How does an AD lose their license

[BMS0918]

How or why would an AD lose their license? Just asking out of interest. Why would Rolex pull a retailer’s license?

[sleddog]

Poor sales, perceived malpractice contrary to Rolex HQ expectations, down to simply no longer wanting to associate with said store, for whatever reason they see fit.
Although, in the latter case, disguised in corporate language to adhere to the binding contract agreed upon originally.
In a nutshell, I think they can decide what they like as too whom sells their product, and where.

[jagwap]

Selling SS sport Rolex to walk in customers.

[Danny83]

Discounting to secret shoppers

[P1nky_Up]

Rolex is shifting towards major cities only. So mom and pop shops are on the cutting block whether they follow regular practice or not. Big ADs are at risk if they are doing shady stuff making the brand look bad.

[enjoythemusic]

Too many DUIs.

[BNA/LION]

Selling to others at an increase above MSRP to be resold in the secondary market for another increase, should do it!

[2000-NJDEVILS]

This is ironclad fact:
I am friends with 3 different owners of major jewelry stores that are Rolex AD’s (as well as PP, AP, Cartier and other huge sellers)and they have told me, in no uncertain terms, that Rolex has held audits of them and all other AD’s to verify that they comply with the selling agreement - if you don’t agree to the audit, then you’re dropped (see Tiffany’s & Fortunoffs 30-35 years ago). If you were deemed non-compliant ( too much discounting )you’re license to print money was revoked. Obviously, that problem has evaporated in the last few years.
PS
I have never in 30+ years ever asked for a favor or demanded special treatment or expected to get VIP deals. Sometimes friendship is much more important than a timepiece.....

[911_3.6]

Originally Posted by P1nky_Up

Rolex is shifting towards major cities only. So mom and pop shops are on the cutting block whether they follow regular practice or not. Big ADs are at risk if they are doing shady stuff making the brand look bad.

This is what I have been told by two AD’s that recently received their walking papers from Rolex.

One AD recently spent big money to remodel their store and make Rolex the centerpiece of their multi-brand store.

[fskywalker]

Originally Posted by jagwap

Selling SS sport Rolex to walk in customers.

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[Bozack90]

Here it seems like they are consolidating to one local dealer who will be building a Rolex only store in a posh area, we used to have a number of ADs but it looks like they are cutting down.

[Boaters]

Picky ... Picky ... Picky

[breitlings]

Talk to an AD. There are so many things demanded, including window placement of product etc.

[kizerman]

Originally Posted by sleddog

Poor sales, perceived malpractice contrary to Rolex HQ expectations

Huh? Almost every model is sold before it gets of the FedEx truck at any AD and Rolex turns it's back on the blatant grey market bundling AD's practice around the globe.

Are you aware in many countries there are brick and mortar retail Grey market dealers full of the top references on full display that Rolex could track back to AD's should the want to?

Rolex doesn't give a rip about any of that. They are pulling smaller market and family owned AD's in North America and eastern EU to focus on a larger overall Asian market.

[siempreko]

Unfortunately, my AD lost their status. While they had mostly empty cases, with limited product to sell; they were being asked to invest $$$ to upgrade displays. The cost benefit analysis came up short. Relationship severed after being an AD for 55+ years, and offering phenomenal customer service.


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[garyk]

Originally Posted by jagwap

Selling SS sport Rolex to walk in customers.

[ArtNouveau]

Two area dealers closed here in the last couple of years. Some will think the first just didn’t have the “look” RolexUSA wants...I believe it was some shady practices mainly offering to sell for over MSRP with some creative bookkeeping. The other was a Ben Bridge in a declining mall. They had already consolidated stock from another location and I think it was probably a mutual decision to not invest further. Of course there are other BB locations around the country with Rolex, not sure how big chains are treated versus mom and pops.
Two other more rural stores have also disappeared, I believe that probably does highlight the move to bigger urban markets.
Houston, 4th biggest city in the US and plenty of wealth is now down to six dealers with only four owners.

[Thebuzz]

Not adhering to predetermined standards and practice. And... getting caught.

