Ask An Insider - Round 2

[No SUBctitute]

How frequently does a buyer reject the watch brought out to them because of some minor cosmetic issue with the watch?

Will rolex permit replacement of a permanent link rather than require the owner to buy a whole bracelet?

[threemonkeys]

Yeah - glad this is back, Chris.

[The GMT Master]

Originally Posted by OysterDavid

You may have touched on this in your first Round...but, how did you and/or your shop handle Rolex owners who wanted the services of bracelet adjustment or regulation or instruction when the watch was purchased elsewhere, especially if that watch was recently purchased new elsewhere...perhaps through a gray type dealer or on the internet or from a duty free outlet?

Was there a store protocol on how to handle the requests as if you guys were nothing more than a Rolex factory extension rather than a separate retail agent that has ongoing expenses like rent & payroll and can't stay in business without the revenue from sales? Was it up to the front line sales people to deflect or accommodate or was it the duty of a floor manager?

The standard protocol was to charge a small fee for adjustments made to watches not bought from the shop - this could be waived at the manager's discretion however. The way they looked at it was that "little things" like adjustments or an ultrasonic cleaning of the bracelet would be factored in to the margin of the watch for the entire period the owner has it

Chris

[The GMT Master]

Originally Posted by Speed

Chris! Brilliant idea.
Here goes.

What is the average discount I should expect on a...KIDDING!

Can you describe your most uniquely rewarding / pleasing sales experience with a customer on a new Rolex?

Could be the customer's story / circumstance, etc.

Cheers.

Hi Bill, great question

There was one lady who came in whose husband had very sadly just passed away. They'd been together for a long time, and her husband had always aspired to own a Rolex - unfortunately he wasn't able to make this happen, so this lady came in and picked one out for the both of them. She said she would wear it every day and remind her of him - I thought that was rather moving

Chris

[The GMT Master]

Originally Posted by A.Sharp

Sorry if this sounds dumb, but have always wondered:

is it common practice to have sealed stock in the back? Is it assumed that most people dont want to buy the display models? Because i have seen many people buy the displays. What is the norm?

For us, we would have everything on display unless we had duplicates. Stock is no good just sitting in the back hidden away, and Rolex want as many watches out on show as possible. At the last check, I think they were wanting over 100 pieces on display at any time, which is a huge amount of stock to have - maybe some of the bigger stores could afford to have a load in the back as well, but for a smaller independent, it just wasn't viable. So, it's just a case of protecting the stock as much as possible, or giving the option of ordering another from Rolex - if it's an allocation piece (i.e. steel sports), then they would get the next one sent over

Chris

[The GMT Master]

Originally Posted by Thatguy

I am wondering what percent of people know the product before they buy vs the percent who just want a Rolex?

There are three levels of knowledge when it comes to Rolex customers - those who know everything (i.e. WIS), those who know the basics, and there are those who know the brand. I would probably say it would be a 15/70/15 split based on those categories, most know a basic amount. Relatively few just come in, point and say "I want that one"

Chris

[The GMT Master]

Originally Posted by No SUBctitute

How frequently does a buyer reject the watch brought out to them because of some minor cosmetic issue with the watch?

Will rolex permit replacement of a permanent link rather than require the owner to buy a whole bracelet?

To question one, rarely, although it does happen. That can easily be resolved with an exchange or a return to Rolex under guarantee

To question two, I would imagine it would depend on which of the permanent links have been damaged or removed - permanent links cannot be replaced (ergo why they are called permanent ), but they can add in a removable link. If that wasn't suitable, then I guess they would recommend a new bracelet

Chris

[MonBK]

It's great to see round 2 Chris.

One of the better threads on TRF.

[Tiampuso]

I'm curious why an AD is only willing to give approx 15% off a solid gold reference if their purchase price point is 50-60% of retail.

If it were my business, I would undercut every other dealer and work on a volume load. Worked for Walmart :)

[SUBversive]

Hi Chris. Glad you brought the idea back. I enjoyed the first round very much.

To get things rolling, you are not at the AD.....can I ask why? What are you doing now? Working in the watch game?

[Psmith]

Great to see this back Chris

[Andad]

HI Chris,

I enjoyed reading the questions and your answers on the original thread.

All I can say is that you must be a glutton for punishment.

Now: Should I wear my SS Daytona when I ride my 1098 or should I slap on my Pepsi instead for a bit of a colour match?

[Johny]

a welcome return. chris

[Speed]

Thanks Chris. :-)

I'll keep perusing this thread as folks ask questions...may gin up more questions as well.

[Rags]

Welcome back Chris. I enjoyed reading posts from the other thread. This is wealth of information.

[Kanger]

Originally Posted by Tiampuso

I'm curious why an AD is only willing to give approx 15% off a solid gold reference if their purchase price point is 50-60% of retail.

