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NYRolexx · 19 September 2018, 02:32 PM

I am very curious as to how these dealers make money on watches.

How do guys like DavidSW make money? The prices they have are already very good. How are these guys buying them that much lower to turn a profit?

I understand people trade in watches a little under market value to avoid the hassle of selling but are that many people doing it?

I understand someone doing it as a hobby or to buy a few extra watches a year but how do people run businesses doing it? Hard to wrap my head around it.

Completely understand if no one wants to give up any trade secrets, I'm just very curious

Abdullah71601 · 19 September 2018, 08:36 PM

Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.

superdog · 19 September 2018, 08:52 PM

Quote:

Originally Posted by Abdullah71601

Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.

that basically covers it.

dmhines · 19 September 2018, 08:55 PM

Buy low sell high.

beshannon · 19 September 2018, 09:15 PM

They buy for less than they sell

MonBK · 19 September 2018, 09:16 PM

Quote:

Originally Posted by beshannon

They buy for less than they sell

Much less.

brandrea · 19 September 2018, 09:16 PM

Quote:

Originally Posted by Abdullah71601

Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.

This ^^^

Jace · 19 September 2018, 09:23 PM

I have a friend that has a bricks and mortar as well as online watch business. He is very well-connected. He also explained that if he has a cash flow problem he can always sell his watch at wholesale and liquidate to raise capital quite easily.

Sent from my iPad using Tapatalk

Dilemma · 19 September 2018, 09:48 PM

In the same vein, I’m curious how the secondary market obtains BNIB watches. Pre-owned I understand. But BNIB?

MorningTundra · 19 September 2018, 09:50 PM

Quote:

Originally Posted by Dilemma

In the same vein, I’m curious how the secondary market obtains BNIB watches. Pre-owned I understand. But BNIB?

They buy slow moving stock from ADs. Hence the blank Warranty cards.

Sent from my cracked, broken hand wound phone. IG @morning_tundra

Dilemma · 19 September 2018, 09:57 PM

Quote:

Originally Posted by MorningTundra

They buy slow moving stock from ADs. Hence the blank Warranty cards.

Sent from my cracked, broken hand wound phone. IG @morning_tundra

So another question if you’ve got a minute. I purchased a new Oyster Perpetual for my wife a week ago. The AD handled to warranty card business. Normal? I have no intent on flipping the watch at all so it wasn’t a big deal to me. SHOULD it have been?

nektar · 19 September 2018, 09:59 PM

If you think how many people get buyer's remorse after they buy an item they cannot afford.. You can see why all these dealers make huge profits.. Like car dealers. You need patience to sell an expensive watch. And experience. Most of buyers do not have those skills, and prefer to lose big money than to wait for the correct buyer.

Sent from my iPhone using Tapatalk

GoingPlaces · 19 September 2018, 10:21 PM

They sell for more than they buy, like any other retail.

GB-man · 19 September 2018, 10:59 PM

Have a look at how many new trade ins show up every 24 hours and you can quickly gauge the immense amount of money being made. Some have built really strong businesses here. Good for them.

tudorbaja27 · 19 September 2018, 11:07 PM

Quote:

Originally Posted by beshannon

They buy for less than they sell

Bingo

That usually turns into a profit

MorningTundra · 19 September 2018, 11:07 PM

Quote:

Originally Posted by Dilemma

So another question if you’ve got a minute. I purchased a new Oyster Perpetual for my wife a week ago. The AD handled to warranty card business. Normal? I have no intent on flipping the watch at all so it wasn’t a big deal to me. SHOULD it have been?

ADs have been known to hold the warranty card until they’re sure you’re not planning to return it. But you should ask them for it. You paid for it.

Sent from my cracked, broken hand wound phone. IG @morning_tundra

swils8610 · 20 September 2018, 01:08 AM

Quote:

Originally Posted by dmhines

Buy low sell high.

Spot on brother!

“I think a man and his watch have a special bond”~Ralph Lauren

Star Ferry · 20 September 2018, 01:17 AM

Part of this is based on turnover. If they know a watch will sit for a while, they will want a better spread. If it's a fast moving piece, their profit may be in the 500-1000 range.