There have been stories on here of ADs getting dropped by getting caught in the fray of politics, such as location or proximity to other (bigger) ADs.

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[Fleetlord]

Originally Posted by kizerman

Huh? Almost every model is sold before it gets of the FedEx truck at any AD and Rolex turns it's back on the blatant grey market bundling AD's practice around the globe.

Are you aware in many countries there are brick and mortar retail Grey market dealers full of the top references on full display that Rolex could track back to AD's should the want to?

Rolex doesn't give a rip about any of that. They are pulling smaller market and family owned AD's in North America and eastern EU to focus on a larger overall Asian market.

I agree with this. The smaller city, independent Rolex dealer in the "West" will be eliminated almost entirely in the coming years.

There are simply too many dealers to support and deal with.

Rolex prefers a nice, streamlined C2C operation in which polices and standards are uniformly and consistently enforced in every location.

The chains have centralized purchasing and AP depts to work with...very easy and efficient. Handling a bunch of independents in the USA isn't the way to go to market anymore now that the big chains have settled out and are willing to do whatever it takes to secure prime spots in population centers.

Also, there simply isn't enough product available to go around. For example, a precious SS Daytona reference shipped to an AD in Ocala, FL is more than likely a waste. The odds are better that supplying that reference to a larger dealer in a big city will gain more traction for future Rolex purchases with that client. That's why the store in Ocala (and many others similar) were relieved of their authorized status.

For example, currently in Florida, there are approx 23 Rolex AD locations. Many are chain branches, but there are a fair number of independents. Some in more rural locations, others share some markets with large chains.

In comparison, Patek has 6 Doors in FL. AP has only 3! So I fully expect there to be more Rolex AD location closings in FL in the next few years. Less is more in luxury and the market will probably do even better with the retractions.

As for Asia, I am not sure how many dealers there are independents vs chain, so Rolex might not be as able to initiate the same consolidation strategy in that region in the near future. The focus there is to get adequate product into that market to balance satiating demand, but also keep consumers clamoring for more.

[Nairn1980]

Originally Posted by BMS0918

How or why would an AD lose their license? Just asking out of interest. Why would Rolex pull a retailer’s license?

Any reason ROLEX Come up with. They give 6 months notice

[joli160]

AD not willing to refurbish their store up to Rolex standards.

Store location.

Too many other “lower” brands for sale by the AD.

[Low_fell]

Originally Posted by jagwap

Selling SS sport Rolex to walk in customers.

[Master_Grogu]

Originally Posted by 2000-NJDEVILS

I have never in 30+ years ever asked for a favor or demanded special treatment or expected to get VIP deals. Sometimes friendship is much more important than a timepiece.....

Being a close friend of the owner of a McLaren dealership, I also did the same, beside the occasional test drive.

[teck21]

Originally Posted by Fleetlord

As for Asia, I am not sure how many dealers there are independents vs chain, so Rolex might not be as able to initiate the same consolidation strategy in that region in the near future. The focus there is to get adequate product into that market to balance satiating demand, but also keep consumers clamoring for more.

Almost no independents in Asia, not a lot of consolidation necessary.

ADs here tend to have many (relatively speaking) DJs on display though.


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[7enderbender]

Originally Posted by Fleetlord

I agree with this. The smaller city, independent Rolex dealer in the "West" will be eliminated almost entirely in the coming years.

I guess you are right. And it’s one of the things that drive me mad. The Swiss never had any issues with doing business with whoever as long as they paid and nobody else knew about it. At the same time their old standards of secrecy and neutrality have been beaten to a pulp by the EU and the US.
This is not going to work out for anyone in the end. It’s like the car market. The important Western brands are all in the process of selling out to China and Russia. This will hurt them in the end. Will I buy a BMW made in China with an electric motor? Will I buy a Porsche with electric motor because California and Xiden told me to? Nope. Just like I will never buy a new model Rolex that screams “Russian oligarch with no taste”.

