Crazy idea (?)

[TheVTCGuy]

Originally Posted by Driver8

Two of my three local(ish) Rolex ADs already have a pre-owned section. Quite small in both cases, but they do sell pre-owned stuff.

I really am surprised, to hear of many ADs selling pre-owned. I think it’s great, wonder why it isn’t a standard practice (?). The three ADs in my area do not sell used. I will make it a point to ask next time I’m in there.

[mannyv11]

Yup mine already do this as well

[brandrea]

I know my ADs are busy enough selling new watches they could care less about the used market.

FWIW, dealing in used watches could be a bit of a s@*t show for some. You’re used car analogy applies

[1665fan]

Yea that’s what I want…….walk into AD and see used Pepsi and hulks for $22,000……..YEAH!!!!!!!!

[TheVTCGuy]

Originally Posted by 1665fan

Yea that’s what I want…….walk into AD and see used Pepsi and hulks for $22,000……..YEAH!!!!!!!!

See!? Here is another supporter of the idea!

[teck21]

Originally Posted by TheVTCGuy

I was in Singapore. Right in front of the RSC there, I think it was on Orchid street, they had a small store selling new Rolex. A guy in my squadron (I was a Navy pilot at that time) bought a bluesy, still has it to that day. Surely if it was in the same space as an RSC it would be owned by Rolex(?).

There is a small AD/boutique a stone’s throw from the RSC, but it’s not Rolex owned.

There are no Rolex owned dealers in Singapore.

The one in Switzerland is in all likelihood the only one that’s Rolex owned.

A quick search of any country’s corporate registry would easily reveal ownership of the ADs. I’m not sure why this is such a big mystery.


Pay


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[jswing]

I think it could make things even worse. If, with a little creative shuffling, a dealer can sell a watch for $20K as "pre-owned" that they just sold new for $10K, I just see the potential for conflict. There's an AD near me that also owns a company that sells used. Curiously they never have new Rolex but they have multiple LNIB versions available through the used branch at highly inflated gray prices. Call me cynical.

[BroncoOne]

Pretty much every AD that I’ve been to have just such a pre-owned section so it’s a pretty good idea!
Pricing is in line with the gray market trusted sellers, so no deals but you get to try the watch on before buying it.

[gnuyork]

Mine has preowned, though I still think it's void of Rolex at the moment.

[1William]

Most of the AD's that I shop have a new and a pre-owned section and have watches that have been purchased by the AD or traded for by customers. They also have some NOS watches from slower moving brands that the manufacturers have approved to be moved over to pre-owned status. The challenge is the value of Rolex, PP, VC and some other brands vastly exceed the msrp of new models that are not available to regular customers. If the market ever shifts back to models being readily available and pre-owned prices being less than new then maybe it would be fun. Several AD's I know hold back desirable pre-owned models the same as new. The games will not end until the money is no longer there. In the long run the brands and the AD's will suffer as people will only go so far and be treated in a manner not consistent with their expectations. It will pass or not, either way we can only play the hand we are delt or choose not to play at all.

[Harry-57]

Originally Posted by TheVTCGuy

See, I think this is actually great.

I know of at least one, very nice DJ wearing lady (and can confidently speculate there are scores more people in my nearest town ) who, like me, is in full agreement with you.

Originally Posted by TheVTCGuy

I really couldn’t understand why an AD would NOT want to, doesn’t it just add an extra source of income?

Yes. My AD sells plenty of used stuff. Rolex watches are probably a small slice of their used and trade-in turnover by quantity, but possibly not by income. I suppose it's all about return on investment, just as it is selling new stuff. There may have been a time when shop space was a limiting factor but online services have overcome this to some extent.

My AD is in the trade. They know what goes on and I expect they slide all sorts of stuff around accordingly. That's their business - in both senses.

As to what effect it might have on the grey market, I can see what drives it but past that, I've given up trying to understand it. Too many people, too many alternative realities. It might boil down to simple things but I wouldn't be surprised if the finest mathematical minds in the world are attempting an analysis of it and coming up with nothing.

[77T]

Paul, I think the ADs there in San Diego may have decided the profit margin isn’t worth dedicating a set of cases for pre-owned. They likely accept trade-ins where it’s worthwhile - but then batch sell them to secondary market dealers.

