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New Watch Club

2

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  • scwazrh wrote: »
    If they can get the customers the business will work but I would be surprised if there is enough customers willing to join

    You could say that about any hair brained business, its a non sequitur. Sometimes there are reasons that people are not doing it already.




  • Sometimes there are reasons that people are not doing it already.

    I remember people saying that about Uber as well!

    But I agree can’t see how watch rental will last




  • scwazrh wrote: »
    I remember people saying that about Uber as well!

    But I agree can’t see how watch rental will last

    Look maybe I am totally wrong, but as a business man and a watch collector I cannot see the market or the profit in this.




  • I suppose the best way to do things is have a low enough membership cost, renting semi decent watches, and with enough customers over enough time, the rental pays for the watchesand they become profit.




  • Will you listen to yourself Gary? That doesn't sound anything like a business plan. It sounds like wishful thinking.


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  • 200.gif

    Joking aside, what are simi decent watches in your opinion?




  • I suppose the best way to do things is have a low enough membership cost, renting semi decent watches, and with enough customers over enough time, the rental pays for the watchesand they become profit.

    Gary. You ain’t listening. The below is the business model you described above. It is very generous with the gross profit.

    Unless you and your “business partners” have a half million plus to sink in a depreciating asset of likely ****ter 500 euro watches that no one wants to “rent”.

    10 or 20 a month to rent ? The cost of packaging, postage and insurance will eliminate that on each watch before other costs are even considered.

    Lets also run your figures

    1000 members (things are going great) paying you 10 euro a month. So each month you get in 10k. You need to have 1000 watches for 500 euro (everyone will want a watch). So half a million in watches out there. You will recoup your half a mil investment in a mere 4 years. So not a penny made in 4 years but 500k locked up in a depreciating asset you would be lucky to have 150k left at the end of the 4 years. So you have made 500k and lost 350k so a gross profit of 150k in 4 years 37k before tax a year. Now factor in insurance, marketing, shrinkage, staff, consumables, service, repolishing, etc and I say you would be lucky to make a euro.
    .




  • scwazrh wrote: »
    I remember people saying that about Uber as well!

    But I agree can’t see how watch rental will last

    Completely different goal there. Besides, Uber lost over 9 billion dollars last year. But I'm sure they'll make a profit in 2020:pac:




  • Completely different goal there. Besides, Uber lost over 9 billion dollars last year. But I'm sure they'll make a profit in 2020:pac:

    These “gig” economy jobs are a mystery to me. Massive losses. Similar to a lot of the social media companies (Snapchat, insta, TikTok etc).




  • 893bet wrote: »
    These “gig” economy jobs are a mystery to me. Massive losses. Similar to a lot of the social media companies (Snapchat, insta, TikTok etc).

    Simple. For the most part, they're not sustainable businesses. That's not their goal. They garner VC money, disrupt; all for the potential massive payouts/cash-outs for the founders.


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  • No need for a wristwatch when my smartphone is taking a breather every few minutes.




  • Kaybaykwah wrote: »
    No need for a wristwatch when my smartphone is taking a breather every few minutes.

    And you came into the *looks around* Watches and Timepieces forum to drop that stunning observation?




  • Birneybau wrote: »
    And you came into the *looks around* Watches and Timepieces forum to drop that stunning observation?

    Lolled.

    Yeah paging wibbs.... Time to lock this forum up.




  • 893bet wrote: »
    Lolled.

    Yeah paging wibbs.... Time to lock this forum up.

    I'm going to go into the Mobiles forum and tell them all to throw them away and join the Watch Club.




  • He's obviously oldskool - pocket watches all the way - none of these effeminate wrist watches :D

    https://www.vintagewatchstraps.com/earlywristwatches.php
    This all changed during the Great War (the First World War, WW1, of 1914 – 1918) when large numbers of men entered the armed forces and, in the trenches of the battlefields, they saw experienced and battle hardened officers wearing and using wristwatches. This changed the perception of wristwatches being effeminate, and many men wanted to own one themselves. As a result this early style of wristwatch with wire lugs became known as an "officer's watch", or more commonly a "trench watch".

    But Wibbs would be the expert on all this I'm sure.




  • It appears that there is a few of these watch rental companies including in the UK .All seem new enough though

    Time and tide article about them here

    https://timeandtidewatches.com/rent-your-rolex-will-luxury-watch-rentals-ever-take-off/




  • unkel wrote: »
    Will you listen to yourself Gary? That doesn't sound anything like a business plan. It sounds like wishful thinking.

    #UnconstructiveMuch :)
    200.gif

    Joking aside, what are simi decent watches in your opinion?


