ADs don't like to sell to flippers?

[42itus]

In the past year I've seen 7 SS models for sale, BLNR, BLRO, LV, SD4K, and 114060, all coming from one Ben Bridge. So if Rolex is tracking they're not doing a good job or they're turning a blind eye. I'm not actively looking for where watches come from, but I see it when I see the card. And this is all in the past year.

[V25V]

If Rolex really cared and wanted to stop it, just troll gray dealers listings, buy watches and track where they are coming from. Likely many from same AD's, it really wouldn't be very hard.

[42itus]

Originally Posted by V25V

If Rolex really cared and wanted to stop it, just troll gray dealers listings, buy watches and track where they are coming from. Likely many from same AD's, it really wouldn't be very hard.

I was recently in Tokyo and there's a shopping arcade that has a couple of dozen gray dealers and one shop actually showed the cards so you could see the AD, date, and customer name. I forget but there were 3 BLROs with cards from 3 different countries all within the past 3 months.

[V25V]

Originally Posted by 42itus

I was recently in Tokyo and there's a shopping arcade that has a couple of dozen gray dealers and one shop actually showed the cards so you could see the AD, date, and customer name. I forget but there were 3 BLROs with cards from 3 different countries all within the past 3 months.

Yeah, I think if they really cared enough, they could at least make a huge dent in the gray market. But I am of the opinion they may act like they care and say all the right things, occasionally have to flex their muscle to make an example, but do not really care that much.

[Claven2]

What I also find funny is all the people saying rolex should just make more watches to reduce the demand born of shortage.

For one thing, Rolex would sell more watches if they could. Most of the money they make goes to a charitable foundation (Wilsdorf Foundation) and they want to max out those contributions.

The ADs I've talked to, who have relationships with rolex, have told me they are trying to train a larger workforce, but it takes time. They produce record numbers of watches each passing year, but demand also increases over time. They can't keep up right now despite wanting to produce more. But I also don't want them to reduce quality to achieve quantity - do any of you?

[42itus]

I don't think it's a supply problem. I think the supply is being hoarded by the secondary market. And the inflated value as a result is an ideal situation for Rolex. Even if they could, why would they want to flood the market to meet demand? Because if they did I guarantee you that demand would disappear so fast. As much as it sucks for non-VIPS, this is an ideal climate for any kind of manufacturer.

[Marcjvr]

Originally Posted by Token74

Suggestions that AD’s shouldn’t care about Flippers.

Wrong! Rolex do care and do track. They clearly can’t track every watch or every deal, but if it happens publicly and happens to get picked up, AD’s are at risk of losing their status if there are multiple examples. Sure, Rolex want the grey market, without it they wouldn’t have been in a position to up the prices recently. But...they are also very protective of their brand, so have to find the right balance.


None of this is complicated. None of it is controversial. None of it is particularly new.

Flippers are not the root cause, they are a symptom. The root cause is a gross imbalance between low supply (at MSRP) and high demand.

So if Rolex truly did care and wanted to solve this imbalance and this “flipper” problem...they would and could address the root cause very quickly and easily. But they don’t.

[BroncoOne]

Originally Posted by Marcjvr

Flippers are not the root cause, they are a symptom. The root cause is a gross imbalance between low supply (at MSRP) and high demand.

So if Rolex truly did care and wanted to solve this imbalance and this “flipper” problem...they would and could address the root cause very quickly and easily. But they don’t.

Rlex is NOT in the retail business. Only ADs and gray market dealers are.

Rolex is in the wholesale market and sells every single watch that it makes every year. It is a tremendous business model. The retail market hype simply supports its long term wholesale market and stabilizes its wholesale prices to dealers year after year.

Why would Rolex want to stop people from overpaying at retail?

[TempoKing]

Originally Posted by Wcdhtwn

Rolex doesn’t like the gray market and the markup they are getting on high demand pieces. Which is odd because the way Rolex seems to handling this, limited supply, only increases the likelihood people will go to the gray market. AD’s get in trouble, supposedly, if a watch they sell ends up in the gray market.

Gray’s were outlets for AD’s who had hard to move inventory, if a Rolex AD isn’t moving inventory they don’t get more watches. So it was a symbiotic relationship, and probably still is. Rolex cracking down is the issue, AD’s have to be more careful.

I am getting a VERY high demand watch from my AD when the next one they receive comes in. It isn’t because I’ve spent a ton of money there, a couple of watches and a few pieces of jewelry, nothing over the top. I am getting it because they know me and know I won’t flip it. There are others “on the list” ahead of me who they don’t know and several they strongly suspect are flippers... so they don’t get the piece, I do.

