I would think that selling at competitive prices while still making profit. Keeping a fresh inventory of watches so that buyers/shoppers keep checking in to see what’s new. Knowing your product. Offering some type of customer service. There’s not much of a buying experience when you do so on-line or at a local auction. If you have an actual brick and mortar store, you can offer a positive experience. My wife was making a big purchase at a Ralph Lauren store once and the fellow who was taking care of her brought me a drink, served in a crystal glass while I sat in a club chair and relaxed. These experiences stay with us.
Let's compare answers and see which forum gives the best...advice... The Struggles in the Watch Dealing Business | WatchUSeek Watch Forums
It's an easy business if you follow the formula: 1. Register your watch business. 2. Steal underpants. 3. TBD 4. TBD 5. Profit!!!
Used watch dealers are essentially the pawn shops of the watch world. Due to ever increasing competition their margins are lower and they have to find watches at low prices. Many of the established dealers buy watches at 40-50% less than they sell them for. So it’s hard to find somebody to sell their full set Rolex Sub to you for $4950 when they can sell it themselves for $8,500. That’s why a lot of these vintage watch online dealers sell on consignment. They pay nothing for inventory and just take a percentage when it sells. I think one big issue for dealers is selling stolen property. They have no idea if the watch you sell for peanuts is stolen or not and make perfunctory efforts at collecting your info (name, email, phone). If the watch turns out to be stolen the dealer would eat the cost while they try and run down Joe Blowme, their seller.
Struggles: sourcing watches way under market value, potential transit issues, storage and insurance, dealing with fraud (when buying and selling), fake watches / fake parts in genuine watches, the tax man etc
I have to add, my first legitimate visit to an OB... the customer service was amazing. I purchased a OEM leather strap for my Seamaster Agua Terra. Granted not a large purchase ($450), they gave my wife and I refreshments, she was given a bouquet of white roses, and we tried on many nice new pieces (New NTTD when it first was released). However, my most recent purchase was from an AD, over the phone. No roses, no refreshments, no laughing at my "Dad Jokes". What I did get was a ~ 20% discount on a new Seamaster Heritage. I have made a few smaller purchases from the AD as they also sell Squale and I will be using the AD in lieu of the OB. Bottom line, price, price, and price.