    For the average schmoe. between €500-1k
    893bet wrote: »
    Gary. You ain’t listening. The below is the business model you described above. It is very generous with the gross profit.

    Unless you and your “business partners” have a half million plus to sink in a depreciating asset of likely ****ter 500 euro watches that no one wants to “rent”.

    10 or 20 a month to rent ? The cost of packaging, postage and insurance will eliminate that on each watch before other costs are even considered.


    Well for starters, this is more about a business idea and starting something that might work, than making millions. We have always done some things we thought, "well, wouldn't it be cool if.........." and sometimes they work, and sometimes they don't.

    if we bought ten watches for 1k each and lets remove the specifics (and yes, we are down 10k already, thats business for ya). Now lets just imagine that none of them were stolen, lets just................... actually. I wont waste my time writing out the rest of that paragraph :)

    Its like this, the world is full of people who think great ideas are timewasting failures, which turn out to be succesful, and vice versa the world is full of people who think the rubbish they hold is the best thing since sliced bread.

    But will opinions stop me from doing something I think might be a cool idea? Hell no.

    Sure, none of you guys will drop to a 700 euro watch, thats cool. I appreciate that :) ,. but lets give it a go and see how it works out.

    remember, the shame is not in the failure, its in the not trying. :)

    Thanks for all the input guys. Appreciated




  • Gary, you have repeatedly mentioned a 500-1k watch as the asset your business will rent out.

    That's the price range quite a lot of people shop in.

    You have repeatedly being asked to tell us what actual watches you would use, not price.
    I can stick an RRP of 1k on a shítter and sell it for €100, alá Invicta.
    That doesn't mean the buyer has saved €900.

    Now your club has 10 watches?
    How does that investment of 10k generate a return for you?
    Or actual worthwhile value for your members?

    You quoted a price of €10 per month earlier, what if you have your 10 watches but 11 members?
    What do you expect your ROI to actually be?




  • Gary I wish you the best, but the aim of business is to make money. If not, its a hobby and I can give you a master class on loosing money treating watch collecting as a hobby, if you go bust you are letting your customers down. I am afraid that 500-1000 euro wont buy much of a watch that anybody (even the average schmoe) would want to rent. You might think thats snobby, but unfortunately for you this is true. You are in Tag Heuer, lesser Longines, expensive seiko. Aint nobody....NOBODY....want to rent that.

    If you buy ten watches and are 10k down, you can only service ten customers. Your 10k of watches will be 4k (best case) in 3 years. So 6k lost. So without wages, promotion, marketing and advertising, insurance, shipping, insurance, shrinkage, losses and repairs etc you are 6k into this in 3 years. So your 10 customers will have to pay you (6000/10/12) = 50 euro a month to break even....or 600 euro a year. Also they would have no choice as all the watches are being rented, people will get pissed when they cant get the watch they want (nobody will want to rent these anyway but lets imagine...and lets finish the paragraph). Would you rent a 1000 euro watch for 600 euro (never mind you could buy that watch on adverts for 500 most likely)? Add in actual expenses and you are loosing money hand over fist. Each new member means you have to buy more watches so there is no economy of scale....Its just a non runner. You are thinking you could buy some Maurice Lecroix watch with a manufacturer inflated RRP of 1000 for 400 but anyone can do that, and nobody is going to fall for it.

    Work first on watch knowledge, or maybe get into the Strap and Nato business nobody in Ireland doing good quality ones that and its a good way to get into the game at low outlay. Source good quality straps and natos from China, buy in some stock and resell them.

    Cool business ideas are like assholes, everyones got one, but when people who have looked into yours & tell you it stinks..listen, dont throw a strop




  • banie01 wrote: »
    Gary, you have repeatedly mentioned a 500-1k watch as the asset your business will rent out.

    That's the price range quite a lot of people shop in.

    You have repeatedly being asked to tell us what actual watches you would use, not price.
    I can stick an RRP of 1k on a shítter and sell it for €100, alá Invicta.
    That doesn't mean the buyer has saved €900.

    Now your club has 10 watches?
    How does that investment of 10k generate a return for you?
    Or actual worthwhile value for your members?

    You quoted a price of €10 per month earlier, what if you have your 10 watches but 11 members?
    What do you expect your ROI to actually be?

    I don't actually know which watches we will use, that will come down to research and focus groups.


    as far as anything else. I will have to update when we actually finish the semantics


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  • Work first on watch knowledge, or maybe get into the Strap and Nato business nobody in Ireland doing good quality ones that and its a good way to get into the game at low outlay. Source good quality straps and natos from China, buy in some stock and resell them.

