Why NOT go to the AD?

[BillA]

Originally Posted by coralfarmer84

We'll said. I mean no offense to anyone and could care less how they acquire these beautiful watches. I was simply raising awareness that there is a reason watches can be acquired cheaper threw various outlets and SOME people act foolish bragging about how they essentially use the AD as a showroom then buy online and brag about how cool they are for it.

I too would be foolish to overpay for anything in life, but I can be objective about it.

One vote here for using the AD as a showroom.
Hey, Tourneau is good for something!

[Onikage]

lol x2 Let me know if you get any champagne and chocs. I've had no joy so far.

[SMD]

Originally Posted by T. Ferguson

I'm not convinced Rolex really is interested in going the all company owned route anyway.

This is most certainly correct. There is a very big difference between Rolex's current business model -- to wholesale watches through various channels, mandate purchase volumes to drive monthly/quarterly sales and collect the money up front on the sale to the retailer (or on short dated terms) instead of waiting until the final sale to the customer -- and being a vertically integrated full service retailer that operates stores all over the world. The cash flow impact would be enormous and is a fundamental change in the way it makes money and not something that will be happening anytime soon. If they did, then they would have to sit on all the dead money represented by the huge inventory of Leopard Daytonas!

If Rolex really cared about the grey market, they could kill it overnight. All they would have to do is allow retailers to choose what they want to stock as inventory, and allow them to purchase only what they need. Of course, doing this would have a much bigger impact on their business than allowing the grey market to continue. Longer term, they could increase the wholesale price and keep retail prices the same so that they only way ADs make money is by selling at full list. This would inevitably reduce the number of POS, so the business question is will the volume be the same just from fewer retailers? I have no doubt that they have looked at all of these ideas and determined that the current strategy of allowing a modest but not robust grey market while sort of checking on your retailers to make sure they are not hurting the brand is the most profitable approach at the moment.

[datejusting]

Just my opinion: I always buy from an AD because I don't want to buy from a grey dealer because his supplier is an AD, or Rolex employee, who is in violation of his contract, or agreement, with Rolex. It may not be illegal activity, but it is unethical. Guess I should add that I only buy new Rolex watches and have bought approx thirty for myself and family in the last twenty nine years.

[SaddleSC]

Originally Posted by datejusting

Just my opinion: I always buy from an AD because I don't want to buy from a grey dealer because his supplier is an AD, or Rolex employee, who is in violation of his contract or agreement with Rolex. It may not be illegal activity, but it is unethical.

Not necessarily the case...most dealers also re-sell preowned pieces that were purchased or taken in trade from private individuals (who purchased at an AD). There is nothing unethical about that.

[illiguy]

Question for those who were able to order from an AD over the phone - did you take the AD's word for the condition of the watch (assuming BNIB with all stickers in place), or did you have the AD send photos?

I know it may sound crazy, but aren't certain "BNIB" watches not exactly so, as some, more than others, have been handled repeatedly (e.g., taken in and out of the case and tried on by various customers)?

[datejusting]

Originally Posted by SaddleSC

Not necessarily the case...most dealers also re-sell preowned pieces that were purchased or taken in trade from private individuals (who purchased at an AD). There is nothing unethical about that.

Please see my edited version.

[jrs146]

I've done both... Depending on where you live and the specific AD, as you build a relationship you may be able to get higher discounts. I've been offered 20%+ off from AD's who I have done business with in the past. The good news is there are MANY great trusted sellers here on TRF and they are able to sell the same watch at a great price also.

[BillA]

For all the people on the forum who will only buy from an AD, here is your chance to buy a pre-owned SS Daytona: Tourneau at the Westchester Mall has both a black and white face Daytona for sale at an "incredibly" low price of $14,995. If you think it is expensive or overpriced, just think how you are helping the local economy. They won't last long so hurry in.
edit: And you have built a "relationship" with a salesperson (who will be drinking champagne and eating chocolates when you walk out of the store)

[Tridor]

It surprises me that Rolex has not modified its warranty to attach solely to the original purchaser. Many companies do not permit transferrable warranties in order to prevent grey market or other re-selling activity of new product. If the watch is purchased as a gift, then the warranty could be made out in the name of the intended owner. But wait, you say ... re-sellers simply could have the warranty to BNIB watches made out in the name of the ultimate purchaser, if known. That's true, but in that case, those ADs who deal with re-sellers would be in direct breach of their license agreement and could lose their AD status. That may not be the case currently since the Rolex warranty simply requires that the watch be purchased from an AD; requiring that the watch be purchased from an AD by the original purchaser is a different thing altogether. To help determine whether any such breach is occurring, Rolex could check serial numbers on warranty cards presented to it against dealer records. It IS possible for Rolex to virtually shut down the re-seller market and grey market if it wants to do so. I am not convinced that it does.

