Willingness to pay above retail - economics

[avega357]

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


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[harvey]

...yawn.

[tyler1980]

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

[Brew]

Demand, without willingness to pay is called, "theft."

[VintageVagabound]

Originally Posted by avega357

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


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I don’t know that grey market buyers pay more than retail but they buy in bulk. The AD can sell more watches quicker and exceed quotas which allows them to receive more watches from the manufacturer. It works out even better if you can buy Rolex in a cheaper place (EU/UK) and sell in a higher place U.S./Middle East

[brandrea]

Damn internet ... I keep telling my kids to stay off it

[beshannon]

So how do you like your BLNR?

[Wcdhtwn]

Originally Posted by brandrea

Damn internet ... I keep telling my kids to stay off it

Don't worry, it's just a fad.

[brandrea]

Originally Posted by Wcdhtwn

Don't worry, it's just a fad.

[watchwatcher]

Originally Posted by brandrea

Damn internet ... I keep telling my kids to stay off it

Originally Posted by Wcdhtwn

Don't worry, it's just a fad.

[Wrist King]

Should we have a separate forum section for this thrilling stuff ?

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[tyler1980]

Originally Posted by Wrist King

Should we have a separate forum section for this thrilling stuff ?

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file it under the Breitling forum. that place is hopping

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.

[Kyle3130]

Originally Posted by tyler1980

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

X2

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.

[77T]

Originally Posted by avega357

Thus I think the internet is the reason for the increased demand.

Let’s just blame it on FB & IG...



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[Nairn1980]

Originally Posted by harvey

...yawn.