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.Originally Posted by Stonewood
Can you really see AD’s not selling a single Rolex for 6 weeks so they can make 6% more in January? I’d say that the next 6 weeks are the majority of earnings for AD’s for the entire year with the jewellery that goes with it for Xmas sales etc.
Rhetorical question here for you Mick, but let’s say you bought all the AD’s in the country. How would you make any money under your mantra of ‘never sell a Rolex’? Asking for a friend .....
Does 6% really change anything for the AD when I have read they buy stock in for around 50-60% of the RRP.
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.
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.
Well the poorer riff raff.
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.
Indeed. Owning a Rolex or two hardly makes you part of the elite.
D'oh.
Someone who lies about the little things will lie about the big things too.
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.
You really don’t get it do you?
If a Rolex AD doesn’t 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.
Mick wouldn’t let reality or fact get in the way of a good story.
Imagine the AD owner saying to their staff ‘right don’t sell anything for 6 weeks. If someone comes in and wants his and her datejusts in a diamond setting, tell them they can’t. Ask them to come back next year’.
Mick Giuliani strikes again.
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.
I agree but that said my BLNR miraculously appeared a day or so after the last UK price increase.
So if it was fact and the AD’s 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.
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.
Agree, completely unacceptable use of 'clueless' in Watch Talk.
Oh, wait.
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.
I think we do Mick
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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Pull mi nighty straight when you've finished!
"Once is happenstance. Twice is coincidence. The third time it's enemy action."
'Populism, the last refuge of a Tory scoundrel'.
Genuine lol
Can you clarify what you mean .
50-60% of the RRP or do you mean 50-60% OFF the rrp ?
I understood that the AD’s pay Rolex roughly around half of what they sell the watches for at RRP. My point was it’s not like the AD’s 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 you’re miles off with your assumption/hearsay...
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.
^^^ this corroborates what I’ve heard from various people.
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?
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!
Let’s 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!
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.
You seem to assume in your calculations that the trade price remains the same. Brave.
As for why you wouldn’t 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.
Edited.
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.
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!!
No wonder the odds were so good.
A few weeks delay in sales wouldn’t affect your status as an AD , especially when you add the post increase sales back into the quarter or whatever they measure it by,
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.
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 “halo effect” of the Rolex brand allied to cash flow means for most AD’s it’s a price worth paying.
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.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.
The SC Discussion Thread
https://r.tapatalk.com/shareLink/top...ink_source=app
I can’t get the thread to load? Is it correct Dave?
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https://youtu.be/UOYi4NzxlhE?t=87This 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.
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
I hope it’s not true as well. I have my name down for a few and I’m certain I won’t have them before next spring (at the earliest!)
Who tells the ADs?
And you have heard a whisper, you heard it here first.
Is this price rise still expected to happen tomorrow, as I'd have thought word might have gotten out via ADs by now?
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