How do grey dealers get so many watches

[perpetualman88]

like the title says guys how do these grey dealers get all the watches that they get? any info would be great

[Tools]

They buy them..

[mjm800]

No one (seller) will ever tell we can only guess.

My best guess is that they buy in volume get a discount they can make a few hundred profit per watch and still price below an AD.

I guess you would new a large chunk of seed money to start and then after awhile your business is paying for itself.

An AD will probably give you a better deal if you take a few Celini's and other slow moving models off their hands in exchange for the SubC's and GMT's that move faster.


This is my best guess.

[perpetualman88]

Originally Posted by Tools

They buy them..

ha from where though. maybe some common places to find them?

[texex91]

Out the back door of the dealer that need to keep his inventory moving. Buy at discount, that way dealer can keep inventory turned and Rolex happy by buying more. Of course Rolex would frown upon this if they ever found out.

[TSW]

Originally Posted by perpetualman88

ha from where though. maybe some common places to find them?

As other stated from AD's.

[perpetualman88]

okay I guess my question here is answered thanks guys

[Tools]

Originally Posted by perpetualman88

ha from where though. maybe some common places to find them?

If you are truly talking about the "Grey Market" and not just the used watches that TRF sellers have, or "resellers" who get them from friend and family Dealers at a good discount.

The answer is that they ALL come from overseas (otherwise, it's not truly the Grey Market).. Likely from large Dealers who want to offload stock to get the latest pieces to keep their local clients happy. There are also Import/Export businessmen who specialize in bulk purchases through other country Distributors..

[Jagatai]

People sell them to dealers.
Estates need cash.

Life happens.

[perpetualman88]

Originally Posted by Tools

If you are truly talking about the "Grey Market" and not just the used watches that TRF sellers have, or "resellers" who get them from friend and family Dealers at a good discount.

The answer is that they ALL come from overseas (otherwise, it's not truly the Grey Market).. Likely from large Dealers who want to offload stock to get the latest pieces to keep their local clients happy. There are also Import/Export businessmen who specialize in bulk purchases through other country Distributors..

ahh I see! Maybe a trip to Hong Kong is in order

[Numismatist]

Also, there are some jewelry stores that happen to sell watches as a sideline to draw in men. But their main (and hugely more) profit comes from ladies necklaces as opposed to the much smaller margin Rolex watches. Therefore, they are willing to sell to a grey a Rolex, to get more different types from Rolex, all the while really making their money from their jewlery.

We'll see what Rolex boutiques do to this arrangement.

[Mr. K]

Originally Posted by mjm800

No one (seller) will ever tell we can only guess.

My best guess is that they buy in volume get a discount they can make a few hundred profit per watch and still price below an AD.

I guess you would new a large chunk of seed money to start and then after awhile your business is paying for itself.

An AD will probably give you a better deal if you take a few Celini's and other slow moving models off their hands in exchange for the SubC's and GMT's that move faster.


This is my best guess.

Sounds pretty good.

[DiamondJack]

From what I've been told from a reputable source is that AD's are required to take a certain number of watches from Rolex each year to retain their AD status. They often cannot sell these themselves but want to retain the AD status and so have keep the watches coming in from Rolex on order.

They then pass them on at around cost (probably a bit more) to other jewellers who sell them as grey market. In reality, all this means is that the watch does not have the AD stamp on the guarantee card but apart from that is original and brand new in box with all the trimmings. Some jewellers will offer their own 1/2 year guarantee because of this.

After the guarantee period has expired, the watch is no different to any other Rolex and indeed will be serviced by RSC as normal from day one if need be.

Well that's what I've been told and it sounds plausible enough to me

[koc]

Well , I will speak a bout computers .
I have a very special discount from some shops that always i deal with them , and i can sell the computers , with a lower price than the market and also i take the benefit
I think it is the same way with the watch's market !

[Paulie 50]

Originally Posted by texex91

Out the back door of the dealer that need to keep his inventory moving. Buy at discount, that way dealer can keep inventory turned and Rolex happy by buying more. Of course Rolex would frown upon this if they ever found out.

I think this is as near to the truth as you will get.

