Community Stories

Learning the Grey Market Trade

RuGaFe
Posts
42
Likes
8
I’m glad my comment prompted a reasoned response from you. And no offense taken.

that is why I would like to learn the trade from a gray dealer, not just on how to sell, but learning about watches, as you said, inside and out.

Any pointers on how to connect with one? I have tried already with no success.
 
RuGaFe
Posts
42
Likes
8
STANDY STANDY
Three points to learn
1)
The 33% rule.
2)
Learn retail first. ( Or sell drugs - this is a quicker way to learn retail 😉 )
3)
You need to network to find the stock cheap enough to make money


I am a butcher by trade and you have to know the price of a cow to work out how much to sell each cut of meat to make your profit.
You can't sell sausages for the same price as fillet steak and doing in reverse you go broke.

Everything you buy and sell has the same principles

Grey market you need big dollars to buy alot of stock that has good sellers and bad sellers.
This is not something you could do as a side gig in my opinion.
 
RuGaFe
Posts
42
Likes
8
Thank you for the response. The analogy you presented is very helpful. As I mentioned I Have no sales experience and that’s why connecting with a gray dealer would be ideal. The problem is that getting to do that seems very tough.
 
RuGaFe
Posts
42
Likes
8
Walrus Walrus
Have you considered a watch blog or something of the sort? There are very few upscale watch sellers in my area and I actually did approach one about availability of any positions. Doesn’t seems like it’s an easy gig to just walk into. I actually talked to the owner and it was a no go. They weren’t seeking help and didn’t expect to for some time. That’s just as well I’m a really bad sales person I was more seeking knowledge and discounts. Some guy posted here a while back he had started a watch blog and was doing quite well. I guess his name was getting out and he was being sent things to review. I know that’s not a lot to go on but I’m not a blogger nor do I have an interest in being one but I guess it could be a creative way to achieve what you may be seeking. Sorry cant be of any further assistance. Watches for me are about money going out not coming in. There are plenty here who do very well selling watches but I don’t think it’s the type of thing people like to share sources and tips and what not. I wouldn’t know how to go about getting in with a grey dealer unless you had a couple hundred K and said “let’s yolo on watches” but who knows, life is a funny thing.
 
RuGaFe
Posts
42
Likes
8
Thanks for the message and the suggestion. I thought about a blog for my own education, so I can post as I learn.
 
cvalue13
Posts
3,979
Likes
8,998
RuGaFe RuGaFe
I'm looking for on the side type of activity whereby I can learn the trade helping out something with the knowledge and experience necessary to start out.

There are some online courses, on YouTube perhaps, I recall seeing some time ago - and thinking to myself, “who would pay for that?”

One (of several) challenges here seems to be that you want this to be a side gig (i.e., do it as and when convenient for you), while also wanting someone who is experienced to teach you to become their competitor. Now, from the perspective of the experienced teacher, what do they have to gain here exactly - what do you intend to contribute to them? It’s very clear you want their help, but it’s not clear how they can be helped by you.

Typically, the answers here would be either (1) you’re willing to pay them to become their competitor, or (2) since you have no expertise you can instead offer your availability and time.

Since availability and time seem constrained for you, it would seem you’re left with offering to pay people to teach you.

Perhaps that will get their attention, and explains why you’ve not yet gotten their attention to date?
 
STANDY
Posts
16,770
Likes
47,470
Grey market is pretty much like buying all of the end of summers clothing on the last week of summer at a discount from a supplier. You sell what you can and what’s hot in the last week and make some coin. But you have to hustle to sell the rest either next year or on the other side of the world where it is summer now.
It’s a long game with a huge outlay.

We have had people become pseudo dealers here but we are not going to teach you how to do that as we are the customer.

We have had people start a watch brand. We have encouraged and helped them

But I must say your the first person who has wanted to become a grey market seller.

So if you buy 5 watches your a flipper. You buy 20 watches your a pseudo dealer if you buy 100 watches your a grey dealer.
 
Mark020
Posts
5,845
Likes
9,090
I think the key is getting the inventory at the right price and amount
 
dsio
Posts
30,955
Likes
36,365
Mark020 Mark020
I think the key is getting the inventory at the right price and amount
And a large amount of working capital to begin with, over the last decade running this site I’ve had front row seats to the implosion financially and at times criminally of guys that think they can go into the second hand watch dealing market with a small amount of money and do well. It’s an extremely efficient market and you would be better off going to Reddit and asking what new NFT or token to buy as that learning curve is far less steep.

