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MJCox · 3 July 2010, 08:18 AM

How do sites like Ashford and Gemnation sell name brand watches, and some super high end at deep discount prices? Are they refurbs? Do they buy out closing stores inventory? How do they do it and can they be trusted?

sakuraba · 3 July 2010, 01:40 PM

IMHO anyone not listed as an AD would be Grey Market.

As for how they do it, I haven't the slightest idea. Maybe super sellers bodybump, DavidSW and Tony Geha can answer your question.

George Ab · 5 July 2010, 05:39 PM

My understanding is Rolex only sells to AD's. However, those AD may not stick to the rules such as selling at maximum discount of 20%. Considering I estimate that AD obtain there watches for 50% of MSRP (for Rolex and deeper for others) , they may decide to skip the rules and slip them out their back door to other sellers, making a quick 10% (hypothetical numbers for demonstration purposes). The watches may come from an AD from the Virgin Islands for example. In the past some watches from these "types" of sellers had the serial numbers were removed so there could be no trace back to offending AD. However, that seems to be a thing of the past. Usually when you buy from these companies they will warrant the watch themselves. So to answer your question, no they are not refurbed units, but they have gone around the system.... a system that supports this industry.

MJCox · 6 July 2010, 12:41 AM

Thank You.

Nicko · 6 July 2010, 12:49 AM

Quote:

Originally Posted by George Ab

My understanding is Rolex only sells to AD's. However, those AD may not stick to the rules such as selling at maximum discount of 20%. Considering I estimate that AD obtain there watches for 50% of MSRP (for Rolex and deeper for others) , they may decide to skip the rules and slip them out their back door to other sellers, making a quick 10% (hypothetical numbers for demonstration purposes). The watches may come from an AD from the Virgin Islands for example. In the past some watches from these "types" of sellers had the serial numbers were removed so there could be no trace back to offending AD. However, that seems to be a thing of the past. Usually when you buy from these companies they will warrant the watch themselves. So to answer your question, no they are not refurbed units, but they have gone around the system.... a system that supports this industry.

Very interesting, thanks for that info. Now, I wonder, if the AD buys them at 50% off, then what does it cost Rolex to make, say a Sub Date?

drtooth73 · 6 July 2010, 01:02 AM

Nicko: not much.
Most of $7K is profit. 10% is advertising, 40% or $2800 minus overhead is AD's profit,
I'd guess the cost of manufacturing one should be about 20% of the total price, about $1400. Thats the typical sales model, I might be off by a couple hundred.

Nicko · 6 July 2010, 07:42 AM

Quote:

Originally Posted by drtooth73

Nicko: not much.
Most of $7K is profit. 10% is advertising, 40% or $2800 minus overhead is AD's profit,
I'd guess the cost of manufacturing one should be about 20% of the total price, about $1400. Thats the typical sales model, I might be off by a couple hundred.

Shameful...

crockey · 7 July 2010, 04:20 AM

I thought the profit margin was much slimmer for AD's. No?

3 July 2010, 08:18 AM	#1
MJCox Member Join Date: Aug 2009 Real Name: Michael Location: SATX Watch: Air-King Posts: 57	Can someone explain Grey Market to me? How do sites like Ashford and Gemnation sell name brand watches, and some super high end at deep discount prices? Are they refurbs? Do they buy out closing stores inventory? How do they do it and can they be trusted?

3 July 2010, 01:40 PM	#2
sakuraba "TRF" Member Join Date: May 2009 Real Name: Jib Location: SJ, California Watch: sun dial Posts: 8,189	IMHO anyone not listed as an AD would be Grey Market. As for how they do it, I haven't the slightest idea. Maybe super sellers bodybump, DavidSW and Tony Geha can answer your question. __________________ F 14000 AirKing black F 16710 GMT Pepsi F 16570 Explorer II white T 16600 SD D 16610 LV "fine quality is remembered long after the pain of spending money" -Steve Mulholland

5 July 2010, 05:39 PM	#3
George Ab "TRF" Member Join Date: Aug 2009 Real Name: George Location: Seattle Watch: One of Them Posts: 6,924	My understanding is Rolex only sells to AD's. However, those AD may not stick to the rules such as selling at maximum discount of 20%. Considering I estimate that AD obtain there watches for 50% of MSRP (for Rolex and deeper for others) , they may decide to skip the rules and slip them out their back door to other sellers, making a quick 10% (hypothetical numbers for demonstration purposes). The watches may come from an AD from the Virgin Islands for example. In the past some watches from these "types" of sellers had the serial numbers were removed so there could be no trace back to offending AD. However, that seems to be a thing of the past. Usually when you buy from these companies they will warrant the watch themselves. So to answer your question, no they are not refurbed units, but they have gone around the system.... a system that supports this industry. __________________

6 July 2010, 12:41 AM	#4
MJCox Member Join Date: Aug 2009 Real Name: Michael Location: SATX Watch: Air-King Posts: 57	Thank You.

6 July 2010, 01:02 AM	#6
drtooth73 Banned Join Date: Feb 2009 Real Name: W. Stutman Location: Motor City Watch: TT GMT IIC Posts: 2,223	Nicko: not much. Most of $7K is profit. 10% is advertising, 40% or $2800 minus overhead is AD's profit, I'd guess the cost of manufacturing one should be about 20% of the total price, about $1400. Thats the typical sales model, I might be off by a couple hundred.

7 July 2010, 04:20 AM	#8
crockey "TRF" Member Join Date: Nov 2008 Location: Westfield, IN Posts: 256	I thought the profit margin was much slimmer for AD's. No?

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