Rolex shutting down ADs?

[looking to buy]

I just talked with what used to be my local AD. They informed me that Rolex is no longer dealing with them as an AD. They said that as an AD they only sold around 150 watches a year but Rolex wants ADs that sell 500 to 600 per year. I told them that I thought Rolex sold every watch they make and so what did it matter. Their response was that Rolex forces ADs to buy every watch that they make, but ADs can end up with a lot of unsold inventory.

I would assume that is why we have these grey dealers. They must be buying this unsold inventory. Only my guess, I do not know the facts.

[ronin7]

my local ad also stopped selling rolex as well not sure why but may be they got fed up after having their stock stolen.feel may be similar reasons to the above.

[SLS]

I think we will see more AD's closing their doors this year or dropping the line, and if Rolex raises prices again.....
Scott

[diablojota]

One of our ADs had their Rolex line pulled. Now they are going belly-up.

[MattG]

Sign of the times. Prices are getting too prohibitive for most.

[Rolex116520]

Even here in France , they recently pulled one the "AD" for Rolex in Bordeaux and I know for certain it was because of slow sales and hence was not taking in the whole Rolex line . Still 2 left for a slow market . " A Rolex a day , keeps the bailiff away "

[chu88y]

AD closed in Cambridge sign of these trying times

[BarkMaster]

Both of the non-AD's where I bought mine stated that their business is up: buying AND selling.

[Atl]

Originally Posted by looking to buy

I just talked with what used to be my local AD. They informed me that Rolex is no longer dealing with them as an AD. They said that as an AD they only sold around 150 watches a year but Rolex wants ADs that sell 500 to 600 per year. I told them that I thought Rolex sold every watch they make and so what did it matter. Their response was that Rolex forces ADs to buy every watch that they make, but ADs can end up with a lot of unsold inventory.

I would assume that is why we have these grey dealers. They must be buying this unsold inventory. Only my guess, I do not know the facts.

500 to 600 sales a year !?! That sounds high to me.

[BigHat]

Anyone read the new WatchTime? Just got it in the mail last night but I'm sorry that I don't know the issue number. It does have the Basel 2009 review on the cover though and that's what I wanted to share. Interviews with the watch company reps paints a VERY bleak picture for 2009-2010.

A couple of recollections from the story and the last applies best to this thread:

1. There are too many companies making too many expense watches

2. The decline has been global. No safe bastions of high sales as has happened in the past.

3. Many parts suppliers in serious trouble. Some have taken ZERO orders in 2009 to date.

4. Of the 700 Swiss watch companies 300 will likely go away.

5. Rolex has been less pushy than in years past and didn't even show new stock to ADs unless they asked to see it. It makes the impression that they aren't beating up their AD network.

[karmatp]

Rolex is getting to big for their own shoes and here we are supporting them. Yea, maybe they donate $1.00 fore every million they take in but that does not make them the ultimate company as some might think.

It is complete BS that they are not supporting the AD's that have supported them over the years. Were would they be now without all those little Mom and Pop stores that have been always been loyal AD's.

[boa2]

Originally Posted by karmatp

Rolex is getting to big for their own shoes and here we are supporting them. Yea, maybe they donate $1.00 fore every million they take in but that does not make them the ultimate company as some might think.

It is complete BS that they are not supporting the AD's that have supported them over the years. Were would they be now without all those little Mom and Pop stores that have been always been loyal AD's.

Rolex is just doing business. If it costs them the same amount to service a dealer who produces "X" as it does a dealer producing "10X", and the smaller producer cannot afford to maintain the brand image according to the corporate manual, then it's time to cut bait. You wouldn't keep an underproducing employee, no matter how loyal they are...not when you know you can get a lot more for your money.

[karmatp]

Howard, I understand your point, but times are not good all over the country, and Rolex should be a little understanding if some of their AD's are not producing what they used to.

My local AD has been shaking in their shoes because Rolex watches are the only brand they sell after Rolex made them stop selling other brands, which is also BS. Now, times are tough and they are worried about losing their status, I am having a hard time giving them any more of my cash with crap like this.

[boa2]

Originally Posted by karmatp

Howard, I understand your point, but times are not good all over the country, and Rolex should be a little understanding if some of their AD's are not producing what they used to.

My local AD has been shaking in their shoes because Rolex watches are the only brand they sell after Rolex made them stop selling other brands, which is also BS. Now, times are tough and they are worried about losing their status, I am having a hard time giving them any more of my cash with crap like this.

I hear you, Trevor. It would be nice for them to be considerate. On the other hand, no one was complaining when the credit-fueled expansion led them to into bigger stores, second homes, and family vacations in Mexico. Unfortunately, times are tough, and any smart business is going to circle the wagons around sound investments, and cut the unnecessary fat.

I speak from personal experience. When you are a retailer for a manufacturer, the most important thing to remember is that they always hold all of the cards. And if you're in business representing them, you play by their rules, plain and simple.