If it were my business, I would undercut every other dealer and work on a volume load. Worked for Walmart :)

It doesn't even take Chris to answer this question... because no AD gets any Rolex watch for 50-60% off retail. Actual number is 37-38% off so please do not get carried away.

[Angrypuppy]

Thank you for this thread.

How many times does the average customer stop by the store before they purchase? Do most come in and walk out with a watch or do customers normally come back a number of times?

[JP Chestnut]

Originally Posted by Tiampuso

I'm curious why an AD is only willing to give approx 15% off a solid gold reference if their purchase price point is 50-60% of retail.

If it were my business, I would undercut every other dealer and work on a volume load. Worked for Walmart :)

Because dealers risk losing their AD status if they make too many waves. How do you think it would work if different Walmart locations tried to undercut each other?

[Casey VP-26]

Originally Posted by JP Chestnut

Because dealers risk losing their AD status if they make too many waves. How do you think it would work if different Walmart locations tried to undercut each other?

Answer, Happier Customers.

I couldn't resist.

[Casey VP-26]

Chris, Thanks for bringing this thread back, I enjoy it.

[Mercman1]

Awesome, thanks for bringing the thread back. Good stuff.

In your vast experience and knowledge - what do you think Rolex will do for the 50th Anniversary Daytona....I know this is pure speculation, but would be keen to hear your thoughts.

[69mach351]

Walmart and Rolex.....two VERY different ends of the scale.

[JP Chestnut]

Originally Posted by Casey VP-26

Answer, Happier Customers.

I couldn't resist.

Until corporate either closed down the undercutting store or fired the management. Agents competing with each other will never be optimal for the principle. It's basic micro economics.

[The GMT Master]

Originally Posted by Tiampuso

I'm curious why an AD is only willing to give approx 15% off a solid gold reference if their purchase price point is 50-60% of retail.

If it were my business, I would undercut every other dealer and work on a volume load. Worked for Walmart :)

As the others have said, the margins are pretty tight, and Rolex don't like dealerships that discount heavily - it undermines their luxury brand status, which is something Walmart didn't have to worry about. Anyway, any discount is at the dealer's discretion, you might find one that is willing to do more, or you might find one that is willing to do less - it's a question of what they would be happy to do

Chris

[The GMT Master]

Originally Posted by SUBversive

Hi Chris. Glad you brought the idea back. I enjoyed the first round very much.

To get things rolling, you are not at the AD.....can I ask why? What are you doing now? Working in the watch game?

Good question - I ended up leaving the AD almost a year ago, unfortunately there weren't any full time opportunities so I had to look elsewhere. I've been working for a major fashion retail chain, but it's not for me, so I'm looking at getting back into the watch biz. Hopefully I'll be back doing what I love soon

[The GMT Master]

Originally Posted by directioneng

HI Chris,

I enjoyed reading the questions and your answers on the original thread.

All I can say is that you must be a glutton for punishment.

Now: Should I wear my SS Daytona when I ride my 1098 or should I slap on my Pepsi instead for a bit of a colour match?

Hi Eddie,

There is an old saying found in the depths of the Rolex archive:

"Ride a bike wearing a Daytona,
Surely you won't fall over.
Ride a bike wearing a GMT,
You shalln't crash into a tree"

Some say it was Hans Wilsdorf himself who came up with this, others say it was a translation from an ancient monument where the Rolex factory was built. Either way, the message suggests both watches will be fine

Chris

[spuds]

Good man Chris!!

Love reading these threads and finding out the answers to questions I hadn't even thought of!!

[The GMT Master]

Originally Posted by Mercman1

Awesome, thanks for bringing the thread back. Good stuff.

In your vast experience and knowledge - what do you think Rolex will do for the 50th Anniversary Daytona....I know this is pure speculation, but would be keen to hear your thoughts.

I'm in two minds whether they will do something - the first Cosmograph appeared in 1960, although the Daytona name wasn't added until 1963. So if it is going to happen, it'll have to be this year

I think it'll probably be another dial, maybe offering the ceramic bezel as an additional option across the range. I doubt we'll see a full revision, the current Daytona is hardly old by Rolex's standards. In any case, we'll know for sure in a few weeks

Chris

[The GMT Master]

Originally Posted by Angrypuppy

Thank you for this thread.

How many times does the average customer stop by the store before they purchase? Do most come in and walk out with a watch or do customers normally come back a number of times?

It does vary - for a lot, it'll be a case of coming in, trying a few on, and choosing then and there, or going away to think about it. There are some that might need two or three visits, and there are some who can take months and multiple visits to make their decision. If I was to put an average on it, I would probably say 2-3 visits

[richard371]

Just curious how many SS Daytonas your store would get a year roughly and how often did people come in and ask if you had one?