HOW MUCH Rolex Watch Dealers MAKE? | The Untold Truth!
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- Опубліковано 15 лип 2024
- How Much Should Rolex Watch Dealers Earn? 5%? 10%? 20%? 50%?
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I remember when Mr Thorpe came on the scene, he said that he only makes 5% on a sale. Absolutely ridiculous
Leading the way and telling the truth 🤛 Keep it up. And not the BS most grey market UA-cam dealers peddle! We know who the main culprits are!
So this is the the United kingdom Charlie Brown I've heard of
You’re definitely not a vegan brah. Because it looks like you’ve come to David’s channel looking for beef!
Stay in your lane.
Or I’ll serve you up a 2kg T-Bone you’ll never forget.
@@the_shadow_realm5110 Your boy looks exactly like that channel Opusntime says the "UK Charlie Brown" 🤣
@@zaidabarriod1784 UMBOLEEVOBOL!!!
Loving these original style David Khalil videos! An great education for retailers just starting out with virtually any product.
Even if it wasn’t for the great information, those stunning macros of the dials on my TV made this a pleasure to watch. So glad you are posting often again
Thanks David, a simple, straightforward informative guide as to the reality of how the industry operates.
I can give an exact example . 2017 I purchased a steel sub date. New from Rolex ad . 6250£ . In jan this year I was offered £7000 ok for me £750 profit. At the time these watches were advertised for 11750£ so reseller would take 4750£ . Minus expenses. Myself my business I buy a product for around £10000 . I advertise it for around 12000£ I make £700 to £800 after costs. Staff . Rental space taxes vat ect . It’s expensive running all business. I sold most of my Rolex this year as just had them sitting around getting older like me lol .
Great channel. Honest and open.
Classy and to the point as always, this is exactly how a customer would like to be informed. Great work!
You are one of the very few HONEST dealers, thanks for the info David!
Thank you David for backing up your knowledge with facts! AD’s get a discount from Rolex of 35% on each watch, before expenses. It makes sense for grey market resellers, with overhead (not working out of their house) to have a 30% markup to remain in business, provide post sales support, and make a profit.
Exactly. Plus with resellers, we need to service and warranty the watches our self but the ADs have a clean cut and any problems, the watch goes back to rolex.
@@watchcollectorsuk Good point!
That is a good point and one that can also apply to yourselves if the watch is under 5 years old
So if the margin is 20 to 30% as a customer when I am trying to value the resale of my watches I should see what the market price for my watch is and take anywhere from 20 to 30% to see what I should expect from a dealer?
@@pedramnaeni7713 Remember the resale price for your watch is different depending on if you are selling to an end-user or a dealer. The dealer will give you less because they need to make a profit when they resell to an end-user.
after watching this video, i have subscribed. thank you for your transparency.
Great video and transparency!l David!👊🏿
Another great video. I have no problem with profit. It’s the shady ways they say they scrape a profit when buying that’s insulting.
Great honest video.
I thought from the title you would be talking about Rolex ADs. 😀
Never the less an informative video. It never ceases to amaze me that people who either run or work in successful businesses which enable them to have enough money to buy luxury watches think watch dealers are any different to the margins they charge in their businesses!
All businesses need to make a reasonable profit to survive
Great information David always enjoy your videos.
Thanks for the details David, very instructive. A few real examples of low, medium and high cost watches you have bought and sold would be of interest. I have bought expensive (for me) watches which I have no intention of selling, but I can’t help wondering what they would be worth if I did sell them.
this is a very good and accurate account of being a watch dealer. Great video.
Excellent video David! Telling it like it is…..I love your honesty and common sense approach. Other grey market dealers take note!
Totally agree many customers can not see all overheads!
And the luxury to have after care.
I love these videos, your honesty and transparency clearly sets you above the rest. As a customer, do I have a better chance at getting a better buying price on say a 10k watch if paying by bank transfer as opposed to credit card due to dealer not having to pay the fees? or is the price often the price for all the reasons you set out in the video to ensure a sustainable margin? Keep up the great work David 👍
Bank transfer is always the best deal but does not provide with the same protection as a credit card incase something goes wrong. You really need to trust that dealer before you make a bank transfer.
@@watchcollectorsuk thanks for the response, thats great advice.
David you are one in a million in this industry I love your open, honest and straight forward approach...
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I'm loving these videos. THE TRUTH 👏🏻👏🏻👏🏻👏🏻
Thank you 👍👍
Very informative David 👍
This is pretty spot on i must say you are spitting facts
It’s what I thought, Great video David!!
David this is very important subject you covered in todays video. Thanks for sharing and being transparent. David does a Rolex AD normally make 30% when selling watch at Msrp?🤔
Thanks. They make more than 30% from what I know and in some cases on unpopular models even more.
Your fingers looking better. Great video 👍
Another insightful video👍🏻
Great job🤠👍
Spot on
I think if both parties are happy it doesn't matter how much a dealer makes. Great insight David.
Dubai Dick 👍
Not sure why you have to justify your profits.
He's not! He is helping those that don't understand how dealers work! And being transparent. Not like other lying dealers and channels!
Fair to say 2021-2022 was exceptionally profitable for the more professional watch dealers?
Good video David,
So if you sell a £10k watch you bought it for £7k ( 30% profit ) is that right ?
( I know you said the margins vary from 10% ~ 30%.
If you only took a 10% margin on a £10k watch (the profit would be awful,£1k minus expenses is not a good profit margin I would suggest )
Anyway,
If you paid the seller £7k and sold it for £10k do the additional costs you mentioned come out of the £3k initial mark down you purchased the watch for ?
