Few things, I think that you are looking at it on a single item scale. From what I've seen Lets say the AD has only one store, Rolex alone will take between 600-800k to have a nice showcase. Add other brands, add labor, add leases. Thats one store imagine multiple locations because Rolex will never let you move your inventory from locations. Do you see what I mean? Grey? yes they have but not as close because the majority buy cheap and sell high unless they get their hands on a desirable model which still they make a decent profit without the related costs. Again I'm not knocking Grays. I've bought from gray dealers too. Im just presenting some valid points in regards to discounting. Thats all!
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Originally Posted by tbonesteak
Regardless of overhead, which everyone has (AD or grey), how can their margins be smaller when they get the watch for less than grey and then sell it for more than grey (excluding a few one offs, I.E. Daytona)?
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