How do you buy that $25K sport Rolex?
Popular Rolex models simply are not available at Authorized Rolex Dealers (AD). This has been the case for years now. Whether searching in the U.S., Europe, Asia, the Caribbean, Rolex has made it near impossible to purchase a new sports model. Among the impossible-to-get models are Daytona, Submariner, GMT, Sea-dweller, and anything stainless. If you happen to be a regular, big-ticket shopper at an AD, you may get on a multi-year waiting list. But if not a major buyer of other, less-in-demand jewelry or watch products from that AD, forget about it.
Rolex has been uniquely successful at turning many of their models into Veblen goods. What is a Veblen good? Typically when prices rise, demand falls. However, with a Veblen good, as prices rise, demand actually increases. While a normal demand curve is downward sloping, a Veblen demand curve is actually upward sloping. Rolex has created such a strong brand and reputation, and limited production to the extent that demand has driven pricing for a new Rolex to 3-4x retail.
So what to do if you really want that Daytona or Sub? The best source is actually ebay! Yes, that’s right, ebay. ebay sellers offer a huge range of new and used Rolex watches, as well as a free authenticity guarantee for high-end time pieces and jewelry. The catch of course is that you will pay 2-3x retail. But given that 2-3x is the actual market rate, who cares? Look at buying direct from an AD like winning the lottery. Should anyone count on or wait for that?
If you really want the watch, the issue becomes getting a genuine product for the best price. Authenticity of high-end time pieces and certain jewelry is now guaranteed on ebay. That’s right, ebay will guarantee that any high end watch or jewelry sold on their site is authentic.
After you purchase a high-end watch, it gets sent to a an authentication team experienced with the product. The cost for this service is paid by the seller from the ebay sales commission. The process creates a worry-free experience where so you know you’re getting exactly what’s described in the listing.
The verification process is mandatory for luxury watches, as well as certain other purchases above a threshold. Buyers can even request the authenticity check for certain lower cost items by agreeing to a fee.
The authenticity service removes a huge stress from the buyer, as that fear of being ripped off with a fake product is eliminated. For the seller, the stress of having a buyer claim inauthenticity is also gone. There may be returns for other reasons, but not out of fear of purchasing a fake.
Once you make make payment for your Rolex, the funds actually first go into an escrow account. The seller doesn’t receive anything until the watch is sent to a third party and analyzed for authenticity. Only after passing that process will the product be shipped to you and funds shifted from escrow to the vendor. The watch will come with an Amazon guarantee and a credit-card-like receipt showing that it successfully passed the authenticity test.
Using ebay has a few other benefits: 1) Use credit card and get reward points. 2) ebay often sends coupons worth up to $1,000 for future watch purchases.
Lastly, after finding a desired watch on ebay, don’t hesitate to reach out and negotiate. Sometimes a seller might need to move inventory and may have flexibility. But stick with sellers that have 99%+ favorability ratings. Never any harm done in reaching out and inquiring. And regarding the coupons, the discount comes from ebay rather than ebay. The discount is taken off the lowest price agreed to by the seller. So it’s best while negotiating to not even mention that you are using a coupon.
