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Mr. K · 5 February 2007, 05:20 AM

Is it me or are discounts on Rolex more and more frequent (and larger) these days?

I read posts where some are getting really large discounts from ADs. North of 20%. I am not just talking gold models either.

Do you think Rolex is pricing themselves out of the market, or at least to a point where discounts are needed to move the watches? Many of the sports models do not have improved bracelets or clasps yet, but still prices increase.

I mean how soon will it be before the ND sub hits $5K? How crazy will that be?

I used to think that Rolex was like oakley, nikon, or cartier (to a point). No discounts, very tight on price control, and no internet or Costco sales.

I always knew way back when discounts could be had, but not as big as today and with a little work. Now all you need to do is walk into a store and they tell you right off the bat what discount they are willing to start with.

I am not saying all this in a bad way, in fact the opposite. I liked Rolexes iron fist strategy on pricing. Makes me feel good that for the most part I will be getting a similar deal to the next guy. And the used market is kept solid.

I know Rolex will not go the way of certain watches that across the board will offer 30% discounts. Or have a retail price of 5K, but you can pick it up for $3 pretty easily. Or at least I hope they will not end up that way. I just think that would take something away from the watch cache in general.

Any other thoughts?

JJ Irani · 5 February 2007, 05:30 AM

Good post, Mark.

We must remember that at the end of the day, it's usually a BUYER'S market - NOT a Seller's one.

It's the buyer who's forking over the cash, and the one who holds the $$$ usually calls the shots.

In many countries, Rolex may not be as fast a seller as in other countries. Here in Auckland, the disposable income of most people would never match their buy capabilities for a Rolex. They have other priorities, many of them are deep in debt by way of mortgage, finance, hire-purchases, leases, etc....so a Rolex would NEVER be on their agenda.

The ADs want to MOVE their stock....so naturally discounts would be the order of the day. The percentage of discount would naturally vary from city to city and also from country to country.

Besides, the competition out there from other manufacturers like Omega, Breitling, IWC, JLC, etc. is getting pretty fierce. These guys are coming up with newer designs, more attractive models all the time....while Rolex's modifications move at the speed of a glacier.

A Rolex person will always buy a Rolex....but we all have our limitations.

Cheers - JJ

A. Jacobs · 5 February 2007, 05:35 AM

I'd like to know about these ADs you guys keep talking about and the discounts they offer. I was told by the two in my area that they could not offer "big" discounts on Rolex watches. But I did get a $100.00 discount for paying cash. Wow! $100.00 off! It must've been my lucky day.

Prince Tudor · 5 February 2007, 05:43 AM

Quote:

Originally Posted by Mr. K

I mean how soon will it be before the ND sub hits $5K? How crazy will that be?
Any other thoughts?

I think it already has.
The MSRP in Canada is just under $5500 CAD for a N/D sub. That is not including the discount. probably around 20-25%. Which puts it pretty close to 5K USD not taking the discount in to play.
I have to agree with JJ though, b/c Rolex has not changed much over the years it has an affect. IMO that probably boosts the vintage/pre-owned sales but does not do much for new.
Unless you are a Rolex nut who sees the difference between a maxi dial and a reg. etc...
Good post! Something to really think about.

Prince Tudor · 5 February 2007, 05:46 AM

Quote:

Originally Posted by A. Jacobs

I'd like to know about these ADs you guys keep talking about and the discounts they offer. I was told by the two in my area that they could not offer "big" discounts on Rolex watches. But I did get a $100.00 discount for paying cash. Wow! $100.00 off! It must've been my lucky day.

I guess it really does vary by country.
We (Canada) really get hit with the taxes. 14% in Ontario.
Add a ton of $ to that if you order outside of the country.

JJ Irani · 5 February 2007, 05:51 AM

Quote:

Originally Posted by A. Jacobs

I'd like to know about these ADs you guys keep talking about and the discounts they offer. I was told by the two in my area that they could not offer "big" discounts on Rolex watches. But I did get a $100.00 discount for paying cash. Wow! $100.00 off! It must've been my lucky day.

Come to Auckland, Andrew. Here you get a hundred bucks off for merely stepping through the hallowed portals of the AD.

A. Jacobs · 5 February 2007, 05:51 AM

Quote:

Originally Posted by Prince Tudor

I guess it really does vary by country.
We (Canada) really get hit with the taxes. 14% in Ontario.
Add a ton of $ to that if you order outside of the country.

I can understand Rolex not wanting their ADs to discount their watches too much because of the risk of "cheapening the brand". I guess I don't have a problem paying nearly full retail for a Rolex for that reason alone, but I am suprised at the inconsistent reports of discounts from around the world.

A. Jacobs · 5 February 2007, 05:55 AM

Quote:

Originally Posted by JJ Irani

Come to Auckland, Andrew. Here you get a hundred bucks off for merely stepping through the hallowed portals of the AD.

