The struggles of owning an AD & Running a Gray Market

[Grabs]

I am looking to get into the watch dealing business but I want to prepare myself on what I am getting myself into.
That said, is there any struggles on a daily basis, & what I should know of or be cautious about?

[brandrea]

Originally Posted by Grabs

I am looking to get into the watch dealing business but I want to prepare myself on what I am getting myself into.
That said, is there any struggles on a daily basis, & what I should know of or be cautious about?

Welcome to the forum.

It’s a saturated market IMO. Well established dealers who’ve been doing this very well, for a long long time, and lots of new ones.

The biggest obstacle/ opportunity to think about is: how will your business “differentiate” from the rest?

[Grabs]

Thank you Brandrea,
That was a quick response lol; valid point.
If you were a watch dealer yourself, what we you biggest problem you couldn't solve?

[HHIslander]

Originally Posted by brandrea

Welcome to the forum.

It’s a saturated market IMO. Well established dealers who’ve been doing this very well, for a long long time, and lots of new ones.

The biggest obstacle/ opportunity to think about is: how will your business “differentiate” from the rest?

+1

Without connections to sellers/suppliers and a strong selling history/reputation, a new entrant really doesn't stand a chance at this point in the cycle. It appears saturated to me as well, I am of the opinion that consolidation and shrinking margins are quite likely in the future. I'd stay away.

[Grabs]

In the watch world is it primarily Dealers doing business with other Dealers?

[MrWhy]

Hi, I started just over a year ago in the UK and have been loving it. It isn’t that hard, you just need to offer something different and be patient. Patience on waiting for the right customer to come along for the watch you have. Your best way to start is eBay, you then grow a following. Offer great customer service and genially care, you should be fine.


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[Chewbacca]

Welcome, you masochist.

1. Go niche first (pick one: Japanese, quartz, Rolex, mid tier, high etc)

2. Cash flow is more important than profit

3. Be honest and protect your reputation and don’t be anonymous (like you are now)

4. Get a gig at a current AD and let them pay you to learn

5. Have a backup plan like landscaping or house painting

[77T]

Originally Posted by Grabs

In the watch world is it primarily Dealers doing business with other Dealers?

To source inventory, yes.
But to sell, not so much.

Dealers don’t pay market price if you’re selling to them.

You must manage your margins or you run a risk of losing $$$ in the long run.

The mix on inventory is key to turning it over 5x - you will be doing 12-18 hour days/nights to make that happen. Maybe for several years until people beat a path to your door.


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[ts3]

Not a great time for becoming a watch dealer but I hope you know as much.

Agree re getting a gig at a dealer or AD to learn, or starting on the side of what you are doing right now.

My hairdresser has done the latter. He was always into watches and visited local watch fairs. About 10 years ago he started buying at fairs etc and selling on the side to people he knew but also to the largest dealer in town. Still upset I missed out on a full set Patek 3700 with cork box he sold! LOL

Given my mediocre hair growth he closed his barber shop about 5 years ago and opened a small watch store. The true reason was he had found money was easier to come by via selling a bunch of watches every month compared to toiling 10+ hours a day in his barber shop. He is also selling on Chrono24. Business was good initially but has become more difficult as of late. No surprise I guess.

[beshannon]

Originally Posted by Grabs

The struggles of owning an AD & Running a Gray Market

Welcome to the forum

To become an AD you need to meet a vendors requirements

To become a second hand dealer requires capital, inventory and a platform to sell.

Good luck

[WatchEater666]

Margin sucks for these guys and many are heavily leveraged personally. You are selling commoditized products with no real moat and not building enterprise value in 99% of cases.

[Chewbacca]

Think they’ll be back?

[mulberry083]

It’s going to be more difficult for smaller greys moving forward. Recently there have been a few very public examples of people getting in over their head. It’s going to make consumers more reluctant to deal with smaller players.


