Threads are overhyping the selling price of Grey Professional models

[Bobby T]

Originally Posted by seabreeze60

Fleetlord,

I have read threads and posts that talk about paying 50-100% over the MSRP for SS Professional models. I’m simply stating that’s a huge markup for flipping a popular Rolex in a short period of time.

Just making a point.

Is this some new, sudden revelation to you........something you felt needed to be brought to our attention as if we have no idea what's going on in the Rolex grey market??? I mean......wtf

[seabreeze60]

Originally Posted by JacksonStone

Just imagine how those of us who have been here longer feel. We remember when it was different.

I remember when members would post that they would not pay one penny over MSRP.

SS has always been a good investment. No question.

[Calatrava r]

I think retail buyers are flipping to the grays due to the quick profit to be made. I do not think ADs are selling to the gray market as many suggest here. When I buy a new Rolex at an AD they run the warranty card through a machine supplied by Rolex and Rolex knows of the sale immediately. This is why some dealers are holding the warranty cards. That way they can prevent buyer flipping.

[seabreeze60]

Originally Posted by Bobby T

Is this some new, sudden revelation to you........something you felt needed to be brought to our attention as if we have no idea what's going on in the Rolex grey market??? I mean......wtf

Correct. No one has addressed margins. The more you pay over MSRP the bigger the risk!

[AK DeepSea]

This forum is great but the amount of repeat, regurgitated, recycled topics is exhausting.

[Calatrava r]

I suspect dealers selling Daytonas or Pepsi s for 20K plus are paying 15 to 18K for these watches. If people are flipping for quick profits they are obviously selling their watches to grays over MSRP and local taxes. Test it yourself call a gray and see what they will pay you a new unworn Daytona or Pepsi. Its a lot more than MSRP.

[Calatrava r]

Originally Posted by AK DeepSea

This forum is great but the amount of repeat, regurgitated, recycled topics is exhausting.

Its driven by the frustration of people being unable to obtain the SS Rolex they want. They have to vent somewhere.

[ian.thomas]

Originally Posted by AK DeepSea

This forum is great but the amount of repeat, regurgitated, recycled topics is exhausting.

Amen.

[JacksonStone]

Originally Posted by seabreeze60

I remember when members would post that they would not pay one penny over MSRP.

A lot still do. Some are willing to pay over MSRP, obviously. That's their choice.

Originally Posted by seabreeze60

Now posts glorify newbies for purchasing a new $7500 Submariner for $12000 as brilliant!

I think you're exaggerating a bit. No new/unworn no-date Sub is selling at a reputable gray or TS for over $10k, let alone $12k. Specifics aside, I don't see much "glorifying" of paying over retail. Rather, some people recognize it's what has to be done in the current market if (1) one doesn't have a good relationship with an AD to be able to buy at retail, and (2) one really wants a given watch now, and isn't willing to wait until some indefinite time in the future when gray prices will come down. But if you can show me some "glorification," I'm open to seeing it.

[seabreeze60]

Originally Posted by JacksonStone

A lot still do. Some are willing to pay over MSRP, obviously. That's their choice.
But if you can show me some "glorification," I'm open to seeing it.

Here’s the thread that got me thinking! It came out this morning.

Originally Posted by cli575

I've been following this forum for couple months now and the market trend seems to suggest only sports watch (for both Rolex and PP) could hold value. I know we always say buy what you like, but deep down we also prefer it can hold value too. But current trend seems to suggest you either pay 50-100% premium for a Sub, GMT, Datytona, Nautilus or Aquanaut for that value holding power, or dont buy at all. No matter how many watch enthusiasts say there's value in DJ, Calatrava, they just dont have the attention they deserve. I own a Kermit and TT DJ, and wanna branch out to more dressy watch like Calatrava, Portugese. But this never-ending trend makes me think twice if the market knows something I don't and make me hesitate to fork out a good sum of money which many warns the value would be cut 15% the second i walk out the door...appreciate any insights or thoughts.

[Burlington]

Anything is only worth what you are prepared to pay for it.

[JacksonStone]

Originally Posted by seabreeze60

Here’s the thread that got me thinking! It came out this morning.

I still don't see glorification of purchasing at a premium. Most comments in that thread are regarding a realistic view of value retention, and accepting some depreciation as a normal part of watch buying. A few comments match my description of accepting the reality of the current market, which is that in order to buy the Rolex you want now, you may have to pay a premium to get it.

