Can a Rolex AD charge more than MSRP for a new Rolex watch?

Dan S · Oct 31, 2020

blufinz52
Who are these people? Have you spoken with these people, or are you just passing along what you've read in other threads?

I have talked extensively with one person with firsthand knowledge of my local AD. He does business with them and is a long-time friend of the owner. He has confirmed that Rolex micromanages everything about the way their watches are sold by the AD (including pricing), and even sends surprise inspectors to make sure that their displays are set up according to agreement, etc. And yes, this is also consistent with things I have read online, in some cases from people that I have known for years, whom I know have first-hand knowledge of Rolex ADs.

Personally, I don't have firsthand knowledge of what goes on at the AD. I don't work there. But I'll reiterate that the facts we all know are entirely consistent with the notion that such agreements exist. As mentioned by others, if ADs had the freedom to sell watches above MSRP, it seems clear that many of them would do so.

Archer · Oct 31, 2020

Dan S
I have talked extensively with one person with firsthand knowledge of my local AD. He does business with them and is a long-time friend of the owner. He has confirmed that Rolex micromanages everything about the way their watches are sold by the AD (including pricing), and even sends surprise inspectors to make sure that their displays are set up according to agreement, etc. And yes, this is also consistent with things I have read online, in some cases from people that I have known for years, whom I know have first-hand knowledge of Rolex ADs.

Personally, I don't have firsthand knowledge of what goes on at the AD. I don't work there. But I'll reiterate that the facts we all know are entirely consistent with the notion that such agreements exist. As mentioned by others, if ADs had the freedom to sell watches above MSRP, it seems clear that many of them would do so.

I know a watchmaker who works at an AD - he has confirmed the things you are saying Dan.

gbesq · Oct 31, 2020

YY77
I'm with @Dan S, no manufacturer will accept a contracted partner to sell an item above their set RRP/MSRP in an initial sales of the product. Ask any AD to give you a sales receipt stating the higher asking price and no AD will take that risk.

Whoa, hold on. New car dealers have been doing this for decades with models in high demand. Ever hear of “ADM” (additional dealer markup)? I’ve seen it on dealer window stickers in the past year and I know of no automobile manufacturers that have put a stop to it. I too would like to see a written agreement between Rolex and its ADs that says in effect “You can’t do that.”

YY77 · Oct 31, 2020

gbesq
Whoa, hold on. New car dealers have been doing this for decades with models in high demand. Ever hear of “ADM” (additional dealer markup)? I’ve seen it on dealer window stickers in the past year and I know of no automobile manufacturers that have put a stop to it. I too would like to see a written agreement between Rolex and its ADs that says in effect “You can’t do that.”

not really the same as car dealers can sell additional services/accessories but the car itself will still be the MSRP. I still think my remark regarding a sales receipt still holds up.

gbesq · Oct 31, 2020

YY77
not really the same as car dealers can sell additional services/accessories but the car itself will still be the MSRP. I still think my remark regarding a sales receipt still holds up.

No, that’s not what I’m referring to. I’m talking about car dealerships charging more than MSRP on in demand models because they can. Not adding any accessories or services. I experienced this looking at a BMW M5 in the past year. Perhaps Rolex does not allow its dealers to do this with consumers, but it would be interesting to know for sure. I have no doubt, though, that Rolex ADs are selling to grey market dealers at more than MSRP.

Marsimaxam · Oct 31, 2020

🍿... really has been an interesting thread. I believe that Dan S is correct and I accept his opinion, but, I do wonder, if, as gbesq has mentioned, do Rolex ADs sell to the grey market dealers at more than MSRP. I always wondered how the grey market dealers get certain models... maybe?

YY77 · Oct 31, 2020

gbesq
No, that’s not what I’m referring to. I’m talking about car dealerships charging more than MSRP on in demand models because they can. Not adding any accessories or services. I experienced this looking at a BMW M5 in the past year. Perhaps Rolex does not allow its dealers to do this, but it would be interesting to know for sure.

Working at a car distributor and having had high demand vehicles I can tell you selling above MSRP is not allowed by our AD's. I wonder how BMW America would think of this.

gbesq · Oct 31, 2020

YY77
Working at a car distributor and having had high demand vehicles I can tell you selling above MSRP is not allowed by our AD's. I wonder how BMW America would think of this.

Probably not well, but that doesn’t mean that it doesn’t happen. You could buy a new Submariner from Jomashop tonight, but you’ll pay well over MSRP. If Rolex ADs aren’t selling watches at prices above MSRP, and consumers can’t get them, how is it that grey market dealers have them in stock?

YY77 · Oct 31, 2020

gbesq
Probably not well, but that doesn’t mean that it doesn’t happen. You could buy a new Submariner from Jomashop tonight, but you’ll pay well over MSRP. If Rolex ADs aren’t selling watches at prices above MSRP, and consumers can’t get them, how is it that grey market dealers have them in stock?

My assumption is a deal between the AD and grey market dealer, lots of benefit for the AD to include hard to sell models in the deal.

gbesq · Oct 31, 2020

YY77
My assumption is a deal between the AD and grey market dealer, lots of benefit for the AD to include hard to sell models in the deal.

Plausible.

asrnj77 · Oct 31, 2020

gbesq
Probably not well, but that doesn’t mean that it doesn’t happen. You could buy a new Submariner from Jomashop tonight, but you’ll pay well over MSRP. If Rolex ADs aren’t selling watches at prices above MSRP, and consumers can’t get them, how is it that grey market dealers have them in stock?

A lot of grey market dealers buy in bulk so they get the good with the bad. In order to get the Daytona, Subs, and the like, they also have to buy the diamond crusted 26mm datejusts. If I’m a slow selling AD and I could unload the slow moving items and then toss in the prime pieces, I’d do it.