    Cool business ideas are like assholes, everyones got one, but when people who have looked into yours & tell you it stinks..listen, dont throw a strop

    I appreciate ALL of that. and thank you for another idea :)




  • I appreciate ALL of that. and thank you for another idea :)

    Well its good to have one at least.

    Maybe team up with somebody that knows about watches, not knowing your market is the failure of many a business, but usually after others have jollied you along and taken your money.




  • I don't actually know which watches we will use, that will come down to research and focus groups.


    as far as anything else. I will have to update when we actually finish the semantics

    You have just had a lot of feedback from a serious focus group (who are your target market despite what you might think. I have watches from 400 euro to 20k and have had everything in between, as do a lot of people here).

    In Ireland this won’t work. In a bigger market like the UK. Maybe but I don’t think so. There is a reason others have tried and failed. It’s a **** business model.

    If you have the sort of startup capital to try then I would suggest using it for any other venture.

    This stinks of a dell boy brain wave on a bar stool.




  • Well its good to have one at least.

    Lolled




  • 893bet wrote: »
    Lolled

    You aren't the only one who did ;)




  • I am deep into phase 6 boys. Garys got some quality business speak going on, blue sky thinking, vertically integrated, outside the box.

    bannermeme.jpg?ext=.jpg




  • I am deep into phase 6 boys.

    bannermeme.jpg?ext=.jpg

    Graph ain’t accurate.

    Based on Fitz this seems to be the longest phase.




  • Would you rent a 1000 euro watch for 600 euro (never mind you could buy that watch on adverts for 500 most likely)?

    That alone sums up why this plan will likely fail. Most of us on here buy most watches second hand. On the likes of adverts.ie for example. If you fancy one, get a good deal and when you want something else, sell it on. Will cost far less than any of the subscription models the OP is thinking off. Hell sometimes you even sell the watch for more than you bought it for!




  • 893bet wrote: »
    Graph ain’t accurate.

    Based on Fitz this seems to be the longest phase.


    KINDA LIKE...........................

    n9N5Tr8.jpg


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  • Sure, none of you guys will drop to a 700 euro watch, thats cool. I appreciate that :) ,. but lets give it a go and see how it works out.

    remember, the shame is not in the failure, its in the not trying. :)

    Thanks for all the input guys. Appreciated

    I think that's a little unfair - seems like plenty of us have 50-500 euro watches in our collections.

    I think it's somewhat related to the recent comment on the buy/sell thread about people flipping more grails or 5 figure watches than 3 figure ones. It could very possibly be related to the fact that at 3 figures for a watch, for some on this forum - it really doesn't matter too much if it is flipped or not - it's more of a light discretionary spending with disposable income - whereas to "try a different Patek" - most people kinda need to flip their existing Patek to do so.

    For example with my 1963 chrono "re-issue" - it was bought for 160-180(?) a few years ago? I'd get maybe 120ish for it now? But I won't really miss that 120 - so might as well keep in the box - if I clear it out (and the ST1901 has special meaning for me as it's a Chinese movement) I'd probably gift it to someone rather than try and get a hundred euro.

    So I think people do drop 500-700 on a watch - it's just for some - they won't really have to think twice about paying that amount - so renting wouldn't appeal at all to this branch.

    You can see in the article that scwarzh posted that the Australian business that is trying this is 1) backed by a commercial store which has stock 2) is trying to make the Pateks of the world accessible to (I guess) many in this forum who would buy Omegas etc. - so turning the 5-6 figure watches into 3 figure rentals.

    And maybe this would work on 3 figure watches into 1-2 figure rentals - and I'd wish anyone luck with a business venture, but I think it's been said numerous times already on this thread that we think more research is needed into how large your market is.

    I think practically - almost no-one on this forum at least seemed to be super enthused about the business concept of renting out affordable watches (I would see it as renting a g-shock for a few euro a month - if I really wanted that g-shock, I would just go ahead and purchase it outright). 1) I personally might buy a second hand one so if flipped it makes very little loss or 2) if bought new and flipped at half price - a 100-200 euro "loss" isn't necessarily a huge deal to some people. To some, the pleasure of buying new is worth that €100 depreciation.

    I wouldn't be able to say the same about a Zenith for example - if I bought one at full retail I couldn't turn around a week later flip for 40% off and shrug it off. So if you were renting out Reversos and the like I *might* be interested - but it would really be like that Australian store - wear one for a week to give it a test drive, if I liked it I would be saving and buying ultimately - and maybe that is how that Australian store intends to make money - "here, rent our Patek for a week... oh you like it? Well may we direct you to the sales corner of our sister company?"


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