Can't imagine the trouble it takes to become an AD.

[Bisquitlips]

Now, I am not intending to become an AD, but was just musing upon the hoops that these poor people have to jump through to apply, be considered, acquire, and retain their status as a Rolex Authorized Dealer.

I seen some of this discussed in other threads, but not all in one place that I can recall.

[buyrolexnow]

Originally Posted by Bisquitlips

Now, I am not intending to become an AD, but was just musing upon the hoops that these poor people have to jump through to apply, be considered, acquire, and retain their status as a Rolex Authorized Dealer.

I seen some of this discussed in other threads, but not all in one place that I can recall.

Especially when you're villified by the supposed rolex community for providing a great product at the reasonable price required by Rolex. Don't become an AD because according to this forum you won't know what you're talking about, you'll be misinformed by the authority on Rolex (rolex itself), and you'll be ripping off your customer by charging full price which provides your store with a 7% profit.

Who'd want to be a dealer when you have to put up with all that?

[1000ftSub]

Originally Posted by buyrolexnow

Especially when you're villified by the supposed rolex community for providing a great product at the reasonable price required by Rolex. Don't become an AD because according to this forum you won't know what you're talking about, you'll be misinformed by the authority on Rolex (rolex itself), and you'll be ripping off your customer by charging full price which provides your store with a 7% profit.

Who'd want to be a dealer when you have to put up with all that?

indeed

[WatchGuy1337]

Originally Posted by buyrolexnow

...by charging full price which provides your store with a 7% profit.

How do you figure that?

[HL65]

Rolex AD's make a 40% profit on full purchase price and another 2% if watches are sold within 30 days. Now--that does not of course include all of their fixed expenses to operate their store--that is just the break on purchase price.

[WatchGuy1337]

Originally Posted by SteelerFan1965

Rolex AD's make a 40% profit on full purchase price and another 2% if watches are sold within 30 days.

That sounds a LOT more like it.

Question does the 2% apply to special order watches too? If so, that's good to know -- there is an extra 2% profit on that watch since they know it will be sold as soon as it comes in (assuming the person who ordered it doesn't flake).

[buyrolexnow]

The markup is 40%. That does not make the profit 40%.

[HL65]

Originally Posted by buyrolexnow

The markup is 40%. That does not make the profit 40%.

That is what I said in my email.

[ESKO]

Originally Posted by SteelerFan1965

That is what I said in my email.

You beat me to it!
I DID READ what you posted in it's entirety!

[Rscmaine]

Originally Posted by SteelerFan1965

Rolex AD's make a 40% profit on full purchase price and another 2% if watches are sold within 30 days. Now--that does not of course include all of their fixed expenses to operate their store--that is just the break on purchase price.

...and 300-400% on gold jewelry and semi precious stones.

The watches draw the customers in, the profit is in the metal.

Just like a restaraunt - they much prefer to sell pasta - not lobster.

[HL65]

Originally Posted by Rscmaine

...and 300-400% on gold jewelry and semi precious stones.

The watches draw the customers in, the profit is in the metal.

Just like a restaraunt - they much prefer to sell pasta - not lobster.

LOL--You are 100% right about that!!! That is the game we never get the real rules on!!

[Speed]

Well said Nat!!!

[CoopJr]

Originally Posted by buyrolexnow

Especially when you're villified by the supposed rolex community for providing a great product at the reasonable price required by Rolex. Don't become an AD because according to this forum you won't know what you're talking about, you'll be misinformed by the authority on Rolex (rolex itself), and you'll be ripping off your customer by charging full price which provides your store with a 7% profit.

Who'd want to be a dealer when you have to put up with all that?

[WatchGuy1337]

I do understand that markup is not equivalent to profit, but 7%? Really? Is that what Rolex expects after overhead and everything, or is the 7% supposed to be direct profit on that one sale, ignoring indirect expenses?

[HL65]

If a Jewelery store is operating at 7% margins then they are not running a very good business!! That is an exaggeration --unless that store is selling everything at major markdowns!!

[mpkRolex]

Originally Posted by SteelerFan1965

LOL--You are 100% right about that!!! That is the game we never get the real rules on!!

Because we love the lobsters

[kyle L]

I know my watchmaker was thinking about being an Omega AD and repairer, but he told us he would have to have purchase about $200,000 of Omegas, and keep them in inventory.