Not a Rolex thread

[Franky Four Fingers]

Lie, of course it is!

Whilst out walking the hounds today i bumped in to one of the sales guys who works in the local AD, lovely chap who I've known for some years who also lives in the same village. As always we got around to watch nonsense and was asking if the current stock levels have improved….after he stopped laughing he was telling me about hoops that Rolex are making them jump through.
They are Rolex repair accredited and had 2 fully trained techs and have just put 2 more through the qualifications. After spending 2 mill totally changing their showroom several years ago they’ve now been dropped the bombshell that they have to fork out a further 150k with improvements to the workshops.
He then said about their stock levels, they should have around 125-150 in stock and have currently only 12. 10 ladies which are all gold and 2 gents 41 DJS which they’ve been told they cant sell. They’ve also just been told that they have to get 40 in stock to be used as window demonstrators only and are also not allowed to sell. These are all proper watches, not the hollow ones with no movements which they have to purchase and not be given.

They also sell Bremont, GS, Seiko, TAG ( which are apparently flying ) Longines and a few others. It got me thinking that if i was the owner id be telling Rolex to Far cough. What is the point of being a Rolex dealer given the above, why not just wind it up and get Omega IWC etc which would also sell.
They currently get given around 20 new models a month from Rolex which are gone instantly, take away the lost time they have with hundreds a calls a month enquiring about models etc i see no logical reason to be a Rolex AD.

[markrlondon]

Thanks for posting this. Interest. But I have a question.

He then said about their stock levels, they should have around 125-150 in stock and have currently only 12. 10 ladies which are all gold and 2 gents 41 DJS which they’ve been told they cant sell. They’ve also just been told that they have to get 40 in stock to be used as window demonstrators only and are also not allowed to sell. These are all proper watches, not the hollow ones with no movements which they have to purchase and not be given.

[...]
They currently get given around 20 new models a month from Rolex which are gone instantly, take away the lost time they have with hundreds a calls a month enquiring about models etc i see no logical reason to be a Rolex AD.

So, to be clear, he was saying that they are lacking stock NOT because they are selling more but because Rolex are shipping less to them? Or would that 20 incoming a month previously have replenished stock that simply sold more slowly? In other words, have their monthly shipments from Rolex reduced from X to 20, or what it always 20 a month?

As for having to buy stock that they are not allowed to sell, especially when it is two months' worth of allocation, is surely barking mad. If Rolex want them to have watches to show people because lack of window stock looks bad, it's up to Rolex to build and ship more. Clearly Rolex are not happy with the lack of visible stock situation and its effect on their image otherwise they wouldn't have come up with this plan.

[Franky Four Fingers]

Thanks for posting this. Interest. But I have a question.



So, to be clear, he was saying that they are lacking stock NOT because they are selling more but because Rolex are shipping less to them? Or would that 20 incoming a month previously have replenished stock that simply sold more slowly? In other words, have their monthly shipments from Rolex reduced from X to 20, or what it always 20 a month?

As for having to buy stock that they are not allowed to sell, especially when it is two months' worth of allocation, is surely barking mad. If Rolex want them to have watches to show people because lack of window stock looks bad, it's up to Rolex to build and ship more. Clearly Rolex are not happy with the lack of visible stock situation and its effect on their image otherwise they wouldn't have come up with this plan.

Yes, they should have 120 ish watches in stock but they haven’t had that level for ages (pre refurb) The 20 watches received don't hit the windows and are going straight to orders. The 20 odd watches a month is now typical of a normal quantity.

[markrlondon]

Thanks for your reply.

Yes, they should have 120 ish watches in stock but they haven’t had that level for ages (pre refurb) The 20 watches received don't hit the windows and are going straight to orders.

Yes, you said, but do you see that what they have in stock at any one time is not directly related solely to what is delivered each month. It depends on sales levels too. If sales were lower than at present, it would not be difficult at all to build up a stock of 120 with a regular shipment of 20 watches a month. See what I mean?

The 20 odd watches a month is now typical of a normal quantity.

So here is the key question: Are you are saying that they previously received far more than 20 watches a month, and that the 20 watches they get a month now is a small fraction of what they previously received?

Sorry to so pedantic. :-)

[Middo]

Big fan of that AD and the staff.

[Devonian]

I don’t really buy what he’s telling you - not saying that some of its not true, just he’s telling you a lot of negatives and no positives. Otherwise if it’s as bad as he’s implying (and other people at AD’s to be fair) they would all be walking away from Rolex.

Did they spend 2 mill totally changing their showroom because Rolex told them to? If so and they agreed, they must do incredibly well out of their Rolex dealership to justify that level of spend, or they would go out of business.