I've found Takuya's offers to be very competitive. Since a trusted dealer can fetch a higher price for the watch than I can with my limited repuation, it's possible to net the same amount of money as if I sold myself, minus the headaches of making a listing

enjoythemusic · 20 September 2018, 04:31 AM

Quote:

Originally Posted by dmhines

Buy low sell high.

Wow, never thought of that

Danny83 · 20 September 2018, 02:20 PM

Supply and demand

Jocke · 21 September 2018, 02:35 AM

Quote:

Originally Posted by MonBK

Much less.

5%.

Tools · 21 September 2018, 02:46 AM

They don't make any money.

They buy overpriced goods and, through their inner kindness, let them go for a loss just to see a smile on your face.

MonBK · 21 September 2018, 03:28 AM

Quote:

Originally Posted by Jocke

5%.

That's the magic number.

wantonebad · 21 September 2018, 03:59 AM

Volume volume volume. Just like the SNL change store...

Dilemma · 21 September 2018, 07:32 AM

Quote:

Originally Posted by MorningTundra

ADs have been known to hold the warranty card until they’re sure you’re not planning to return it. But you should ask them for it. You paid for it.

Sent from my cracked, broken hand wound phone. IG @morning_tundra

Thank's Morning.

MinMay · 21 September 2018, 07:41 AM

OP, you should try it out...buy a bunch of new SS and sell it :) . Come back after a year or two and let me know if you make money or not. My bet you'll be on the negative side. :)

Sperry · 22 September 2018, 12:14 AM

Buy trade-in inventory as-is from dealers. I've asked at a couple of dealers, and the response, "We have a guy who buys up what we do not want to, or cannot, resell ourselves."

Guess the AD cannot sell new Rolex and have a used Rolex display in the same store?

nektar · 22 September 2018, 06:41 AM

Quote:

Originally Posted by MinMay

OP, you should try it out...buy a bunch of new SS and sell it :) . Come back after a year or two and let me know if you make money or not. My bet you'll be on the negative side. :)

In theory, everything is possible

.

Sent from my iPhone using Tapatalk

Laszlo · 22 September 2018, 02:47 PM

Easy.

WristEnvy · 22 September 2018, 08:52 PM

Curious if greys are also buying slow moving stock to get the preferable models, where does the slow moving stock go? Are they shelving it or does it find its way to another grey such as watchmaxx or jomashop for a razor thin margin?

19 September 2018, 02:32 PM	#1
NYRolexx "TRF" Member Join Date: Feb 2018 Location: ny Posts: 19	Can someone explain how dealers make money? I am very curious as to how these dealers make money on watches. How do guys like DavidSW make money? The prices they have are already very good. How are these guys buying them that much lower to turn a profit? I understand people trade in watches a little under market value to avoid the hassle of selling but are that many people doing it? I understand someone doing it as a hobby or to buy a few extra watches a year but how do people run businesses doing it? Hard to wrap my head around it. Completely understand if no one wants to give up any trade secrets, I'm just very curious

19 September 2018, 08:55 PM	#4
dmhines "TRF" Member Join Date: Feb 2017 Location: Florida Watch: Hulk Posts: 478	Buy low sell high. __________________ . Hulk / RootBeer / Explorer

19 September 2018, 09:15 PM	#5
beshannon "TRF" Member Join Date: Jun 2009 Real Name: Brian Location: Northern Virginia Watch: One of Not Many Posts: 17,892	They buy for less than they sell __________________ IWC Portugieser 7 Day, Omega Seamaster SMP300m, Vacheron Constantin Traditionnelle Complete Calendar, Glashutte PanoInverse, Glashutte SeaQ Panorama Date, Omega Aqua Terra 150, Omega CK 859, Omega Speedmaster 3861 Moonwatch, Breitling Superocean Steelfish, JLC Atmos Transparent Clock

19 September 2018, 10:59 PM	#14
GB-man 2025 Pledge Member Join Date: Nov 2012 Location: USA Watch: addiction issues Posts: 37,590	Have a look at how many new trade ins show up every 24 hours and you can quickly gauge the immense amount of money being made. Some have built really strong businesses here. Good for them. __________________

