AD prices are like a 1000 USD more than trusted sellers?

[hosam112]

Hey guys,

Hope all is well. I just don't get one thing. I asked local few AD's about their prices for Rolex submariner ceramic no date 114060 out of curiosity and they told me their price is 7500 USD. But how is it then possible that many trusted sellers here (like Takuya, DavidSW, bodybump...) are offering BNIB from AD as well for around 6500 dollars give or take? That's like a grand less!!

Do they get their watches at a discount from AD since they are getting a bunch of them at once? Because I know rolex hardly discounts.

At this point, it's no brainer that anyone with the right mind should just buy from a trusted seller since it will be the same as buying from AD...everything comes the same...plus saving a whole grand into something else!

Anything I'm missing? Thanks!

[winrestpossoftware]

Authorized dealers usually have overhead like rent, employees etc. Trusted sellers here usually work our of their home. Everyone has to bills to pay!

[anothernewphone]

Originally Posted by hosam112

Do they get their watches at a discount from AD since they are getting a bunch of them at once? Because I know rolex hardly discounts.

Rolex does not sell their watches directly to the public. Anyone selling their watches are simply dealers. The dealers can offer the watches at a discount if they want, but most will not. Rolex frowns upon discounting, and can pull a dealers authorization to sell their products if they see fit. If a watch comes with a valid warranty, it doesn't matter which dealer you purchase from, be it a brick and mortar location, or an online dealer such as our trusted guys here.

[perpetualman88]

Originally Posted by winrestpossoftware

Authorized dealers usually have overhead like rent, employees etc. Trusted sellers here usually work our of their home. Everyone has to bills to pay!

sorry but this is not correct (IMO)

Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

[winrestpossoftware]

Originally Posted by perpetualman88

sorry but this is not correct

Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

Guess I was wrong!

[Jbranda]

Originally Posted by perpetualman88

sorry but this is not correct

Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

Maybe with your AD. Its all about how u approach the sale and negotiate. If one AD doesnt give you the price you want...move on to the other until you find the best deal

[MonBK]

Originally Posted by winrestpossoftware

Guess I was wrong!

No, you are right.

[vipergts]

Originally Posted by perpetualman88

sorry but this is not correct

Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

Agreed.

[joli160]

All watches come from AD's. Rolex makes so many that AD's can't sell them and have to sell them to grey dealers.
Because they buy a lot of pieces the grey dealers get huge discounts from the AD's hence their cheaper prices. All about supply and demand.
Obviously the grey dealers will settle for a smaller margin, not having a brick and mortar store.
You really need a good relation with an AD to get a similar discount.

[DCheeta]

Originally Posted by winrestpossoftware

Authorized dealers usually have overhead like rent, employees etc. Trusted sellers here usually work our of their home. Everyone has to bills to pay!

Originally Posted by perpetualman88

sorry but this is not correct

Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

Are you saying that it's not true that ADs have to pay rent, payroll, etc? Or are you saying its not true that online sellers work from home? Or is it not true that everyone has bills to pay?

I'm confused at to which part is not correct.

[perpetualman88]

Originally Posted by MonBK

No, you are right.

If ADs don't discount because of overhead such as rent electric and sales people how are trusted sellers able to secure discounts from these same ADs?

the reason Mon is because the Trusted sellers add value to the ADs business. Without getting specific its about making yourself an asset

Originally Posted by DCheeta

Are you saying that it's not true that ADs have to pay rent, payroll, etc? Or are you saying its not true that online sellers work from home? Or is it not true that everyone has bills to pay?

I'm confused at to which part is not correct.

I am saying overhead and rent don't have to do with discounting. Also some sellers here have offices and don't just work from home and yes of course everyone has bills to pay. Having overhead though does not dictate not giving a discount?

[superdog]

Originally Posted by perpetualman88

sorry but this is not correct

Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

Sadly not for me.

I've spent a small fortune at my local AD.

Just asked them to cover the tax on a blnr. They declined.

Just more justification for why I buy the vast majority of my watches with DavidSW.

[Vivalas]

Originally Posted by winrestpossoftware

Authorized dealers usually have overhead like rent, employees etc. Trusted sellers here usually work our of their home. Everyone has to bills to pay!

This doesn't really make sense as trusted sellers would have to buy directly or indirectly from AD's. . . . . . Who would still have their overheads and on this basis are discounting.

Many watches in The UK are now coming from trusted sellers who are 'apparently' buying in bulk from AD's in Italy, Greece and Spain and there are some substantial savings to be had. These AD's appear to be able to discount at will whereas in other countries they seem to tow the Rolex line more. Just been to nearly a dozen Rolex shops throughout the Caribbean and they ALL had the same deals - nothing on nearly all SS except 5% on non date. Not one would budge apart - other incentives yes, but discounts no.

I do agree however that if you build a relationship with an AD they will look after you long term.

[perpetualman88]

Originally Posted by Vivalas

This doesn't really make sense as trusted sellers would have to buy directly or indirectly from AD's. . . . . . Who would still have their overheads and on this basis are discounting.

exactly

[bdex75]

I also think that there are value adds that the grey market dealers bring to the AD, like the ability to move slow moving pieces. PM pieces and others that sit in their inventory will be taken off of their hands in a package deal with say a BLNR or BLRO or another high demand piece. Keeps the inventory fresh, keeps the turns up and keeps Rolex sales numbers up which increases allocation of new and popular pieces. I am not certain on this at all, but I wouldn't think Rolex watches the sales prices of their dealers that close. Just move the metal and average within 10% or so of msrp. Any that will not discount at all, to me, are greedy and prey on the clueless. Unless (of course) it is a fast mover. And the ones that charge over msrp are pond scum.


