Can an AD charge MORE than list price?

[TonyD]

Sorry for such a noob question... Lets say I get on a list for a new model that is rare and they get one in. Can an AD charge a premium or are they restricted to no more than list price?

[TDH]

They almost always will for the SS Daytona.

[Alcan]

Until recently, my AD charged a premium for the SS Daytona.

[Jocke]

Originally Posted by lynntonyd

Sorry for such a noob question... Lets say I get on a list for a new model that is rare and they get one in. Can an AD charge a premium or are they restricted to no more than list price?

Nope that is not allowed, there is dealer who have done that and Rolex stop
doing deals with them. But if a watch costs $6000 when you order it and the
list price is $6600 when you got it, then you have to pay $6600. Not the price
that it costs when you order it.

But they can sell used watches over the list price but not new ones.

Jocke

[tnt]

Originally Posted by Jocke

Nope that is not allowed, there is dealer who have done that and Rolex stop
doing deals with them. But if a watch costs $6000 when you order it and the
list price is $6600 when you got it, then you have to pay $6600. Not the price
that it costs when you order it.

But they can sell used watches over the list price but not new ones.

Jocke

So, that means Rolex price to the AD at the time they release not when they order it?

[crimscrem]

I'm pretty sure that they can if they want to. It's a suggested retail price. Rolex may be able to control pricing to some extent, but some state laws may prohibit it. I'd be curious to hear what an antitrust lawyer has to say.

[vh_bu98]

Originally Posted by tnt

So, that means Rolex price to the AD at the time they release not when they order it?

Rolex prices are based on current MSRP even if the watch is several years old. As long as it can be sold as new, the current price is the going rate.

[crimscrem]

Originally Posted by vh_bu98

Rolex prices are based on current MSRP even if the watch is several years old. As long as it can be sold as new, the current price is the going rate.

Again, I think it depends on the AD. I was at an AD last week and saw two identical TT DJs. They had different serial numbers. One was a Z series and the other one was a D series. They had different prices. I believe the last price increase in the US was in October 2006. The AD did not mark up the older watch.

I think it depends on the AD and how recently the watch was received. I for one would refuse to pay an increased price on an older serial number.

[CoopJr]

Originally Posted by crimscrem

I for one would refuse to pay an increased price on an older serial number.

Ditto for me too! I was offered a D serial SD at 10% off the Z serial price...but said no. I've never had a business class that taught the principal that if your old stock is not selling, you raise the price

[tnt]

Originally Posted by vh_bu98

Rolex prices are based on current MSRP even if the watch is several years old. As long as it can be sold as new, the current price is the going rate.

I understand that. But what I was wondering is when I place the order, one of the Ad said call back in 2 weeks, we will have the price for you. Because, Rolex may have price increase by middle of Feb. Their price is based on the time of the watch releases not the time you order.

Therefore, I ordered 2 Rolexes from my AD. Until now, 5 days have passed, I still don't see the 20% deposit pending charge on my credit card as the previous orders did on the same day.

I wonder is he playing game with me? If new price is in place when the watches come, and he tries to keep secret and charge me silently, I will then won't take it. I would rather go some where who is honest upfront.

[vh_bu98]

Originally Posted by tnt

I understand that. But what I was wondering is when I place the order, one of the Ad said call back in 2 weeks, we will have the price for you. Because, Rolex may have price increase by middle of Feb. Their price is based on the time of the watch releases not the time you order.

Therefore, I ordered 2 Rolexes from my AD. Until now, 5 days have passed, I still don't see the 20% deposit pending charge on my credit card as the previous orders did on the same day.

I wonder is he playing game with me? If new price is in place when the watches come, and he tries to keep secret and charge me silently, I will then won't take it. I would rather go some where who is honest upfront.

If you put down a deposit, then the AD would be obligated to sell the watches for the price that was agreed upon when the deposit was made.

[BigDanC]

Originally Posted by vh_bu98

Rolex prices are based on current MSRP even if the watch is several years old. As long as it can be sold as new, the current price is the going rate.

Actually, Rolex really can't dictate their prices at all. Anti-Trust laws ftw. Sure it's written in the contract, but all it would take to get them nuked is one good class action lawsuit.

If you've ever read any of the Rolex Authorized dealer agreements they have a lot of poorly worded grey conditions. From what I've heard that's mostly so Rolex can pull your AD status for reasons that wouldn't get them in trouble.

So, legally rolex can't dictate prices, but deviating more than 10% or so from MSRP on a regular basis would probably get their dealer status revoked on other, unrelated grounds:P

[Jocke]

Originally Posted by tnt

So, that means Rolex price to the AD at the time they release not when they order it?

I guess it is so for the dealer and for the customer I know it is.

Jocke

[tnt]

Originally Posted by Jocke

I guess it is so for the dealer and for the customer I know it is.

Jocke

Thank you.

That's what I have thought.

[TempoKing]

I have known Authorised Dealers in small resort areas with a shorter business season to charge above and beyond for all Rolex watches. Anyway all that before the dollar took a dive and became worthless (thank you George Bush), now you can not get a deal especially in Europe even if the dealer is your first cousin.