[nygo]

Originally Posted by BillA

For all the people on the forum who will only buy from an AD, here is your chance to buy a pre-owned SS Daytona: Tourneau at the Westchester Mall has both a black and white face Daytona for sale at an "incredibly" low price of $14,995. If you think it is expensive or overpriced, just think how you are helping the local economy. They won't last long so hurry in.
edit: And you have built a "relationship" with a salesperson (who will be drinking champagne and eating chocolates when you walk out of the store)

yes, that's exactly what i meant. it's all about actual, literally getting chocolates and champagne.

geez. give me a break , that's just ONE added value. it's the actual experience is what I meant.

And, if you go to Tourneau, you're going to a place that finances watches, and it's pretty much common knowledge that they have terrible customer service to begin with. That's like going to the worst seller on the forum.. sheesh.

[nygo]

and i should have probably prefaced the initial post with, for new watches.
and truth be told, Tourneau has its place. not everyone wants to wire.. what? a small fortune (at least for me) to some person they never met or have never seen.

"for my first rolex. i went to an actual physical store. tried on a bunch of watches. then i went online. read some stuff. wired money out of my bank account to someone i never met, and hoped i got my watch.."

perhaps it makes sense to price hunt if you flip, it's your second watch, or if you just want the watch simply because you love watches. but ADs do have their place. and so do Trusted Sellers.

[GolfPunk]

It's about the watch and the best price for me. I've bought breitlings from AD's before and it's a horrible experience as I'm haggling and it's uncomfortable.
Basically if you're willing to pay full MRSP then an AD will basically grovel at your feet....they offer the champagne and luxury red carpet treatment because they're making that much profit off you...they're probably not really bothered about you personally, just the sale.

[nygo]

Originally Posted by GolfPunk

It's about the watch and the best price for me. I've bought breitlings from AD's before and it's a horrible experience as I'm haggling and it's uncomfortable.
Basically if you're willing to pay full MRSP then an AD will basically grovel at your feet....they offer the champagne and luxury red carpet treatment because they're making that much profit off you...they're probably not really bothered about you personally, just the sale.

well of course? i mean are you hoping to be best friends with a trusted seller here? I mean obviously business is business.

[T. Ferguson]

Originally Posted by Tridor

It surprises me that Rolex has not modified its warranty to attach solely to the original purchaser.

The answer is pretty simple. Rolex chooses to offer a full rather than limited warranty to show their level of support for their product. In the USA a full warranty is transferable to subsequent owners by statute under the Magnuson–Moss Warranty Act. This may or may not be true in all parts of the world but that's the deal in the USA.

It doesn't really surprise me. Besides all the pieces given as gifts, a transferable warranty maintains value for those that decide to flip the watch for another model. This is also good for the ADs that may take one in trade - they can resell it still with a warranty. Even the gift situation is probably better handled this way. A watch is a personal thing and I'm sure very often one given as a gift is traded in on another model. If the warranty card was filled out and is not transferable then there would no longer be a warranty on the watch.

Many new car warranties are also transferable and follow the vehicle for 3/36. A lot less is likely to go wrong with a Rolex in two years than a car in three, and just about any potential repair would cost Rolex a lot less in parts and labor.

Finally, there is the question about just how committed Rolex is to completely destroying the grey market. I'm of the opinion they don't want to destroy it, just keep it under control.

[JElvis]

I'm all for the experience as well. But to each his own. I really cannot place a value on the experience of a freshly boxed rolex being handed to you in that little bag when buying new. Again, to each their own. I know personally and am sure there are many many positives to buying from a reputable dealer on TRF.

[SMD]

Originally Posted by JElvis

I'm all for the experience as well. But to each his own. I really cannot place a value on the experience of a freshly boxed rolex being handed to you in that little bag when buying new. Again, to each their own. I know personally and am sure there are many many positives to buying from a reputable dealer on TRF.

Don't worry, you very rarely get that from and AD. The only time I got that was from Davidsw.

Sent from my Nexus 5 using Tapatalk

[joere]

I have seen several posts concerning new Rolexes that were defective in some way or could not be satisfactorily regulated and the AD replaced the watch with a brand new one. The AD's did this, not Rolex who would likely say send it in to be fixed. How many trusted sellers would do likewise?

[Tridor]

Well, Rolex could issue a limited warranty that is not transferable. I just don't think it wants to do that, even if it could help destroy the reseller/grey markets. Those markets may actually help Rolex by ensuring that new product moves on a much greater scale than via ADs alone.

