haggle price structure these days anyways.

But the greater point is I don't know why people expect a discount. Would you rather they just raised the price and discounted that? You'll end up in the same boat.

You must not be located in the USA, right? BMW and MB dealers here discount those cars like hot cakes...

[JRR]

Originally Posted by alex_moreno111

Nice! I guess I will try that next time at a restaurant when I order a bottle of Kool Aid, wait I meant wine!!

Mi amigo Alex, sabes de lo que te hablo....

[alex_moreno111]

You do have a point on this one

Originally Posted by JRR

You must not be located in the USA, right? BMW and MB dealers here discount those cars like hot cakes...

[Rrpdc]

Originally Posted by alex_moreno111

You do have a point on this one

+2. Major discounts !

[alex_moreno111]

Lol! you do know that I'm not knocking on you. I just have too many friends in the business and feel for them as a business owner. If you see the info you will be so surprised. But I do hope you get that piece, its going to look great!

Originally Posted by JRR

Mi amigo Alex, sabes de lo que te hablo....

[yhzdude]

Originally Posted by Ra_88

No, your AD is not full of it. He’s probably feeling the pinch.

what do you mean feeling the pinch?
if their cases are empty they are selling watches..i think they start with a 36 to 38% profit...not a net profit i understand..(overhead etc...).

[JRR]

Originally Posted by alex_moreno111

Lol! you do know that I'm not knocking on you. I just have too many friends in the business and feel for them as a business owner. If you see the info you will be so surprised. But I do hope you get that piece, its going to look great!

I understand. Just trying to have a good time.
This piece is actually for a jeweler that happens to make one the best Miami Cuban links in the country.

[JRR]

Originally Posted by yhzdude

what do you mean feeling the pinch?
if their cases are empty they are selling watches..i think they start with a 36 to 38% profit...not a net profit i understand..(overhead etc...).

Correct. As far as I know, dealer cost is 62% of the MSRP.

[alex_moreno111]

Ny?

Originally Posted by jrr

i understand. Just trying to have a good time.
This piece is actually for a jeweler that happens to make one the best miami cuban links in the country.

[gegarrenton]

[QUOTE=JRR;8219802]You must not be located in the USA, right? BMW and MB dealers here discount those cars like hot cakes...[/QUOT

Yeah, I'm in the US. My buddy is actually the GM of the local Porsche dealer, and their BMW branch is no haggle ie fixed price, along with most others in our region at least.

Anyway, that doesn't change the point. For years car MSRP was inflated, and dealer incentives kicked back to make it seem like you were getting a deal. You weren't getting the car any cheaper. A seller of anything is gonna get what they think is the fair price, however they represent it to you.

[yhzdude]

Originally Posted by gegarrenton

I find it odd how many people outright expect a discount.

i negociate for everything i buy except food really.
if i buy a car, a house, a watch, a dog a bike...i negociate..hell yes i will ask for a discound...on big price item, i expect one..if not i go next door and start playing the competition.

don't you guys?
yes some rolex, that are hot on the market...yes ask for a discount, but very unlikely expect one..blue sky dweller, sea dweller 50 th..etc.
but i still ask ...first the hard part is to find one. But on Pm i expect a discount.

[yxc145]

Originally Posted by alex_moreno111

Disagree all you want my friend. I've seen a Rolex invoice. I speak of what Ive experienced. I thought just like you. It almost broke my heart! lol

I am curious about the invoice price that sales show people. I know it is not exactly the same, but I question car dealers. Now a day, you can easily find invoice information online, but car dealers are selling cars below invoice. Some car makers are even openly advertising on TV commercial that they are discounting 20+% off. I know there are manufacturer incentive, but that's not enough to make up for the loss that dealer have to take selling way below invoice. They must make their money from something, otherwise, 99% of the dealers will be broke.
I wonder the same thing about watch dealers, too.

[gegarrenton]

Originally Posted by yhzdude

i negociate for everything i buy except food really.
if i buy a car, a house, a watch, a dog a bike...i negociate..hell yes i will ask for a discound...on big price item, i expect one..if not i go next door and start playing the competition.

don't you guys?
yes some rolex, that are hot on the market...yes ask for a discount, but very unlikely expect one..blue sky dweller, sea dweller 50 th..etc.
but i still ask ...first the hard part is to find one. But on Pm i expect a discount.

Negotiating and expecting a discount are totally different things. I certainly negotiate a lot of things. When I buy a bulldozer for my company, the price is negotiated. A watch or mass consumer car is just a commodity.

[alex_moreno111]

If you look at the majority of AD's they're all Jewelry stores. That's how they even out. Except for Torneau there are only a handful of only Timepieces AD.

Originally Posted by yxc145

I am curious about the invoice price that sales show people. I know it is not exactly the same, but I question car dealers. Now a day, you can easily find invoice information online, but car dealers are selling cars below invoice. Some car makers are even openly advertising on TV commercial that they are discounting 20+% off. I know there are manufacturer incentive, but that's not enough to make up for the loss that dealer have to take selling way below invoice. They must make their money from something, otherwise, 99% of the dealers will be broke.
I wonder the same thing about watch dealers, too.

[2th_doc]

Originally Posted by gegarrenton

I find it odd how many people outright expect a discount.

I absolutely expect a discount on a PM Rolex.


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[JRR]

Great points everyone. Negotiation is an art, and one becomes better over time. The more educated that one becomes with supply, demand and ACTUAL dealer cost, the more educated negotiator they will become.

[tbonesteak]

Originally Posted by JRR

Great points everyone. Negotiation is an art, and one becomes better over time. The more educated that one becomes with supply, demand and ACTUAL dealer cost, the more educated negotiator they will become.

[yxc145]

Originally Posted by alex_moreno111

If you look at the majority of AD's they're all Jewelry stores. That's how they even out. Except for Torneau there are only a handful of only Timepieces AD.

well, perfect example is my dad's friend's dealer in Taiwan. It is strictly a watch store. that carry about 4-5 different luxury brand. They do pretty well, the discount we got in the past were about 20%. Things may have changed now.

[AK797]

I would want at least 15% off that PM SkyD, esp as its not as popular as PM Subs and the popularity of the SS has also made this a tougher sell. If your AD won't, try some others or buy from a TS here.

[rudestew]

Nothing wrong with trying for a discount but honestly it's not fair to keep bashing the dealers all this discount business wears a bit thin after a while, maybe move on to another brand if you're not happy with Rolex

[JRR]

I appreciate all of the mature responses and us having an adult interaction. However, there are a few here that make absolutely no sense at all, as their first response to this thread absolutely does not address my inquiry/subject matter.