Second hand watch dealers and gray dealers make money cause when you sell them they normally offer few thousand below from the market value. So when they sell they can pocket few Thousand dollars. I spoke to dealer regarding some pieces I owned for example, my rose gold Daytona this dealer in Singapore offering 29,000 sgd for it but they selling a similar piece for 34,500 sgd. instead of selling to dealer I sell to buyer myself. Another example is a dealer in Melbourne Australia I enquired about selling off my nautilus + cash for his 5980. He said he will give me 20k AUD for the nautilus. I just say no thanks I can get 27-28k aud if I sell myself. Also there is a dealer in Sydney Australia that sold blue dial nautilus for 28,800 aud hand piece. He had that piece on the market for less than a week. My point is the dealers will buy from you got thousands of dollars less and sell for way more that's how they make the big $$$$. Buy if you buy pieces hard to shift then hard to sell. That's why I try to limit myself to sought after pieces.
AD make big money cause they buying it at cost maybe 50% off retail. I don't buy my watches from AD unless it's really sought after piece with good price with strong value retention.
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I disagree.
Yes, used watch dealers do buy watches at a lower price that market selling price.
We have to also consider their overheads for running a brick and mortar place.
For every 1 watch they sold, there might be 10 waiting for buyers.
In order to make the profit, watches have to be sold.
Holding costs have to be calculated as well.
What about warranty costs?
Some preowned shops offer 3-6 months warranty period, that also eats into their margins.
