Can Rolex Refuse to Sell you a Watch?
Can Rolex refuse to sell you a watch? Just the idea alone that a store would deny you to buy a product they sell can sound very strange. But the fact is that there are a lot of things about the Rolex market that works a lot different from how you would expect a normal market to work.
Before we discuss the answer to this question, we need to clarify the fact that when you buy a Rolex watch from a Rolex retailer, you’re not actually buying from Rolex. Rolex does not work with a direct-to-consumer business model. Instead, they have retailer partners that sell Rolex watches under a Rolex Distribution Agreement contract. With that said, when you buy a Rolex, you buy from an independent official Rolex retailer and not from Rolex. But for the sake of simplicity, we will refer to the official retailers as “Rolex” from here on.
It’s also important to point out that this article focuses on official Rolex retailers and not non-official dealers that sell secondhand watches.
The short answer to the question is yes. Rolex can refuse to sell you a watch. But that seems awfully strange, doesn’t it? Of course, they won’t refuse to sell you a watch for no reason, so let’s look closer at the various reasons why Rolex may refuse to sell you a watch. Some of the reasons are understandable but others sound more strange.
Here are some of the most common reasons why Rolex may refuse to sell you a watch:
- If the watch is for “display only”
- If the watch is a popular model that the store wants to keep for “VIP” customers
- If they suspect that you will flip/sell the watch
- If they suspect that you are a dealer or reseller
- If you refuse to buy what they require you to buy (for example less popular models or jewelry)
- They know that you have sold a watch that you have bought from them prior
If the watch is for “display only”
This reason is perhaps the most understandable reason among the ones we will discuss in this list. In recent years, it has become more and more common to see Rolex dealers put watches in their storefronts and displays that are not actually for sale. You can see this via a small sign that says “for display only”.
As Rolex watches are becoming more and more scarce, it’s also a common sight to see retailers with empty displays simply because most of their watches have been sold. To ensure that the displays are not empty and that they actually have something to show, this is the best solution, where customers can actually see and try out watches, even though they are not for sale. If you want to buy a watch, it can be nice to try it out first before you decide on it and having the retailers place models in the storefront that are “not for sale” gives more customers to try and experience Rolex watches.
In some cases, the “for display only” signs are just a way to keep the watches reserved for their best customers. If a random customer comes in and says they want to buy it, the store can simply say that it is not for sale. But if a good, VIP customer comes into the store and asks to buy it, they may say yes.
This brings us to the next point.
If the watch is a popular model that the store wants to keep for “VIP” customers
Continuing on the theme of what we said above, one reason why Rolex may refuse to sell you a watch is if they want to reserve it for their best customers. The sign is the easiest way to do this as they can simply say that they are not for sale if a customer who they don’t want to sell that particular watch asks, but say yes if a VIP customer asks.
Even if the retailer doesn’t have a “for display only” sign, you may still be told that it is not for sale. And one of the potential reasons could be that you’re not a good enough customer.
If they suspect that you will flip/sell the watch
This is a big point. Rolex retailers generally hate flippers. Whilst the Rolex watch is your property and you are legally free to do whatever you want with it, flipping a watch that you have purchased from a Rolex retailer is a sensitive topic.
In general, Rolex retailers want to sell watches to people who will wear, enjoy, and cherish them for a long time to come. And even if you, for example, sell a watch you recently bought simply because you don’t like it, it’s hard for the retailer to know whether it was your intention to sell it all along, or if it’s for some other reason.
Selling a watch you have bought from a Rolex retailer has become even more sensitive in recent years as many Rolex watches today sell for more than the recommended retail price. Therefore, if you sell a watch you recently bought, the retailer may believe that it was your intention all along to buy the catch to flip it for a quick buck.
Because of all of this, Rolex retailers have become more and more careful with to who they sell watches. This is to ensure the watches they sell aren’t sold to flippers who will sell them, but instead to enthusiasts who will enjoy them.
If they suspect that you are a dealer or reseller
Elaborating on the previous point.
