Scoring Rolex
Every jeweler I talk to dreams about carrying Rolex brand watches in their store. Some have said to me that stores whom carry Rolex do easy a million a year in just Rolex watch sales. Is it true? Some say it’s a gateway to high-end consumers and those watch buyers are the ones who are buying extremely exclusive and high-end diamond jewelry? Others say carrying Rolex means you’re the crème de la crème of jewelers?
So, what’s the deal—How do you score Rolex?
A few of my friends with very high-end jewelry stores have been trying to acquire the watch brand for their store, yet Rolex has repeatedly denied them the line. Why could this be? They have high-end stores, designer lines, and outstanding financials. Here’s the gossip I’ve heard when I questioned some:
1. Rolex only opens new accounts when and if another local store closes down?
2. Rolex has distance requirements—meaning your store can’t have it if another store in a certain mileage distance is carrying it too? Then what about the stores in NY City across from each who are both carrying Rolex?
3. Rolex only considers stores who have watch brands that compliment their lines such as Breitling, TAG, etc?
I too have sent a package to Rolex to be considered as an Authorized Retailer. I must say the package I sent was unbelievable and contained:
· A cover letter.
· A business model containing our mission statement, the history of Guliani’s, pictures of the new store, and demographics.
· Financials and projections of sales.
· A full list of all the brands we carry.
· High resolution pictures of sample inventory in each category.
· Detailed information on the shopping center we are located in with median household incomes and median home prices in the same zip code.
· Copies of my GIA certificates.
· My resume.
· And much more.
The letter I received, “I’m sorry but Rolex is not looking for more opportunities in your area. If we decide to, we will contact you in the future.”
So, those of you out there who carry Rolex—what’s the secret? Is it worth sending letters over and over to obtain the brand? Has it increased your stores sales overall? Are the buying requirements worth taking an equity line on the house?
If you carry the brand and want to answer without using your real name or stores name—place a pseudonym in the box.
Neil The Jeweler commented:
Rolex marketing is tightly controlled for the benefit of both Rolex
and their dealers. I think the best judge of it all is the
question, "How many jewelers have voluntarily given up Rolex?"
Gil commented:
Why would you want to sell brand new Rolex watches. have you ever
concidered pre-owned ones? The profit margin is alot higher and you
don't get all the headache assosiated with Rolex.
www.w-precision.com
Alan commented:
I have experience with Rolex,and I will tell you, be careful what
you wish for! They tell you what to carry, and want cash or
immediate payment after christmas, and they come first whether you
sold them or not and ship when they please. There are other brands,
if the customer is educated by you.
Vivek Shah commented:
I too donot have direct experience but this could be probably their
strategy, not only theirs but of other Luxury Watch/Jewellery
Brands as well : 1. Rolex only opens new accounts when and if
another local store closes down? - To avoid competition in the same
area. 2. Rolex has distance requirements—meaning your store
can’t have it if another store in a certain mileage distance
is carrying it too? Then what about the stores in NY City across
from each who are both carrying Rolex? - Well NYC has a rich
clientele and density of luxury watch buyers must be quite higher
than in your area. The stores can sustain customers even though
similar brand selling in nearby stores. This may not be the case in
your area, where due to lesser population or lesser luxury buyers
the competition amongst the stores could be more. 3. Rolex only
considers stores who have watch brands that compliment their lines
such as Breitling, TAG, etc? - Ofcourse they have to consider this.
They cannot allow to display/sell at a point where their brands
collide in any way with others be it design/concept/packaging.
Imagine your store to be wellknown for selling fun line jewelry and
not much of bridal-serious fine stuff, then a watch brand having
similar styles would be more than happy to sell through you, but
not a fine watch brand! Regards Vivek Shah
John2007 commented:
Like Christopher, I too do not have direct experience but, I've
heard that the Rolex line is double edged. The brand will bring in
the Rolex clientele but the strength of the Euro has pushed their
prices into the stratosphere. And again, just hearsay, but they
seem to be all about Rolex making and taking your cash and not so
concerned about you or your company. "Be careful what you wish for,
you may receive it"
Christopher commented:
It is my understanding that many brands do not want to be in stores
that carry Rolex because come a bad December Rolex gets first dibs
on the money, and other brands suffer. This is only what I heard
and not from experience. I learned in the industry that watches
move but have little income, so I focus my attention to selling
diamonds. Not that I don't like watches, I love them! However, an
owner needs to get what customer's demand, not what they like and
truthfully where I am Tourneau is as well-so I say let Tourneau
have watches.