And I’ll add... at the end of the day, it’s up to the AD who they sell it to. It isn’t ‘first come first serve’ as frustrating as that may be.

The Rolex market is suffering from Geneva’s stupidity...you do not see
Mercedes closing dealers because they gave discounts .?..Rolex watches now
are selling for more than cars...are less complicated to make and cost less money
to produce (against the retail price)
In their ...sick mania to eradicate Grey dealers ...they achieved the opposite
Greys are here to stay ...and worst ...the Rolex management has
turned Rolex Authorized dealers into black marketeers ? You should see the
prices they are asking behind close doors...
Rolex could have really taken care of all that by just opening the “faucet”
and produce a few more desirable models ...simple really

[173rdabn]

Unlike an export weapons system, there's no end user certificate. As in any business, profit is the objective.

[shawn13ca]

Being an AD can be a tricky game i guess. Because they make or break relations with every decision they make. I personally remember vividly who sold me what and who refuse to sell to me. I can tell you that since collections are only getting bigger and more expensive with time, one AD who refused to sell me an Air King once will not be the one selling me my YG DD or my RG DD. I am not good enough for you once, you'll never be good for me in the future. ADs have to build a relationship with me, not the other way around.

[Chewbacca]

Originally Posted by cerendigit

A lot of people on TRF seems to think it's a good thing to be perceived as "not-a-flipper" by the AD.

Why is that?

Isn't the ADs business to make money? Why do they care if you give the watch to your little brother, store in a safe, or sell it back to your neighbour?

Also, aren't grey market dealers "glorified flippers"?

ADs never cared who they sold to. They hate being scrutinized audited and overseen by Rolex.

When watches weren’t as easy to source trace, it was a field day. Around 2012, they’ll shut you down if you’re bulk selling for anything less than full MSRP. Now, even at full MSRP isn’t a shield because people brag about scoring watches and reselling on auction sites. Remember; everyone’s a retailer now. That’s not good for a company like Rolex who sells their ADs as the ONLY place to get a Rolex.

Rolex cares if their brand starts to look like it’s part of a gang selling out of a car in an alley. That’s what they care about.

Thank you social media and Forums.

[Rori]

I agree and have similar experience with my Local Rolex Boutique. While people I know "Collectors and flippers" have every hot Rolex model twice, one for themselves one to flip" The boutique does not sell them anymore no matter what. They are begging me to buy SS models for them, which I can at anytime with a very fast delivery timeframe. Compared to their purchase capabilities, I'm like a drop of water in an ocean and yet the Boutique trusts me not them and for this reason I'm not breaking that trust.

Originally Posted by Wcdhtwn

Rolex doesn’t like the gray market and the markup they are getting on high demand pieces. Which is odd because the way Rolex seems to handling this, limited supply, only increases the likelihood people will go to the gray market. AD’s get in trouble, supposedly, if a watch they sell ends up in the gray market.

Gray’s were outlets for AD’s who had hard to move inventory, if a Rolex AD isn’t moving inventory they don’t get more watches. So it was a symbiotic relationship, and probably still is. Rolex cracking down is the issue, AD’s have to be more careful.

I am getting a VERY high demand watch from my AD when the next one they receive comes in. It isn’t because I’ve spent a ton of money there, a couple of watches and a few pieces of jewelry, nothing over the top. I am getting it because they know me and know I won’t flip it. There are others “on the list” ahead of me who they don’t know and several they strongly suspect are flippers... so they don’t get the piece, I do.

And I’ll add... at the end of the day, it’s up to the AD who they sell it to. It isn’t ‘first come first serve’ as frustrating as that may be.

[SpeedyTuomas]

Originally Posted by TempoKing

The Rolex market is suffering from Geneva’s stupidity...you do not see
Mercedes closing dealers because they gave discounts .?..Rolex watches now
are selling for more than cars...are less complicated to make and cost less money
to produce (against the retail price)
In their ...sick mania to eradicate Grey dealers ...they achieved the opposite
Greys are here to stay ...and worst ...the Rolex management has
turned Rolex Authorized dealers into black marketeers ? You should see the
prices they are asking behind close doors...
Rolex could have really taken care of all that by just opening the “faucet”
and produce a few more desirable models ...simple really

I don't think discounts are the problem but the ADs not reaching the level (not nice enough?) that is expected.