A Guide to Selling Luxury Watch Brands
The market of luxury timepieces is booming. And the reasons are inclined more towards décor, status, display of wealth, standard and less towards the utility brought about by these watches. The business of buying and selling luxury watches from superior brands has taken a spectacular shape, and like everything else, people are conveniently earning handsome commissions without owning these pieces, and even without investing in a brick and mortar shop. All thanks to globalization and digital marketing; from one part of the world, you can order and advertise the most precious items as luxury watch dealers. However, like every other business, there are ins and outs, and it is always a better idea to learn a trick or two before testing the depth of river with both feet.
This is our 101 guide to potential luxury watch brand dealers who see a future in this market and would love to convert these precious timepieces into full time breadwinning avenues. But before we jump onto tips and tricks and business strategies, let’s explore why it is a good idea to invest in luxury watch brands and not in cars, diamonds, shares or bonds!
Why invest in Luxury Timepieces?
- Scarcity creates value: unique pieces, whether they are paintings, cars, artifacts or anything else, are most sought after. That’s why these luxury timepieces are also sold on decent profits.
- Net Worth: Like any other business, these timepieces are inventory if you are a luxury watch dealer. So, of course, these determine the net worth of you and your business, and it does become easier to acquire loans and debts.
- Other markets: to avoid business losses in highly risky stock and money markets, millennial entrepreneurs prefer investing in this unique field, where the buyers are often, elites.
- Easy entry and exit: this is an important managerial economics concept, and people are accepting this phenomenon as an effective market penetration strategy. Many giant dealers are poised to promote their businesses while lending inventory on cheap interest rates.
Where Should I Start?
While you shoot for the moon, try landing on the stars first. And before targeting Rolex, we suggest newbies try brands like Tags, Breitlings and other boutique watches.
Experienced luxury watch dealers often comment on a resemblance between this very business and stock markets. They suggest that like stock markets if you lose money on one trade, you can make the double of it on the second one. The dynamics, however, greatly depend on the timing, the market conditions, and the phase of an economic cycle. When other markets are in a recession, an intelligent seller can acquire these luxury watches from brands like Omega and Rolex on fractions of the actual cost.
Mistakes will happen as part of the business. But take these mistakes as experiments so that there are lesser risks in future – which in turn suggests you do a great deal of research before entering the market. Check websites like Rolexfuzz, eBay and Amazon to learn how the prices fluctuate and move during good and bad economic times. Then, do mock trades. Pretend to buy and sell timepieces as a real luxury watch dealer and note the costs, selling prices, the operational expenses, the marketing and selling expenses and the residual (disposable) profit. Once you feel you are ready and have some good know-how of the market, engage in conversations with other luxury watch brand dealers. You can gain some quick information while conversing with representatives from companies that lend these timepieces to accredited investors, sellers, resellers and dealers.
Which Luxury Watch Brands should I Target?
Supply creates its own demand. You can, however, not convince elites to buy artificial jewellery and pay you for diamonds. Similarly, while shortlisting luxury watches brands, pick the ones that are most sought after by your target income group and offer unique designs. Some commonly popular ones include:
- Rolex: The market for Rolex watches is robust. These are always in demand and not just a name of the brand, but a name that screams luxury, standards and feelings of wealth.
- Omega: It is a little cheaper substitute of Rolex and a dependable base for wristwatch lovers. Omega is never short of designs and so, never out of style or market.
- IWC: no list of elite watches would be complete without IWC. These are unique steel watches, coming up in contemporary designs and still sharing the market with historically inspired vintage designs.
Cash VS Debt
The guide is aimed towards newbie sellers who are just starting and planning to conquer the world as luxury watch dealers. And the greatest advice for them is to go for debt financed business. Loans exist in the business world for several smart reasons. When you are starting out, wonder: why to put your hard-earned life savings on stake when you have somebody else’s security to back you up! While all glitters, do make wise decisions by weighing your profits against the loan repayment figures and price your timepieces accordingly. In a way, loans and debt give you great investing power – but with great power, comes great responsibility, both to be managed by the entrepreneur.
The Practical Act of Selling
Now selling is the most practical part of this business. It may seem easy or challenging to various minds before they start to sell, everything depends on your power to negotiate. You have to convince your customer of all the potential benefits of the watch, and half the battle is won. But as businesses are getting smart, buyers are getting smarter, and their hefty investments in such luxury watches brands are backed by thorough research and thought. All in all, your offered timepieces should be able to solve their problem – problem of displaying status, the problem of standards, problems of showing off riches. Advertising is another step before selling, but a lot has become easier because of platforms like Amazon, eBay, and Shopify. You can choose to pay commissions on these public platforms or sell on your very own ecommerce website backed up by one of the WooCommerce-like plugins. Remember that there is someone always looking for what you can offer – it is your virtue to place it on the right shelf!
This holistic guide must have at least sorted some puzzles about starting as a luxury watch brand dealer. But there is one key to starting a hyper lucrative business of selling these timepieces – and that is to start selling!