List of retailers losing “authorized dealer”status?

[dannyp]

Is there such a list compiled over the past few years? Was thinking in my search for a gift for my wife, who would like some of the less popular models, this might be a good channel for finding one at a better discount. I knew of a few that lost their franchise a few years ago, but no stock left. Doesn’t matter where they’re located as long as it’s still a reputable jeweler and will ship.

[Ticknaway]

I could be wrong , but it’s my understanding that when a dealer loses its status Rolex buys everything back at retail. They even take the displays and all miscellaneous items.

[dannyp]

Originally Posted by Ticknaway

I could be wrong , but it’s my understanding that when a dealer loses its status Rolex buys everything back at retail. They even take the displays and all miscellaneous items.

I just recall about six or seven years ago some talk of one in SoCal that lost its status and was heavily discounting its remaining stock, but it's quite possible that's changed. It wouldn't surprise me if the displays were in fact leased, and owned by Rolex; not sure what happens with inventory at that point, though.

[Navarino]

Originally Posted by dannyp

I just recall about six or seven years ago some talk of one in SoCal that lost its status and was heavily discounting its remaining stock, but it's quite possible that's changed. It wouldn't surprise me if the displays were in fact leased, and owned by Rolex; not sure what happens with inventory at that point, though.

This wouldn't surprise me. I'm sure they are willing to discount the watches down to some amount above "cost" that Rolex charges them/refunds them for watches they send back. If you're going to end up just returning unsold inventory back at price X then why wouldn't you be incentivized to sell that inventory at anything above X. I was in this exact situation with a Lange watch a few years ago. Jewelry store was ending its AD status as a result of the new nearby official boutique at South Coast Plaza. They were very open about aggressively lowering the price since they were just going to be returning unsold inventory back to Lange. Of course this is a different brand, but I don't see why the logic wouldn't hold up here.

[dannyp]

Originally Posted by Carry The Interest

This wouldn't surprise me. I'm sure they are willing to discount the watches down to some amount above "cost" that Rolex charges them/refunds them for watches they send back. If you're going to end up just returning unsold inventory back at price X then why wouldn't you be incentivized to sell that inventory at anything above X. I was in this exact situation with a Lange watch a few years ago. Jewelry store was ending its AD status as a result of the new nearby official boutique at South Coast Plaza. They were very open about aggressively lowering the price since they were just going to be returning unsold inventory back to Lange. Of course this is a different brand, but I don't see why the logic wouldn't hold up here.

Especially because a Lange is a Lange. Collectors will want them regardless of whether it's a "cool" Lange. Rolex, on the other hand, will move based how "hot" the style is. And chances are that a dealer unable to maintain its status has been unable to move all but the most popular models.

[Seibei]

Originally Posted by Ticknaway

I could be wrong , but it’s my understanding that when a dealer loses its status Rolex buys everything back at retail. They even take the displays and all miscellaneous items.

I can't imagine that happening. I don't think Rolex will sell wholesale and then buy it back retail.

[El Cascarrabias]

I wonder if the ex-AD is still able to swipe the warranty card.

Hmmm . . .

[EndlessEight]

Originally Posted by Ticknaway

I could be wrong , but it’s my understanding that when a dealer loses its status Rolex buys everything back at retail. They even take the displays and all miscellaneous items.

I was informed this today so I can verify this to be true.

[Tavli3]

Originally Posted by EndlessEight

I was informed this today so I can verify this to be true.

Do they pay the AD the cost of the displays? Since Rolex mandates that they spend huge sums to upgrade the displays to their standards and then pulls the rug out down the line. I would think the displays are the Ad's property unless Rolex buys them for what they cost.

[EndlessEight]

Originally Posted by Tavli3

Do they pay the AD the cost of the displays? Since Rolex mandates that they spend huge sums to upgrade the displays to their standards and then pulls the rug out down the line. I would think the displays are the Ad's property unless Rolex buys them for what they cost.

I was told Rolex is going there to buy back the watches but did not discuss anything else.

I’m guessing they are SOL in regards to getting comp back for Rolex displays.

[superstarmar]

I don’t think Rolex buys back stock.
I’ve always seen Rolex being closed or phased
out and discounted at 20% to 50% Off msrp.

[Investr]

I'd LOVE to catch an out of business Rolex sale!!!!!!

[TimeToWatch]

Originally Posted by Investr

I'd LOVE to catch an out of business Rolex sale!!!!!!

