AD: "You're in Our Market"

[AllBusiness]

I'm in Pittsburgh, and while visiting family in Ohio last week, I stopped into an AD to express interest in the new Explorer I. The AD rep was genial, and we had a nice little chat. He told me, in so many words, that they could work with me since, based on geography, I'm still in their Ohio market even though I live in Pittsburgh.

I'm a neophyte when it comes to Rolex ADs, but is it true that ADs only work with clients within certain geographical markets? I sometimes read about people traveling to multiple states to visit multiple ADs, but if ADs have restricted geographical ranges, those restrictions would seem to undermine that strategy.

[S1mplee]

I have been told by many AD’s that Rolex wants them to deal with local clientele only. IE. they don’t want someone from California calling a Ohio store to purchase watches if they never established a relationship with or even stepped foot into the door with.

If you frequent Ohio and have been in the store multiple times it would be ok. But cold calling a random AD in a area that you are not “local” to is a big no no from Rolex.

[krchrist]

Originally Posted by AllBusiness

I'm in Pittsburgh, and while visiting family in Ohio last week, I stopped into an AD to express interest in the new Explorer I. The AD rep was genial, and we had a nice little chat. He told me, in so many words, that they could work with me since, based on geography, I'm still in their Ohio market even though I live in Pittsburgh.

hmm... what part of OH? happy hunting my fellow yinzer

[77T]

Any person who walks into any AD can buy a watch. There are no restrictions on buyers or the AD selling to the customer in front of them.

Many markets have more than one AD.


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[77T]

Originally Posted by S1mplee

But cold calling a random AD in a area that you are not “local” to is a big no no from Rolex.

There are no restrictions on callers asking if a model is in the store and then buying it.

Even if they are from Timbuktu - the AD is an independent retailer who can take a phone call from anyone, from anywhere, and fulfill a sale in a legal fashion here in USA.

Maybe other countries are different and they allow Rolex to restrain trade by geographic boundaries. But I can’t think of one right now. Can you imagine a tourist dropping by to spend $100K on Rolexes as presents for their friends and family?



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[Sub*Man]

I’ve ran into the same scenario, where I wasn’t local now but grew up in the area the AD services. I had to prove I still had connections there (Mom still lived there) and I wasn’t a flipper. They ultimately did sell me the watch, a Sub.

[extra260]

The AD in my city will only sell to locals. They vet their customers and will not sell to anyone they suspect is a flipper. I deal with the sore manager and he said they are only getting about 50% of their normal allotted inventory from Rolex lately and in 2020 they only received 2 stainless Daytona’s. They can’t meet the demand of the local clients and have no desire to serve people that are not locals. It’s a medium to small market store.

[235711131719a]

I'm pretty new to this whole thing, but I know my AD has a client from far out of the country who flies in occasionally. So, there's no general rule that ADs won't sell to customers "out of their market"

I could see that an AD might not want to work with people outside of their market for their own reasons - less likely to have repeat business, etc

[anonymousmoose]

I'm in Australia and managed to get put on an EOI at a boutique in another state - however I was warned that being interstate makes it 'difficult'.
But locally, Rolex AD asked me if I am local.

What is the best way to 'prove' you are not a flipper (which I am certainly not)?

In theory, flippers would be their 'best' customers. Multiple sales etc.
Most of the ADs in my state are corporate run, not indi. Except one which I have yet to visit.

[WC_Watch]

On the lawsuit against the AD in Chicago (correct me if I'm wrong), Rolex agreement with AD was that AD's Rolex representative (with formal outfit and tie) would present the watch in person and sell it locally.

[Chinballs]

Originally Posted by anonymousmoose

What is the best way to 'prove' you are not a flipper (which I am certainly not)?

The only thing I found was being able to have an extended chat about different models, including stuff from other brands I have looked at. Besides that, there's not much you can do. A lot of ADs here just flat out treat you like dirt when you walk in or blow you off without even bothering to see if you are a genuine buyer or not.

[padi56]

Originally Posted by 77T

Any person who walks into any AD can buy a watch. There are no restrictions on buyers or the AD selling to the customer in front of them.

Many markets have more than one AD.


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Have to agree and this applies to worldwide.

[GMNI]

My AD (UK) told me they are only selling to locally based customers (with history of course!!!!)

[Harry-57]

My UK AD is in a city which gets tourist trade all year round. They sell a ton of watches to tourists including many Rolex watches. They have told me that they hold the hot models back for their loyal customers and local residents. If you are local you get listed. If you are not local the list is closed. If you are a tourist looking to score a hot watch, they have none available and don't take names.

As has been said, an AD can sell anything they like to anyone they want to. Rolex cannot impose restrictions. Such distinctions are entirely at the discretion of the store manager/owner. This kind of discrimination also applies to customers who they believe are buying only to gouge and flip. In such instances the customer always gets the benefit of the doubt, if there is a doubt.

[Oxfordian]

Originally Posted by Harry-57

My UK AD is in a city which gets tourist trade all year round. They sell a ton of watches to tourists including many Rolex watches. They have told me that they hold the hot models back for their loyal customers and local residents. If you are local you get listed. If you are not local the list is closed. If you are a tourist looking to score a hot watch, they have none available and don't take names.

As has been said, an AD can sell anything they like to anyone they want to. Rolex cannot impose restrictions. Such distinctions are entirely at the discretion of the store manager/owner. This kind of discrimination also applies to customers who they believe are buying only to gouge and flip. In such instances the customer always gets the benefit of the doubt, if there is a doubt.

This, my AD said exactly the same a watch in the window or display case can and will be sold to anyone who walks through the door, but if you want a hot watch they will want to prove that you are local.