If you buy or sell a fake watch, a watch with fake parts, a defective watch, something gets lost in the mail, you get scammed, or even you buy a redial thinking its original you need the financial capacity to take a 4-5 figure loss like a man and move on rather than trying to weasel out of it or trying to pass that bag of crap on to someone else to hold. The success rates quoted really are quite accurate, your chances are 1-2% at best of breaking even or better without destroying your reputation (which happens frequently to the unprepared).
 
gbesq
Posts
9,172
Likes
48,422
RuGaFe RuGaFe
I’m glad my comment prompted a reasoned response from you. And no offense taken.

that is why I would like to learn the trade from a gray dealer, not just on how to sell, but learning about watches, as you said, inside and out.

Any pointers on how to connect with one? I have tried already with no success.
Frankly, I think that you would learn a lot more by joining and participating on internet forums just like this one. Many OF members are seasoned collectors who know everything that there is to know about Omega and, in many cases, other brands as well. Many members also buy and sell watches regularly and are very generous about sharing their knowledge.
 
Nobel Prize
Posts
6,832
Likes
13,796
As it has been hinted before I agree that you don't seem to really know what gray market is. Gray market requires a fair amount of infrastructure and resources that extends far beyond what your expected level of commitment is.

First you need your supplier chain, this requires not only money ( a lot of it) and a guaranteed stream of purchases so you get any priority at all on pieces that may be on high demand, but also an established trust

Second you need a buyer pool. That is not easy on this competitive market because you are not established and have no history as a dealer. Much less a gray market dealer.

Third you need infrastructure and resources for storage, packaging, shipping, insurance, and a resource for authenticity and validation of watches both outgoing and incoming. (Don't forget about all the returns you'll be handling). Remember; to be competitive you will have to supply your own warranty as there is no factory warranty on gray dealing. You need to be licensed to carry brand warranties. Sort of like franchising. That is where the margin of discounting is on gray versus authorized dealership.

You need marketing, branding, and costumer care (because a gray dealer is a dealership not a person)

And all this while you have a full time job and just want to get your hands on some watches and learn. Want advice? RUN.

OR....

What you are talking about is getting information about how to deal on watches, flip them, sell them, source them. THAT IS NOT gray dealing. It is dealing. Period. You may be able in time to source new watches...there is no shortcut on that...you just have to deal enough that you become part of a network of buyers and suppliers.

And.Then.You. Hassle.

Want a first lesson? Go to the seller section of this site. Both on private watches and dealers, and read through about 200 posts. Not just the posts but the comments....see what moves and does not move, see what the expectation on offering is, See what the expectation from the buyers point of view is. It is all there. That is the world you're aiming to enter and you have a window right into it if you want to take the time to read through it.

I personally do not see why anyone would train you to become their competition or take their buyer or supplier list away from them. But, hey, you never know until you ask.

There where years where between cameras and Watches, between selling and buying, I had transactions worth more than 6 figures combined. I never saw it as a business and lucky for me, I think I came out about even at the end of the day. Lost on many, gain on some. I would say the initial output on my end was considerable before I gained some balance on my flow. I enjoyed it; Mostly because nobody mentored me. What is the point of a hobby and passion if it does not imply a hefty time and effort investment?

Good luck.
Edited:
 
Mark020
Posts
5,845
Likes
9,090
The math is not that hard: if you want to make USD 100k of margin (pre everything, which means that you real income will be much lower) and make USD 1.000 per watch you have to purchase and sell 2 (i.e. 4 transactions) watches per week. And frankly put USD 1000 is a lot of margin if you start because 1) you will not have the best purchase prices and 2) you will not make the premium selling.
 
Archer
Posts
28,057
Likes
71,640
Mark020 Mark020
I think the key is getting the inventory at the right price and amount

Correct - buy low, sell high. So endeth the lesson! 😉
 
RuGaFe
Posts
42
Likes
8
dennisthemenace dennisthemenace
The OP is obviously confusing grey market with pre-owned market.
Enlighten me then. It's easy to point something out; it's much harder to be willing to educate someone, like I do at my job. I'm all ears. That's why I created this threat, to learn from anyone willing to share knowledge, insights, suggestions, etc.
 
gbesq
Posts
9,172
Likes
48,422
RuGaFe RuGaFe
Enlighten me then. It's easy to point something out; it's much harder to be willing to educate someone, like I do at my job. I'm all ears. That's why I created this threat, to learn from anyone willing to share knowledge, insights, suggestions, etc.
Respectfully, I think that several members have already done that for you. What is it that you are not clear about?
 