Is that an invite, JJ?
If so, then I have to decline until I work up enough nerve, or testicular fortitude, to step on an airplane for the first time in my life. My wife is disappointed in me for not wanting to fly because she would love to go to Paris, Australia, Hawaii, and so on. Maybe I should find a good shrink.

Prince Tudor · 5 February 2007, 06:45 AM

Quote:

Originally Posted by A. Jacobs

I can understand Rolex not wanting their ADs to discount their watches too much because of the risk of "cheapening the brand". I guess I don't have a problem paying nearly full retail for a Rolex for that reason alone, but I am suprised at the inconsistent reports of discounts from around the world.

True.....I guess it really depends on the demand.

SeaGoer · 5 February 2007, 09:37 AM

Here in the States, Rolex USA has been trying to artificially control the market and safeguard margins by controlling competition between ADs.
Hence the total lack of a published list of ADs, abstense from internet sales etc.
It is the consumers choice to play along or not. A list of ADs for a specific area or zip code(s) may be obtained from the distributor and from that point on is entirely how much time one is willing to spent pursuing it.
One thing is for sure; there are definatelly discounts out there.

5 February 2007, 05:20 AM	#1
Mr. K "TRF" Member Join Date: May 2005 Real Name: Mark Location: Seattle-ish Posts: 6,044	discounts Is it me or are discounts on Rolex more and more frequent (and larger) these days? I read posts where some are getting really large discounts from ADs. North of 20%. I am not just talking gold models either. Do you think Rolex is pricing themselves out of the market, or at least to a point where discounts are needed to move the watches? Many of the sports models do not have improved bracelets or clasps yet, but still prices increase. I mean how soon will it be before the ND sub hits $5K? How crazy will that be? I used to think that Rolex was like oakley, nikon, or cartier (to a point). No discounts, very tight on price control, and no internet or Costco sales. I always knew way back when discounts could be had, but not as big as today and with a little work. Now all you need to do is walk into a store and they tell you right off the bat what discount they are willing to start with. I am not saying all this in a bad way, in fact the opposite. I liked Rolexes iron fist strategy on pricing. Makes me feel good that for the most part I will be getting a similar deal to the next guy. And the used market is kept solid. I know Rolex will not go the way of certain watches that across the board will offer 30% discounts. Or have a retail price of 5K, but you can pick it up for $3 pretty easily. Or at least I hope they will not end up that way. I just think that would take something away from the watch cache in general. Any other thoughts?

5 February 2007, 05:30 AM	#2
JJ Irani Fondly Remembered Join Date: May 2005 Real Name: JJ Location: Auckland, NZ Watch: ALL SOLD!! Posts: 74,319	Good post, Mark. We must remember that at the end of the day, it's usually a BUYER'S market - NOT a Seller's one. It's the buyer who's forking over the cash, and the one who holds the $$$ usually calls the shots. In many countries, Rolex may not be as fast a seller as in other countries. Here in Auckland, the disposable income of most people would never match their buy capabilities for a Rolex. They have other priorities, many of them are deep in debt by way of mortgage, finance, hire-purchases, leases, etc....so a Rolex would NEVER be on their agenda. The ADs want to MOVE their stock....so naturally discounts would be the order of the day. The percentage of discount would naturally vary from city to city and also from country to country. Besides, the competition out there from other manufacturers like Omega, Breitling, IWC, JLC, etc. is getting pretty fierce. These guys are coming up with newer designs, more attractive models all the time....while Rolex's modifications move at the speed of a glacier. A Rolex person will always buy a Rolex....but we all have our limitations. Cheers - JJ __________________ Words fail me in expressing my utmost thanks to ALL of you for this wonderful support during my hour of need!! I firmly believe that my time on planet earth is NOT yet up!! I shall fight this to the very end.......and WIN!!

5 February 2007, 05:35 AM	#3
A. Jacobs "TRF" Member Join Date: Dec 2006 Real Name: Andrew Location: Ohio Watch: SS Sub Date 16610 Posts: 629	I'd like to know about these ADs you guys keep talking about and the discounts they offer. I was told by the two in my area that they could not offer "big" discounts on Rolex watches. But I did get a $100.00 discount for paying cash. Wow! $100.00 off! It must've been my lucky day. __________________ Rolex Submariner 16610 "Never underestimate the predictability of stupidity."

5 February 2007, 09:37 AM	#10
SeaGoer Member Join Date: Dec 2006 Real Name: Pete Location: USA Watch: TT YM, TT GMT IIC Posts: 385	Here in the States, Rolex USA has been trying to artificially control the market and safeguard margins by controlling competition between ADs. Hence the total lack of a published list of ADs, abstense from internet sales etc. It is the consumers choice to play along or not. A list of ADs for a specific area or zip code(s) may be obtained from the distributor and from that point on is entirely how much time one is willing to spent pursuing it. One thing is for sure; there are definatelly discounts out there.

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