The profit margin on new Rolex is fixed and the pre-owned margins vary wildly because customers expect a nearly 90% price for their watch. This yields much less profit than selling Rolex or anything else in the shop.

Here in ATL area all the freestanding ADs I’ve visited have Rolexes in their “estate” or pre-owned cases. (Haven’t been to the Mall ADs in years so don’t know about them). Of course, none are boutiques.

Also, many of my friends with indie brick & mortar shops have a well stocked Rolex case with pre-owned models. Some do custom work with cases, bracelets and bezels - it appeals to our urbane clientele.

Speaking to the comparison with auto dealers for a moment….
One of the differentiators between Rolex ADs and them is the strict requirement to have dedicated space to the Rolex brand over all others. Also, many auto dealers are active in leasing, commercial fleet, and government contracts. That provides them with a steady flow of 2-5 year old models at a fixed cost (lease residuals). It protects profit margins.

In closing, with Tony & Patrick so close to you in SD, I’d visit/meet up with them if you’re looking. They probably can get anything you’d want. Plus they are boutiques here and sponsor TRF pledge activities that might yield a free Rolex a few times each year.


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[travisb]

Originally Posted by scooba

Mine already does .

Same here. And they charge the same as you see in the grey market.

[ROBERT1183]

It might bring the grey prices down a bit if they have to compete with an AD. Most people are more inclined to buy a pre-owned Rolex from an AD than a grey if they're selling it at the same price. Plus I can put it on my Amex or sapphire card for the points. For greys to compete they would need to drop their prices and margins.

[1665fan]

Originally Posted by ROBERT1183

It might bring the grey prices down a bit if they have to compete with an AD. Most people are more inclined to buy a pre-owned Rolex from an AD than a grey if they're selling it at the same price. Plus I can put it on my Amex or sapphire card for the points. For greys to compete they would need to drop their prices and margins.

It will not…….they charge same as greys…….

[Mendota]

Mine does. They have more pre-owned than new! Lol

Right now they actually have a 1958 6536 small crown sub, a 1969 5513 with spiderweb dial, a late 1960s 1675, and a whole bunch of others.

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[CPRWATCH]

My Local AD always has a small selection of pre owned Rolex for sale ,& has done for many years .

[rmagoo57]

I was pleasantly surprised to find a pre-owned watch section at a local AD (not "my" AD). I was able to try on some pieces that I have never held or worn before. I will be visiting more often just to check out their pre-owned stock!

[beshannon]

Originally Posted by TheVTCGuy

What if all boutiques and other ADs had a “pre-owned” section, carrying a stock of, and selling used watches. Once a year my local AD has an event where you can get pre-owned Rolexes, they usually have a pretty good selection. What would having a pre-owned section do for ADs… And gray market dealers for that matter. Good idea? Bad idea?

I know it sounds crazy, but think about it, a car dealership sells new AND used cars, why not Rolex? Thoughts?

Mine already does however the supply demand pricing does not work.

They have higher priced used pieces than the new MSRP.

[Marcjvr]

I don’t know. Too much temptation for an AD to engage in shenanigans. Why sell a new sub at MSRP if they can wear it for a day or 2 and throw it in the pre-owned case and sell it for much higher

[herts9]

Originally Posted by scooba

Mine already does .

As does mine.


I took a look, and saw a 40mm polar Exp II in the case with a cyclops that had a 1x magnifier, and quickly did an about-face to the new stuff.

[alphadweller]

Opens the door to confilct of interest. Why sell at MSRP when peowned prices are much higher on certain models? Let's "sell" the sought after piece to a "customer" who's actually a friend, then have him bring it back for a trade-in, and put it on the window as preowned.

[Silvio_86]

It will be very bad for the brand. Imagine you want a daytona. AD can't give it for MRSP, but you can walk in the trade in section of the shop and actually buy a 2 months preowned for 30k.... are you kidding? I guess many customers would get angry and stop being loyal at that point... please remember AD empty cases and grey with all references available at at least 2X retail

[Mendota]

I honestly don't think a lot of people actually read the comments. They just read the initial post and then post their own. If they did, then they would see that tons of ADs actually already offer both and this isn't some far out idea from Mars.

[gerry100]

Bought mine used at an AD ( with a certified service)