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[Oceanklassik]

"i believe that there are means to circumvent this situation. it is just how creative the AD wants to be. i believe that walk-in customer can also buy the premium models if certain conditions are met. i can think of several conditions off hand already."

I read someone posted one of them, i.e. the customer MUST buy a certain amount of watches from the AD for the AD to then sell the popular model at retail price to the said customer. But for a walk-in customer who just wants to buy one or two watches, this would not work?

Thinking out loud, the AD can still sell the watch at premium price to the customer. But he/she would have to state it on paper that it was sold at retail price. The additional (premium) will then be paid in cash "under-table" to the AD. This is based on mutual trust between the AD and customer, but then, wouldn't it be unfair to the customer?

Say for example, a customer pays $24,660 for the Daytona C. (retails at $16,660). AD prints out an invoice of $16,660 where the customer pays with his credit card. The additional $8,000, the customer pays in cash to the AD, unrecorded. One day the customer decides to sell the watch. How is he/she going to prove that the watch was bought at premium, since the receipt only states $16,660?

[Ryuden]

Been following this thread for awhile...good pointers guys. This is what platform like this is about. Been missing good discussions like this for a while now.

Whatever the issue is, the main challange is enforcement. Without any dedicated watchdog, there's plenty of way to bend and more often than not, break the rules. Its a business and no AD would want to lose out doing the right thing. If there more money to be made, why not?

[Ryuden]

Ryuden

...The root of the problem stems from ROLEX themselves for goodness sake. If they couldn't meet the world demand or intentionally control production of certain models, they shouldn't penalize their ADs like that...

Doubt Rolex cant met the demand and yes, Rolex is intentionally controlling the production. The DaytonaC is nothing but a facelift model, same case, same bracelet and same movement. Just different dial and bezel.

And i like the fact that they are limiting production and controlling the output cause it will just make the model more desirable...even though its a perceived rarity/value.

Wouldnt want Rolex to churn out the Daytona uncontrollably and destroy the long standing value they have created on how coverted the Daytona is. If its that easy to land up with one, whats so special about it then.

[Ryuden]

...One day the customer decides to sell the watch. How is he/she going to prove that the watch was bought at premium, since the receipt only states $16,660?...

It matters not the receipt i think cause how many were sold above the retail and no one bothers about at what it was purchased for. Those gmts 16710 which was purchased at like 5-6k with receipt, and now going way above what it was sold for back then.

As long as Rolex maintain the perceived 'exclusivity' of the Daytona, there are bound to be someone who is willing to pay for it at a premium no matter what the receipt says.

And at this newage where information is a click away, its like a common understanding that certain pieces are trading at a ridiculous premium. If one cant land on one and want one, then pay the premium. If you dont want to pay the premium, then wait for the ridiculous long "waiting list".

[triton]

8000 in cash? then how is the AD going to record this amount in their books?

it is not the AD's concern on what price the buyer wants to sell in future. besides, currently, how many times a potential buyer ask the seller to show the original receipt.

"i believe that there are means to circumvent this situation. it is just how creative the AD wants to be. i believe that walk-in customer can also buy the premium models if certain conditions are met. i can think of several conditions off hand already."

I read someone posted one of them, i.e. the customer MUST buy a certain amount of watches from the AD for the AD to then sell the popular model at retail price to the said customer. But for a walk-in customer who just wants to buy one or two watches, this would not work?

Thinking out loud, the AD can still sell the watch at premium price to the customer. But he/she would have to state it on paper that it was sold at retail price. The additional (premium) will then be paid in cash "under-table" to the AD. This is based on mutual trust between the AD and customer, but then, wouldn't it be unfair to the customer?

Say for example, a customer pays $24,660 for the Daytona C. (retails at $16,660). AD prints out an invoice of $16,660 where the customer pays with his credit card. The additional $8,000, the customer pays in cash to the AD, unrecorded. One day the customer decides to sell the watch. How is he/she going to prove that the watch was bought at premium, since the receipt only states $16,660?

[triton]

yes. enforcement maybe tough, it is how far they want to go. rolex can always engage you and me as mystery shopper to see if AD sells above premium.

if one customer walks in with 30k in cash and say i want to buy a daytona C. i am sure one of the many AD's branches will sell. it is just how to invoice it.

Been following this thread for awhile...good pointers guys. This is what platform like this is about. Been missing good discussions like this for a while now.

Whatever the issue is, the main challange is enforcement. Without any dedicated watchdog, there's plenty of way to bend and more often than not, break the rules. Its a business and no AD would want to lose out doing the right thing. If there more money to be made, why not?

[Oceanklassik]

Agree with the exclusivity.

What I meant about the receipt was not to show it to buyer. Rather, it's about how the owner/seller will eventually price the watch to sell. But I guess you are right, it doesn't really matter how much the watch was originally bought at. It's more about how much the market value for a pre-owned piece of that model will be at that point in time.

So I guess now is time for me to go to a few ADs to put my name in the queue for a Daytona C. and wait till half a decade or so to land one at list price... Good luck, Me!

[Oceanklassik]

yes. enforcement maybe tough, it is how far they want to go. rolex can always engage you and me as mystery shopper to see if AD sells above premium.

if one customer walks in with 30k in cash and say i want to buy a daytona C. i am sure one of the many AD's branches will sell. it is just how to invoice it.

This I'm a little curious. Is it only Singapore ADs that got the letter? Aren't the ADs in other countries doing the same? Or only our local ADs sell (certain) ROLEX watches at premium prices?

[triton]

IIRC the letter only meant for SG AD.

i have never heard and experience of any other country's AD selling their watches above RRP even in Russia

This I'm a little curious. Is it only Singapore ADs that got the letter? Aren't the ADs in other countries doing the same? Or only our local ADs sell (certain) ROLEX watches at premium prices?

[Ryuden]

Ryuden

...rolex can always engage you and me as mystery shopper...

This I can...

Just let me buy one at retail.

[Ryuden]

Yeah the letter was targeted only to SG AD's...and was hot news when it came up in the ST.

Don't think only SG AD's are changing premiums, overseas AD's as well and well reported in international forums yet they didn't get any letter from Rolex.

However, they have stricter procedures when it comes to warranty issues. Rolex demand to see the receipt of purchase before any warranty works can be done. Fortunately here, we don't need to produced the receipt of purchase.

From the way I see it, international ADs selling at retail, goes to grey and resold to consumers, warranty have issue as Rolex won't honor it without proof of purchased and usually buying from grey dealers surely no receipt of purchase.

Here, Rolex demand to only sell at retail, ADs hold on to stocks and find all means and ways to get it sold at profits.

Different countries/continents have different regulation from Rolex I guessed.

Bottom line is, the Crown is trying to get consumers to go direct to them and not third party.

[triton]

for the second year in a row, rolex has topped the list of most reputable companies. read it here

[fi3ryicy]

IIRC the letter only meant for SG AD.

i have never heard and experience of any other country's AD selling their watches above RRP even in Russia

singapore's market is too small already..

add in tourist, and u get a lot of people wanting rolex...

[triton]

another independent watch brand - breitling is sold...read all about it here

[triton]

a legend that commands 3.7 million, read it here