Where do dealers get all the their stock?

[smurph306]

Just trawlling Chrono24 and noticing pro dealers with 100+ watches for sale. Got me thinking where would they buy all of that stock to sell on. Especially with the rolex stuff and actually be able to make a margin on it. Who is selling them their cheap watches for them to sell on. Are they buying bulk used watches?

[blackal]

Lots of people don't have connections to suitable forums to sell watches, and avoid Ebay.

They see local dealers and the national ones as being a hassle-free method of selling their watch that they have either bought speculatively, or simply want to move on.

Many simply won't even seek out likely local dealers - preferring to do the deal by internet/e-mail to the likes of Watchtrader or whatever they are called.

My local dealer, who sells quite a lot of almost new Rolex - said "I give a fair price and it is hassle-free for them".

[adrianw]

Interesting question, an independent near me has just started selling Rolex’s up to three years old, most less than a year, currently ten in the window, so not coming from individuals.

[pete-r]

A lot of smaller places offer sale or return services so they aren't investing into the stock themselves but it helps sellers and buyers feel more protected.

I have an independent used watch seller near me but his buying and selling prices are a bit of a joke so I've never used, they regularly get a newish SS Rolex models.

[rico]

The burning question for me is where do the facebook dealers get their (very regular!) 2023 stock?

[verv]

Depends on brand but theres a mix of people buying a watch from an AD and immediately putting it into the trade at a higher price and dealers selling to one another.

[jimmbob]

I imagine it's mostly insider dealing. It's a weird business, AD's sell to "friends", friends sell back to AD/dealers, dealers hike the prices.
Traders selling Skydwellers to each other for a fiver more than they bought it for, etc. It must pay better than lowering the costs to sensible proportions and letting us muggles have a shot at them.

*Edit, what verv said.

[Raj24v]

I’ve always wondered this too. A lot of greys have 2023 models available. Unless flippers are immediately selling to them

[Latza]

Probably people with sale or return deals or even in the ad's back pocket

[Alansmithee]

I imagine it's mostly insider dealing. It's a weird business, AD's sell to "friends", friends sell back to AD/dealers, dealers hike the prices.
Traders selling Skydwellers to each other for a fiver more than they bought it for, etc. It must pay better than lowering the costs to sensible proportions and letting us muggles have a shot at them.

*Edit, what verv said.

Yes - I have a AD connection and could get Rolex that I could flip but I'm not interested in Rolex or hassle of flipping!

[Mrdemon]

Yes - I have a AD connection and could get Rolex that I could flip but I'm not interested in Rolex or hassle of flipping!

It is not hassle flipping a watch to a dealer ! Odd comment.
They collect it and transfer the money into your back.
You make tax free money.

I call bullshit.

[Yeti]

It is not hassle flipping a watch to a dealer ! Odd comment.
They collect it and transfer the money into your back.
You make tax free money.

I call bullshit.

How is it tax free? Don’t you have to pay capital gains?

[rico]

Yes - I have a AD connection and could get Rolex that I could flip but I'm not interested in Rolex or hassle of flipping!

Get us an Explorer 40mm then please!

[helidoc]

How is it tax free? Don’t you have to pay capital gains?

No. Watches are wasting assets

D


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[adrianw]

Yes - I have a AD connection and could get Rolex that I could flip but I'm not interested in Rolex or hassle of flipping!

Ok, you buy a Pepsi at list £9000 and I’ll give you £12000 no hassle, easy £3000

[catch21]

Root beer for me please!

[Toad monitor]

Root beer for me please!

I'll have a soda. (Stan Laurel)

[Alansmithee]

Ok, you buy a Pepsi at list £9000 and I’ll give you £12000 no hassle, easy £3000

Well part of the hassle of flipping is burning someone I know. Someone else here found that one when they did a favour for someone who flipped the watch the same day they got it! (Might have been Ryan).

[adrianw]

Well part of the hassle of flipping is burning someone I know. Someone else here found that one when they did a favour for someone who flipped the watch the same day they got it! (Might have been Ryan).

I don’t mind you selling it to me for say £9500

[PawG]

Ok, you buy a Pepsi at list £9000 and I’ll give you £12000 no hassle, easy £3000

Make it two please


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[LondonNeil]

I assume a mix of flippers, the insider links with ADs, and a chunk of advertising watches they don't actually hold. Ie, if they get serious enquiries about X watch, they may have the links to get it, either from a fellow grey, or an AD, but the watch isn't actually in stock with them. This could make it seem like there are ten times as many hard to get watches in grey dealers as is actually the case.

[David_D]

How is it tax free? Don’t you have to pay capital gains?

No. Watches are wasting assets

CGT is to some extent a “fall back” catching gains not otherwise taxed. Anyone regularly buying and selling watches for gain could well be regarded as trading and so liable to income tax.