Which means that if my house move comes off I have no chance as I will be 250+ miles away from the AD where I have a purchased my watches.

[Jb1264]

Originally Posted by Chinballs

A lot of ADs here just flat out treat you like dirt when you walk in or blow you off without even bothering to see if you are a genuine buyer or not.

Which in turn, makes customers like myself, travel much further.
I spoke about the ‘elephant in the room’ with the AD who is not ‘local’
They are transparent regarding availability of certain watches.
Visiting this AD involves bit of a trek, but they seem to appreciate me.
Funds available to buy PM & a Sub is unlikely to be spent at a local AD
All because they suspected a WIS to be a flipper

[VogelPhoenix]

Originally Posted by Harry-57

Rolex cannot impose restrictions.

They certainly can and they do, it's called a contract.

[Harry-57]

Originally Posted by Oxfordian

Which means that if my house move comes off I have no chance as I will be 250+ miles away from the AD where I have a purchased my watches.

A shame for a committed collector or fan, but at least you have your priorities in the right order.

The second house I bought obliged me to sell my car, which I loved, and use trains and busses for three years. I didn't enjoy it (when I thought about it) but the house was more important.

Long term you'll be fine. And because it's at the dealer's discretion, it may not be a black and white decision if you have a good relationship.

[fskywalker]

Originally Posted by VogelPhoenix

They certainly can and they do, it's called a contract.

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[Harry-57]

Originally Posted by VogelPhoenix

They certainly can and they do, it's called a contract.

They cannot tell the AD, who owns the watches, who they can and cannot sell their stock to. How do you think the Rolex grey market works?

Limited editions sold to certain existing customers (more common with things like cars) are handled differently on a project by project basis.

If the watches were given to ADs to sell for Rolex, who then paid the AD a commission, then Rolex could impose more stringent conditions. In fact, they could pretty much impose any conditions they wanted within the bounds of what is legal.

[brandrea]

Welcome to the forum OP

[BroncoOne]

Originally Posted by WC_Watch

On the lawsuit against the AD in Chicago (correct me if I'm wrong), Rolex agreement with AD was that AD's Rolex representative (with formal outfit and tie) would present the watch in person and sell it locally.

Correct. And my AD says that they can only sell to known customers (like the contract quote in the court records states). It doesn’t matter where you live, you have to be known to the AD.

I has a Rolex SA go to a direct competitor essentially next door. To get more Rolex watches I had to visit the new AD in person so that she could personally introduce me to the owner (grew guy BTW and enjoyable chat).

It was absolutely clear that the owner wants vet people before turning the faucet on.

[GST15]

[QUOTE=BroncoOne;11451075]Correct. And my AD says that they can only sell to known customers (like the contract quote in the court records states). It doesn’t matter where you live, you have to be known to the AD.

This seems to be correct, as I have an established relationship with my out of state AD.

[1William]

This is all business and I have seen AD's sell to unknown customers when they purchase high value items other than watches. AD's are in this to make a profit, as we all know, and a Super VIP or Whale can navigate the waters of availability very easily with cash. I saw a gentleman pick up 300K in PP watches and get both a white dial and black dial SS Daytona-C. He told me he would put them in the safe for his grandchildren. He was from out of state but know to the AD and reportedly had spent a little over 1 million in the last 18 months. I guess he can get a watch or two. Each AD is different and what they tell us may be different depending on what type of customer we are. Such are the times.

[77T]

Originally Posted by VogelPhoenix

They certainly can and they do, it's called a contract.

I see that you are in Taiwan, is that how your AD’s are controlled there?

Here, in USA, contracts must not violate laws that enable free and open trade in the retail space. If Rolex does this in Taiwan please help us understand where the lines are drawn for protected retail territories there.

For example, see the map - does Rolex define the street names where one must reside to be restricted from purchasing?




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[zengineer]

Originally Posted by 77T

Any person who walks into any AD can buy a watch. There are no restrictions on buyers or the AD selling to the customer in front of them.

Many markets have more than one AD.


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That doesn't mean an AD doesn't have their own policies about selling to "out of towners".

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[JRell]

Welcome to the forum! I am from Pittsburgh as well. I would say our greater market extends to Eastern Ohio and out towards the middle of PA towards Lancaster. They just want to be able to see you in person.

[77T]

Originally Posted by zengineer

That doesn't mean an AD doesn't have their own policies about selling to "out of towners".

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Yes, I certainly agree. An AD may implement such policies to avoid flippers, for example.

ADs have been coached here in US about spotting potential scams, flippers, and traders at their shops. And the consequences of failing.

Watches being sold new with stickers on grey market websites whose s/n matches inventory records at RUSA showing which AD received it can result in a non-renewal with RUSA.


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[DC116710LN]

My local sales associate and store manager have both told me that Rolex strongly encourages them to sell only to local clientele. I'm unsure how stringently Rolex enforces this policy but seems to be their preference.

[Tavli3]

I live in north Miami area that has super wealthy tourists from all over the world shopping at the local malls. I doubt any of the 5 or 6 local ADs turn away people who can drop 500k in a single visit with the same aplomb as buying a double espresso. When you’re in retail long enough you can spot the whales a mile away. If you’re a piker walking around with a big cup slurrpie it’s doubtful you get to go home with a hot watch.

My AD said no out of area sales unless person is in the store. Then it’s up to them whether to sell them or not.

My future son in law says he will only build homes for certain clientele ie: wealthy clientele. Where as during the financial crisis he would build for anyone with a pulse. I suspect that will be the case with Rolex ADs should time’s change and watches start sitting in showcases again.


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