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[nerd]

Originally Posted by perpetualman88

....Its all about your relationship with the AD. to Building relationships takes time and a lot of money to be very general about it

Without prior intent, I developed a relationship with a small (single retail store) Rolex AD from whom I purchased seven new watches over a 3-4 year span. I never asked for a discount, but into year two it became automatic when I handed them my credit card. It was never $1K, but they always smiled and suggested the discount would buy a really nice dinner for my wife and myself. Once my addiction bloomed, access to the watches I desired (SS Daytona, Migauss GV, etc.) was more important than any discount.

Like most business relationships, the foundation is relevancy (volume), integrity and paying your bills on-time...or ahead of time!

[locutus49]

TRF dealers have one thing ADs don't: magic

[jjnd08]

Just like everything in life, it's all about relationships.

[Tri-Tip]

Originally Posted by locutus49

TRF dealers have one thing ADs don't: magic

Actually, I would say that what the TRF dealers have that most ADs don't is knowledge.

[Jabberjaw]

Originally Posted by superdog

Sadly not for me.

I've spent a small fortune at my local AD.

Just asked them to cover the tax on a blnr. They declined.

Just more justification for why I buy the vast majority of my watches with DavidSW.

That's crap!

[Jim Smyth]

Originally Posted by Vivalas

This doesn't really make sense as trusted sellers would have to buy directly or indirectly from AD's. . . . . . Who would still have their overheads and on this basis are discounting.

Many watches in The UK are now coming from trusted sellers who are 'apparently' buying in bulk from AD's in Italy, Greece and Spain and there are some substantial savings to be had. These AD's appear to be able to discount at will whereas in other countries they seem to tow the Rolex line more. Just been to nearly a dozen Rolex shops throughout the Caribbean and they ALL had the same deals - nothing on nearly all SS except 5% on non date. Not one would budge apart - other incentives yes, but discounts no.

I do agree however that if you build a relationship with an AD they will look after you long term.

What your missing in the big picture is that AD's have to buy X amount of watches per year from Rolex. So the ones they don't sell or are slow movers they sell in volume to trusted sellers for a higher discount while still making some money off the sale. This keeps inventory fresh and keeps Mother Rolex happy. That's why trusted sellers can offer watches at lower prices than AD's most of the time.

[Sublover2166]

Trusted sellers have relationships with ADs to buy excess watches in high numbers due to the fact many ADs cannot possibly sell all their allocation from Rolex. So many watches are sold out the "back door". When Rolex sends an AD a shipment they have to accept it and pay the invoice regardless of the fact their display case and safe may be chock full of watches and sales may be slow. So the sellers here are a valuable commodity to the dealers and to those of us who wish to save significant money on a new watch.

[fania123]

I've got enough friends, I'll give my money to a trusted seller here and use that friendship money the AD isn't getting to fund a new piece.

[Seaswirl]

Originally Posted by Sublover2166

Trusted sellers have relationships with ADs to buy excess watches in high numbers due to the fact many ADs cannot possibly sell all their allocation from Rolex. So many watches are sold out the "back door". When Rolex sends an AD a shipment they have to accept it and pay the invoice regardless of the fact their display case and safe may be chock full of watches and sales may be slow. So the sellers here are a valuable commodity to the dealers and to those of us who wish to save significant money on a new watch.

Makes sense, but how does this explain the large number of in demand watches being offered for sale? I would imagine that ADs would want to keep their inventory of BLNRs, Hulks, ss Daytonas, Subs, etc.

[Jim Smyth]

No trusted seller would buy strictly all of the less popular models. There has to be some good ones in there too to make it attractive. It has to be a good working relationship for both sides. The AD's need to move A LOT of watches. I am sure Rolex is well aware of this but cant control it completely. Plus why would they. They sell more watches and still keep the reputation this way.

[Seaswirl]

Thanks Jim. That helps.

[Mfrankel2]

i've personally found that it's much quicker and easier to establish a good relationship with one of our trusted sellers than with an AD. I've consistently gotten much better prices than at an AD, found hard to get references whenever I neded to get them and gotten exceptional service.

PM DavidSW, tell him what you want and enjoy!

[DCheeta]

Originally Posted by DCheeta

Are you saying that it's not true that ADs have to pay rent, payroll, etc? Or are you saying its not true that online sellers work from home? Or is it not true that everyone has bills to pay?

I'm confused at to which part is not correct.

Originally Posted by perpetualman88

I am saying overhead and rent don't have to do with discounting. Also some sellers here have offices and don't just work from home and yes of course everyone has bills to pay. Having overhead though does not dictate not giving a discount?

Oh, I see. I misunderstood your first response.

[engin33r]

Rolex does not own all their ADs, in fact majority of these ADs were owned by different companies. Therefore rolex can't really control their retail prices.

Compare that with companies like Louis Vuitton, or Hermes. They have their own retail outlets around the world, and there is not other place you can buy their products. Since they control all the retail sales, they control the price - therefore no discount.

Especially with Hermes Kelly or Birkin bags - in such in short supply that grey dealers actually jacked up the price 20-30% more than ADs.

Imagine two different rolex ADs in the same city owned by different companies, each will of course try to grab more market share - hence the discount.

[Nycturbovr6]

I'm not a huge fan of ad's for a number of reasons.