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Old 19 September 2018, 02:32 PM   #1
NYRolexx
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Can someone explain how dealers make money?

I am very curious as to how these dealers make money on watches.

How do guys like DavidSW make money? The prices they have are already very good. How are these guys buying them that much lower to turn a profit?

I understand people trade in watches a little under market value to avoid the hassle of selling but are that many people doing it?

I understand someone doing it as a hobby or to buy a few extra watches a year but how do people run businesses doing it? Hard to wrap my head around it.

Completely understand if no one wants to give up any trade secrets, I'm just very curious
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Old 19 September 2018, 08:36 PM   #2
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Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.
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Old 19 September 2018, 08:52 PM   #3
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Quote:
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Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.
that basically covers it.
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Old 19 September 2018, 08:55 PM   #4
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Buy low sell high.
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Old 19 September 2018, 09:15 PM   #5
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They buy for less than they sell
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Old 19 September 2018, 09:16 PM   #6
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They buy for less than they sell
Much less.
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Old 19 September 2018, 09:16 PM   #7
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Based on the price I was offered for a watch, they make money by buying watches about $2000 less than market. They've been around a while and have many more contacts than you and I, which gives them much greater exposure to discounted items. They sell a lot of watches and make a lot of money.
This ^^^
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Old 19 September 2018, 09:23 PM   #8
Jace
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I have a friend that has a bricks and mortar as well as online watch business. He is very well-connected. He also explained that if he has a cash flow problem he can always sell his watch at wholesale and liquidate to raise capital quite easily.


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Old 19 September 2018, 09:48 PM   #9
Dilemma
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In the same vein, I’m curious how the secondary market obtains BNIB watches. Pre-owned I understand. But BNIB?
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Old 19 September 2018, 09:50 PM   #10
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In the same vein, I’m curious how the secondary market obtains BNIB watches. Pre-owned I understand. But BNIB?


They buy slow moving stock from ADs. Hence the blank Warranty cards.


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Old 19 September 2018, 09:57 PM   #11
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They buy slow moving stock from ADs. Hence the blank Warranty cards.


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So another question if you’ve got a minute. I purchased a new Oyster Perpetual for my wife a week ago. The AD handled to warranty card business. Normal? I have no intent on flipping the watch at all so it wasn’t a big deal to me. SHOULD it have been?
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Old 19 September 2018, 09:59 PM   #12
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If you think how many people get buyer's remorse after they buy an item they cannot afford.. You can see why all these dealers make huge profits.. Like car dealers. You need patience to sell an expensive watch. And experience. Most of buyers do not have those skills, and prefer to lose big money than to wait for the correct buyer.


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Old 19 September 2018, 10:21 PM   #13
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They sell for more than they buy, like any other retail.
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Old 19 September 2018, 10:59 PM   #14
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Have a look at how many new trade ins show up every 24 hours and you can quickly gauge the immense amount of money being made. Some have built really strong businesses here. Good for them.
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Old 19 September 2018, 11:07 PM   #15
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They buy for less than they sell
Bingo
That usually turns into a profit
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Old 19 September 2018, 11:07 PM   #16
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So another question if you’ve got a minute. I purchased a new Oyster Perpetual for my wife a week ago. The AD handled to warranty card business. Normal? I have no intent on flipping the watch at all so it wasn’t a big deal to me. SHOULD it have been?


ADs have been known to hold the warranty card until they’re sure you’re not planning to return it. But you should ask them for it. You paid for it.


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Old 20 September 2018, 01:08 AM   #17
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Buy low sell high.


Spot on brother!


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Old 20 September 2018, 01:17 AM   #18
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Part of this is based on turnover. If they know a watch will sit for a while, they will want a better spread. If it's a fast moving piece, their profit may be in the 500-1000 range.

I've found Takuya's offers to be very competitive. Since a trusted dealer can fetch a higher price for the watch than I can with my limited repuation, it's possible to net the same amount of money as if I sold myself, minus the headaches of making a listing
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Old 20 September 2018, 04:31 AM   #19
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Buy low sell high.
Wow, never thought of that
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Old 20 September 2018, 02:20 PM   #20
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Supply and demand
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Old 21 September 2018, 02:35 AM   #21
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Much less.
5%.
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Old 21 September 2018, 02:46 AM   #22
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They don't make any money.

They buy overpriced goods and, through their inner kindness, let them go for a loss just to see a smile on your face.
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Old 21 September 2018, 03:28 AM   #23
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5%.
That's the magic number.
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Old 21 September 2018, 03:59 AM   #24
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Volume volume volume. Just like the SNL change store...
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Old 21 September 2018, 07:32 AM   #25
Dilemma
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ADs have been known to hold the warranty card until they’re sure you’re not planning to return it. But you should ask them for it. You paid for it.


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Thank's Morning.
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Old 21 September 2018, 07:41 AM   #26
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OP, you should try it out...buy a bunch of new SS and sell it :) . Come back after a year or two and let me know if you make money or not. My bet you'll be on the negative side. :)
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Old 22 September 2018, 12:14 AM   #27
Sperry
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Buy trade-in inventory as-is from dealers. I've asked at a couple of dealers, and the response, "We have a guy who buys up what we do not want to, or cannot, resell ourselves."

Guess the AD cannot sell new Rolex and have a used Rolex display in the same store?
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Old 22 September 2018, 06:41 AM   #28
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OP, you should try it out...buy a bunch of new SS and sell it :) . Come back after a year or two and let me know if you make money or not. My bet you'll be on the negative side. :)


In theory, everything is possible .


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Old 22 September 2018, 02:47 PM   #29
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Easy.
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Old 22 September 2018, 08:52 PM   #30
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Curious if greys are also buying slow moving stock to get the preferable models, where does the slow moving stock go? Are they shelving it or does it find its way to another grey such as watchmaxx or jomashop for a razor thin margin?
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