[SubKing]

They go to watch shows, you have to have a store front or know someone to get into these watch shows and they sell most watches at these shows in bulk, so most of the people i know that go to these shows walk in with a 100k at least and they spend.

[mrbill2mrbill2]

A lot of on line gray market dealers do not have the watch in stock - "ships in 4 to 6 weeks". After you order they try to source the watch. Sometimes they are successful, sometimes they're not. But, they have you money for 4 to 6 weeks or longer as they string you along.

[Sherwooddavid]

Originally Posted by DiamondJack

From what I've been told from a reputable source is that AD's are required to take a certain number of watches from Rolex each year to retain their AD status. They often cannot sell these themselves but want to retain the AD status and so have keep the watches coming in from Rolex on order.

They then pass them on at around cost (probably a bit more) to other jewellers who sell them as grey market. In reality, all this means is that the watch does not have the AD stamp on the guarantee card but apart from that is original and brand new in box with all the trimmings. Some jewellers will offer their own 1/2 year guarantee because of this.

After the guarantee period has expired, the watch is no different to any other Rolex and indeed will be serviced by RSC as normal from day one if need be.

Well that's what I've been told and it sounds plausible enough to me

This is the way I understand it also.

[Tunacan26]

Originally Posted by Tools

They buy them..

Uh, yep.

[nauticajoe]

Two words - money & connection.



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[skyedog]

Originally Posted by perpetualman88

ahh I see! Maybe a trip to Hong Kong is in order

Hong kong is no longer the cheapest! Some models are above msrp

[Gagebuilder]

Originally Posted by Sherwooddavid

This is the way I understand it also.

Two other examples, one watch one not.

A jeweler I frequent wants to add a brand, but he basically needs to commit to a year's inventory, up front, and then would need to sell a watch a month as the watch company expects at least the same commitment yearly. But, in MI, in this economy, it is just too risky.

Also, a Dodge dealer near me is now a SMS (Steve Saleen) franchise. He must order at least one SMS Challenger every year, and Steve is very insistant not to discount the price of the car. Took 5 months to sell the first one.

[wdalew5]

Originally Posted by Tools

If you are truly talking about the "Grey Market" and not just the used watches that TRF sellers have, or "resellers" who get them from friend and family Dealers at a good discount.

The answer is that they ALL come from overseas (otherwise, it's not truly the Grey Market).. Likely from large Dealers who want to offload stock to get the latest pieces to keep their local clients happy. There are also Import/Export businessmen who specialize in bulk purchases through other country Distributors..

Great answer larry....I learn new info all the time....

[gregmoeck]

many are trade in's. The new ones are got through connections, reputation, etc

[greekbum]

Greys and dealers alike are not getting in demand watches for more than 15%-20% off these days. They are all low on inventory is what I see. Rolex is in control and in another year I see no more discounts over 5-10% and all middle men selling NIB in demand watches without watches to sell.

[ingoodtime]

Originally Posted by Tools

If you are truly talking about the "Grey Market" and not just the used watches that TRF sellers have, or "resellers" who get them from friend and family Dealers at a good discount.

The answer is that they ALL come from overseas (otherwise, it's not truly the Grey Market).. Likely from large Dealers who want to offload stock to get the latest pieces to keep their local clients happy. There are also Import/Export businessmen who specialize in bulk purchases through other country Distributors..

but I thought Rolex USA prohibits the importation of Rolex watches from other countries?

[DT14]

I've always heard the "out the back door to keep inventory moving" explanation and have no reason to doubt that. However, I have to believe that Rolex is basically looking the other way while this is going on because it would be so easy for Rolex to buy randomly selected on-line BNIB watches and track serial #'s to see where the watch originated from. My guess is that Rolex has run the #'s on this practice and come to the conclusion that it benefits their own bottom line. Just think of all the new watches that this practice allows Rolex to sell and then not have to provide warranty service.

[mjm800]

Originally Posted by DT14

Just think of all the new watches that this practice allows Rolex to sell and then not have to provide warranty service.

This has come up before and I do believe if you buy a BNIB with warranty card Rolex will honor the warranty.

I'm not sure if the cards are blank or filled in not sure how it works but I do remember someone stating that the warranty on the watches were still good.