[coralfarmer84]

Originally Posted by BillA

For all the people on the forum who will only buy from an AD, here is your chance to buy a pre-owned SS Daytona: Tourneau at the Westchester Mall has both a black and white face Daytona for sale at an "incredibly" low price of $14,995. If you think it is expensive or overpriced, just think how you are helping the local economy. They won't last long so hurry in.
edit: And you have built a "relationship" with a salesperson (who will be drinking champagne and eating chocolates when you walk out of the store)

no I'd much rather buy my watch for bottom dollar even if the seller is from a third world country because after all price is everything.... I also enjoy only eating at mcdonalds because their value menu is unbeatable, of course one of the employees there sells to me out the back door because otherwise the sales tax on my $2 purchase would kill the sale. But hey with all the money I saved I was able to lease a crap laptop from rent a center and hack into my neighbors wifi to tell you guys all about how much money I saved over the AD. Didn't even have to waste gas driving my 1980's hoopdee to go pick it up. But man I look like a real rich person rolling around town with my Rolex on and the top notch korbel champange I got tax free as well really helps me woo the ladies

[Spartacus]

Originally Posted by datejusting

Just my opinion: I always buy from an AD because I don't want to buy from a grey dealer because his supplier is an AD, or Rolex employee, who is in violation of his contract, or agreement, with Rolex. It may not be illegal activity, but it is unethical. Guess I should add that I only buy new Rolex watches and have bought approx thirty for myself and family in the last twenty nine years.

This is a great, yet subtle point.

[T. Ferguson]

Originally Posted by Tridor

Well, Rolex could issue a limited warranty that is not transferable. I just don't think it wants to do that, even if it could help destroy the reseller/grey markets. Those markets may actually help Rolex by ensuring that new product moves on a much greater scale than via ADs alone.

I thought you said you were surprised they allowed the warranty to transfer to subsequent owners.

[Tridor]

Originally Posted by T. Ferguson

I thought you said you were surprised they allowed the warranty to transfer to subsequent owners.

No. I said I was surprised that they haven't modified their warranty to attach solely to the original purchaser rather than to the watch, thereby precluding a transfer of the warranty to another person.

[T. Ferguson]

Originally Posted by Tridor

No. I said I was surprised that they haven't modified their warranty to attach solely to the original purchaser rather than to the watch, thereby precluding a transfer of the warranty to another person.

Right, but I'm not understanding why that surprises you when at the same time you say you don't think they want to do that.

No big deal, I just didn't understand.

[postalworker]

Originally Posted by illiguy

Question for those who were able to order from an AD over the phone - did you take the AD's word for the condition of the watch (assuming BNIB with all stickers in place), or did you have the AD send photos?

I know it may sound crazy, but aren't certain "BNIB" watches not exactly so, as some, more than others, have been handled repeatedly (e.g., taken in and out of the case and tried on by various customers)?

Yes, I took the ADs word that it was BNIB with all stickers in place.

[Tridor]

Originally Posted by T. Ferguson

Right, but I'm not understanding why that surprises you when at the same time you say you don't think they want to do that.

No big deal, I just didn't understand.

I said it because it surprises me that, from an objective business perspective, Rolex would not try to destroy the network it complains about on the surface. However, when one looks beneath the surface, it becomes apparent that Rolex has no interest in such destruction because the resellers and grey market actually provide a benefit by helping to move large quantities of new product which could not be moved by ADs only. Sorry for any confusion.

[Jason71]

Originally Posted by joere

I have seen several posts concerning new Rolexes that were defective in some way or could not be satisfactorily regulated and the AD replaced the watch with a brand new one. The AD's did this, not Rolex who would likely say send it in to be fixed. How many trusted sellers would do likewise?

DavidSW offered to replace my white-dialed 116400 Milgauss when I determined it had a defective dial with off-centered black text (I had owned it for a week or two). I declined because I was happy with the watch as-is.

[TempoKing]

It would be terribly boring if we all liked the same experience when we buy an expensive
new Rolex watch, for some the drama involved within the luxury retail enviroment is
very important and I agree with them, also I agree buying from a "grey" and save a few
dollars and an immoral 8% tax on top of any deal.
I have been on both sides of the fence and I understand the ultimate target from both.

[Spartacus]

Originally Posted by Jason71

DavidSW offered to replace my white-dialed 116400 Milgauss when I determined it had a defective dial with off-centered black text (I had owned it for a week or two). I declined because I was happy with the watch as-is.

Let's be honest Jason, you're biased. I sometimes wonder if David pays you for all the WOM you are giving him.

[sphereman]

I agree with OP as well.

Don't get me wrong. TRF has the best grey dealers on earth for sure (Tony, Patrick, David to name a few). I bought used pieces from them with no problem at all (I also met some unethical dealers too)

When it comes to buying a new piece, I prefer to get it from an AD and have my name written on the warranty card. AND you can find an AD that can match grey dealers' price :)