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Thread: Rolex price increase

  1. #51
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    Quote Originally Posted by Stonewood View Post
    Thank you for confirming. Is this price increase going to be definite do you know mick? Anyone know where the rumour has come from?


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    I don't know if the rumours are right or not. However it would make sense for any AD to hold back on the chance that they are correct.

  2. #52
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    Quote Originally Posted by Mick P View Post
    I don't know if the rumours are right or not. However it would make sense for any AD to hold back on the chance that they are correct.
    Can you really see ADís not selling a single Rolex for 6 weeks so they can make 6% more in January? Iíd say that the next 6 weeks are the majority of earnings for ADís for the entire year with the jewellery that goes with it for Xmas sales etc.

    Rhetorical question here for you Mick, but letís say you bought all the ADís in the country. How would you make any money under your mantra of Ďnever sell a Rolexí? Asking for a friend .....

  3. #53
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    Quote Originally Posted by Devonian View Post
    Can you really see ADís not selling a single Rolex for 6 weeks so they can make 6% more in January? Iíd say that the next 6 weeks are the majority of earnings for ADís for the entire year with the jewellery that goes with it for Xmas sales etc.
    Does 6% really change anything for the AD when I have read they buy stock in for around 50-60% of the RRP.

  4. #54
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    Quote Originally Posted by Devonian View Post
    Can you really see ADís not selling a single Rolex for 6 weeks so they can make 6% more in January? Iíd say that the next 6 weeks are the majority of earnings for ADís for the entire year with the jewellery that goes with it for Xmas sales etc.

    Rhetorical question here for you Mick, but letís say you bought all the ADís in the country. How would you make any money under your mantra of Ďnever sell a Rolexí? Asking for a friend .....
    First the rhetorical question - I am a punter, I buy a watch and wear it - end of.

    The dealers need to sell in order to eat and you can't eat a Rolex. So they have to sell.

    ADs businesses are based on getting the RRP price and they make a hefty profit when they do. If they hold back until January, they may get an extra 6% if these rumours are correct. Their income in December can come from the non Rolex stuff that they will sell.

  5. #55
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    Quote Originally Posted by roxylady View Post
    Does 6% really change anything for the AD when I have read they buy stock in for around 50-60% of the RRP.
    Do the maths, that's an extra 10% on their profit margin. A four week delay for an extra 10% margin is well worth the wait.

  6. #56
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    Quote Originally Posted by RobDad View Post
    Excellent news- keeps out the riff-raff
    Well the poorer riff raff.

  7. #57
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    Quote Originally Posted by Mick P View Post
    Do the maths, that's an extra 10% on their profit margin. A four week delay for an extra 10% margin is well worth the wait.
    Except of course that those buying for Christmas would not be satisfied with a voucher under the tree and bought something else...

    As to where the rumour started... not far from here.
    'Against stupidity, the gods themselves struggle in vain' - Schiller.

  8. #58
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    Quote Originally Posted by mrushton View Post
    Well the poorer riff raff.
    Indeed. Owning a Rolex or two hardly makes you part of the elite.

  9. #59
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    Quote Originally Posted by beechcustom View Post
    Indeed. Owning a Rolex or two hardly makes you part of the elite.
    D'oh.

  10. #60
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    Quote Originally Posted by Saint-Just View Post
    Except of course that those buying for Christmas would not be satisfied with a voucher under the tree and bought something else...

    As to where the rumour started... not far from here.
    You are just not latching on. No one cares about someone buying a voucher. The watches can be sold in minutes either to customer or a grey dealer. Holding back until January and making an extra 6% on RRP is well worth the wait.

    This is what happens when a brand image becomes restored, the tail can wag the dog.

  11. #61
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    You really donít get it do you?
    If a Rolex AD doesnít meet his quotas he is in trouble and risks losing his authorisation.
    Furthermore a rumour started here is unlikely to have many AD holding on to their stock for another 7 weeks.
    'Against stupidity, the gods themselves struggle in vain' - Schiller.

  12. #62
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    Quote Originally Posted by Saint-Just View Post
    You really donít get it do you?
    If a Rolex AD doesnít meet his quotas he is in trouble and risks losing his authorisation.
    Furthermore a rumour started here is unlikely to have many AD holding on to their stock for another 7 weeks.
    Mick wouldnít let reality or fact get in the way of a good story.

    Imagine the AD owner saying to their staff Ďright donít sell anything for 6 weeks. If someone comes in and wants his and her datejusts in a diamond setting, tell them they canít. Ask them to come back next yearí.

