Watches on sale as bnib but way less than msrp

[Mchristie2]

One question been puzzling me. I see lots of bnib watches for sale at way less than mrsp eg 116619lb PM Smurf on sale for $26k a few weeks old when the msrp is over $36k.
Plus lots of others that are less than cost. Who is taking the hit on these if they are sold at cost - and if not how can the trusted sellers make cash on them ??

[DoctorA]

MSRP is about 40%+ what the AD gets them for. That’s even higher with PM
So they can afford to sell them at 20% discount to grey market and still make a good profit

When a grey dealer gets 5-6 watches (mixed as and pm) they can get even more than the 20% discount, which leaves plenty of room to make money and still come under MSRP

[Mchristie2]

Thank you

[treylxapi47]

Originally Posted by DoctorA

MSRP is about 40%+ what the AD gets them for. That’s even higher with PM

So they can afford to sell them at 20% discount to grey market and still make a good profit



When a grey dealer gets 5-6 watches (mixed as and pm) they can get even more than the 20% discount, which leaves plenty of room to make money and still come under MSRP

Thanks for that info. I had been wondering the same!

[powerfunk]

Originally Posted by DoctorA

MSRP is about 40%+ what the AD gets them for. That’s even higher with PM

I'm pretty sure the profit margin is the same on all models -- 37.5%. So a 37.5% discount = the AD's price.

[Chiboy]

Originally Posted by powerfunk

I'm pretty sure the profit margin is the same on all models -- 37.5%. So a 37.5% discount = the AD's price.

Yes, and buying at 20% off and selling at 30% off is not a strategy too many grays employ.

[Bigblu10]

PM Subs like the smurf are slow movers due to the retail price. AD's are happy to sell them out the back door for a good discount but still a profit and the trusted sellers price them accordingly to include a profit. Win win for all

[Boaters]

Originally Posted by Bigblu10

PM Subs like the smurf are slow movers due to the retail price. AD's are happy to sell them out the back door for a good discount but still a profit and the trusted sellers price them accordingly to include a profit. Win win for all

Good Answer..