Trading in Watches?
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  1. #1
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    Trading in Watches?

    Hey guys

    In some threads and videos lately, I've heard people say 'I traded in my watch for X new piece'. Sounds like a car dealership type of thing.

    As far as I know, no boutique store does this. So I have three concerns.

    1. What do they mean by trading in?
    2. Is the a huge loss of value?
    3. Where would you go for this type of transactions?

  2. #2
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    Re: Trading in Watches?

    When I was working, I worked a lot of trade ins behind the counter. Just like trading in your car.

  3. #3
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    Re: Trading in Watches?

    Or they use the sales forum here, or chrono24, or at other sites online. You're going to take a bath at an AD. And yes, you take a bath most of the time.

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  5. #4
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    Re: Trading in Watches?

    That "bath" usually washes away the delusion on what you think your watch is worth.
    Quote Originally Posted by gangrel View Post
    Or they use the sales forum here, or chrono24, or at other sites online. You're going to take a bath at an AD. And yes, you take a bath most of the time.
    John MS likes this.

  6. #5
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    Re: Trading in Watches?

    Not always a bath, you can do a great job of buying speedies, subs, other icons at good prices and selling years later for minimal/no loss

    and yes, many folks here trade watches in, although i doubt many do it at dealers the more appropriate term is probably "flipping" whereby you sell one or more of your existing collection to fund a new/different watch you want

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    Re: Trading in Watches?

    But, years later that currency's purchasing power is far less and your still taking a bath.
    Quote Originally Posted by sgmartz View Post
    Not always a bath, you can do a great job of buying speedies, subs, other icons at good prices and selling years later for minimal/no loss

    and yes, many folks here trade watches in, although i doubt many do it at dealers the more appropriate term is probably "flipping" whereby you sell one or more of your existing collection to fund a new/different watch you want

  8. #7
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    Re: Trading in Watches?

    true but not altogether applicable since used pricing isnt stagnant

  9. #8
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    Re: Trading in Watches?

    Quote Originally Posted by ctaborda View Post
    Hey guys

    In some threads and videos lately, I've heard people say 'I traded in my watch for X new piece'. Sounds like a car dealership type of thing.

    As far as I know, no boutique store does this. So I have three concerns.

    1. What do they mean by trading in?
    2. Is the a huge loss of value?
    3. Where would you go for this type of transactions?
    It is just like trading in your car for a new one.
    The benefits are convenience and reduced cash outlay.
    The downside is that the dealer has to make money so the price is probably below what you would get by selling it privately. There obviously will be a loss in value when selling or trading in something that is no longer new but used. Whether it is huge or not varies and depends on your perception
    Watchbreath and ilitig8 like this.

  10. #9
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    Re: Trading in Watches?

    Quote Originally Posted by sgmartz View Post
    Not always a bath, you can do a great job of buying speedies, subs, other icons at good prices and selling years later for minimal/no loss

    and yes, many folks here trade watches in, although i doubt many do it at dealers the more appropriate term is probably "flipping" whereby you sell one or more of your existing collection to fund a new/different watch you want

    Ever heard of time value of money? If you keep something for 10 years, then sell it for what you paid for it at the time, you took a loss. Throw in the effect of inflation, and you take a bath.

    Plus, VERY few watches will retain value like that, and generally, appreciation due to scarcity/demand won't kick in, in only 10 years. An exception generally exists with limited releases, but those are *always* risky. Sometimes they pan out, sometimes not.

    With a dealer, things are worse. I recall reading somewhere that in retail, you want to completely turn over your inventory 4 times a year. That's why you see clearance racks at stores; something's been there for 4 months, forget profit; just get it out the door and get something for it. I don't know if that applies to high-end retail, but still, figure the AD won't want to sit on it for more than 4 months. Say his lowest acceptable price, new, for that model would be $1000...a convenient number. Well, to sell it in 4 months, while also preferably NOT hurting his new sales...he'll list yours for $700. (And I'm assuming it's in really good shape.) He's not giving you more than $400...and $350 is more likely.

