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Chicago AD charged with Racketeering for selling to Grey Market

Hazing

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I apologize if this has been posted already. I mean we all know this happens but it's great to finally have an example to point out.

Esrntially a Chicago AD has charges filed against them racketeering as well as other charges for funneling pieces to the grey market.

It's an interesting read.



https://atelierdegriff.com/2021/02/...ring-and-selling-directly-to-grey-market/amp/

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sfgerl

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WOW - What an interesting read! I also liked the link to the grey market explanation.
 
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SRower003

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I’ve dealt with them numerous times. The sales people are elitists that don’t know their products. Their service department was horrendous. If they go down I won’t shed any tears!
 
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ABD26

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Good info on the grey market. I never fully understood it.


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YellowFin

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The tagline is BS, they're not accused for selling to the grey market which is as legal as it gets.
 
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k4jun

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Indeed, the tagline is a clickbait but can't wait to see the end of the trial and what damage it brings to Rolex brand and values of the greymarketed watches.
 
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kevBquick

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chicago here too. nothing new with CD Peacock. plenty of this stuff going on for a while with employees grabbing and selling to grey market. I see 2 more on facebook. just waiting till their reign ends. selling OP tiff dial for 14k right now on a 6k watch. getting new stuff every other day. eventually the cookie will crumble.
 

DD60

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It's all about Greed !
 

apeta

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Unfortunately it happens in a lot of places around the world, not only in Chicago. It was their "bad luck" to get caught with it.
If Rolex would be in the commerce with second hand pieces too, maybe they would somehow better regulate this grey market. Or would it get worse?
 

YellowFin

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Unfortunately it happens in a lot of places around the world, not only in Chicago. It was their "bad luck" to get caught with it.
If Rolex would be in the commerce with second hand pieces too, maybe they would somehow better regulate this grey market. Or would it get worse?

Officially, Rolex wants to dry out the grey market and protect their customers. The reality of daily business is that the insane price level at grey dealers is what drives their order queues. So technically speaking it's a highly effective permanent marketing campaign they get for free.
 
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MasterWatch

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Officially, Rolex wants to dry out the grey market and protect their customers. The reality of daily business is that the insane price level at grey dealers is what drives their order queues. So technically speaking it's a highly effective permanent marketing campaign they get for free.

Also easy justification for them to hike prices year on year.

Rolex and other Brands loves the prices at the grey market. This provides "good investment value" for thier customers.
 

Hazing

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It's all about Greed !

I agree that greed is a big driver but I’m sure there’s a lot of other things going on. Frustration on the part of the ADs with Rolex and they way they operate. Too few checks and balances. Also Seeing grey dealers make more on a watch than they do also have to be factors.


I think of this as similar to stealing/embezzlement from an employer. There’s a theory they call the opportunity triangle where someone engaging in this behavior needs opportunity, justification, and need and it states that generally these all have to be filled for an AD (or employee) to commit fraud. I know you were just making a passing comment and didn’t want to analyze and over analyze but it was just an opportunity to talk more about motivation.


Sometimes I can understand why Rolex is okay having empty display cases at the AD but I every time I think about it, the rationalizations are old. Like in the world we know today, I can’t think of any good reasons. And we all know Rolex and how they’re adverse to change almost as much as their customers and may be producing limited quantities simply because that’s what they’ve always done. I’m sure they wouldn’t want to flood the market just to realize it didn’t work out for them, only to go back to producing in limited quantities.

it’s an interesting snd complicated business and branding decision and I’ve always been curious about how to calculate the way it impacts the bottom line . It’s tough to include opportunity costs and other factors that are intangible. I know I’m now on a different subject but this curiosity was part of my motivation for starting this thread.
 
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YellowFin

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And we all know Rolex and how they’re adverse to change almost as much as their customers and may be producing limited quantities simply because that’s what they’ve always done. I’m sure they wouldn’t want to flood the market just to realize it didn’t work out for them, only to go back to producing in limited quantities.

Remember 2014/2015 when a Batman was available at every grey dealer 10-15% below list price? ;)
 
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DD60

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"I know you were just making a passing comment and didn’t want to analyze and over analyze but it was just an opportunity to talk more about motivation" Hazing

Greed as in being the basis for motivation.
Greed as an all encompassing factor in such actions.

Any time someone wants more than their fair share or has a strong desire to accumulate something, especially at the expense of others or if there is only so much to go around, this can be considered an example of greed.