Official AD Selling pre-owned?

[fsprow]

Originally Posted by Kevin of Larchmont

It’s not shenanigans, it’s capitalism. Your logic suggests that an AD sell their trade-in watches out the back door (presumably to evil greys), that it is somehow wrong for ADs to profit from the sale of their trade-in inventory which they own, that their customers who wish to move on from a piece due to boredom or need or death should be forced onto the open market and away from the relatively safe and sanitary marketplace of the AD from whom they originally purchased and have a relationship with. Canada is a capitalist country too. Free markets work. Central planning won’t work for luxury goods any better than it works for food.

100% agree. If Rolex had a problem with it they would take action. But I don’t see why they would. They have chosen to keep MSRP below market prices for long term business reasons but I don’t think they have a problem with the market prices for their products going higher and putting them even more in the luxury category. They are no longer a “tool watch” company. And if their dealers increase revenues by reselling product more the better.

[myanezt]

Originally Posted by fsprow

100% agree. If Rolex had a problem with it they would take action. But I don’t see why they would. They have chosen to keep MSRP below market prices for long term business reasons but I don’t think they have a problem with the market prices for their products going higher and putting them even more in the luxury category. They are no longer a “tool watch” company.

They are getting 0 benefits for the hype.... pretty sure they are not happy with the second market because is a speculation market not aligned with an super traditional business model like Rolex. I think this is one of the reason because they are cutting ADs and promoting Boutiques

[Oystersteel92]

My current small and independent AD takes used Rolexes in as trade, but won't pay cash for anything. I don't know how it would work if I wanted to trade in my Daytona, which I got from them at MSRP and is worth nearly three times that on the open market. I don't care to find out as I'll never let it go.

My former small and independent AD in another state used to always have about a dozen preowned pieces at any given time. Never displayed but available to look at upon request. Unlike my current AD they would pay cash for a watch if they knew you.

[Kevin of Larchmont]

Because Rolex is arguably the hottest commodity in the watch market these days, because ADs are strictly limited to a sale price of MSRP and because the supply of watches to the AD is fixed by Rolex the only opportunity for the AD to leverage their proximity to Rolex is through the sale of pre-owned. And it’s a service accepting a watch as trade in, I don’t want to interview prospective buyers and set up safe exchange points or ship my watch to a third party. Why would anyone do this when the option to walk into a safe and known environment and trade one watch for another exists? The secondary market for Rolex is off the charts right now, why should ADs be explicitly excluded from this? Finally, given the dynamics of demand and the sheer number of people hunting for Rolex, trading in a Rolex back to the AD presents them with the opportunity to finally sell that watch for market value, just like their competitors the greys. This is part of the relationship that we read so much about here, after all good relationships go both ways. And I enjoy seeing pre-owned watches at the ADs, often interesting stuff, I already know what all the new Rolexes look like. These days pre-owned are often the only thing in the case.

[Xerxes77]

I see and in Barcelona used Rolex on AD…

[BroncoOne]

Originally Posted by khalifam

Yep, AD'S sell pre owned. Almost every single AD in the UK sells pre owned.

7/10 times they are models which are a few years old so like a 2017 sub, 2016 explorer etc.

Sent from my SM-F926B using Tapatalk

Same in the US.

[Calatrava r]

To me a Rolex AD that also sells used Rolex is a conflict of interest. Its also a big temptation to simply walk the new stuff back to the used case and sell it for pre-owned market value not MSRP.

[BroncoOne]

Originally Posted by flyboyyy

Sure they can!

Anyone who thinks a mfgr legally cannot set a minimum selling price in the US is factually inaccurate and incorrect - minimum selling pries can indeed be set by a mfgr (lookup “Colgate Policy”) or MRP’s. There are a whole host of products in the US that span many industries that are under MRP’s…likely some you’ve even purchased without even knowing it…if you’re in business vey long working with in demand products you will have dealt with the policies from mfgr’s. It’s actually quite common, even if consumers don’t recognize it or know it exists.

Here’s a TLDR for those who don’t want to read the lengthy court decisions on said policies.:

https://en.wikipedia.org/wiki/Unilateral_policy

This is the Supreme Court decision from 2007 that made it so:

https://en.wikipedia.org/wiki/Leegin...._v._PSKS,_Inc.

Exactly. Rolex can mandate any number of things, like MSRP and how often to remodel and what the store has to look like and what your payment terms to Rolex are.

If you want to keep getting those packages with new Rolex watches in them from Switzerland and displaying the Rolex trademark on your window, you comply with the terms of the contract.

[bob sims]

Originally Posted by myanezt

Hello,

Yesterday my wife went to an AD where she bought a DJ some years ago asking for SS Daytona (yes, poor dreamer) and of course she got automatic response of 2 to 5 years waiting list bla bla bla...

For my surprise, later on the day the SA sent her a text offering a pre-owned SS Daytona for 38K....

Is that normal?

I haven't experienced that but that pretty much makes the AD into a grey!

[Harry-57]

Originally Posted by Calatrava r

Its also a big temptation to simply walk the new stuff back to the used case and sell it for pre-owned market value not MSRP.

You may see this as a temptation. An AD who wants to hang onto their franchise and reputation will not.

[Nairn1980]

Originally Posted by Calatrava r

To me a Rolex AD that also sells used Rolex is a conflict of interest. Its also a big temptation to simply walk the new stuff back to the used case and sell it for pre-owned market value not MSRP.

Virtually no ADs will risk that. The Rolex sign above their door is their livelihood

[Gab27]

My AD sells a ton of used. It's very common. It's also a way that ADs have models they can/are willing to display.

[mquarter]

Happens all the time in Hong Kong. Sometimes the greys (operated by a family member of the AD franchise owner) even set up shop on the other side of the street as the AD.

[RyanThig]

My AD always has a small selection of pre-owned. However, they are normally vintage women's pieces.

[1665fan]

Originally Posted by mquarter

Happens all the time in Hong Kong. Sometimes the greys (operated by a family member of the AD franchise owner) even set up shop on the other side of the street as the AD.

Now that takes the cake……but I believe it 100%

[gerryPeter]

lot of preowned at tourneau