RuGaFe
Posts
42
Likes
8
Nobel Prize Nobel Prize
As it has been hinted before I agree that you don't seem to really know what gray market is. Gray market requires a fair amount of infrastructure and resources that extends far beyond what your expected level of commitment is.

First you need your supplier chain, this requires not only money ( a lot of it) and a guaranteed stream of purchases so you get any priority at all on pieces that may be on high demand, but also an established trust

Second you need a buyer pool. That is not easy on this competitive market because you are not established and have no history as a dealer. Much less a gray market dealer.

Third you need infrastructure and resources for storage, packaging, shipping, insurance, and a resource for authenticity and validation of watches both outgoing and incoming. (Don't forget about all the returns you'll be handling). Remember; to be competitive you will have to supply your own warranty as there is no factory warranty on gray dealing. You need to be licensed to carry brand warranties. Sort of like franchising. That is where the margin of discounting is on gray versus authorized dealership.

You need marketing, branding, and costumer care (because a gray dealer is a dealership not a person)

And all this while you have a full time job and just want to get your hands on some watches and learn. Want advice? RUN.

OR....

What you are talking about is getting information about how to deal on watches, flip them, sell them, source them. THAT IS NOT gray dealing. It is dealing. Period. You may be able in time to source new watches...there is no shortcut on that...you just have to deal enough that you become part of a network of buyers and suppliers.

And.Then.You. Hassle.

Want a first lesson? Go to the seller section of this site. Both on private watches and dealers, and read through about 200 posts. Not just the posts but the comments....see what moves and does not move, see what the expectation on offering is, See what the expectation from the buyers point of view is. It is all there. That is the world you're aiming to enter and you have a window right into it if you want to take the time to read through it.

I personally do not see why anyone would train you to become their competition or take their buyer or supplier list away from them. But, hey, you never know until you ask.

There where years where between cameras and Watches, between selling and buying, I had transactions worth more than 6 figures combined. I never saw it as a business and lucky for me, I think I came out about even at the end of the day. Lost on many, gain on some. I would say the initial output on my end was considerable before I gained some balance on my flow. I enjoyed it; Mostly because nobody mentored me. What is the point of a hobby and passion if it does not imply a hefty time and effort investment?

Good luck.
Thank you for the time you took to write all that. It is very informative and insightful. I would be have to give my time, flexibilty, and legal skills to a dealer who would be willing to show me the ropes. By no means I want to become a competitor, but most likely a collaborator in a sense. And yes, it would be a side gig without any compensation at the begining, but something that I see could potentially turn out into something else with the right dealer.
 
RuGaFe
Posts
42
Likes
8
gbesq gbesq
Respectfully, I think that several members have already done that for you. What is it that you are not clear about?
You are correct. Some have. He has and did not, which is fine.
 
RuGaFe
Posts
42
Likes
8
Archer Archer
Correct - buy low, sell high. So endeth the lesson! 😉
LOL. Thank you for that 😀
 
24 More Posts...
Sign up or log in to reply...

Similar threads

L

Climbing the learning curve…

luc123 Vintage Omega Watches Help, Discussion and Advice
zedlebowski
zedlebowski
Posts
9
Views
1K
B

Grey Market

bfitbrett Forum News & Member Support
BlackTalon
BlackTalon
Posts
23
Views
9K
S

Buying a Speedy in Singapore : AD or Grey Market?

Shanker Modern Omega Watches
E
ErichKeane
Posts
7
Views
6K
KanakaTurks

Omega Ultra Deep models available on the grey market already!

KanakaTurks Modern Omega Watches
Hands90
Hands90
Posts
7
Views
2K
tribal

Learning to fish, Omega Connie analysis

tribal Vintage Omega Watches Help, Discussion and Advice
tribal
tribal
Posts
30
Views
4K
E

Servicing a grey market watch

Edgeworth Modern Omega Watches
E
Edgeworth
Posts
15
Views
6K