  13. #63
    Quote Originally Posted by Devonian View Post
    Mick wouldnít let reality or fact get in the way of a good story.

    Imagine the AD owner saying to their staff Ďright donít sell anything for 6 weeks. If someone comes in and wants his and her datejusts in a diamond setting, tell them they canít. Ask them to come back next yearí.
    Mick Giuliani strikes again.

  14. #64
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    Quote Originally Posted by Saint-Just View Post
    You really donít get it do you?
    If a Rolex AD doesnít meet his quotas he is in trouble and risks losing his authorisation.
    Furthermore a rumour started here is unlikely to have many AD holding on to their stock for another 7 weeks.
    The problem is none of us know if the rumour is fact or fiction.

    If it was fact, it does make sense for an AD for hold back. If an AD hears a rumour whizzing around the internet, he will almost certainly ignore it, that is pure common sense.

  15. #65
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    Quote Originally Posted by wileeeeeey View Post
    Mick Giuliani strikes again.
    I agree but that said my BLNR miraculously appeared a day or so after the last UK price increase.

  16. #66
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    Quote Originally Posted by Mick P View Post
    If it was fact, it does make sense for an AD for hold back.
    So if it was fact and the ADís had that confirmed, it would make sense for none of them to sell any Rolexes for 6 weeks? Are you really saying that?

    You think that the extra 6% would make up for all the lost associated sales that go with the watches in the busiest 6 weeks in the retail calendar? Or that Rolex would be happy with it? You really are totally clueless as to the real world.

  17. #67
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    Quote Originally Posted by Devonian View Post
    So if it was fact and the ADís had that confirmed, it would make sense for none of them to sell any Rolexes for 6 weeks? Are you really saying that?

    You think that the extra 6% would make up for all the lost associated sales that go with the watches in the busiest 6 weeks in the retail calendar? Or that Rolex would be happy with it? You really are totally clueless as to the real world.
    OK I am pulling out of this if you are going to chuck terms such as clueless about, you can do that in the BP but not here.

    The first question you have to ask is what percentage of the ADs business is down to Rolex ? My local AD sell loads of stuff as well as other top end brands and whilst I cannot put a figure on it, I cannot see Rolex being more than 20% of his turnover and that is a max. Therefore if he KNOWS that the rumour is indeed fact, then it is a perfectly viable commercial decision to holdback for a few weeks.

    Anyway I am now pulling out of this discussion.

  18. #68
    Quote Originally Posted by beechcustom View Post
    I agree but that said my BLNR miraculously appeared a day or so after the last UK price increase.
    I've seen it happen both ways on the forum. I think it depends on a few factors and not just a price rise.

    The AD I use was very kind to me last Dec when I called about a LadyJust 28. I paid before the the increase and received it after. They saved me £500 and knew I was buying it either way.

    An extra 6% on a Pepsi etc isn't ideal but it's still thousands cheaper than going Grey.

  19. #69
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    Quote Originally Posted by Mick P View Post
    OK I am pulling out of this if you are going to chuck terms such as clueless about, you can do that in the BP but not here.

    The first question you have to ask is what percentage of the ADs business is down to Rolex ? My local AD sell loads of stuff as well as other top end brands and whilst I cannot put a figure on it, I cannot see Rolex being more than 20% of his turnover and that is a max. Therefore if he KNOWS that the rumour is indeed fact, then it is a perfectly viable commercial decision to holdback for a few weeks.

    Anyway I am now pulling out of this discussion.
    Agree, completely unacceptable use of 'clueless' in Watch Talk.

    Oh, wait.

    Quote Originally Posted by Mick P View Post
    You don't have a clue
    Quote Originally Posted by Mick P View Post
    clueless idiots
    Quote Originally Posted by Mick P View Post
    You don't have a clue

  20. #70
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    Quote Originally Posted by Mick P View Post
    OK I am pulling out of this if you are going to chuck terms such as clueless about, you can do that in the BP but not here.

    The first question you have to ask is what percentage of the ADs business is down to Rolex ? My local AD sell loads of stuff as well as other top end brands and whilst I cannot put a figure on it, I cannot see Rolex being more than 20% of his turnover and that is a max. Therefore if he KNOWS that the rumour is indeed fact, then it is a perfectly viable commercial decision to holdback for a few weeks.

    Anyway I am now pulling out of this discussion.
    Just so it's clear should you decide to come back, it is entirely acceptable to say that you don't have a clue of what you are talking about. that what you are writing about Rolex ADs being able to afford no sales for 7 weeks around Christmas to allow them an extra 6% in January where trade is traditionally a tiny fraction of December's is rubbish.
    'Against stupidity, the gods themselves struggle in vain' - Schiller.

