However, due to the supply and demand issue described earlier, this has presented a new opportunity for scalping. If you are a customer who is able to buy a Rolex Submariner from an authorized dealer, this will set you back around $9000. The decreased supply, coupled with the increased demand has caused prices to increase significantly. And this is specifically why grey market dealers are disliked today.Īs the popularity of Rolex has skyrocketed, the brand has held back its production and caused a decrease in supply. This is because they could often offer lower prices – specifically on Rolex sports models. Just 15 years ago, grey market watch dealers were a lot more loved and appreciated than they are now. However, watch prices are mostly based on supply and demand. Of course, the dealer must pay taxes, rent, salary to employees and afford to put food on their table. This is a common misconception of a grey market watch dealer.

The main reason for this is that dealers will be viewed as greedy for selling watches for more than they are worth. The grey market has become hated by some watch buyers in recent years. Why Do People Hate The Grey Watch Market? Simply because they have never sold this brand or come into contact with it before. An AD that does not deal with Patek Philippe may have no idea what a Nautilus is, or how much it’s worth. In addition to this, not all AD’s have contracts with every single brand. Often staff in authorized dealerships will only know facts about the current range and nothing about models that existed before they had this job. The average grey market dealer will have a very broad knowledge across a variety of models and brands, this is simply not there with an authorized dealer. Knowledge Of The Productĭue to the fact that a grey market dealer is selling watches to feed his family, he (generally) knows a lot about what he is selling. When buying from a reputable dealer, they will always look to fix any problems you may have since their reputation and business are worth a lot more than $10000. If buying from an individual, you could always be tricked with a cloned watch or something with a movement problem not realized until days later.

The risk is also mitigated when buying a preowned watch. When selling to a dealer, this risk is completely eliminated. However, with the increase in watch crime, this is often a surcharge worth paying.ĭesperate individuals have and will continue to try and steal luxury watches in order to try and make money. If you are selling your watch to a grey market dealer, you will likely get less money than you would from a private individual. As they make money from each transaction, they will be happy to help you find what you want.Įliminating Pitfalls & Dangers Of Buying A Preowned Watch There are hundreds of grey market dealers with their own reputation and stock all across America. If you ever wish to sell your watch, or part-exchange it for a new model. If you were to take a Submariner home from the store, at current price levels you might make a 20% profit. As an example, taking a Panerai home from the store may remove 25% of the original sales price. Most luxury watches depreciate (or appreciate) at different values. Without the grey market, it would be very difficult to value your own watch and find a buyer. The grey market provides a useful exchange of preowned watches. If you want to buy the hottest and most profitable models to resell, you must also buy the less popular and out of fashion models too. This is mostly beneficial for the large watch brands since they are able to force AD’s to buy their entire range. In addition to this, they are also forced into secrecy about disclosing how much they pay for each watch, along with various other contractual terms. Often referred to as AD’s, authorized dealers are limited on the number of pieces they can buy from each brand of a particular range. They have been authorized by elite brands to sell their brand new products. Authorized DealersĪuthorized dealers are exactly what their name suggests. Since they buy and sell watches regularly, they will often have a lot of variety, somewhat comparable to an authorized dealer. Grey market dealers will usually operate in cash payments (through bank transfer), but can also offer other deals such as part-exchanging models for other stock. The simple function of a grey market watch dealer is to buy a used watch from one individual and sell this watch to another individual for a profit. They do not sell fake watches, they do not sell stolen watches. Grey Market Dealers Are More Open Than Authorized DealersĪ grey market Rolex dealer is simply a second-hand watch dealer.Why Do People Hate The Grey Watch Market?.Eliminating Pitfalls & Dangers Of Buying A Preowned Watch.

Reputable grey market watch dealers