Why this price difference?

[valdim]

Hi there,
I found a Rolex from 2020 I like and want to buy from a reputable watch seller. Me and the seller agreed on the terms, incl. the selling price, which is (let's assume) 100 units. As per the official Rolex web site this same model suggested retail price is 90 units.
The simple thought of a "greenhorn" like me is "Why should I buy more expensive, since I can buy brand new, with all positive consequences from that?"
I have never contacted the official rolex retailer in my country, but I assume this piece would not be available and I have to wait...

Would you comment what are the possible reasons for the price difference, besides the one I mention above?

I will contact the ORR on Monday, but I cant wait , so...

[HMHM]

Because grey dealers have to pay overhead bills and salaries. If the price difference is only 10 units, I would assume it’s not that hard to get one from the AD and you would be better off trying your luck at an AD.

[travisb]

Just about everything is unavailable through an AD right now without a wait. Hence the reason for the upcharge in the secondary market.

[Hemdog]

Just ask your authorised dealer for a white dial daytona, you should be able to negotiate a discount.

[harvey]

…if you have already agreed terms, then what is to discuss here?

[rambo99]

you agreed with the seller on the price which is 10 unit over the retail price for a 2 years old watch, what did you base on to achieve this?

[valdim]

Originally Posted by harvey

…if you have already agreed terms, then what is to discuss here?

It is to discuss the reason(s) why the SRP is lower. I guess what travisb said is the reason.

Originally Posted by rambo99

you agreed with the seller on the price which is 10 unit over the retail price for a 2 years old watch, what did you base on to achieve this?
Today 01:08 PM

I am sorry, I did not get the question.

[bluestreak]

Why be coy? Tell us the watch. Conversation is quite different for a Pepsi than for a Datejust 31..

But the reason for the difference is because Rolexes are in high demand. In normal circumstances, this would result in the AD raising the price from 90 to 100 units in your example. Rolex, however doesn’t allow them to charge more than 90 units. So everything they have gets snapped up at the below market price and then is sold at the actual market price of 100 units.

It’s unlikely someone off the street will get one of the watches from the AD because of varying ways they allocate them. So if you’re happy with the price you’ve negotiated with the reseller and you want the watch relatively soon, I’d say just get it now.

[Tools]

Originally Posted by valdim

. . .
Would you comment what are the possible reasons for the price difference, besides the one I mention above?

...

Buying on the secondary market is an agreement between the buyer and seller.

You have agreed on a price, there isn't any other factor when buying a used watch.

If you can get it cheaper at a Dealer, that is what you should do. Folks pay a higher price when they cannot get it through their Dealer and want it now.

[EEpro]

100% availability is the reason. You don't have an AD relationship to get a Daytona for example so someone who does flipped it for a profit to secondary dealer and they marked it up to sell to you.

[valdim]

Thanks for the comments guys.
I contacted the AD and they said I have to wait till next year...But when next year - they really cant predict.

So, as some of you said - the reason is the one I was suspecting - "high demand" (as per bluestreak)
I go for the deal!
Thanks!