Reply With QuoteI’m not sure I understand what you’re concerned about, the dealers sell their stock at the price it’ll sell at.
I’ve been hunting around for the next addition to my collection and was surprised to find a few dealers offering unworn, boxed, still stickered watches, supposedly with UK AD papers.
Now, with the stupidity that is the grey market for Rolex, I can understand this: the dealers - for better or worse - make a good margin selling on in-demand watches over RRP, however in this case it’s not Rolex, and it a seemed like the dealer was selling pretty close to the going rate for pre-owned/secondhand watches.
What gives? I don’t understand how this situation comes about.
Should I be concerned? Are the dealers or individuals buying watches and tucking them away hoping the value will go up and end up disappointed (good luck to anyone hoping there)?
I’m not sure I understand what you’re concerned about, the dealers sell their stock at the price it’ll sell at.
Non Rolex grey market stuff is sold between AD's and dealers at more favourable prices - keeps volume up.
When you look long into an abyss, the abyss looks long into you.........
I’m just a little puzzled as to where new watches are coming from and what’s in it for the dealers to be selling a ways under RRP (yes, I realise that RRP is just that, and not what things actually go for, but I still imagine there’s some gap between that and secondhand prices).Originally Posted by Nagraboy
Of course, things will only sell at the prices the market will support, but dealers will be in it for the money, and I’m just a little surprised there’s margin in selling on unworn watches at secondhand prices, but Chris_in_the_UK’s response makes sense, although I’m still amazed ADs would drop that much.
Depends on the brand, typically the AD discount is tiered according to their sales volume.
The primary scenarios for below RRP sales on Chrono24 etc;
when the AD accounting period to the brand is coming to a close & haven't quite met their sales targets required to secure their top-tier discount they may sacrifice the necessary pieces to the grey market at their buy in price or sometimes below.
The grey retailer doesn't want to tie up cash, so they hoof it out at a price that will sell quickly, cash is king.
The AD may engage with the grey contact when overstocked on certain models too, knowing they can't get the sell-through required based on historical sales.
This will manifest as a grey retailer offering a piece without stock & a lead time.
Above RRP sales for pieces on allocation are a very different likely hood & the debate of countless threads/YouTube influencers.
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Everyone in sales has a number to hit. ADs are no different in that respect.
Yep. Package deals.
I have a local branch of a national jeweller who is NOT an Omega authorised dealer but other branches of the national jeweller are. My local branch often sells Omega watches in the window as “used” when in reality they have been ‘registered’ at another Omega authorised branch and passed to my local branch for sale. They did have a nice Omega Ti Good Planet for sale (‘new’) but did not have the original box - so I passed. Is this the scenario you’re coming across?
No, looked like an independent dealer who has a full sets, rather than another branch of a chain.
Thanks for the additional scenario though; I assume Omega probably don't care to much in that case as it's a sale at the end of the day and they probably have some clout to persuade the jewellers not to do that if they really cared.
Bulk buying "packages"
Eg - 10x hublot, 5x omega, 3x ALS 1x rolex, you want a sky-dweller you have to take 10 big bangs and some automatic speedmasters etc.
Very interesting.
Don't forget the full gold DateJust and a Cartier Skeleton ;)
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