Do you think manufacturers feed the grey market?

Thread: Do you think manufacturers feed the grey market?

Page 1 of 5 1 2 3 4 5 LastLast
Results 1 to 10 of 46
  1. #1
    Member
    Join Date
    Sep 2008
    Location
    wakefield ma
    Posts
    43

    Do you think manufacturers feed the grey market?

    Here's something I've been wondering (pardon if it's been discussed before)...

    Where are all of these grey market watches coming from? It seems like there is an incredible amount of sources for grey market watches, especiallly in this internet age. Stranger, grey dealers seem to get all of the new models just as quickly as AD's, as well as have every watch in a manufactuer's lineup.

    Plus, I don't really understand how these watches end up in the hands of grey dealers anyways. Let's estimate that 25% of luxury watches end up being grey market watches. My question is, how do these companies lose track of so many of their products? Especially in an industry where fakes are so prevalent.

    The only thing I can come up with is that somehow grey market sales benefit the watch manufacturers, and the entire grey industry is a bit of a hoax...

    Thoughts?

  2. #2
    Member
    Join Date
    Feb 2007
    Posts
    579

    Re: Do you think manufacturers feed the grey market?

    I have thought this forever; I mean I see watch brands from Grey dealers that are new models; not years old; surely there cannot be that many stores going out of business that these grey folks bought out their inventory; let's get real here; and the prices; 50% +- on some; then folks say there is not much markup in watches; there is a well known grey seller on watchnet; I have bought from him, his products are legite; but he has some Anonimo's I saw tonight that retail for $6500(I verified some prices online) and he is selling for the mid $2K range...so what did he pay for those, $1k, $1500, its crazy.......if you have to have real warranty go to an AD and ask for a discount; if you are like me and I have bought from both, and I personally think most high end watches out of the box will run OK I take the deep discount and do not worry about the warranty. Folks should not be fooled by Grey sellers advertising "full warranty or international warranty; it will not matter with these sellers; the warranty card is worthless....now I have taken my watch obtained from a grey seller for service with a receipt and not had any trouble....it is a great game.......dogdoc

  3. #3
    Banned
    Join Date
    Feb 2009
    Location
    Subiaco, Perth, Australia
    Posts
    10,224

    Re: Do you think manufacturers feed the grey market?

    This is pretty much the best question I have seen posted. I would love somebody (a grey dealer perhaps) to explain exactly what grey market watches are meant to be, exactly what they are, and how come they are so cheap.

    Yeah, awesomely excellent question. Contrast this with the clown wondering why he hasn't ever seen an automatic mechanical wall clock, and it's hard to believe we're all members of the same species!

  4. Remove Advertisements
    WatchUSeek.com
    Advertisements
     

  5. #4

    Join Date
    Jan 2008
    Posts
    5,120

    Re: Do you think manufacturers feed the grey market?

    Quote Originally Posted by jason_recliner View Post
    This is pretty much the best question I have seen posted. I would love somebody (a grey dealer perhaps) to explain exactly what grey market watches are meant to be, exactly what they are, and how come they are so cheap.

    Yeah, awesomely excellent question. Contrast this with the clown wondering why he hasn't ever seen an automatic mechanical wall clock, and it's hard to believe we're all members of the same species!
    LOL! I'm so glad you're around to help take some of the heat off of me. Beautifully unabashed and not steaming over with unnecessary or undue tact. Or as I call it, smoke up the a$$...

    Oh, and I agree, best question posed on this forum, and also something I have wondered to myself often.
    Last edited by Beyond 'The Box'; March 17th, 2009 at 08:14.

  6. #5
    Banned
    Join Date
    Feb 2009
    Location
    Subiaco, Perth, Australia
    Posts
    10,224

    Re: Do you think manufacturers feed the grey market?

    I was being tactful!

  7. #6

    Join Date
    Jan 2008
    Posts
    5,120

    Re: Do you think manufacturers feed the grey market?

    Quote Originally Posted by jason_recliner View Post
    I was being tactful!
    Not overly so. That was my point. Like apologizing for honesty and/or candor.

  8. #7
    Banned
    Join Date
    Feb 2009
    Location
    Subiaco, Perth, Australia
    Posts
    10,224

    Re: Do you think manufacturers feed the grey market?

    I would love to get into a thorough and witty deconstruction of everything that was wrong with that post but, as I really think this is one of those questions quintessential and fundamental to collecting in the modern age, I don't want to hijack this thread. Even if it means undoubted lost opportunities for hilarity and merriment.

    I mean, really... I'm sorry, I said I wouldn't do this... but c'mon an AUTOMATIC WALL CLOCK!?!?!?!?!?! Unless the OP was Flavor Flav that had to be either a (quite funny) joke or a cry for help. Surely.

    EDIT: ps - replying to your own posts to show support for your own opinions and prove your point is nothing short of genius. I can see that catching on, really I can!

  9. #8
    Member Ray916MN's Avatar
    Join Date
    Feb 2006
    Location
    Minneapolis
    Posts
    2,790

    Re: Do you think manufacturers feed the grey market?

    Reputable manufacturers place a lot of emphasis on preventing their watches from ending up on the grey market. They do this because if they don't their ADs will drop their brands, or preferentially market other brands over their brand. If you're a retail operator carrying the overhead of inventory, store front in a high rent retail area and giving prime display space to a product and that product becomes regularly available at substantial discounts to retail, you're going to drop the product, or try to sell other products. When consumers can't see your products in stores, or store owners steer customer's away from your products, a watchmanufacturer will have a big business problem.

    The grey market generally come from the fact that retail prices and therefore wholesale prices for watches vary by market. Manufacturers set different prices for their products in different markets to optimize their sales according to the competitive environment of each market and the ability of the market to afford their products. So some markets are priced lower than others, so there is always a potential to sell in higher priced markets to increase profits or to maximize their profits on excess inventory. This is in violation of any properly constructed distribution agreement and retailers who violate these agreements, lose their status as authorized dealers. Most manufacturers track this activity based on serial numbers, which is why grey market watches carry no manufacturer warranty. The retailers basically say these watches were sold to customers who sold them as used to others, so the retailer didn't violate their distribution agreement. The largest amount of grey market activity comes from manufacturers pricing their products with too much price disparity between markets or from pushing too much product into the market.

    In a cash bind, a manufacturer might be driven to drop a bunch of product on the market, but if they do too much of this, eventually they will lose dealers, and market presence. There is no long term incentive to feed the grey market.
    Last edited by Ray916MN; March 17th, 2009 at 08:25.

  10. #9
    Banned
    Join Date
    Feb 2009
    Location
    Subiaco, Perth, Australia
    Posts
    10,224

    Re: Do you think manufacturers feed the grey market?

    STFU and let somebody who actually has something intelligent and meaningful to say have a go you moron!

  11. #10
    Banned
    Join Date
    Feb 2009
    Location
    Subiaco, Perth, Australia
    Posts
    10,224

    Re: Do you think manufacturers feed the grey market?

    Very interesting. So, with Seiko for example, are you aware of any markets wher the retail price is closer to the grey market price? I know an SKX171 is pushing AU$500 rrp here in Oz.

Page 1 of 5 1 2 3 4 5 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •