Regarding Rolex watches, the demand is far greater than the supply, leading to long waiting lists on many models and a secondary market where some watches sell for more than the recommended retail price. But can Rolex ADs charge more than the retail price?
The short answer is yes, but that doesn’t mean they are allowed to. Rolex expects its retailers to sell their watches for the recommended retail prices, not more, not less. In this section, we will explore the various ways in which Rolex ADs can charge more than the retail price, as well as the rules and requirements set by Rolex for its official retailers.
The Rolex market isn’t like most markets
The Rolex market is different from most other markets due to the huge demand for Rolex watches, which has led to long waiting lists on many models. As a result, many Rolex models sell for more than the recommended retail price on the secondary market.
The main issue is that the Rolex authorized dealer is expected to sell Rolex watches at the official Rolex retail price, but the retailer knows that the product that they are selling is worth much more than they are actually charging for it. This creates an imbalance that can cause issues.
Can Rolex ADs charge more than the retail price?
Rolex ADs can charge more than the retail price, but that doesn’t mean they are allowed to. In many countries, Rolex is not legally able to dictate the prices that the retailer sets, as this would be regarded as price-fixing which is against the antitrust laws. However, this doesn’t stop Rolex from doing anything about it.
Every official Rolex retailer knows that they are expected to sell the watches for the recommended retail price, and they know that Rolex doesn’t like it if they don’t. The only tool Rolex has to combat this is to cancel their retail agreement. If Rolex retailers consistently deviate from the retail price, Rolex’s only (and strongest) tool is to cancel their retail agreement.
Can a Rolex retailer charge more after you have put in a deposit?
Yes, a Rolex retailer can charge more after you have made a deposit, but only if Rolex increases the recommended retail price after you make your deposit. When you pay a deposit, you are not entering a contract that confirms and locks in the price. In fact, many Rolex retailers, for clarity, inform their customers that the price may change while they are waiting to avoid any confusion.
New prices also apply to old models
If you are buying an older model, also known as a “new old stock” timepiece, Rolex and retailers also increase the prices even if they have gone out of production. With that said, don’t be surprised that even though it is an older model, you still have to pay a higher price than the retail price when it was out of production.
Retailers are “unofficially” not allowed to charge more than the retail price, but there are workarounds
Rolex retailers are technically unofficially prohibited from selling Rolex watches for more than the retail price. However, that doesn’t mean that there aren’t far more discreet workarounds than simply informing a customer about a price and charging it in the registry. For instance, some ADs bundle jewelry and less popular watches with more popular models to charge a higher price.
Another workaround is to sell pre-owned watches at a higher price or to require purchase history before adding you to a waiting list. In some cases, cash under the table is also used. However, they are usually extremely discreet about it because they know that if Rolex finds out about them, it may get them into trouble.