It’s also important to point out that this doesn’t only have to do with the retailer but also with Rolex. In the Rolex Distribution Agreement contract, Rolex clearly states that retailers are only allowed to sell to final customers.
In the contract it says:
“Jewelers will sell Rolex products only to ultimate consumers, at the retail level, in transactions that originate over-the-counter at its authorized location(s). All other methods of the sale (except for Rolex-approved corporate/presentation sales) are considered transshipping…. Rolex has not authorized any ORJ or any other person to act as a wholesaler or subdistributor; therefore, any transshipment of Rolex watches, even if unintentional, is prohibited.”
In recent years, it has become more and more common for both Rolex and official retailers themselves to scout the web for online advertisements to see if they can identify the watches that are being sold. This can happen if the seller clearly shows the receipt in the photo that tells where the watch was sold. It can also happen if the seller doesn’t hide the serial number on the warranty card or that is engraved on the rehaut.
If Rolex identifies the serial number of a watch being sold online, they can check the serial number to see which retailer has sold it. They can then contact the retailer and inform them that one of their customers is selling their watch. If this happens repeatedly, Rolex may believe that the store is selling to flippers/resellers deliberately or knowingly, which may result in a warning or even that the retailer contract is canceled.
With that said, it’s not only about the fact that Rolex retailers don’t like that their customers are selling their watches. It may also be because they are afraid of the potential repercussions that they will receive from Rolex. And with this in mind, it is understandable that retailers have become more and more careful with who they sell watches to. And with this said, if a retailer believes you will sell or flip the watch, they may therefore refuse to sell it to you.
Elaborating on this, if the store knows that you own a watch dealing company or that you frequently sell watches, It can be the same story. Some stores may even google your name and if you are in fact a reseller, they may be able to identify that you are a dealer and thus refuse to sell to you. Most Rolex retailers won’t go as far as to google your name, but some might. This is regardless if you’re buying a watch for yourself that you actually intend to keep and enjoy because they cannot know whether you are going to sell it or not.
If you refuse to buy what they require you to buy (for example less popular models or jewelry)
This is one of the more strange reasons that may be the reason why a retailer refuses to sell you a watch. It can sound particularly strange to those who are not too familiar with the current situation of the Rolex market. At the same time, it’s not too uncommon.
As Rolex watches have become more and more sought-after, it has made the prices of many Rolex models on the secondhand to skyrocket. But Rolex retailers are still only able to sell the watches for the recommended retail price. With that in mind, Rolex retailers are selling watches for prices that are often much lower than what the market has actually deemed them to be worth. And on the same token, it’s important to point out that Rolex retailers are just like any other business. They are a for-profit organization that wants to make as much money as possible.
But since they cannot sell Rolex watches for more than the retail price, what can they do instead? The answer is that they can “bundle” the purchase of popular Rolex watches with other items that they sell. This may include watches from less popular brands, jewelry, or other items that they sell.
Some Rolex retailers are very upfront about this whilst others say that the most popular customers are reserved for “the best customers”, which more or less is the same thing.
If you ask to buy a popular model, the store may suggest that if you buy something else, for example, a piece of jewelry, they can sell it to you. And so if you refuse this offer, they may refuse to sell you the watch.
They know that you have sold a watch that you have bought from them prior
Last but not least, this point elaborates further on the flipping issue, which is perhaps one of the most controversial topics regarding Rolex availability in recent times.
Since Rolex retailers don’t want to sell to those who flip their watches, it can be a reason why they refuse to sell you a watch. The retailer may have been informed by Rolex that you have sold a watch that you have purchased, or they may have discovered it themselves when they have been scouting the web.
Usually, if a Rolex retailer finds out that you have sold a watch that they originally sold you, they will blacklist you and will refuse to sell you a watch ever again. This is why it is important to be careful if you do decide to sell a watch and be discreet to ensure that they never discover it. One way is to sell your watch outside the local market or outside your country to ensure someone never walks in with your watch to their boutique to have it checked, serviced, or anything else.
