[Kingcobb]

Originally Posted by herefortheattachment

If they make 10% margin on a $10,000 watch they sell you, they’ll profit $1,000, and have that much capital to gain interest on. But by asking for half that amount up front ($5,000) in the form of a deposit and not forking any money over to Rolex until the inventory ships, they’re getting several times more in interest than if they’d simply sold you the watch today. Every month that goes by, they collect more interest.

Until the watch arrives, they have given Rolex $0 for your watch and are collecting interest for free on your deposit. Add that up customer after customer, and the AD has a sizable revenue stream…

5 % interest on 5 grand is only $20 a month......