Grey Market Dealers - Negotiating Tactics

[NAUI1982]

This may stir up some controversial conversations here, but I think transparency is a good thing. Certainly, we would probably agree that Rolex, and its AD network are the farthest thing from transparent that can be imagined! I’m on list, I’m not on a list, I’m a walk in, I have history, etc, we could go on and on about this…

However, when I comes to Grey Market sellers, I’m really curious what we can expect in terms of negotiated discounts/deals when we’re developing a purchase history with a “Trusted Dealer” in the grey market. There is a huge cost of capital for these grey market dealers, is there not? Or are they essentially consignment dealers? An owner agrees to sell through the dealer and sets a floor for their watch, and the grey market guys put it out to sell, here on the forums, chrono24, eBay, etc. So they’re not really “motivated” to move their inventory…. So what can we really expect when negotiating for a good deal in the after market space?

I’ve bought a few choice pieces in the grey market over the years, and I’ve tried to give my business to very few of them, to build the trust, as in trusted dealer, and to show that I can be a reliable repeat customer if they have product I’m interested in.

In some cases, I’ve offered asking price, where it’s easy to see the deal was a good one, no “haggle” needed. Just a great clean transaction. But there are a small select few watches I’d still love to have, either through an AD as I patiently wait, or if the price is right, through a TD grey market buy. I’ve made what I think was a very reasonable offers for a watch, that’s been on the market for months and hasn’t sold, and yet the dealer says they can’t come down at all. To me, that feels like it’s on consignment, and they just can’t get the owner of the watch to come to market prices. But if I’m the dealer here and my money is tied up in the watch, wouldn’t it best to sell the watch (assuming its not at a loss of course) even if I had to take a thinner margin? How many months should I be holding unsold inventory so to speak? [rhetorical]

So ultimately in the experiences of the members here, how do you approach the grey market sellers, and what kind of concessions do you typically get, either in a more favorable price from that which they’re asking, to what you ultimately pay? Are your transactions at asking price? I know it varies widely depending on the watch and demand of course! So I’m really interested in general approach and terms.

If you’re comfortable sharing/comparing purchase stories, I’d love to hear them.

[Tez777]

Price on the watch I wanted (but not needed) was £14,500. I stood firm at £13,000, reiterating the point that I didn't need to have the watch and was prepared to let them think about it. He shook my hand about 30 seconds later at my price. Don't be scared to just get out of your seat if it's not the price you came in looking for.

[WristWatchWonders]

I've purchased one grey market watch from Jomashop. It was a Glycine Sub I used as a beater. I beat it to death! It was a good price, no need to haggle.
I've bought watches on the secondary/used market off Chrono24 where I did negotiate a discount. After reviewing Watch Charts and other platforms for comprable watches I was able to bring the price down on a couple Panerai and a Brietling. Nothing huge but I was able to get the price I wanted.
I made a reasonable offer and stuck to it. If it was refused, I moved on.

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[amphr1]

I find that grey dealer usually will concede a few hundred dollars, a free box on watch only sale, or free shipping when they advertise that you have to pay shipping. But I would not expect too much. I would open negotiations at $1000 less than asking and see where it leads. But it also depends how many other grey are offering that same watch that week.

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[M@2]

It will, of course, depend on the model, but I've found grey market watches (or really any luxury used/vintage/or neear new selling, such as guitars, jewelry etc) will have a built-in "cushion" on the price, and I generally get between 10-30% off, depending on the item.

[NAUI1982]

Originally Posted by M@2

It will, of course, depend on the model, but I've found grey market watches (or really any luxury used/vintage/or neear new selling, such as guitars, jewelry etc) will have a built-in "cushion" on the price, and I generally get between 10-30% off, depending on the item.

10-30% off on a grey Rolex is a significant discount. That’s impressive! You can negotiate my next purchase!

[4reRlxGuy]

Originally Posted by M@2

It will, of course, depend on the model, but I've found grey market watches (or really any luxury used/vintage/or neear new selling, such as guitars, jewelry etc) will have a built-in "cushion" on the price, and I generally get between 10-30% off, depending on the item.

In socal, based on what I've traded in and what I saw it later listed for the margin appears to be 15-25% depending on the the price and desirability of the piece.

Note: What I traded in were unworn and still under warranty so no additional cost for the grey dealer to have ready for sale.

[4reRlxGuy]

Last I heard Rolex ADs have 30-35% gross margins so the greys have tighter margins

[0nly5iv3Digits]

Cash is king. Not everyone knows how to negotiate... it's certainly a "skill".
Remember, dealers are just merchants at the end of the day. Don't be afraid to haggle hard!

And yes, I'd say there's a good chance that the watch in question was on consignment, OP.

[Calatrava r]

Used watch dealers need to move their stock, but many will hold firm on their prices while some will give a little. Never hurts to ask.