Question about Greys

[Pilliam]

I understand how greys make their money on many of the SS watches, particularly those that are "hot." My question is how do they make money on some of their PM watches? For example, here's a link to DavidSW with a new Everrose SkyD for $44K. Purportedly, the watch is new, with AD having removed the stickers. If this same watch retails new for $48,850, how does anyone make money? If DavidSW bought directly from AD, then did the AD take a hit? And if so, why on earth would the AD make that transaction (what's in it for AD)?
Just curious if someone understood the dynamics at play on the PM monetization? Thanks.

https://davidsw.com/watches/rolex-wa...-rhodium-dial/

[Pilliam]

https://davidsw.com/watches/rolex-wa...-rhodium-dial/

[Ricky Rolex]

Probably getting a 15-20% discount on them.

[watchmavan]

Market forces. Not strong for the YM. At their buying price there's still profit.


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[Rocket_Man]

He is buying it cheaper from the AD than you can, so there is a little margin for profit. People think Greys are making a ton of money on these watches, I don't think they are making nearly what folks assume. They make money by selling a lot of watches vice making a killing on a few watches. Greys exist in a competitive market too.

[AK797]

Originally Posted by Rocket_Man

He is buying it cheaper from the AD than you can, so there is a little margin for profit. People think Greys are making a ton of money on these watches, I don't think they are making nearly what folks assume. They make money by selling a lot of watches vice making a killing on a few watches. Greys exist in a competitive market too.

Yes, they just make a mark up, even on the hot SS pieces they are probably getting very few direct from ADs now, as ADs don't need them for bundling as they did in the pre-hype days, so they are getting most of their stock from flippers and thus paying premiums in the first place. Flippers are the real beneficiaries of this market, make as large if not a larger margin than the greys and have no expenses at all, and thus are the real enemy, to WIS and to Rolex.

[badass09]

So lets say the watch retails for $48k n the grey sells it for $44k. Maybe the grey dealer bought from the AD or from a flipper at $42k. Then his profit is $2k. That's how it works. Grey dealers dun make a killing on profit. Sometimes they also pay premium prices for watches.. and when they resell they just mark up 10 to 15%. Thats how they do it. Simple.

And as for how the AD makes money is that AD does always make money on every watch they sell. Cos their cost is nearly 50 to 60% of the watch's retail price. They do give big discounts for preferred or regular customers. Cos they might as well earn little profit and clear the stock than sell at RRP and let the watch sit with no buyers. Plus they also have quotas and targets to sell a certain number of stock.

So by giving discounts and making a sale and meeting the target still let's them make money and keep their distibutorship. It's a win win situation.
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[exador]

Originally Posted by Rocket_Man

He is buying it cheaper from the AD than you can, so there is a little margin for profit. People think Greys are making a ton of money on these watches, I don't think they are making nearly what folks assume. They make money by selling a lot of watches vice making a killing on a few watches. Greys exist in a competitive market too.

Funnily enough I’ve just been conversing with one of the biggest Greys in Hong Kong and he was complaining about the small margins on Rolexes. Compared it to the currency exchange market

[Solo118]

Originally Posted by pmk416

I understand how greys make their money on many of the SS watches, particularly those that are "hot." My question is how do they make money on some of their PM watches? For example, here's a link to DavidSW with a new Everrose SkyD for $44K. Purportedly, the watch is new, with AD having removed the stickers. If this same watch retails new for $48,850, how does anyone make money? If DavidSW bought directly from AD, then did the AD take a hit? And if so, why on earth would the AD make that transaction (what's in it for AD)?
Just curious if someone understood the dynamics at play on the PM monetization? Thanks.

https://davidsw.com/watches/rolex-wa...-rhodium-dial/

As others mentioned, they are passing along their savings from the AD. On top of that some NIB watches believe it or not may come from members/customers that just have not worn their watch and traded/sold to get into something else. Needless to say many of the used watches on their sites are from trade in and/or sale. I should know, I have done many deals with DSW, and co.

[maxymax]

Everything above from other members, plus, you yourself can get a good deal on the non-hot references from the AD if you are a big spending regular customer

[ian.thomas]

That sure is a great looking watch!