question

[Geoff]

A recurring theme on this forum is the best venue to purchase a Rolex, i.e. AD v. Grey v. ebay v. private. My view is that there no one right answer other than caveat emptor - buyer beware. If you go the non- AD route you must proceed with your eyes wide open, not shut, do your research and vett the seller. In my case, I've purchased my Rolex's from AD's, internet gray, second hand re-sellers etc and can honestly say I've not experienced buyers remorse in any of my purchases. I like to think I've done my homework.

But my question is this - In all the related posts on this broad topic I've not seen info on just what the AD's cost and markup is. If I missed it then I apologize in advance for raising it. But clealry some AD's are willing to discount, others not. Sometimes the discount is dependent on model, TT v stainless, model demand etc.

Questions:

1. Is there a standard AD cost for Rolex, ie, percent below MSRP?

2. Is the AD cost the same percentage across the model line? (its been said the AD has more room to discount on TT and solid gold than all stainless)

3. Is the AD cost related globally?

4. Does a large volume AD get a better deal from Rolex on price v. a smaller shop? (I think they get preference on selection).

In the US, when we make a big ticket purchase, say for a car, there is ample info on wholesale v. retail pricing. Anyone have any answers for the watches we all love? Thanks.

[Earl]

Originally Posted by Geoff

A recurring theme on this forum is the best venue to purchase a Rolex, i.e. AD v. Grey v. ebay v. private. My view is that there no one right answer other than caveat emptor - buyer beware. If you go the non- AD route you must proceed with your eyes wide open, not shut, do your research and vett the seller. In my case, I've purchased my Rolex's from AD's, internet gray, second hand re-sellers etc and can honestly say I've not experienced buyers remorse in any of my purchases. I like to think I've done my homework.

But my question is this - In all the related posts on this broad topic I've not seen info on just what the AD's cost and markup is. If I missed it then I apologize in advance for raising it. But clealry some AD's are willing to discount, others not. Sometimes the discount is dependent on model, TT v stainless, model demand etc.

Questions:

1. Is there a standard AD cost for Rolex, ie, percent below MSRP?

2. Is the AD cost the same percentage across the model line? (its been said the AD has more room to discount on TT and solid gold than all stainless)

3. Is the AD cost related globally?

4. Does a large volume AD get a better deal from Rolex on price v. a smaller shop? (I think they get preference on selection).

In the US, when we make a big ticket purchase, say for a car, there is ample info on wholesale v. retail pricing. Anyone have any answers for the watches we all love? Thanks.

seems to me the high end watch industry keeps very tight reigns on that info. Can you find the bottom line of what it costs wal-mart to buy and sell a Timex or the wholesale vs. retail for wal-mart? This is the same idea in my book, just higher end. You say "In the US, when we make a big ticket purchase, say for a car, there is ample info on wholesale v. retail pricing." but, are you sure the info your finding is the bottom line or inflated publicized promo?

[SPACE-DWELLER]

Originally Posted by Geoff

Questions:


1. Is there a standard AD cost for Rolex, ie, percent below MSRP?

I don't believe there is any "standard" cost, since it depends on the MODEL and how big the AD is (how much he sells on a yearly basis)

Originally Posted by Geoff

2. Is the AD cost the same percentage across the model line? (its been said the AD has more room to discount on TT and solid gold than all stainless)

No, it will not be the same for all models. But you are right that TT and YG/WG/Platinum watches give the AD/Rolex higher earnings.

Originally Posted by Geoff

3. Is the AD cost related globally?

Again, it depends on the AD and how much he sells. Also, some contries/places are more in focus than others.

Originally Posted by Geoff

4. Does a large volume AD get a better deal from Rolex on price v. a smaller shop? (I think they get preference on selection).

Yes, BIG-selling AD get better cost prices and more Rolex watches of the "rare" kind (like the SS Daytona for instance).

[Solar]

I agree with Bo about the large-volume seller ADs. I searched a pretty wide swath of ADs in my area, including one from whom I had bought my SD.

The best discount I found was from a large AD in Toronto, where according to a friend who was there recently to buy his own SD, he saw 8 Rolexes being sold over a 3 hour period.

As such, the AD there will offer higher discounts since they're selling such volume.

As for standardisation of prices, etc, hard to say. How long is a piece of string?

Chris

[Geoff]

Originally Posted by Earl

seems to me the high end watch industry keeps very tight reigns on that info. Can you find the bottom line of what it costs wal-mart to buy and sell a Timex or the wholesale vs. retail for wal-mart? This is the same idea in my book, just higher end. You say "In the US, when we make a big ticket purchase, say for a car, there is ample info on wholesale v. retail pricing." but, are you sure the info your finding is the bottom line or inflated publicized promo?

Thanks Earl and I take your points. Of course you are right regarding autos - we don't know true dealer cost, but there is enough info out there so that you have a frame of reference.

Clearly a Rolex is a luxury item, not a necessity, and we all make the personal decision to purchase. Still I wonder.

[Geoff]

Originally Posted by Solar

I agree with Bo about the large-volume seller ADs. I searched a pretty wide swath of ADs in my area, including one from whom I had bought my SD.

The best discount I found was from a large AD in Toronto, where according to a friend who was there recently to buy his own SD, he saw 8 Rolexes being sold over a 3 hour period.

As such, the AD there will offer higher discounts since they're selling such volume.

As for standardisation of prices, etc, hard to say. How long is a piece of string?

Chris

Thanks Chris. My experience is different. When I purchased my Sub from an AD, I received a discount and no sales tax from a small AD, whereas the largest volume dealer in my area wouldn't budge from list.

[OysterDavid]

In one of the books published about Rolex describing history, models,fakes, movements, etc, there was a price list that was current at the time of publication. It indicated that an AD marks up approximately 40% from wholesale...meaning a Rolex that would sell for $10 cost the AD about $6. This is a general figure and not exact.

The ability or willingness to discount is largely market driven, and when you read of discounts that are larger or easier to get on the higherpriced models, that is because the higher the price, the more room there is for an AD to deal and still make what they consider to be a decent profit. For example, an Air King that sells for US$3900 only has a built in profit of about $1500, while the Day-Date at 17,000 has a much larger total profit.

Keep in mind that a dealer has a chunk of fixed costs that must be paid before even opening the doors each day and Rolex and other watchmakers demand payment rather quickly after delivery to an AD, and most manufacturers also insist that a 'full' product line be stocked which includes slower sellers. That's why the 'back channel' exists for supplying the Gray Dealers.

[yachtsales]

Of the 4 ADs in my area, ALL had a different story on "Rolex Pricing"

[ron17402]

Originally Posted by Geoff

Thanks Chris. My experience is different. When I purchased my Sub from an AD, I received a discount and no sales tax from a small AD, whereas the largest volume dealer in my area wouldn't budge from list.

Same hear. The large AD in Charlotte, NC (Finks) seemed to care less if I bought a Rolex from them, and the pricing was firm at MSRP with no incentives.

The small AD (Lions) really worked for me to get my 116710, even though I was a newbie. I got a 5 year warranty, the first major service free, a $500 store credit, and they ship out-of-state (no sales tax). And they seemed to really appreciate the business.

Somethimes the smaller ADs have inventory of hard-to-get models since they don't have the customer base or sales volume. In fact, they had a new ceramic GMT is stock with no people waiting for it, so I snatched it up. The bigger Ads have a bigger customer base and people waiting for certain models.

This was my experience anyway.