Now is the time to focus on the “classic” market while we can (true for many things from cars to watches to guitars or guns). Because the West will be in accelerated decline. And I’m old enough to decline participation with our new overlords.

[Crazy Lugs]

Originally Posted by 7enderbender

I guess you are right. And it’s one of the things that drive me mad. The Swiss never had any issues with doing business with whoever as long as they paid and nobody else knew about it. At the same time their old standards of secrecy and neutrality have been beaten to a pulp by the EU and the US.
This is not going to work out for anyone in the end. It’s like the car market. The important Western brands are all in the process of selling out to China and Russia. This will hurt them in the end. Will I buy a BMW made in China with an electric motor? Will I buy a Porsche with electric motor because California and Xiden told me to? Nope. Just like I will never buy a new model Rolex that screams “Russian oligarch with no taste”.

Now is the time to focus on the “classic” market while we can (true for many things from cars to watches to guitars or guns). Because the West will be in accelerated decline. And I’m old enough to decline participation with our new overlords.

While I don’t agree with all of this, you raise some fair points. I do scratch my head at how tacky most of the current Rolex offerings have become. It’s kind of mind boggling to consider the contrast in just one generation (five to six digits). The neo vintage pieces just ooze class and tasteful restraint despite their supposedly lower build quality.

I guess similar to Porsche enthusiasts and others, there seems to be a pretty hard break in the last 10-15 years with regard to quality, technology, and desirability from a collecting standpoint.

[7enderbender]

Originally Posted by Crazy Lugs

While I don’t agree with all of this, you raise some fair points. I do scratch my head at how tacky most of the current Rolex offerings have become. It’s kind of mind boggling to consider the contrast in just one generation (five to six digits). The neo vintage pieces just ooze class and tasteful restraint despite their supposedly lower build quality.

I guess similar to Porsche enthusiasts and others, there seems to be a pretty hard break in the last 10-15 years with regard to quality, technology, and desirability from a collecting standpoint.

Good analogy. Disclaimer: I don’t own a Porsche. But I enjoy my last of its kind manual transmission 6cyl gas engine BMW. I look at the new BMW offerings and think to myself that I might as well get a Camry or Hyundai instead. The new models all look made for Asian and Arab tastes, are also becoming bigger and bigger and loaded with useless electronic gizmos. A new 911? Not interested even at a lower price point. Maybe a GT4 with manual without any extra options. And that’s the same reason why you see prices even for more recent classic models explode. Forget the really nice ones from the 60s or 70s. Mercedes? Audi? Same issue. Made for trophy wives and drug dealers seemingly.

[Liga]

I wouldn't be surprised if they drop every last AD and start to build their own stores if trends continue the way they currently are.

[teck21]

Originally Posted by Liga

I wouldn't be surprised if they drop every last AD and start to build their own stores if trends continue the way they currently are.

Rolex seems to be rather satisfied with their current distribution system. Suits them to a T.

So much so that they are revamping it rather than doing away with it.


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[Bozack90]

Originally Posted by 7enderbender

I guess you are right. And it’s one of the things that drive me mad. The Swiss never had any issues with doing business with whoever as long as they paid and nobody else knew about it. At the same time their old standards of secrecy and neutrality have been beaten to a pulp by the EU and the US.
This is not going to work out for anyone in the end. It’s like the car market. The important Western brands are all in the process of selling out to China and Russia. This will hurt them in the end. Will I buy a BMW made in China with an electric motor? Will I buy a Porsche with electric motor because California and Xiden told me to? Nope. Just like I will never buy a new model Rolex that screams “Russian oligarch with no taste”.

Now is the time to focus on the “classic” market while we can (true for many things from cars to watches to guitars or guns). Because the West will be in accelerated decline. And I’m old enough to decline participation with our new overlords.

I know a lot prefer the larger dealers because they are more modern with a more upscale feel to them, but I too will miss a lot of the smaller family owned stores.

We are now down to 5 separate dealers across the state, 6 if you count the neighboring state. Previously there had been some really good one location establishments with good sales teams and some history, but they apparently didn't align with what Rolex sees for their future.