AD Mark-up

[MrTito]

Hi all,

For the last year I have been buying through a local AD, he is predominantly IWC, but sells Rolex, Hublot and several other brands. They are a smallish family run jeweller with a good reputation and I've been really impressed with everything I've seen from then.

Anyway, my first purchase from them was for two watches - IWC Aquatimer and a Chanel J12 (for the lady). They very kindly gave me a 20% discount across the two which is obviously significant. I have just ordered another watch through them and they have been kind enough to maintain the 20% discount.

Sorry for the long intro but this set me thinking - what mark-up must they have to be so comfortable with giving me such a discount?

I have no complaints, I'm just really intrigued by how much they have to play with in the first place. I assume it must be 25% at the very least and possibly considerably more? Would anyone have an idea?

Thanks