[allanofcalifornia]

I don't know what the cons are for Rolex if the AD doesn't sell enough watches. Maybe Rolex is afraid of ADs discounting their watches or losing some of their image? Maybe Rolex has decided to make less watches and prefer to only have the stronger ADs sell them? I feel sorry for the ADs and others who are feeling the effects of the bad economy.


Allan

[Time Keeper]

IIRC, Rolex categorize their ADs into various levels and at each level they get a certain number of watches to sell. Obviously the popular models sell quickly and there are others like the Cellinis that sit around forever. Supposedly if an AD is caught selling to a GD, Rolex can revoke their AD status. I know Rolex has restrictions on advertising especially on the internet. I have never hear of Rolex not allowing an AD to sell other watch brands.

[bodybump]

Originally Posted by SLS

I think we will see more AD's closing their doors this year or dropping the line, and if Rolex raises prices again.....
Scott

i agree wih you scott...sooner or later will see price increase...and as a seller im seeing it right now...some of the watches i bought right now i cant get it the same price 2-3 months ago...now people thinks i have sold a cheap watch 2-3 months ago they think every month will be the same...

[Atl]

Originally Posted by karmatp

Howard, I understand your point, but times are not good all over the country, and Rolex should be a little understanding if some of their AD's are not producing what they used to.

My local AD has been shaking in their shoes because Rolex watches are the only brand they sell after Rolex made them stop selling other brands, which is also BS. Now, times are tough and they are worried about losing their status, I am having a hard time giving them any more of my cash with crap like this.

That does not sound right, all five AD's here in Atlanta: Brown and Co., Jarreds, Mayors, Lee and Brant, and an Indian one who's name escapes me, ALL sell other brands. Brown and Co.: sells Rolex, IWC, Breitling, Omega, JLC, Panari, Ebel, Tag, and a few others. Lee and Brant sell Rolex and Omega, and Bedat (I think) Mayors sells: Rolex, Concord, Zenith, Tag, and a few others. Indian place I think just sells Rolex. All are AD's.

[allanofcalifornia]

Originally Posted by looking to buy

I just talked with what used to be my local AD. They informed me that Rolex is no longer dealing with them as an AD. They said that as an AD they only sold around 150 watches a year but Rolex wants ADs that sell 500 to 600 per year. I told them that I thought Rolex sold every watch they make and so what did it matter. Their response was that Rolex forces ADs to buy every watch that they make, but ADs can end up with a lot of unsold inventory.

I would assume that is why we have these grey dealers. They must be buying this unsold inventory. Only my guess, I do not know the facts.

Which AD is this and are they offering any good discounts?


Allan

[beshannon]

I told them that I thought Rolex sold every watch they make and so what did it matter. Their response was that Rolex forces ADs to buy every watch that they make, but ADs can end up with a lot of unsold inventory.

I would assume that is why we have these grey dealers. They must be buying this unsold inventory.

Bingo!

[clubbyjones]

I think its just good business and marketing at peoples expense. Same as all layoffs, etc. They need to reduce their brand exposure and keep their exclusivity. So they cut out all the ADs that aren't producing. At the same time, maybe this is why our watch values in the second hand market are keeping strong compared to the others (Omega, Breitling, even Panerai)

[Z-Sub]

Originally Posted by Atl

That does not sound right, all five AD's here in Atlanta: Brown and Co., Jarreds, Mayors, Lee and Brant, and an Indian one who's name escapes me, ALL sell other brands. Brown and Co.: sells Rolex, IWC, Breitling, Omega, JLC, Panari, Ebel, Tag, and a few others. Lee and Brant sell Rolex and Omega, and Bedat (I think) Mayors sells: Rolex, Concord, Zenith, Tag, and a few others. Indian place I think just sells Rolex. All are AD's.

Bhindi?

[TempoKing]

Originally Posted by looking to buy

I just talked with what used to be my local AD. They informed me that Rolex is no longer dealing with them as an AD. They said that as an AD they only sold around 150 watches a year but Rolex wants ADs that sell 500 to 600 per year. I told them that I thought Rolex sold every watch they make and so what did it matter. Their response was that Rolex forces ADs to buy every watch that they make, but ADs can end up with a lot of unsold inventory.

I would assume that is why we have these grey dealers. They must be buying this unsold inventory. Only my guess, I do not know the facts.

That is exactly what a friend is concerned with.
He has been offered an agency but he has to come up with 500k
and the "dogs" are what give him sleepless nights, some models
are totally unsellable either by grey, green or red dealers, only solution is
to sell at a loss the less desireable and make the difference
from the sport watches. Once the first initial order is gone
then I can see a small profit in the horizon for him, the good part is that
a Rolex official agency provides credibility for your jewelry as well
and your jewelry shop becomes a member of an elite club..

[vh_bu98]

I spoke to one of my ADs about the current situation and he says his store is hurting, but he also mention that Rolex is working with them to help them out in ways that they never had before. So I believe Rolex understands the situation and they are trying to keep their ADs alive even if that means letting go of the less profitable ones.