zach blas
As many disciplined collectors already know, when you buy a watch, you may need to sell it to offset the cost of a new purchase. This is a phenomenon known as the “one in, one out” rule. As someone who has been known to swap faces from time to time, I thought I’d take a look at the main ways you can sell your watch, and a little bit about the pros and cons of each. As it turns out, your watch may not be worth as much as you think, and its value can largely depend on how it’s sold.
Your watch isn’t always worth as much as you think
For better or worse, there is a growing interest in the value of second-hand items in watch collecting. Thinking of watches as potential assets is not new. Building a watch collection has always involved speculation. But brands like Rolex, Patek Philippe and Audemars Piguet are more out of reach at retail stores than ever before, and people now know they can earn a handsome profit in the process. I’m trying to flip these products. However, profiting from watches is not as easy as you might think. Indeed, selling a Rolex Daytona Le Mans at retail is inevitably profitable, given that the watch sells for three times (or more) the retail price. However, you are lucky to get an assignment. All kidding aside, depending on the reference and sales method, you might be surprised at how much you actually receive and what the watch is actually worth.
How the watch is sold will determine the actual price
There are many ways to sell your watch, and simply put, each route has tradeoffs. Some methods allow for faster transactions with less risk, but also lower selling prices. It may require more effort, time, and patience, but the rewards may be higher.
Sell (or trade in) your watch to a second-hand dealer
Selling to a known second-hand seller is the safest way to remove a watch from your collection. These dealers typically recognize and promote this element of their business as a “cash now” opportunity. There is almost no waiting time or effort. Usually all you need to do is send us a photo of your watch for a free quote. If the offer is of interest to the seller, a mailing label will be arranged by the seller to receive and inspect the metal watch. Once the watch is in the vendor’s hands and cleared through customs as described, the vendor will typically mail you a check, wire transfer, or even pay you in cash within a few days of receiving the watch. The process takes just a few days from start to finish.
The trade-off to this simple process is that the vendor ultimately has to set aside a margin after the watch is listed. That margin typically ranges from 15% to 25% of the price. So if you own a watch from a desirable brand that isn’t the most desirable reference, you’ll need a secondary market value of more than 25% of the retail price to make a profit.
As an example, I once contacted a well-known second-hand seller to find out the reference price for a Rolex Submariner. Before deprecation it will be 114060. I actually had no intention of selling it, but I was more curious than anything. However, I was surprised by the sale price offered. After all, the Rolex Submariner is a popular watch that retails on the second-hand market. I replaced two watches and “paid” about $8,300 to get them, including the original box, paperwork, and warranty.
At the time, 114060 was listed for over $10,000 on sites like Chrono24, so I was confident that the vendor would at least offer me a little more than I paid. The asking price ranges from $7,500 to $7,800, which would be a loss on a watch that trades above its retail price.
If you do the math, 20% off $10,000 is $8,000. So if you buy from me at the price offered and sell for maybe a little over $10,000, you’ll hit the 25% that vendors are trying to achieve when they sell their inventory. This may seem like a bit of a hurdle, but in fairness, selling your watch to a vendor essentially takes the workload off your shoulders. They have to spend time listing, advertising, and photographing their watches, all of which costs money.
Sell watches through the platform
The next thing you might think is, “The margins are a waste, so I’ll do it myself.” At this point, you’ll probably be listing your watch on platforms like eBay or Chrono24, like you would with many other things. The advantage through this method is that you can determine the price. You can decide how much you think your watch will sell for, and the more realistic you are, the more likely it will sell. You may see desirable watches listed for astronomical prices, but often those listings remain dormant with little inquiry from anyone other than hagglers. You should also be aware that such listings can distort the value calculated on the platform, giving the impression that the item is trading higher than it actually is.
When determining your asking price, remember that all platforms charge a commission when selling watches through their services. Sellers may incur multiple fees through listing fees, merchant fees, and transaction fees from payment processors such as PayPal. Also, to make listings more attractive, most sellers will advertise free shipping, but many will include a fixed amount in the asking price to cover potential costs. If you’re too greedy, your list will lose its appeal. If you’re too merciful, you could lose money.
