How do dealers source and trade watches?

techguy

Hi Guys,
This might seem like an add post really - I used to post here a bit but not really into watches at the moment so trying not get tempted.
That said, i've been toying with an idea to create a kind of "network" for dealers to trade watches and get up to date pricing information etc..
I know very little about the professional watch business and wondering if anybody here would be interested in a chat or fill in blanks about how dealers source their watches, move old stock and get up to date market data so they can make informed decisions when buying and selling.
Any feedback would be greatly appreciated to help me at least invalidate my assumptions on my idea being a "good" one..
Thanks

o1s1n

techguy wrote: »

Hi Guys,
This might seem like an add post really - I used to post here a bit but not really into watches at the moment so trying not get tempted.
That said, i've been toying with an idea to create a kind of "network" for dealers to trade watches and get up to date pricing information etc..
I know very little about the professional watch business and wondering if anybody here would be interested in a chat or fill in blanks about how dealers source their watches, move old stock and get up to date market data so they can make informed decisions when buying and selling.
Any feedback would be greatly appreciated to help me at least invalidate my assumptions on my idea being a "good" one..
Thanks

Why would you want to create a network for 'something you're not really into' and 'something you know very little about?'

Seems a bit odd!

oxocube

OmegaGene wrote: »

For the possible financial gain

I'd like to know this for possible financial savings :D:D

btkm8unsl0w5r4

From what I know its a tricky business and margins are tight. You have to wrap up a lot of capital in stock with the hope that the ones you choose appreciate at a greater rate than another investment. Most dealers I have met do it as an aside to their regular job. You need to have ready access to cheap repair and maintenance, and the ability to get stock on the grey market at knock down prices.

If you not in the industry I would steer clear.

oxocube

Natalia Scruffy Label wrote: »

From what I know its a tricky business and margins are tight. You have to wrap up a lot of capital in stock with the hope that the ones you choose appreciate at a greater rate than another investment. Most dealers I have met do it as an aside to their regular job. You need to have ready access to cheap repair and maintenance, and the ability to get stock on the grey market at knock down prices.

If you not in the industry I would steer clear.

I would second this point. I've been scanning online auctions to expand the collection with watches I like. You need a lot of knowledge and a network to back you up to make money in buying and selling watches.

From what I've seen on auction sites subpar watches go for way more than they should.

On Tuesday I put a bid in Longines Hydroconquest Automatic without box and papers. Going rate for this watch is ~€500 as it was in good condition. It went for £475 hammer price which doesn't include fees and shipping. I can get a really nice one with box and papers for €750 on Chrono24.

It seems you need to have years of industry knowledge, a great network and cheap way to repairs watches to even turn a profit.

I'd just be happy to be able to source nice watches at a small % below market value.

techguy

Sorry guys, last post might have been a bit ambiguous.. i'm not aiming to create a social network like Facebook or the likes..more of a platform/exchange for trading.

OmegaGene wrote: »

I don’t think this idea is going to work tbh
Have seen the car network that tells people without any knowledge where to buy and sell cars and how much to pay for them and how to get rid of old stock
It doesnt exist
It’s all about competition and hitting targets rather than sharing info
As for old stock, a dealer will always sell old stock, some people are unaware what a current model and what isn’t

Ok. This isn't about working with people with no knowledge. What I want to create is a private trading venue for watch traders to deal at "trade prices" kind of like they do in the car business actually. i.e. A dealer might flog something to another dealer without warranty because it has been sitting on his forecourt / doesn't want to hold it.

This isn't going be public and members of the public won't be able to access it. Subscription will only be available to companies operating retail watch businesses.

I have been speaking to a number of dealers already who all mention they are involved in things like WhatsApp / Facebook groups etc where they request / offer stock.

Something similar exists for precious stones and one such example is Polygon.net.. they do have a watch area but it seems like a bit of an afterthought.

The benefit to this is that a dealer has a single place where they can try and source niche items along with sell stock to keep inventory moving. like a stock exchange, the data will be available to other members and they can see trends / demands (order book) for particular pieces. This means that when the dealer is in their shop they have this as a point of reference if somebody comes in off the street and wants to trade a watch.

o1s1n wrote: »

Why would you want to create a network for 'something you're not really into' and 'something you know very little about?'

Seems a bit odd!

I am into watches, in that I have a great interest in the pieces themselves and the business. I just don't have any domain experience when it comes to trading them. I am specifically pitching and seeking one now but to answer your point about domain knowledge, I am seeking a cofounder to fill that void as I do recognise the importance of knowing your market.

oxocube wrote: »

I would second this point. I've been scanning online auctions to expand the collection with watches I like. You need a lot of knowledge and a network to back you up to make money in buying and selling watches.

From what I've seen on auction sites subpar watches go for way more than they should.

On Tuesday I put a bid in Longines Hydroconquest Automatic without box and papers. Going rate for this watch is ~€500 as it was in good condition. It went for £475 hammer price which doesn't include fees and shipping. I can get a really nice one with box and papers for €750 on Chrono24.

It seems you need to have years of industry knowledge, a great network and cheap way to repairs watches to even turn a profit.

I'd just be happy to be able to source nice watches at a small % below market value.

I was probably a bit unclear earlier but i'm not trying to trade myself but rather create a platform which consolidates how dealers trade with other dealers. It is effectively a closed, private B2B version of Chrono24.

I have been chatting to many many dealers in the past weeks and they have given varying feedback on their business practices and how the go about sourcing/trading etc. It is mostly indicative that there is something worth solving there. That said there are obviously loads of different issues to be solved to make this an effective product.

As an aside: The original post was asking about how dealers source/trade etc. I understand most of you guys are maybe in the watch sector as individuals and not dealers. I hope you don't read this idea the wrong way, in that it is some kind of conspiracy to be able to overcharge consumers are whatever. Dealers will always pay a price that they think they can pull a margin on and this is just another way of linking buyers and sellers.

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