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[Bstewart]

These posts always baffle me. You're "interested" in starting a business that will require millions of dollars (an AD) of capital/investment and you know nothing about running an AD and are asking the most elementary of questions. Why even ask this? It's not even in the realm of reality. I should make a post asking how to open a Bugatti dealership.

[james309]

Originally Posted by Bstewart

These posts always baffle me. You're "interested" in starting a business that will require millions of dollars (an AD) of capital/investment and you know nothing about running an AD and are asking the most elementary of questions. Why even ask this? It's not even in the realm of reality. I should make a post asking how to open a Bugatti dealership.

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[Blansky]

Originally Posted by Bstewart

These posts always baffle me. You're "interested" in starting a business that will require millions of dollars (an AD) of capital/investment and you know nothing about running an AD and are asking the most elementary of questions. Why even ask this? It's not even in the realm of reality. I should make a post asking how to open a Bugatti dealership.

Well thanks for dashing my dreams of opening a Bugatti dealership in the near future.

[ts3]

Originally Posted by Blansky

Well thanks for dashing my dreams of opening a Bugatti dealership in the near future.

Don't give up just yet. Getting yourself some merchandise is a reasonable first step...

[Blansky]

Originally Posted by ts3

Don't give up just yet. Getting yourself some merchandise is a reasonable first step...

Maybe I'll do the Rolex model and just get a sign and storefront, and get a clipboard and everyone can just put their name on a list.

[TheVTCGuy]

I am thinking of starting an exotic male dancing career...

[Blansky]

Originally Posted by TheVTCGuy

I am thinking of starting an exotic male dancing career...

Good luck. You can get everything from Amazon and Walmart now....

I'd suggest getting a air bag for the bottom in case you lose your grip.........which you seem to have done.

[Chewbacca]

Originally Posted by TheVTCGuy

I am thinking of starting an exotic male dancing career...

Jocke is doing well on OnlyFans. Maybe start there.

[ts3]

Originally Posted by TheVTCGuy

I am thinking of starting an exotic male dancing career...

No ejection seat for pole dancers!

[brandrea]

Originally Posted by TheVTCGuy

I am thinking of starting an exotic male dancing career...

Pro Tip - work on your flexibility

[Blansky]

A good tutorial.....https://www.polefitfreedom.com/beginner-pole-moves/

#16. The hair flick would probably be a good move for you.


This tutorial will probably be beneficial too I'm sure....Sexy Facial Expressions. https://www.polefitfreedom.com/sexy-facial-expressions/

The Come Hither Look,

The Smoldering Gaze.

The Sultry Pout......etc etc

Judging from your avatar you already have the "I know what you're thinking..eyebrow raise" one down.

Hope this helps. You're well on your way.

[JTL31]

Poor OP, this thread went from a potential watch business to pole dancing in a hurry!

[RW16610]

Originally Posted by Grabs

I am looking to get into the watch dealing business but I want to prepare myself on what I am getting myself into.
That said, is there any struggles on a daily basis, & what I should know of or be cautious about?

Wishing you all the best with much success on your journey of conducting research and potentially moving forward with this.

[Chewbacca]

I sent him a DM about a watch and he replied ‘price is firm I know what I got’. He’ll do just fine.

[Tricolore66]

Selling nice watches for fair-market value is pretty easy. Buying them at below market value is extremely difficult. On top of that challenge you have expensive cost to ship and insure inventory, and service/polishing costs, sourcing correct boxes/accessories for watches that don’t have them. As already stated, it’s a saturated market and it sounds like you’re starting at ground zero. I’d advise anyone who is serious about this to get a job at an AD that sells many lines and used watches, and do that for a few years. At this point you don’t know what you don’t know. The last few years are not a normal market. A decade ago Swiss watch manufacturers were buying back their inventory from AD’s and destroying new watches simply to keep them from hitting grey dealers at 50% off and destroying their brand equity. The 20 year old moron making Tik Tok videos about the watch business was still pissing the bed back then.