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26 February 2019, 06:51 PM | #1 |
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Willingness to pay above retail - economics
Well it’s simple, ADs sell to greys at higher prices than the retail price because greys can sell at a premium due to high willingness to pay.
You always hear the word demand but if you cage it in economic terms it is actually a concept called willingness to pay. People want the watch now, so they are willing to pay higher to have the watch immediately The demand comes into play because it has become a cottage industry of selling through the internet, the internet has become another distribution channel. Thus I think the internet is the reason for the increased demand. Yes demand is half the reason for the shortage but the other half is willingness to pay above retail by many people driven by this new distribution channel called the internet Sent from my iPhone using Tapatalk |
26 February 2019, 07:06 PM | #2 |
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...yawn.
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26 February 2019, 07:09 PM | #3 |
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economically speaking a manufacture retail price separate from the economics of supply and demand is no different than your employer instituting a maximum wage and keeping all your hourly pay after you meet the limit.
AD's are not allowed to operate in the same free market individuals and dealers are. The irony is that people justifying flipping watch and citing the "free market" are only able to make money that way because the market isn't free for the AD who sold it to them. Its rent control for watches
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27 February 2019, 12:48 AM | #4 | |
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This is why AD’s always have empty display cases. Rolex won’t allow them to sell above RSP or they will loose the brand entirely. People here complain about AD’s not having stock but they are the ones getting screwed in this environment because their profits are limited. People are “willing to pay” the AD’s because it’s the cheapest price in town.
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27 February 2019, 08:25 AM | #5 |
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26 February 2019, 07:12 PM | #6 |
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Demand, without willingness to pay is called, "theft."
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26 February 2019, 10:15 PM | #7 | |
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Quote:
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26 February 2019, 10:17 PM | #8 |
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Damn internet ... I keep telling my kids to stay off it
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26 February 2019, 11:04 PM | #9 |
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26 February 2019, 11:07 PM | #10 |
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26 February 2019, 11:18 PM | #11 |
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26 February 2019, 10:39 PM | #12 |
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So how do you like your BLNR?
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26 February 2019, 11:30 PM | #13 |
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Should we have a separate forum section for this thrilling stuff ?
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26 February 2019, 11:48 PM | #14 | |
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hate to admit it, but whatever forum it was in would have the most traffic. Its like watching a car wreck. You hate looking, but you do anyway.
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Instagram: tyler.watches current collection: Patek 5164A, Patek 5524G, Rolex Platinum Daytona 116506, Rolex Sea Dweller 43 126600, Rolex GMT II 116710LN, AP 15400ST (silver), Panerai 913, Omega Speedmaster moonwatch, Tudor Black Bay (Harrods Edition) |
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27 February 2019, 12:51 AM | #15 | |
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Let’s just blame it on FB & IG... Sent from my iPhone using Tapatalk Pro
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