My guess is that a lot of AD’s are making far more money out of having a Rolex AD than ever before - they are selling all the watches they always sold, all the watches they used to sell with small discounts but now with no discounts, all the watches they used to discount heavily, but now at full retail and many of the watches they could never shift. On top of that they are flogging a lot of carp to go with it that people don’t want to buy!

Maybe I’m exaggerating a bit and also guessing a bit, but I’d say that it boom times for many AD’s, they just don’t want us to know it. They e taken a lot of flack lately, they don’t want to take more.

[joe narvey]

The Rolex AD in Reykjavik has one of the new spec workshops. I’ve seen operating theatres and dental surgeries that are no where near as clean. They were like hermetically sealed labs used to manufacture silicon chips.

They had no in demand stock but not allowed to give the retail space over to another brand pending stock.

[Franky Four Fingers]

I don’t really buy what he’s telling you - not saying that some of its not true, just he’s telling you a lot of negatives and no positives. Otherwise if it’s as bad as he’s implying (and other people at AD’s to be fair) they would all be walking away from Rolex.

Did they spend 2 mill totally changing their showroom because Rolex told them to? If so and they agreed, they must do incredibly well out of their Rolex dealership to justify that level of spend, or they would go out of business.

My guess is that a lot of AD’s are making far more money out of having a Rolex AD than ever before - they are selling all the watches they always sold, all the watches they used to sell with small discounts but now with no discounts, all the watches they used to discount heavily, but now at full retail and many of the watches they could never shift. On top of that they are flogging a lot of carp to go with it that people don’t want to buy!

Maybe I’m exaggerating a bit and also guessing a bit, but I’d say that it boom times for many AD’s, they just don’t want us to know it. They e taken a lot of flack lately, they don’t want to take more.

Total refit, massive change to the whole shop which was once a gift shop to the right and yes had to change the layout as they were originally integrated with Tudor etc
No reason to suggest any bull tbh.
I just couldn’t understand why anyone would bother with Rolex given the figures quoted


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[Franky Four Fingers]

Big fan of that AD and the staff.

Yep good bunch of guys


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[Montello]

I’m certain the ADs management teams do the maths and know their business an where their profits are. I’m sure they are doing fine. Just look at WOS share price and performance. They are coining it in.

[Dave+63]

Total refit, massive change to the whole shop which was once a gift shop to the right and yes had to change the layout as they were originally integrated with Tudor etc
No reason to suggest any bull tbh.
I just couldn’t understand why anyone would bother with Rolex given the figures quoted


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Well at an average of £10k per watch, 240 watches a year is £2.4 million turnover for little or no efforts. Assuming 40% GP, that’s nearly a million in profit to pay the overheads leaving most, if not all, profit from other products as bottom line.

[Mrdemon]

Selling everything they get sounds good with no hassle like before with all the Rolex tat in the windows.

People are buying two tones like mad, so do the maths, it's 1.4 mil profit a year minimum. Could be way more now people are buying 40k watch’s like there is no tomorrow.

That’s only if they get 20 a month, I bet they get more.it’s easy money and instant.

You get the Rolex call you pay straight away, it’s liquid money for them.
Plus as people say people are buying other stuff now to get a Rolex.

Rolex kept every dealer alive though covid.
While most shops were shut, Rolex dealers were doing click and collect, Rolex saved most high street shops imo.

[M1011]

Selling everything they get sounds good with no hassle like before with all the Rolex tat in the windows.

People are buying two tones like mad, so do the maths, it's 1.4 mil profit a year minimum. Could be way more now people are buying 40k watch’s like there is no tomorrow.

That’s only if they get 20 a month, I bet they get more.it’s easy money and instant.

You get the Rolex call you pay straight away, it’s liquid money for them.
Plus as people say people are buying other stuff now to get a Rolex.

Rolex kept every dealer alive though covid.
While most shops were shut, Rolex dealers were doing click and collect, Rolex saved most high street shops imo.

Can I get some of whatever you're smokin'?

[MartynJC (UK)]

Can I get some of whatever you're smokin'?

The last 2 Rolex I bought were in Covid times (YM40 RG and Sub 41mm ND) - both at MRP from a well known UK London AD on New Bond St. Doing a brisk business so I can guess what was being hinted at. Easy money for the AD and nice rock solid profit stream.

[M1011]

The last 2 Rolex I bought were in Covid times (YM40 RG and Sub 41mm ND) - both at MRP from a well known UK London AD on New Bond St. Doing a brisk business so I can guess what was being hinted at. Easy money for the AD and nice rock solid profit stream.

Not sure it's saving the high street though, unless I've missed something

I genuinely don't bother walking into Rolex ADs anymore. Fan of the brand, but CBA as I no longer have spend history at an AD. While financial lucrative no doubt, I honestly think it must be an awful place to work these days; I'd be on edge every time someone walked in the door, knowing full well what's likely coming and the response I'd have to give.