Seriously! I need to make a Google Alert for these

[hbombkid]

Originally Posted by aschneid

Seriously! I need to make a Google Alert for these

I doubt it would be as good as you think it would be. The popular brands maybe you would see 20% at most. For the non popular maybe 25 to 30%.

I think the biggest issue is most stock would never last long enough for a big discount.

My thought behind stock not lasting long is grey dealers would make some type of deal to take a majority of the stock. I know if I was in that position I would want to get rid of all my stock vs continuing to discount when it doesn’t sell.

[DoctorA]

Originally Posted by Investr

I'd LOVE to catch an out of business Rolex sale!!!!!!

It’ll probably have only PM and DJs!!

[tyler1980]

Originally Posted by Investr

I'd LOVE to catch an out of business Rolex sale!!!!!!

too many of them and its going to devalue your watch. Personally i would prefer Rolex to buy them back to protect the image of value retention.

[AK797]

Originally Posted by tyler1980

too many of them and its going to devalue your watch. Personally i would prefer Rolex to buy them back to protect the image of value retention.

They will certainly try, but some bitter ADs would rather have a firesale to fckem so it's a game of chess.

[Jocke]

Originally Posted by Investr

I'd LOVE to catch an out of business Rolex sale!!!!!!

It use to be the models left that not sell so don't expect Submariners.

[Rentalcarman]

I would love to be luck enough to stumble upon a Rolex AD going out of business 50% off sale. Ahhhh it’s nice to dream :)

[jlovda]

Originally Posted by Oceanlover914

I would love to be luck enough to stumble upon a Rolex AD going out of business 50% off sale. Ahhhh it’s nice to dream :)

I would be willing to bet a paycheck (I'm retired ) that the dealer would have many, many places to sell desirable pieces at retail or more before the riff-raff is offered to the public. Good place to buy a piece for your wife.

[GFONG]

I believe Rolex will cut the supply before terminating the AD agreement. It means that the AD do not have a lot of stock on hand.

[Flyfisher]

Originally Posted by GFONG

I believe Rolex will cut the supply before terminating the AD agreement. It means that the AD do not have a lot of stock on hand.

Wonder if that means all their dealers lost status. The cases are pretty bleak.

[Hodog16]

Over the years, I've had the fortune of visiting at least two ADs who had lost AD status. Watches are usually 30-45% off MSRP but it's basically a sea of Cellinis and Datejusts. I bought a Turn o graph years ago at a steep discount.

If it's just a branch of a major chain, the good watches get shifted elsewhere.

[haberdashery]

When an AD lost the franchise here in the UK in the summer, Rolex didn’t buy back their inventory and they had somewhat of a fire sale. Most models weren’t of interest to me personally, but they had a couple of Day Dates with big discounts. Most of their remaining stock was discounted by 20-30%.

All warranty cards were swiped on the day they lost the AD and left unnamed until someone bought the watch.

[tufty]

Originally Posted by haberdashery

When an AD lost the franchise here in the UK in the summer, Rolex didn’t buy back their inventory and they had somewhat of a fire sale. Most models weren’t of interest to me personally, but they had a couple of Day Dates with big discounts. Most of their remaining stock was discounted by 20-30%.

All warranty cards were swiped on the day they lost the AD and left unnamed until someone bought the watch.

was this upchurch?

[dannyp]

That would be fine by me; I'm not shopping for myself, but my wife, who's been wanting a 34mm OP.

[haberdashery]

Originally Posted by tufty

was this upchurch?

Yes it was :)

[rfatm3f]

I head about a retailer that lost Rolex and Rolex staff showed up and basically broke down the displays, furniture, etc

[dannyp]

Originally Posted by rfatm3f

I head about a retailer that lost Rolex and Rolex staff showed up and basically broke down the displays, furniture, etc

That doesn't surprise me, assuming they are in fact owned by Rolex, which I think they are. Rolex wants complete control of the brand, down to how the watches are presented in the showroom.

However, the watches themselves are probably otherwise financed, and Rolex probably doesn't want them back (to have to reestablish them in inventory, then redistribute, etc.), especially since they're unlikely very desirable models.

All that being said, anyone know of any such dealers anywhere in the US?

[RazorD]

We had an AD lose their status a few years back and they declined to sell their stock back to Rolex. They still have a fair amount of NOS and pre-owned pieces in hand.