[seabreeze60]

Originally Posted by JacksonStone

I still don't see glorification of purchasing at a premium. Most comments in that thread are regarding a realistic view of value retention, and accepting some depreciation as a normal part of watch buying. A few comments match my description of accepting the reality of the current market, which is that in order to buy the Rolex you want now, you may have to pay a premium to get it.

I’ll agree with your description.

[Fat_ninja]

Okay then

[brandrea]

Originally Posted by seabreeze60

I remember when members would post that they would not pay one penny over MSRP.

SS has always been a good investment. No question.

I’m so old, I remember discounts

[faz]

Originally Posted by brandrea

I’m so old, I remember discounts

Yes, I bought my first 4+ rolexes at a discount from local AD. Good old days!

[capote]

Originally Posted by beshannon

Any place to talk about watches?

You know, I even miss the ”Show your Rolex and [insert random thing]” threads. At least the focus was on the actual watch back then.

[brandrea]

Originally Posted by faz

Yes, I bought my first 4+ rolexes at a discount from local AD. Good old days!

You and me both brother

I could be wrong, but if memory serves I bought my first Rolex a 5 digit Seadweller back in 1992 and I believe I received around a 20% discount and paid around $3000 ... someone will come around to correct me if im wrong on the math I’m sure

[RJRJRJ]

Originally Posted by brandrea

I’m so old, I remember discounts

You only need to be like 2 years old to remember discounts

[ROLMARINER]

Originally Posted by Calatrava r

I suspect dealers selling Daytonas or Pepsi s for 20K plus are paying 15 to 18K for these watches. If people are flipping for quick profits they are obviously selling their watches to grays over MSRP and local taxes. Test it yourself call a gray and see what they will pay you a new unworn Daytona or Pepsi. Its a lot more than MSRP.

Agreed. AD's are benefiting right now. Most of aren't part of a large conglomerate, they're mom-and-pop jewelry shops trying to compete in small towns with all the issues of running a small business from low traffic to high rents to matching internet pricing to oversized payrolls. So if they get 1 or 2 BLRO's a year and can flip them to a grey for a $5K instant profit and offload some PM and DD inventory to free up cashflow it's a major win for them.

[siempreko]

Was this inverted, or simply run as a double blind test? What are the non variable factors, which must be considered?


Sent from my iPhone using Tapatalk

[eco8gator]

A reasonable markup is whatever someone is willing to pay for it...

The gray dealers are just mining and every now and then they get sold a gem and they make a huge profit.

[WJGESQ]

Originally Posted by ALF61

First, you have to get your terms and numbers right.

markup does not equate to profit margin. If you mark up and $8,000 watch to $ 10,000, you are effectively marking up 25%, not 20%, for a profit margin of 20% of the sale. If you mark up 50% over cost, you end up with a 30% profit margin on the sale price.

Thats a nutty spread-delta for a watch that is in such high demand and would require little effort to sell and next to no holding cost. I'm not selling you a watch for 7k for you to sell it for 9k plus unless I'm super desperate.

[WJGESQ]

Originally Posted by ian.thomas

Amen.

Wait.


Say that again.

[Nikrnic]

Who knows what greys really pay since they bundle.

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[ROLMARINER]

Originally Posted by WJGESQ

Thats a nutty spread-delta for a watch that is in such high demand and would require little effort to sell and next to no holding cost. I'm not selling you a watch for 7k for you to sell it for 9k plus unless I'm super desperate.

As someone who recently bought a BLRO from a grey, I knowingly paid $1,000 more than I could have because I chose to purchase from a safe TS as opposed to a one-off individual flipper who does not offer the same assurance.

So it's not a matter of flippers being super-desperate; it's them understanding that buyers shelling out $18K+ in an online purchase are looking for a safe seller and a no-stress transaction. Some guy who sold a few used Seiko's in the forum marketplace gets lucky and finds a BLRO at MSRP, that's not someone I'm buying from.

[watchwatcher]

Originally Posted by seabreeze60

Given that all Grey’s purchase at MSRP from an AD.

Really? Know this for a fact, do you?

[HogwldFLTR]

Watch resellers sell for a mark-up and for what the market will bear. No problem with hype.

[seabreeze60]

This!

Originally Posted by JacksonStone

It's only a matter of time. Some of us have tried to cajole him into some sense of self-awareness, but it isn't working.

Speaking of over/under, who won the pool on how long it would take him to mention yet again he spent $18k on his BLRO?

[JacksonStone]

Originally Posted by seabreeze60

This!

Whoah...you broke the time/space continuum.