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  22. #72
    Grand Master Wallasey Runner's Avatar
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    Quote Originally Posted by Mick P View Post
    The problem is none of us know if the rumour is fact or fiction.
    I think we do Mick

  23. #73
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    Quote Originally Posted by Devonian View Post
    So if it was fact and the ADís had that confirmed, it would make sense for none of them to sell any Rolexes for 6 weeks? Are you really saying that?

    You think that the extra 6% would make up for all the lost associated sales that go with the watches in the busiest 6 weeks in the retail calendar? Or that Rolex would be happy with it? You really are totally clueless as to the real world.
    My last incoming was back in August. I have an interest expressed for another watch and my AD said no promises but we do get an increase in stock before Xmas. I took that to mean that there might be a very good chance that i might get a call before Xmas.


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  24. #74
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    Pull mi nighty straight when you've finished!
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  25. #75
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    Quote Originally Posted by wileeeeeey View Post
    Genuine lol

  26. #76
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    Quote Originally Posted by roxylady View Post
    Does 6% really change anything for the AD when I have read they buy stock in for around 50-60% of the RRP.


    Can you clarify what you mean .

    50-60% of the RRP or do you mean 50-60% OFF the rrp ?

  27. #77
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    Quote Originally Posted by Buster73 View Post
    Can you clarify what you mean .

    50-60% of the RRP or do you mean 50-60% OFF the rrp ?
    I understood that the ADís pay Rolex roughly around half of what they sell the watches for at RRP. My point was itís not like the ADís struggle to sell the watches so with a profit margin of 40 or 50% I cannot see why they would hold stock back.

  28. #78
    Quote Originally Posted by roxylady View Post
    I understood that the ADís pay Rolex roughly around half of what they sell the watches for at RRP. My point was itís not like the ADís struggle to sell the watches so with a profit margin of 40 or 50% I cannot see why they would hold stock back.

    Source?

    Only asking as youíre miles off with your assumption/hearsay...

  29. #79
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    My understanding is that the margin is generally around 37%. From that, the dealer has to pay all the bills and run his business. It’s not a fortune. Especially when dealers have to invest so much to meet Rolex expectations.
    It must feel a bit like being a fish on a hook.
    Last edited by paskinner; 22nd November 2020 at 21:25.

  30. #80
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    Quote Originally Posted by paskinner View Post
    My understanding is that the margin is generally around 37%. From that, the dealer has to pay all the bills and run his business. Itís not a fortune. Especially when dealers have to invest so much to meet Rolex expectations.
    It must feel a bit like being a fish on a hook.
    ^^^ this corroborates what Iíve heard from various people.

  31. #81
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    Quote Originally Posted by Gareth-W View Post
    Source?

    Only asking as youíre miles off with your assumption/hearsay...
    Like I said happy to be corrected. If I am miles off then maybe you would be so kind to provide the correct margins if you know?

  32. #82
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    Rolex price increase

    I have no knowledge of it. But logic dictates there is little chance an AD will be making 50% gross margin on a Rolex. Especially not on the professional range.

    37% feels about right as a max. Perhaps in days gone by there was a chance of a 50% buy in price. Also the days when 10-15-% discount may have been available!

    Letís face it. Job of an AD on most models now is to hold them in the safe and allocate them. Finally size them and take payment. Not really selling, more like distribution!

  33. #83
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    Quote Originally Posted by Devonian View Post
    So if it was fact and the ADís had that confirmed, it would make sense for none of them to sell any Rolexes for 6 weeks? Are you really saying that?

    You think that the extra 6% would make up for all the lost associated sales that go with the watches in the busiest 6 weeks in the retail calendar? Or that Rolex would be happy with it? You really are totally clueless as to the real world.
    I suspect there's a bit of lost in translation here.

    The original question Mick answered from Stonewood was: "So would I be right in thinking that no Rolex main dealers will be offering any of the popular watches this side of Xmas now?" So I think Mick was talking specifically about popular watches, which I would take to mean the steel professional sports range (if we define 'popular' by waitlists rather than sales volume).

    If I was an AD with no cashflow shortage and I have the option of sitting on steel sports models for 6 weeks to add 6% to RRP (which at the previously quoted 37% margin is effectively a 16% boost in gross profit), I think I would sit on them. Why not? They'll sell the moment I make them available.