21 September 2018, 02:46 AM	#22
Tools TRF Moderator & 2025 Patron Join Date: May 2007 Real Name: Larry Location: Mojave Desert Watch: GMT's Posts: 43,617	They don't make any money. They buy overpriced goods and, through their inner kindness, let them go for a loss just to see a smile on your face. __________________ (Chill ... It's just a watch Forum.....) NAWCC Member

19 September 2018, 08:36 PM	#2
Abdullah71601 Banned Join Date: Aug 2014 Location: Calumet Harbor Watch: ing da Bears Posts: 13,565	Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.

19 September 2018, 09:23 PM	#8
Jace "TRF" Member Join Date: Jun 2018 Real Name: Jace Location: Boca Raton Watch: Platinum DD 40 Posts: 329	I have a friend that has a bricks and mortar as well as online watch business. He is very well-connected. He also explained that if he has a cash flow problem he can always sell his watch at wholesale and liquidate to raise capital quite easily. Sent from my iPad using Tapatalk

19 September 2018, 09:48 PM	#9
Dilemma "TRF" Member Join Date: Mar 2010 Location: Minnesota Posts: 1,170	In the same vein, I’m curious how the secondary market obtains BNIB watches. Pre-owned I understand. But BNIB?

19 September 2018, 09:59 PM	#12
nektar "TRF" Member Join Date: Jul 2009 Location: Louisiana Watch: 114060 Posts: 1,678	If you think how many people get buyer's remorse after they buy an item they cannot afford.. You can see why all these dealers make huge profits.. Like car dealers. You need patience to sell an expensive watch. And experience. Most of buyers do not have those skills, and prefer to lose big money than to wait for the correct buyer. Sent from my iPhone using Tapatalk

19 September 2018, 10:21 PM	#13
GoingPlaces "TRF" Member Join Date: Jul 2014 Location: Washington, DC Posts: 5,356	They sell for more than they buy, like any other retail.

20 September 2018, 01:17 AM	#18
Star Ferry Banned Join Date: Aug 2015 Location: down by the river Posts: 4,924	Part of this is based on turnover. If they know a watch will sit for a while, they will want a better spread. If it's a fast moving piece, their profit may be in the 500-1000 range. I've found Takuya's offers to be very competitive. Since a trusted dealer can fetch a higher price for the watch than I can with my limited repuation, it's possible to net the same amount of money as if I sold myself, minus the headaches of making a listing

20 September 2018, 02:20 PM	#20
Danny83 2025 Pledge Member Join Date: Sep 2013 Real Name: Danny Location: Bay Area CA Watch: Yellow Gold Posts: 20,325	Supply and demand

21 September 2018, 03:59 AM	#24
wantonebad 2024 SubLV41 Pledge Member Join Date: Nov 2007 Location: USA Watch: 126600, 116500LN Posts: 12,849	Volume volume volume. Just like the SNL change store... __________________ "I'm kind of a big deal... on a fairly irrelevant social media site that falsely inflates my fragile ego"

21 September 2018, 07:41 AM	#26
MinMay Banned Join Date: Apr 2015 Location: United States Posts: 2,410	OP, you should try it out...buy a bunch of new SS and sell it :) . Come back after a year or two and let me know if you make money or not. My bet you'll be on the negative side. :)

22 September 2018, 12:14 AM	#27
Sperry "TRF" Member Join Date: Jan 2009 Real Name: Jim Location: Alpha Posts: 3,383	Buy trade-in inventory as-is from dealers. I've asked at a couple of dealers, and the response, "We have a guy who buys up what we do not want to, or cannot, resell ourselves." Guess the AD cannot sell new Rolex and have a used Rolex display in the same store?

22 September 2018, 08:52 PM	#30
WristEnvy "TRF" Member Join Date: Jul 2015 Real Name: Ray Location: Berkeley, CA Watch: IG @watch.kakashi Posts: 2,579	Curious if greys are also buying slow moving stock to get the preferable models, where does the slow moving stock go? Are they shelving it or does it find its way to another grey such as watchmaxx or jomashop for a razor thin margin?

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