Rolex AD pricing behavior

[rolexkidd]

I have a question regarding Rolex AD pricing and what the "hard and fast" rules are regarding their ability to sell over the list price. This question came to my mind with the introduction of several recent Stainless Steel models (Skydweller, new 43 Seadweller, etc....). Whether it is poor form aside, can they sell over list if they want to?

[Xerxes77]

Seems yes!

[AK797]

Certainly not in the UK, and most of Europe and America I think, while Asia is more relaxed.

[beshannon]

If someone will pay then why not?

[The Libertine]

Originally Posted by beshannon

If someone will pay then why not?

Everybody wants to get paid.

[padi56]

Originally Posted by rolexkidd

I have a question regarding Rolex AD pricing and what the "hard and fast" rules are regarding their ability to sell over the list price. This question came to my mind with the introduction of several recent Stainless Steel models (Skydweller, new 43 Seadweller, etc....). Whether it is poor form aside, can they sell over list if they want to?

Rolex watches are only set by Rolex as manufacturer's recommended price so in theory they could charge what they like.But I believe Rolex is cracking down on these crazy prices like they did quite recently in Singapore.If you are not happy with any price quoted just walk away its that simple.Even on the Rolex site where the prices are shown there is a small information box when clicked it shows its a suggested price.

[airchitect]

Always looking for a sucker I guess, but if one ever asked me too I'd never purchase from them then or in the future as it's in such poor taste.

[BVLDARI]

I've talked to a few dealers and am not aware of any that are selling watches above MSRP.

[Likestheshiny]

MSRP, manufacturer's suggested retail price. RRP, recommended retail price.

You hear "rumours" about Rolex cracking down on price variation, and it's certainly true that they contractually require stores to not discount. However, the practice of charging more than retail on rare pieces is clearly quite common, and done in an obvious enough way that Rolex would easily notice if they cared to. There's really no conclusion to reach except that (at least most of the time) they don't. Chain stores seem reluctant to charge above MSRP, but I suspect that's mostly because they want to keep consistent pricing across the chain. At more local stores, I've seen it plenty of times, including at big, prominent jewelers. A few months ago I asked about a BLNR priced $500 over MSRP, and the response was simply "It's a highly desired piece."

[tyler1980]

much more common is making a popular model's sale being conditional to also buying a PM watch and i have come across that several times. Selling above RRP is quite rare and i personally have never seen it.

[904VT]

In the US, they probably should not and probably not a good idea for Rolex USA to find out. Rolex does not want the ADs offering up say SS Daytonas for double retail one month and another price next month and so forth and so on. Product pricing should promote general consistency with msrp on the price ceiling side. There is a natural pricing floor because it is essentially collateralized with the pre-owned watch value. You can never control a store owner offering discounts for "good" customers. But you can control what may be looked at as unfair pricing practices on the premium or those practices that would cause unnecessary brand value deterioration as a result of dealer induced pricing/value volatility. This may artificially influence overall product demand in a region, especially if conducted by a larger chain of ADs.

Rolex S.A. has or should say from my understanding allows some variations. I'd imagine this is largely to allow pricing equilibrium by the dealers where there may be less liquid/stable local currencies.

[watchwatcher]

Originally Posted by rolexkidd

I have a question regarding Rolex AD pricing and what the "hard and fast" rules are regarding their ability to sell over the list price. This question came to my mind with the introduction of several recent Stainless Steel models (Skydweller, new 43 Seadweller, etc....). Whether it is poor form aside, can they sell over list if they want to?

On the books, no. At least in the US, anyways.

[kauffee]

Never heard of a US AD selling over list price. If it happened, I think it would have been reported on here. But as others said, it does seem to happen in certain markets. Singapore was the one with multiple reports of this recently.

[rolexkidd]

I appreciate all the replies. Looks like I am gonna have to head back to the AD and tell him/her that I don't appreciate the shifty behavior of trying to mark up the Skydweller over the MSRP and do my best to force them to sell me a SS model for the price that's listed on the website. Maybe I just misread their attempt but I think it was pretty clear they were trying to get a premium.

[rudestew]

Just popped into my AD and paid ticket price for my sd43 :-) , maybe a bottle of fine scotch whisky over retail is in order

[Etschell]

Originally Posted by rolexkidd

I appreciate all the replies. Looks like I am gonna have to head back to the AD and tell him/her that I don't appreciate the shifty behavior of trying to mark up the Skydweller over the MSRP and do my best to force them to sell me a SS model for the price that's listed on the website. Maybe I just misread their attempt but I think it was pretty clear they were trying to get a premium.

You cant force them to sell you it. Id simply tell them if they refuse to come down they will lose your business and hope for the best. Dont hold your breath though.

[jonnyz1245]

Originally Posted by Likestheshiny

MSRP, manufacturer's suggested retail price. RRP, recommended retail price.

You hear "rumours" about Rolex cracking down on price variation, and it's certainly true that they contractually require stores to not discount. However, the practice of charging more than retail on rare pieces is clearly quite common, and done in an obvious enough way that Rolex would easily notice if they cared to. There's really no conclusion to reach except that (at least most of the time) they don't. Chain stores seem reluctant to charge above MSRP, but I suspect that's mostly because they want to keep consistent pricing across the chain. At more local stores, I've seen it plenty of times, including at big, prominent jewelers. A few months ago I asked about a BLNR priced $500 over MSRP, and the response was simply "It's a highly desired piece."

No, its certainly not true. They do not contractually require stores to not discount.

[The GMT Master]

An AD selling a new watch over list is strictly forbidden in the UK (potentially an account-ending infringement of a dealership's contract)

[Smarties]

Not openly.

[HK Islandboy]

An AD I've gone to for several hard to find pieces has always quoted me MSRP and never over...other than the 116610lv, which he's forewarned me that, if he gets stock, he'll be selling it to me above MSRP (though his quotes price is still well below current grey pricing here)