ROLEX AUTHORIZED DEALER RULES EXPOSED!

man i don't have anything to drink in this country club oh they got some soda i'm straight oh well [Music] what you got over there um oh so i got a new rolex actually surprising enough it's not usually my style i'm more of an ap patek guy rm but i got a new rolex for my authorized dealer so we can do a little bit of uh unboxing if you want [Music] all right guys so you saw my new rolex president if you've been subscribing and watching some of the videos you understand there is no such thing as a waitlist at your authorized dealer even though they'd love for you to think so and the chatter in the groups and the forums will always try to project that you have to be on a waitlist for a piece it's simply not true so to expand on that today we're going to deep dive into the authorized dealer rules that they have to follow revealed and we're specifically going to talk about rolex because it is the most notorious brand for having strict rules if you are to be an authorized dealer so let's break down what that authorized dealer has to do to stay in good faith and form and what they have to sign okay number one they are an original rolex jeweler orj so we took a look at an actual rolex agreement that an authorized dealer has to sign which is an orj entity signature on a contract and in order for them to be qualified to do business with rolex as an authorized dealer they have to maintain good faith good reputation for the brand itself and follow a very strict guideline of rules in order to continue to keep getting those allocations in recent news you may have seen that there's a lot of people who started breaking those rules and they were essentially racketeering selling these hot pieces that are going over msrp two gray market dealers trying to make more money than selling them at retail because there's a lot of money to be made and there's a lot of demand authorized dealers this is a no no no no no so we're gonna break down and reveal finally what these authorized dealers have to do and what rules they have to follow to continue to be the go-to entity for these manufacturers that are so hot all right number two order process so your authorized dealer has to follow a strict order process when getting allocations and ordering pieces from rolex direct they put it in order to rolex as a manufacturer every single year right and rolex in its sole discretion can determine what it gives your authorized dealer so what does this mean this means that you essentially have to be at the mercy of seeing what your authorized dealer can get each year and they have to be at the mercy of determining who they're gonna let those allocations go to so if you remember that other video where i talked about waitlists don't exist just because you're on a waitlist doesn't mean you can't get bumped up on that if you are someone who spent a lot of money or perceived as a high value client so if they're only getting two batmans a year they have to determine who those are going to because they don't know if they're getting two batman's a year they could put in a request for 20 batmans and only get one rolex at its sole discretion whether based on market demand and different allocating metrics will essentially just make the call as to where these go so when you're asking your authorized dealer what they're getting in they actually don't know what they're going to get until it lands the other piece of this that's so interesting and so crazy is that rolex determines that the allocation is made once the merchandise is shipped and landed and there is no issues or no rebuttal for them not being able to follow through on supply so if your authorized dealer puts in allocation for two ceramic daytonas and 10 everose presidents and they don't get any of those and back orders are cancelled no repercussions rolex can just cancel doesn't have to fulfill orders it doesn't have to do anything and it's just tough for your a.d so in essence your authorized dealer doesn't really know what they're going to get until those orders land so calling ahead of time and trying to get promises doesn't usually work so number three stock so at all times for an authorized dealer to remain in good status and in good form they have to stock a base floor plan what does that mean that means that those cellinis and the ladies datejusts and the non-sport model rolexes that you see sitting in display cases have to be allocated and essentially sold to people on a year-round basis and if they're not stocking that base floor plan they can get their status revoked so at any given point in time rolex has the power to come into the authorized dealer and check on their base floor plan to make sure they are stalking these pieces the terms in the contract state that it's a take it or leave it which means if they can't move those pieces they have to find something to do with them this can lead to malpractices like reselling to gray market dealers which happens more often than you think it also leads to behaviors where they are stringent on trying to make sure that people don't pass warranties and flip pieces to other private sellers why because rolex can come into their dealership into the orj and check to make sure that the warranties are intact with all the people that they've been sold to make sure that the base plan is being stocked as in the agreement and if it is not they can revoke that this once again allows for a strict control of the market which is good and bad sometimes number four retail sales only so retail sales are all about confining controlling the distribution channel so rolex wants to control the distribution channel when they are dealing with their authorized dealers so what does retail sales only mean it means that your authorized dealer your orj is only allowed to sell timepieces at msrp they cannot sell over msrp if they try to it's literally an infringement on the contract and they can get their badge revoked so for example with this president which is an msrp of 39 250 usd they're not allowed to sell it at 49 000 like it's going for in the secondary gray market this is where there's been a lot of friction the other thing that is a big standing point of this agreement that they have to sign with retail sales only is your authorized dealer is not allowed to sell outside of their local market unless you are someone who's coming in in person to buy the watch so if you're visiting from a different country or town you can stop in buy a watch and get your piece or if you're in the local market you can come in to your authorized dealer and get your piece but they can't sell online or on the internet and ship it somewhere to someone unknown they can't get paid fees for referrals in terms of business crazy right and they have to sell local to you in that market they can't get kickbacks from you supposedly from gray market dealers and from private people who want those allocations ahead of time and then give that cash back to their representative or the gm you can do that and there's people who do but that's when the rolex badge gets removed and that's an infringement on the contract so retail sales only holds their fee to that fire number five right to repurchase so rolex maintains the authoritative right to be the sole repurchaser of the timepieces they allocated to the orj what does that mean that means that if a dealer wants to go out of business if they want to stop selling rolexes if they quit if they go bankrupt they can't sell those pieces to third parties or out in the market this is how rolex maintains such a tight hold on the market and doesn't let these pieces go flying out in the secondary market and drives up demand they have to buy them back if an authorized dealer goes ahead and sells those to a third party which they can they break the contract and in essence pay damage is liquidated for the amount that they were invoiced for those rolexes crazy right finally term and termination so rolex at its sole discretion has the right to terminate the contract and the distribution agreement with any orj authorized dealer at its sole discretion whatever it feels like some of the main reasons they may do that have to do with trans shipping which is what i talked about in the previous point where they are selling to gray market or other people in the secondary market non-retail or it could have to do with just not following the reputation the rapport and the guidelines that rolex has at such a high caliber it could do with bankruptcy or the authorized dealer wanting to transfer set inventory and business to another business entity through acquisition and so much more the rules are a laundry list to keep things airtight and to keep the value continuously holding and going up there's good and bad in this process and these are the rules revealed of what they have to follow other different brands like audemars pike patek philippe follow similar distribution agreements but rolex is notorious for being the one that is most known for being this way so i hope this gives you some insight into how your authorized dealer works and how and when and where you can get these allocations how you can play the game in a fair manner that allows you to make money and enjoy these pieces and again check out the other videos where we've told you there's not a wait list and how to get some of this crazy amazing risk gear you can't get anywhere else like share subscribe below and stay tuned we got a bunch of great content coming your way peace [Music] you

Channel: Watch Trading Academy

Views: 155,122

Keywords: rolex, luxury watches, watch investing, alternative investments, investing, stocks, bitcoin, audemars piguet, omega watches, patek philippe

Id: T3Z0Fc0M2nI

Length: 10min 42sec (642 seconds)

Published: Mon Nov 01 2021