Archer · Oct 31, 2020

asrnj77
A lot of grey market dealers buy in bulk so they get the good with the bad. In order to get the Daytona, Subs, and the like, they also have to buy the diamond crusted 26mm datejusts. If I’m a slow selling AD and I could unload the slow moving items and then toss in the prime pieces, I’d do it.

Yes, exactly.

slwoodster · Oct 31, 2020

This is just my experience as a referred customer at Rolex dealers in US, I've not heard of anyone being charged over MSRP in the US, only that it is strictly prohibited by Rolex. Definitely heard of it from family of mine in Europe though that ADs were discretely and sometimes indiscretely asking market price. So it's YMMV just like most things.

Rolex's rules on everything has gotten stricter in the last few years. Anyone telling you that Rolexes have been "always over MSRP" hasn't been buying Rolex that long. The only models that have consistently had a wait in the last decade are the stainless steel daytonas and the black and blue GMT (Batman). Even then, sometimes you'll hear of people who got a slight discount on them. Some say the skydweller too, but it is well known that Rolex does not actually produce as many of Skydwellers, meteorite dial, platinum daytona with diamonds, so a lot of models were already rare because they didn't make as many. Scarcity of every single other model only began in about late 2017, early 2018. You'll hear about discounts 5-10% on Rolexes til about this period of time.

It's 100% true that the more you spend, the more they look out for you for the model you want. You may think it's ridiculous, but it's just because you're a small fish in that pond. When Mark Wahlberg buys 1 watch, it's about how much I have spent with that dealer for the better part of a decade. Don't like it, don't buy it. Stick to Omegas. The same game is played at Omega too, just to a lesser degree.

Evitzee · Oct 31, 2020

When the Subaru WRX first came to the US in 2001 (as a 2002 model) they were in extremely high demand. For the first year they offered a special color, Blaze Yellow, in 500 examples (out of a total of 51,000 WRX's), or 1%. I was relocating back to the USA after spending five years in Melbourne, Australia and needed two vehicles. The dealer in Houston had a Blaze Yellow on the floor with a $2,000 'Special Market Adjustment' and they would not come down a penny, MSRP + $2,000, bottom line. But they would give me a great deal on a Subaru Forester for my wife, so we ended up buying two vehicles that day. I wanted that car in that color, so I got it. Sometimes you just have to pay to play, or I could have walked, or bought a WRX in another color. I enjoyed that car for 10 years, including three winters in Nova Scotia, the extra price paid is long forgotten and I never had regrets paying it. It was always a joy to walk up to that car in that color. Whether Subaru has any written agreement with the dealer network on an added price I have no idea, but they weren't hiding that fact in the showroom.

Personally, I think an authorized dealer of any product should be able to charge what the market demands, usually that is less than MSRP but on some products, like Rolex watches, it is more. I would prefer to walk into a Rolex dealer, see the price they are charging and decide if I want to pay the price. It would makes things a lot easier and transparent..

Dan S · Oct 31, 2020

This thread is drifting beyond Rolex, which is obviously fine and interesting, but I assume that nobody is claiming that car and watch manufacturers necessarily play by the same rules, or even that different watch companies apply the same restrictions to their franchisees.

STANDY · Oct 31, 2020

Any AD can sell 20 watches at MSRP to a grey dealer and still make their cut of money.😗

Funny thing is all watches or cars can usually be had at MSRP.
The Me Me Me Now Now Now don’t want to wait so are happy to pay more.

So if I want to buy a Sub I can wait 12 odd months and pay MSRP. I have plenty of watches to wear for the wait.

So we have three types of people
Waiters
Overpayers
Wingers

Seems one type make more noise than both the others

Fatcat · Nov 1, 2020

I know a couple of AD that play the game selling the watches at the regular prices to the family in order to remove it from the « Market » and goes directly for sale on the vintage watch shop the next day .

At the end why not , they just remove the flippers from the loop.

Sublime_1 · Nov 7, 2020

Roman Sharf of Luxury Bazaar/youtube fame claims to buy hot model Rolex from his "network of ADs" at over list and not so hot models at under list. Reading this thread makes me wonder if the ADs try and balance it out so it can look as if they were all sold at retail?

Davidt · Nov 7, 2020

Sublime_1
Roman Sharf of Luxury Bazaar/youtube fame claims to buy hot model Rolex from his "network of ADs" at over list and not so hot models at under list. Reading this thread makes me wonder if the ADs try and balance it out so it can look as if they were all sold at retail?

I'm struggling to see why an AD would take the risk. Surely they'd just sell everything at RRP rather increasing/decreasing the price and adjust the proportion of desireable/non desirable models in the bundle to achieve the same overall balance and spend.

Sublime_1 · Nov 7, 2020

Davidt
I'm struggling to see why an AD would take the risk. Surely they'd just sell everything at RRP rather increasing/decreasing the price and adjust the proportion of desirable/non desirable models in the bundle to achieve the same overall balance and spend.

Ya, I don't know. That's why I'm asking. He basically says in a lot of his videos that he and dealers like him are why plebs like us can't get a watch from an ad. You're on a list but he just swoops in with 250k and buys up 30 watches the model you're after included. IDK, take it all with a grain of salt I suppose?

Can a Rolex AD charge more than MSRP for a new Rolex watch?

Dan S

Archer

gbesq

YY77

gbesq

Marsimaxam

YY77

gbesq

YY77

gbesq

asrnj77

Archer

slwoodster

Evitzee

Dan S

STANDY

Fatcat

Sublime_1

Davidt

Sublime_1

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