Quote:
Originally Posted by MILGAUSS88
I think alot of our members have a unrealistic idea of what they should receive for their watches for trade in. You cannot just look at Chrono24 or eBay and expect you should get that for yours.
I sell on ebay and at a few shows. I figure there is about 25% cost in selling fees either way. And I am a one man show, with no store front. Govberg, has 2 storefronts and 27 employees listed on there website.
Furthermore they offer a 2 year warranty, so I assume they have their watchmakers at least oil if not service the watch. That is an additional cost that I do not think the watch owner that is trading in his watch in considers.
Then there is loss, from theft, accidents and the occasional lost mail. Not to mention their free shipping, that is added into the cost of the watch.
The cost of carrying inventory. Some of the watches just will not move, and eventually they will take a loss on them. Not all of these watches sell instantaneously.
Then there is their wholesale purchase prices. Typical wholesale direct from manufacturer for high end watches is what 60%. And you are expecting to get 80%?
Unless it is a watch that they already have sold before it comes in the door, it does not surprise me that their offer is 50% of retail. Why deal in used watches that inherently have more problems if the profit margins is less than new watches.
After all the costs and risks, are they allowed to make a profit?
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This is true, especially for brands other than the "Hawt" 5. (Rolex,AP,Patek,RM,Journe). Once you get into most Omega, IWC, Panerai, Cartier..etc The seller is sometimes lucky to even get an offer. If there is an offer it will be lower in order to account for slow turns on those brands. They might also buy lower than anticipated as the Hawt 5 sell at low margins and the weaker brands can blend the overall margin back up when one of them actually sells...