[DoxaDavid]

It's not allowed. If a dealer tried to pull that crap, I would contact their rep and "throw them under the bus", regardless of which model it was.

Rolex doesn't tolerate that stuff, at least from what I know of here in the States. What happens on an island somewhere or out of the US, I can't say.

[llamaofdoom]

Short answer in the US: Yes. The AD contract from Rolex USA doesn't restrict an AD from selling above list price. So, ADs can sell whatever they want for whatever than can get for it.

From what I understand of Asia and parts of Europe, it's allowed there too.

On the flip side, there also aren't any clauses in the contract that prevent them from discounting, either.

A free market cuts both ways.

[SPACE-DWELLER]

AD's can sell at whatever prices they want, but question is how long they would keep their AD status and how many watches they would sell if the AD's sold watches way over MSRP.

[Jocke]

Originally Posted by SPACE-DWELLER

AD's can sell at whatever prices they want, but question is how long they would keep their AD status and how many watches they would sell if the AD's sold watches way over MSRP.

Bo, ask your dealer about it, in Sweden they are not allowed to sell the new
watches over listprice.

I suppose Rolex will control the pric market too.

Jocke

[SPACE-DWELLER]

Originally Posted by Jocke

Bo, ask your dealer about it, in Sweden they are not allowed to sell the new
watches over listprice.

I suppose Rolex will control the pric market too.

Jocke

Denmark is not Sweden. We also don't have any "System Bolaget"

[TonyD]

Soooo... the answer is yes/no/no/yes/yes/yes/no/yes/no then?

Oh well. We may never know fir sure I guess!

[Felly Jr.]

Originally Posted by lynntonyd

Soooo... the answer is yes/no/no/yes/yes/yes/no/yes/no then?

Oh well. We may never know fir sure I guess!

I think the answer is a definitive "MAYBE"!

[Earl Camembert]

I know that with many items if a dealer sells a certain percent below MSRP he can't advertise the price. Of course that has nothing to do with the topic.

[frostie]

AD's charge more than the price list all the time here

[Orchi]

Err buddies...as little as Orchi knows...Rolex SA wouldn't give 2 hoots about any of their ADs selling Rolex watches within permissible discounted rates on certain models...or above MSRP or list prices...on the particular models.

The same could never be said...about their ADs starting a price reduction war amongst themselves...or those ADs would be booted out of their ADships with Rolex...faster than anyone could bling the eyes...

n Orchi thinks also...Rolex ADs would NOT be allowed to trade in pre-owned Rolex market...err...at least not over their counters!

That said...situations or circumstances may differ from one region to another...n by that...Orchi stands to be corrected.

[Hamilton Carvalho]

Last year I called Mr. Carlo Rossetti at Rolex in Switzerland and questioned him about this. Mr. Rossetti is in charge for the distribuition of Rolex in USA. He told me that Rolex has no power in any way to force AD's to sell their watches for the MSRP. He also said that he personally don't like to hear that AD's are charging a premium, but Rolex can't do anything about it. Also, before I called Mr. Rossetti, I called Rolex main office in NY to report Tourneau for selling a daytona SS for $12,000.00, and they also said that they couldn't do anything about it and encouraged me to find another AD. So, basically they don't have Rolex blessing but as Rolex said "once they paid for it, they can do anything they want".

Originally Posted by lynntonyd

Sorry for such a noob question... Lets say I get on a list for a new model that is rare and they get one in. Can an AD charge a premium or are they restricted to no more than list price?

[Earl Camembert]

Originally Posted by Hamilton Carvalho

Last year I called Mr. Carlo Rossetti at Rolex in Switzerland and questioned him about this. Mr. Rossetti is in charge for the distribuition of Rolex in USA. He told me that Rolex has no power in any way to force AD's to sell their watches for the MSRP. He also said that he personally don't like to hear that AD's are charging a premium, but Rolex can't do anything about it. Also, before I called Mr. Rossetti, I called Rolex main office in NY to report Tourneau for selling a daytona SS for $12,000.00, and they also said that they couldn't do anything about it and encouraged me to find another AD. So, basically they don't have Rolex blessing but as Rolex said "once they paid for it, they can do anything they want".

That is correct as price fixing is against the antitrust laws except in very limited situations like milk.

[Felly Jr.]

Originally Posted by Hamilton Carvalho

So, basically they don't have Rolex blessing but as Rolex said "once they paid for it, they can do anything they want".

If Rolex doesn't care what the AD does as far as pricing after the watch is bought then why the hell to they supposedly care about flippers selling their watches on the secondary market for a profit?

[sea-dweller]

Here in the US, I've seen this occur for the SS Daytona. Several years ago, at AD's in Asia, when the Explorer 1 was "hot" (2003-2005), I saw them asking close to $5,000 US for a new one. In Asia, AD ask > $12,000 for SS Daytonas.

[East Bay Rider]

Was discussing this sort of thing at my AD earlier this week. AD commented that TT Datonas can be sold at a discount and SS Daytonas can be sold at a premium.