    But that's also cash. For store credit, to a new watch, he'll give more.

    I sold a pair of extremely high-end pipes to a major online vendor 2 years ago...the pipes were long, long discontinued, and of a type that may well have appreciated greatly. (BIG, high end straight grains.) IIRC, they actually offered 35% of their appraised value for a cash deal, and 50% for store credit, but I'm not entirely sure. If I am remembering that correctly, then my numbers above are too high.

    And before you go, hey, the dealer ripped me off, consider:

    --the dealer covered the complete restoration costs
    --the dealer had the setup to list the piece, and the visibility to have it seen
    --the dealer is covering the credit card fees (I don't even have one)
    --the dealer gets to deal with the ripoff artists
    --the dealer is covering the cost to carry the inventory...you're paid
    --the dealer isn't your best friend doing you a favor; he's a merchant

    I also used a consignment agent to sell off all the major pipes in my collection. He cleaned them up (beautifully), then listed them on eBay. I got 62% of the final sale price; he kept the other 38%. And it was absolutely worth it. He did a great job cleaning them up, excellent photos, all the hassle of shipping and handling returns (I know 2 got returned because I saw them get re-listed), and the eBay fees came out of his share. HIS name and excellent rep went with the sale...so he charged, thank you. It was only 38% because he wasn't out of pocket on anything, except the cost of cleaning supplies...minimal.

  11. #10
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    Re: Trading in Watches?

    Well, we had about 1200 watches on display at my former store, four turnovers a year, now that's a real fantasy.
    Quote Originally Posted by gangrel View Post
    Ever heard of time value of money? If you keep something for 10 years, then sell it for what you paid for it at the time, you took a loss. Throw in the effect of inflation, and you take a bath.

    Plus, VERY few watches will retain value like that, and generally, appreciation due to scarcity/demand won't kick in, in only 10 years. An exception generally exists with limited releases, but those are *always* risky. Sometimes they pan out, sometimes not.

    With a dealer, things are worse. I recall reading somewhere that in retail, you want to completely turn over your inventory 4 times a year. That's why you see clearance racks at stores; something's been there for 4 months, forget profit; just get it out the door and get something for it. I don't know if that applies to high-end retail, but still, figure the AD won't want to sit on it for more than 4 months. Say his lowest acceptable price, new, for that model would be $1000...a convenient number. Well, to sell it in 4 months, while also preferably NOT hurting his new sales...he'll list yours for $700. (And I'm assuming it's in really good shape.) He's not giving you more than $400...and $350 is more likely.

    But that's also cash. For store credit, to a new watch, he'll give more.

    I sold a pair of extremely high-end pipes to a major online vendor 2 years ago...the pipes were long, long discontinued, and of a type that may well have appreciated greatly. (BIG, high end straight grains.) IIRC, they actually offered 35% of their appraised value for a cash deal, and 50% for store credit, but I'm not entirely sure. If I am remembering that correctly, then my numbers above are too high.

    And before you go, hey, the dealer ripped me off, consider:

    --the dealer covered the complete restoration costs
    --the dealer had the setup to list the piece, and the visibility to have it seen
    --the dealer is covering the credit card fees (I don't even have one)
    --the dealer gets to deal with the ripoff artists
    --the dealer is covering the cost to carry the inventory...you're paid
    --the dealer isn't your best friend doing you a favor; he's a merchant

    I also used a consignment agent to sell off all the major pipes in my collection. He cleaned them up (beautifully), then listed them on eBay. I got 62% of the final sale price; he kept the other 38%. And it was absolutely worth it. He did a great job cleaning them up, excellent photos, all the hassle of shipping and handling returns (I know 2 got returned because I saw them get re-listed), and the eBay fees came out of his share. HIS name and excellent rep went with the sale...so he charged, thank you. It was only 38% because he wasn't out of pocket on anything, except the cost of cleaning supplies...minimal.

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