ADs don't like to sell to flippers?

[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"?

[charlesheung]

I think they care about earning money than everything, lol.

[Mr. Miami]

I think because Rolex in general doesn’t like the grey market.

[Phudu]

[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.

[037]

Originally Posted by cerendigit

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?

Here's an experiment you can try. Walk into every AD in your area, tell them upfront that you're a flipper and wish to purchase any and all in-demand stainless watches that they will sell to you. Let us know the results.

[thesharkfactor]

Originally Posted by 037

Here's an experiment you can try. Walk into every AD in your area, tell them upfront that you're NOT a flipper and wish to purchase any and all in-demand stainless watches that they will sell to you. Let us know the results.

Try the above, I bet you'll get the exact same result.

[037]

Originally Posted by thesharkfactor

Try the above, I bet you'll get the exact same result.

[Podmornica]

Saying that you are not a flipper is a good way for them to think that you are one.

[SeikoBake]

There are only so many watches to go around. Are you going to sell them to flippers who want to make a quick buck or are you going to sell them to long time repeat business clients who stick with you even when times aren’t great?

[Tom5518]

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"?

So let's pretend for a moment you are the AD standing behind the counter and you have three dudes with cash on the counter to buy that BLNR you just got in. The first dude you know is going to flip it and just wants to make some cash. The second dude has never bought anything from you but you know he really wants the watch but he is a one and done type of guy. The third dude has bought three Rolexes from you this year alone and has a dozen other Rolexes at home, not to mention several other watches he has gotten from you that are not Rolex. You know this won't be the last watch you ever sell to him.

You have one BLNR to sell. Who gets it?

[cerendigit]

Originally Posted by Tom5518

The third dude has bought three Rolexes from you this year alone and has a dozen other Rolexes at home, not to mention several other watches he has gotten from you that are not Rolex. You know this won't be the last watch you ever sell to him.

You have one BLNR to sell. Who gets it?

The third guy, but not because I know he won't flip it, because I know he made me a lot of money, and I predict he will make me more if I make him happy.

Nothing to do with flipping or not.

[1665fan]

Originally Posted by charlesheung

I think they care about earning money than everything, lol.

Exactly

[daOnlyBG]

I think people have it wrong. ADs loathe the grey market, but not for flipping allocation models.

They hate grey market dudes for flipping the non-allocation models.

An AD salesman will never have a problem selling a GMT for MSRP. In fact, a resale premium means those sell quicker. Even a half-witted salesman would prefer quicker sales. It's not like he has the choice to get a higher premium on the market- the prices are limited by Rolex SA.

The entire point of the allocation model is to help the Rolex AD sell the less-demand stuff by awarding customers with allocation pieces. Now, to what extent depends wildly on the AD and its surrounding areas. Nevertheless, having a customer buy a Datejust for $9K and then sell it on the market for less means that now the Rolex salesman doesn't only have to compete with consumer preferences (i.e., less people wanting a datejust) but for those potential customers who do want a datejust, the salesman has to compete with the dude online who's selling one for $6700.

[Cesium137]

Originally Posted by Mr. Miami

I think because Rolex in general doesn’t like the grey market.

Do you honestly think that Rolex doesn’t like the grey market? C’mon, who are you kidding here. Rolex just rolled out price increases. Average price increase of, 7%? Some more, some less. And guess what, no one is complaining about the price increases. Do you want to know why? Because the grey market is still higher. The dirty work has been done by the greys. Of course, Rolex will give the impression that they are anti-grey, but open your eyes, see the big picture. Are they really combatting the grey market? I still see the grey openly advertising brand new stickered watches for sale.

[AJMarcus]

Honestly, once you buy the watch ADs don’t care. Why would they? Rolex cannot seriously hold a reputable AD accountable for a customer selling something they rightfully purchased. Unless of course the AD is somehow in collusion with the flipper and Rolex can prove that. But that’s an entirely different matter.

[AJMarcus]

Originally Posted by Cesium137

Do you honestly think that Rolex doesn’t like the grey market? C’mon, who are you kidding here. Rolex just rolled out price increases. Average price increase of, 7%? Some more, some less. And guess what, no one is complaining about the price increases. Do you want to know why? Because the grey market is still higher. The dirty work has been done by the greys. Of course, Rolex will give the impression that they are anti-grey, but open your eyes, see the big picture. Are they really combatting the grey market? I still see the grey openly advertising brand new stickered watches for sale.

Good points sir

[Patton250]

Originally Posted by Cesium137

Do you honestly think that Rolex doesn’t like the grey market? C’mon, who are you kidding here. Rolex just rolled out price increases. Average price increase of, 7%? Some more, some less. And guess what, no one is complaining about the price increases. Do you want to know why? Because the grey market is still higher. The dirty work has been done by the greys. Of course, Rolex will give the impression that they are anti-grey, but open your eyes, see the big picture. Are they really combatting the grey market? I still see the grey openly advertising brand new stickered watches for sale.

I’m not happy with the price increase. Oh and the dirty work has not been done by the greys. It’s been done by people willing to pay double retail.

[TswaneNguni]

Originally Posted by Patton250

I’m not happy with the price increase. Oh and the dirty work has not been done by the greys. It’s been done by people willing to pay double retail.

Spoke to an AD yesterday ,feels the increase will decrease "reselling".I disagree .
Few percentage points increase in MRSP is faaaaarrr from double retail.

[Patton250]

Originally Posted by TswaneNguni

Spoke to an AD yesterday ,feels the increase will decrease "reselling".I disagree .
Few percentage points increase in MRSP is faaaaarrr from double retail.

There are some white dial Daytonas selling for 25K. Don’t even get me going about the 5711. I worn that watch. It’s not even worth 28K IMHO.

[brandrea]

I can’t speak for my AD, but I think I can say that they do prefer to sell to enthusiasts rather than tp people theY know will turn around and sell a watch for a quick profit

[cerendigit]

Originally Posted by brandrea

but I think I can say that they do prefer to sell to enthusiasts rather than tp people theY know will turn around and sell a watch for a quick profit

That's my point. Why is that?

What interest they have in knowing that you will "wear your watch and love it"? How does that translate into more money in their pockets?

[brandrea]

Originally Posted by cerendigit

That's my point. Why is that?

What interest they have in knowing that you will "wear your watch and love it"? How does that translate into more money in their pockets?

Why does it have to translate into profit?

Perhaps they simply like to know that they’ve sold a watch to a true watch enthusiast instead of someone who will “profit” from the reselling the watches that they sell through their bricks and mortar store that cost hundreds of thousands to build.

[Patton250]

Originally Posted by cerendigit

That's my point. Why is that?

What interest they have in knowing that you will "wear your watch and love it"? How does that translate into more money in their pockets?

I have relationships with eight AD’s all owned by different people. They absolutely all feel the exact same way and don’t want to sell to flippers. All of them say Rolex is against it. They may all be lying but they are all remarkably on the same page.

[Mr. Miami]

^this! Very interesting.

[Littletommy]

Originally Posted by brandrea

Why does it have to translate into profit?

Perhaps they simply like to know that they’ve sold a watch to a true watch enthusiast instead of someone who will “profit” from the reselling the watches that they sell through their bricks and mortar store that cost hundreds of thousands to build.

BS.

It's a business. They stay in business by selling product. I'd be willing to say that none of these AD's really care about where the product ends up. They've made the sale and made their profit and kept their store on a paying basis.

[Pantheon]

unfortunately im from NYC and the feeling I get from ADs is that they really don't care as long as your are a big spender. I was basically told to go pound sand from AP and PP lol. Rolex is somewhat doable but still hard nonetheless like I was told I will get the next black dial ss sky dweller when they get one but they won't get me a blue one im guessing I haven't reached that "level" yet. VC treats me great lol which means I might end up more VCs than the other brands.

Once the hype is over I'd expect those same ADs that tells me to go pound sand to be calling me until then I'd give my money to those that want my business

[WRISTROLEX]

"AD's aren't in the friend business....."kdg

[Littletommy]

Originally Posted by WRISTROLEX

AD's aren't in the friend business.....

Spot on!

[RobearH]

AD’s dislike the market (flipper)to make more then they do what with their overhead not withstanding!