Hypothetically speaking.....

[Dusty]

If i were to come into some money and be in a position to spend it on some Rolex sports models....... would it be a profitable idea to negotiate a decent price with a dealer for say 3 or even 4 new ones with a view to keeping the one i like best and moving the rest on?

I imagine that sort of spend would attract a very reasonable discount?

Any thoughts?

[Guz]

In reality I haven't a clue

I imagine the AD would need to stamp the papers and cards in your name. Therefore the watches would become 2nd hand and maybe loose value, wiping out your bulk discount ?? I just haven't a clue.

You'd need to pop in and haggle hard :wink:

very good question..

[cmcm3]

I doubt it would be profitable and I'd actually be surprised if you got a good enough discount to even break even when you offloaded the unwanted ones.

[Omegamanic]

Your are about 5 years late with that business model I'm afraid. :(

The AD will not have a big mark up on the watches in the first place, so I doubt you will get anything better than 10%.

[RAJEN]

I doubt it would be profitable and I'd actually be surprised if you got a good enough discount to even break even when you offloaded the unwanted ones.

+1

[martyn3000]

I thought the mark up on high end watches, Rolex, Omega etc was around 100%?

[LeonW]

I thought the mark up on high end watches, Rolex, Omega etc was around 100%?

I read somewhere for Rolex profit margin for ADs circ 35%?

[robcat]

I thought the mark up on high end watches, Rolex, Omega etc was around 100%?

I read somewhere for Rolex profit margin for ADs circ 35%?

Just to clear up a bit of ambiguity (or muddy the waters). If you buy something for £500 and sell it for £1000 (ex VAT), your can describe your mark-up as 100% (i.e. 500/500), or your gross profit margin as 50% (i.e. costs/sales 500/1000). This could be why we see different values for this.

[cmcm3]

If you plan on keeping them for a few years then history says they will go up in value along with the rrp rises. If you're buying as a profit making exercise which is not really a great short term idea anyway you should factor in service and insurance costs.

If it was me I would put the money towards a mortgage, debts etc if applicable

If he can hold them for about 18-24 months, that seems to be about the time you'd be breaking even on full RRP, assuming price increases and 2nd hand values continue their trend of the past few years. So maybe 12 months if you bought with a decent discount. However, I had taken...

with a view to keeping the one i like best and moving the rest on?

...to indicate he'd be looking at shipping them out fairly quickly after purchase - how long can it really take to decide which you like best?

Of course if he can snap up a few of these fabled £5k BNIB Deep Seas, maybe even at a further discount for buying in bulk... :shock: :lol:

[martyn3000]

I thought the mark up on high end watches, Rolex, Omega etc was around 100%?

I read somewhere for Rolex profit margin for ADs circ 35%?

Just to clear up a bit of ambiguity (or muddy the waters). If you buy something for £500 and sell it for £1000 (ex VAT), your can describe your mark-up as 100% (i.e. 500/500), or your gross profit margin as 50% (i.e. costs/sales 500/1000). This could be why we see different values for this.

You're right depends if you describe it as "mark up" or "profit margin" I imagine the more expensive the watch the smaller the profit margin (percentage wise) So LeonW could be right when he says Rolex profit margins are closer to 35%. It's unlikely they will have a 50% margin in a £20k Rolex, where as a 50% margin in a £3k Omega I could believe.

[langdalematt]

Going as a group to a jeweller to buy watches as individuals but collectively, would definitely be an option. Only problem is, it would have to be a shop that stocks all of the watches required. I would be interested in doing this and if you could get a group of 10 people, my guess is that the dealer would be tripping over his willy with excitement.

[Dusty]

Well, i look at it like this, if I've got 10-15k to play with then i'd imagine a dealer would be very foolish to pass up the chance of grabbing it. Particularly in Northern Ireland where the Rolex customer base is limited at best, and with another recession looming it's a buyers market.

This isn't a business venture but if i can arrange enough discount to make it worthwhile selling them on, then i get to keep my own watch for little to no outlay once the rest are sold and funds recouped. I'd be inclined to think that 15-20% discount should be very achievable.