Their posted markup is around 40-50% (assuming they buy the perfect used watch that has zero mark downs). They are probably making 60% on the typical watch, which IIRC is about where AD's are. And a lot lower than typical jewelry markups.
I don't begrudge them the same markup that is common in their industry, but their acquisition policy is definitely deceptive. It would be very rare that a watch didn't need some dealer prep before it goes in the show case. The routine costs associated with polishing and inspection (pressure testing) should be accounted for in the initial quote with the other overheads.