As an example, a few years ago I listed and sold a watch for $4,500. The watch’s original price was just over $4,000, so my price was an attempt to ensure I made no profit or loss on the sale. But the seller’s fee was over $500 and the transaction fee was another $100 or so, so I ended up taking a small loss on a watch that many people would have tried to flip. The difference is that brands aren’t willing to put a high premium on a watch that they don’t allow to be flipped for profit, and my watch actually sold for much more than that price. This means that other watches remain unsold.
To better understand the fees for watch sellers on eBay, eBay says the fees for the Watches, Parts, and Accessories category are now “15% of the calculated gross sales amount up to $1,000.” has been. 6.5% on the portion of sales over $1,000 per item and 3% on the portion of sales up to $7,500 calculated per item up to $7,500. ”
For a watch that sells for $10,000 in the US, this equals $150 (15% of 1,000) + $422.50 (6.5% of 6,500) + $75 (3% of 2,500), which equals $647.50 .
However, in the “Jewelry & Watches” category, the seller’s commission is “15% if the total sales amount is less than $5,000, calculated per item, and 9% if the total sales amount is more than $5,000.” has been. Item by item. ” A watch sold for US$10,000 would fall into the 9% category and incur a fee of US$900. So, you will pay more depending on the category you choose, but I think the “Jewelry and Watches” category will give you more natural visibility and promotion on the platform.
Again, these mathematical breakdowns do not include transaction fees that may be incurred by platforms such as PayPal. But at the end of September, eBay announced big news for UK vendors, giving them “freedom to sell across categories.” Therefore, be sure to check the rates specific to your area. The above list is for the United States.
Sell watches through private/forum sales
The way to make the most money, or at least minimize commissions, is through private sales. Ideally, you have a friend who wants to buy your watch, they send you cash via wire or Venmo, and the case is solved. But it’s not always easy. If you don’t have any friends who are interested, the next step is to post your sale on a forum where watches are regularly sold, such as Watchuseek, Reddit, or Facebook. The problem here is that all the work is up to you. Create listings to drive sales, vet potential buyers, and close deals.
If you manage to find a reliable buyer and a buyer who trusts you, you can receive cents of the final sale price, depending on the payment method you choose. For watches that are expected to trade for around 10-15% below retail price, this is the only reliable way to really see the profit margin. The problem is that this can take some time. Patience is key, but if someone shows interest, that’s the only path you can make on watches that trade above retail price, but there are a number of options that platforms and vendors take. Within the wax window margin.
sell watches at auction
When we think of auction houses, we usually think of buyer’s premiums as how they make money. In fact, the seller also incurs a fee, but it varies on a case-by-case basis. According to the Phillips Auctions website, “For all items, Phillips charges sellers a sales commission and sales-related costs, which typically include insurance, transportation (if using one of our shipping partners), and repairs. These fees will be discussed with you at the time of commission. ”
This means that auction houses like Phillips receive a substantial buyer’s premium, as well as fees and compensation for their cataloging, advertising, transportation, and possible restoration efforts. There is no set formula for calculating seller fees, as these fees vary by lot and shipper relationship. But the good news is that everything is negotiated in advance before the watch is officially commissioned.
As a result, although the auction business can be very lucrative, it must be said that the cataloging process is labor-intensive. Each auction house has its own system and fees, so be sure to familiarize yourself with them. And with the right watch, the final hammer price can be quite high, so you can earn more after fees. Finally, it’s important to note whether the auction house has a rolling live auction like LoupeThis, or a primarily seasonal auction like Phillips, Sotheby’s, or Christie’s. This determines the period from consignment to final sale.
Auctions, especially those held by houses that spend a lot of marketing effort to promote their sales, generate buzz in a way that no other method can. But it all depends on the clock. Should I take a random Seiko 5 to Sotheby’s? Probably not worth your time or theirs. But if you’re in the market for a new Paul Newman Daytona, you’ll be hard-pressed to get a better sale than a major auction house.
final thoughts
With all of the above in mind, before you sell your watch, make sure you know what the market is for the watch in question and how much it could realistically sell for. During the sales process, always consider the time-to-cash ratio and any fees that may be incurred. Like any money-making scheme, if it sounds too good to be true, it probably is.