    I don't think anyone is suggesting they would be sitting on the non-waitlisted models that line the AD shelves in the lead-up to Christmas. Or perhaps I misunderstood @Mick P and he can clarify.

  34. #84
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    You seem to assume in your calculations that the trade price remains the same. Brave.

    As for why you wouldnít sit on them: because you need the sales figures in Rolex to keep your status as an AD.
    'Against stupidity, the gods themselves struggle in vain' - Schiller.

  35. #85
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    Rolex price increase

    Edited.

  36. #86
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    Quote Originally Posted by Saint-Just View Post
    You seem to assume in your calculations that the trade price remains the same. Brave.

    As for why you wouldnít sit on them: because you need the sales figures in Rolex to keep your status as an AD.
    I'm assuming if it's already in the ADs safe, then they've already paid for the stock. But I'm not an AD so I don't know for sure if that's how it works. I was always under the impression ADs are targeted on shifting the non-desirable stuff, but again just second hand conjecture really.

  37. #87
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    Quote Originally Posted by Wallasey Runner View Post
    Could be even more if we have a Brexit no deal and additional UK duties become applicable.
    When I said this, I mentioned that my source was saying Rolex were panicking about paying all that extra duty so started to send more watches to the UK pre Brexit deal or no deal, filled my net that day!!

  38. #88
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    Quote Originally Posted by Raffe View Post
    Cilla is banned, so you cannot claim the prize.
    No wonder the odds were so good.

  39. #89
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    Quote Originally Posted by Saint-Just View Post
    You seem to assume in your calculations that the trade price remains the same. Brave.

    As for why you wouldnít sit on them: because you need the sales figures in Rolex to keep your status as an AD.
    A few weeks delay in sales wouldnít affect your status as an AD , especially when you add the post increase sales back into the quarter or whatever they measure it by,

  40. #90
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    I would imagine AD's have no problem hitting targets - and even if they don't, they always have the excuse that they hadn't the stock to sell.

  41. #91
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    Quote Originally Posted by kostal2093 View Post
    I would imagine AD's have no problem hitting targets - and even if they don't, they always have the excuse that they hadn't the stock to sell.
    ADs always have plenty of stock. It's just not steel sports. I don't doubt they have aggressive targets to hit on the other stuff.

  42. #92
    Quote Originally Posted by roxylady View Post
    Like I said happy to be corrected. If I am miles off then maybe you would be so kind to provide the correct margins if you know?
    Based on the last qualified information I had from late last year the retail margins are just sub 30% and have narrowed by about 5% in the last 2-3 years as cost to Trade has risen but not in line with guide UK retail increase ....hence the margin squeeze.

    But the ďhalo effectĒ of the Rolex brand allied to cash flow means for most ADís itís a price worth paying.

  43. #93
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    This price rise rumour...



    ...all I can say is that my little birds are not tweeting anything about it.

    That's not to say it couldn't prove correct, but perhaps at the moment it is an "If Brexit does X then Y..." hypothesis.

  44. #94
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    Quote Originally Posted by Haywood_Milton View Post
    This price rise rumour...



    ...all I can say is that my little birds are not tweeting anything about it.

    That's not to say it couldn't prove correct, but perhaps at the moment it is an "If Brexit does X then Y..." hypothesis.
    You may want to check out this thread H.

    The SC Discussion Thread
    https://r.tapatalk.com/shareLink/top...ink_source=app

  45. #95
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    Quote Originally Posted by Dave+63 View Post
    You may want to check out this thread H.

    The SC Discussion Thread
    https://r.tapatalk.com/shareLink/top...ink_source=app
    I canít get the thread to load? Is it correct Dave?


    Sent from my iPhone using Tapatalk

  46. #96
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    Quote Originally Posted by Haywood_Milton View Post
    This price rise rumour...



    ...all I can say is that my little birds are not tweeting anything about it.

    That's not to say it couldn't prove correct, but perhaps at the moment it is an "If Brexit does X then Y..." hypothesis.
    https://youtu.be/UOYi4NzxlhE?t=87

  47. #97
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    surely the ADs will know first and we shall hear the increase from them?
    so far no such whispers and i hope it remains that way

  48. #98
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    I hope itís not true as well. I have my name down for a few and Iím certain I wonít have them before next spring (at the earliest!)

  49. #99
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    Quote Originally Posted by Noobftw View Post
    surely the ADs will know first and we shall hear the increase from them?
    so far no such whispers and i hope it remains that way
    Who tells the ADs?

    And you have heard a whisper, you heard it here first.

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