Wholesale Rolex Secondary Market Pricing

[TradingLoss]

Does anyone know how you get it?
Do you need to be in those dealer groups (WhatsApp/Signal etc)and have agreements between other dealers that they will buy/sell/trade at a fixed price etc?
Do you need an LLC to be considered for that wholesale pricing? Do these "grey dealers" disregard individual flippers as basically retail consumers and must pay retail price?

Just doing some research

Thanks!

[hellofromthebay]

Wouldn’t that be price fixing?


Sent from my iPhone using Tapatalk

[TradingLoss]

Originally Posted by hellofromthebay

Wouldn’t that be price fixing?


Sent from my iPhone using Tapatalk

Isn't that what they literally do? They have to make margins somehow, free market capitalism, "he who owns the gold makes the rules" in this case "the watch supply". Secondary market retail prices are fixed at a range for certain models and for them to make money they have to buy low and sell high obviously, so price of acquisition matters. Therefore they will offer a set price to acquire inventory from an individual seller so they can make a profit off of it, and when trading inventory with other dealers, they would have agreed wholesale rates they can trade cash or a similar priced watch. The consumer usually doesn't have control in the market, the dealers have the inventory and cash.

The model in the end is built on justifying the markup for the "work" in acquiring hot pieces for those willing to pay the price.

I like to break business models down, I deal with it every day clearing trades on an institutional level, the watch market is just a super toned-down version of financial markets.

For example, if I wanted to sell 50000 contracts on a certain day without disrupting the price, I can't do it all at once I won't get filled on the order.
However, if I find another buyer off-exchange that will buy my 50000 contracts, we can do the deal off-exchange, don't disrupt the market, and close the trade for a few BPS cheaper than the current market price and they can sell it off on their own and profit if they choose.


From deduction, I believe this is how it generally works, correct me if I'm wrong if you deal in grey and work with wholesale pricing etc between other dealers.

[jimcarver]

I think you are overthinking it.

I assume they by from ADs and sell at a mark-up, or buy from flippers at x over retail and sell for y over retail.

For the less hot models where they are not making as much (or a loss back in the day) they are probably lumped in with other purchases.

Your theory sounds more like there is some underground market where dealers are trading watches by the thousands with some wholesale prices.

Nearly any grey dealer that sell will also buy from customers, sure there might be the odd exchange of inventory between grey dealers but that it.

[Fleetlord]

Originally Posted by jimcarver

I think you are overthinking it.

I assume they by from ADs and sell at a mark-up, or buy from flippers at x over retail and sell for y over retail.

For the less hot models where they are not making as much (or a loss back in the day) they are probably lumped in with other purchases.

Your theory sounds more like there is some underground market where dealers are trading watches by the thousands with some wholesale prices.

Nearly any grey dealer that sell will also buy from customers, sure there might be the odd exchange of inventory between grey dealers but that it.

Absolutely. So much overthinking that I really had no idea where to right the ship...but you did an excellent job explaining...

[TradingLoss]

Originally Posted by jimcarver

I think you are overthinking it.

I assume they by from ADs and sell at a mark-up, or buy from flippers at x over retail and sell for y over retail.

For the less hot models where they are not making as much (or a loss back in the day) they are probably lumped in with other purchases.

Your theory sounds more like there is some underground market where dealers are trading watches by the thousands with some wholesale prices.

Nearly any grey dealer that sell will also buy from customers, sure there might be the odd exchange of inventory between grey dealers but that it.

maybe I over explained some examples and confused you. of course they will buy from customers if there's a margin to be made.

Originally Posted by Fleetlord

Absolutely. So much overthinking that I really had no idea where to right the ship...but you did an excellent job explaining...

yea sure good at simplifying it.

[Andad]

Apparently some are working on a new moon landing program.

That may be simpler to understand than the AD retailer - AD gouger - AD to Grey dealer - flipper - genuine trader etc. etc. scenario.

[CaveDweller]

My brain just fell out .....

[TradingLoss]

Originally Posted by CaveDweller

My brain just fell out .....

better pick it up before it dries out.

[101031-28]

Originally Posted by Andad

Apparently some are working on a new moon landing program.

That may be simpler to understand than the AD retailer - AD gouger - AD to Grey dealer - flipper - genuine trader etc. etc. scenario.

[offrdmania]

You arent going to get a watch at wholesale without buying a whole lot more with it. No one is going to sell you a single watch at wholesale without any kind of large purchase history.