If so,what profit is left from the initial £3k markdown ?
So do you mean the profit is £3k before or after expenses ?
Obviously any LTD Company business can claim back the VAT,advertising expenses,pay a salary in shares and dividends etc etc.
Thanks.
Lance.
You better be careful being a good honest man isnt good for the watch cartel ,seriously love your latest videos keep up the good work
Yea 25-35% sounds about right. That's the hit you will take on a Sub when you try to sell it to a dealer, they then sell at market
It’s interesting that this is even a topic for debate. It should be clear to most, that running cost isn’t 5% of a 10k watch. However, it’s at the same time, a bit difficult to point fingers, when grey dealers on UA-cam for the better part of three years, has told end users “but we are only working on 5% margins😇”
There is a lot of “damage” to undo and trust to rebuild. Hopefully secondary market will be back to normal quickly.
Bravo Sir
Respect
I'd say 30-40% is more true. Never sell, you're just throughing money down the s#iter
Sounds more than reasonable
Either you’re paying for a very expensive service or cheap service if it’s costing you the same to service a 10 or 100k watch…..
Some of them have the same movement. It could be that one watch is gem set and one isn’t.
There is a very likeable watch dealer very prominent on social media etc. I noticed a recent uptick in his spending on luxury items and the like. I see he has amassed a healthy following of just under 2mil subscribers. How much of his wealth is derived from selling watches, and how much from social media clout?
I really like his content, albeit a bit ott sometimes, but still good content. I would hate for him to go the same route as other watch YT'bers that got caught with the hand in the cookie jar. Not that I am implying he does, just a noticeable up in spending on cars etc and just wondering which is his bigger income stream?
Do dealers sell fake as original? If they do, what percentage of dealers do that? I've seen many videos by producer michael where dealers show rolexes exactly like replica packaging!!
I think you picked up on my comments from your last video? No business unless doing extremely high volume can work on 5% profit.
Having been in business 35 years I know when you hear lies from dealers on their profit margins. That’s why the consignment margin at 10% isn’t enough to keep a business successful especially in the current market where’s there’s not the volume of customers buying.
I would assume that, since im seeing used submariners at $9800 american now, that demand will go down. People cant buy at $8900 then take less for the dealer to sell at $9800. Either the dealer wouldnt get their 20% or the buyer would take a loss. And lets be honest.. the dealer is getting their 20-30% lol
Nothing wrong with making a decent profit and the figures you mention seem fair but I doubt those are fixed percentages. I know from my own experience of buying and selling (not in the watch business) that the aim is buy cheaply and sell for the best price. An experienced dealer can smell a forced seller and will squeeze appropriately. At the selling end the same dealer can tell if a potential client will be compliant as to price or more likely to walk if he doesn't get the deal he wants. Of course the watch business may be full of saints who treat all comers the same but I doubt it. That aside your video was more honest than most. One only has to compared offered prices to bid prices on watches to know most claimed ten per cent dealers are lying through their teeth!!
I think the dealers that you are aiming this video at 95% of the stock is new unworn Rolex or with in the manufacturers warranty So they mostly won't even need for a watchmaker or any work to be carried out They just in it to flip for easy money but I think they're time is up now David cos to many pop up watch dealers on the hype train with no business model or establishment
I had a AD once offer me 25% off on a new Rolex if I paid cash. That meant the dealer avoided a credit card fee. The higher the price for a watch, the more negotiation power a consumer has.
Unless it is a Patek Philippe Nautilus!
@@iankuah8606 As hard is it is to believe in 2023 you could buy a Nautilus new with no wait list about 15 years ago for around $13,000. No one wanted the plain dial version back then. Today people pay crazy money at a premium amount. And the Nautilus is not even the best watch Patek Philippe makes.
So roman of LB identifying as a charity and paying no ebay fees isn’t to help the kids ?
Doesn't identify as a charity. He has luxury bazaar which is a normal business and he also has a charity. The main business is not the charity. My comment was not on people that do charitable work my comment is about people that say they buy and sell to help people or they offer consignment to help people. Unless it is a charity, a business runs for profit.
We do charitable work on the side of our business, it doesn't mean watch collectors is a charity and it doesn't mean watch collectors was set up to help people. Our business was set up to make money. Charitable work we do on the side has nothing to do with why we set up watch collectors
You have always seemed a sound guy, but all you have done is confirm that I only want to buy at list and keep the watch.
I understand but depending on the watch that you are after, sometimes buying at list is cheaper and sometimes buying at list is a lot more expensive. So there is an advantage and a disadvantage to both scenarios.
@@watchcollectorsuk
I 100% agree on your profit margin by the way.
Unless you are making 20-30% margins (at the higher end), you would really be wasting your time being in business. 5-10% margins... thats just a sneaker flipper lol. Great insights, David.
If you look at stock market listed car dealer PLC groups they mostly report 1.5 to 2% profit on a turnover of 100s of millions. Meanwhile their Board of Directors take huge salaries and have generous pension funds. The real money is in the bricks and mortar etc. when they eventually sell out to a larger group. No small business could survive on such slim margins.
During the hype years a lot of dirty money has been laundered via high priced watches, especially RMs. Everybody that was in on it made their cut and kept their mouths shut.
Make Money from a business
How very dare you
😂😂
You need to make a profit or you go bust !!!!
This a grey market dealers I assume
this guy knows nothing.