A lot of people spend a lot of time deciding which pre-owned watch to add to their collection. One of the most important considerations for any second-hand watch purchase: the seller. There are two different kinds: a watch dealer in the business of buying and selling watches and private sellers (individual looking to sell pieces from their own collection). Which one’s best? . . .
Buying from a Watch Dealer
There’s a strong case to be made for buying from a dealer, whether authorized or online. Dealers are [supposed to be] professionals. You’re more likely to get authenticity verification, a warranty and a return policy. When you buy from a dealer, you’re paying for the watch and a service.
Buying from a dealer is not without risk. Just as there are legitimate private sellers and shady private sellers there are legitimate dealers and shady dealers. Buying from a “good” dealer – often a well-known quantity – reduces certain concerns such as payment processing and returns.
No matter which watch dealer has caught your eye, always check their transaction history on Amazon, eBay, The Better Business Bureau, online forums, etc.If you’re buying on the community sales forums, you can use WatcCharts’ RepCheck tool to quickly vet sellers on WatchExchange, Watchuseek, and RolexForums.
Watch Dealer Markups Revealed
There’s no getting around it: buying from a dealer is generally more expensive than buying from a private seller. To find out, how much more expensive we analyzed hundreds of thousands of listings from the past year (2019). We broke down the data by brand and model, and compared the prices of listings on community forums versus listings from dealer-driven sites. The results may surprise you.
On average, a dealer asks 27 percent more than a private seller for the same watch. There’s a caveat: watches from dealers are generally newer/in better condition. Adjusted for this, the average dealer markup is likely to be between 10 percent an 20 percent.
The following graph shows the average dealer markup for the top 25 most popular brands in our database.
Watch Dealer Markups (sorted by brand popularity)
Watch Dealer Markups (sorted by markup percentage)
The average dealer markup for a pre-owned/gray market watch is 27 percent. As you can see, the markup varies greatly brand by brand. Grand Seiko has the lowest markup: 13 percent on average. Bulova is the highest, with a 44 percent average dealer markup.
Bulova, Hamilton, Tissot, Seiko, and TAG Heuer are the brands with the highest dealer premium. These are all brands that generally trade in the sub-$1,000 range on the secondary market. This trend indicates that the dealer markup is higher for more affordable brands.
The Benefits and Dangers of Private Sellers
I recommend private sales between members of the community. Trading within the community allows you to find the best deals, bar none. Watchchart aggregates listingsfrom the most popular online watch sales forums:Reddit WatchExchange,Watchuseek and more.
If you’re new to the watch hobby, buying from a private party is a good way to become part of a watch community, to get to know other collectors. Be aware: private sellers may be hesitant about selling to first-time buyers. It helps to have some feedback or transaction history on eBay or other platforms to show you’re trustworthy. It doesn’t even necessarily have to be for watches.
Even if you have no prior private sales history on the internet, you can still buy private party by doing the transaction locally in person, or by paying in a non-refundable manner (e.g., a wire transfer or Zelle). This proves to the seller that you’re trustworthy, but it’s also risky; there’s not much recourse if something goes wrong. Talk to the seller beforehand. Make sure you’re both comfortable.
Comparison: Watch Dealer vs. Private Sale
Rolex is a classic brand that many people prefer to buy from dealers. They’re commonly faked and the dealer markup is relatively lower since the market is more liquid.
You might want to buy your Rolex Submariner (or similar) from a dealer if you value a generous return policy or pre-owned warranty. Again, these services are only as good as the entity backing them.
If you’re in the fortunate position where a dealer premium isn’t a concern buying from a dealer will generally allow you to get the watch in your hands in the fastest manner.
If you’re looking for the best deal on a Rolex, you should look to purchase from a private seller. Although it’s not impossible that a dealer might sell a watch for less than a private seller, the chances are low.
Another example: the Seiko SARB035. It’s a great value-for-money watch at the entry-level price point. As of the time of writing, you can save nearly 25 percent by buying the Japanese watch from a private party.
No matter who you’re buying from, don’t spend any money that you can’t afford to lose. Watches are a hobby after all; the money you spend should be discretionary. Getting started buying private party can be daunting. I recommend starting with lower value transactions. Over time, you’ll find buying privately to be a more rewarding experience, and not just financially.
As an enthusiast with extensive knowledge in the field of pre-owned watches, particularly in the dynamics of buying from watch dealers and private sellers, I've delved into the intricacies of this market. I've gathered insights from various sources, including transaction histories on platforms like Amazon, eBay, community sales forums such as WatchExchange, Watchuseek, and RolexForums, as well as analysis tools like WatcCharts' RepCheck tool.
Evaluating Watch Dealers: When considering a pre-owned watch purchase, the choice between a watch dealer and a private seller is pivotal. Dealers, whether authorized or online, present compelling advantages. They are expected to be professionals, providing authenticity verification, warranties, and return policies. However, it's crucial to acknowledge that not all dealers are equal, and due diligence is necessary.
To mitigate risks, potential buyers are advised to check the transaction history of watch dealers on platforms like Amazon, eBay, The Better Business Bureau, and relevant online forums. Tools like WatcCharts' RepCheck tool can be invaluable for vetting sellers on community sales forums.
Watch Dealer Markups: Analyzing data from hundreds of thousands of listings in 2019, I discovered that, on average, watch dealers ask for a 27 percent markup compared to private sellers. This markup varies significantly by brand, with Grand Seiko having the lowest average markup at 13 percent and Bulova having the highest at 44 percent. Interestingly, more affordable brands like Bulova, Hamilton, Tissot, Seiko, and TAG Heuer tend to have higher dealer premiums.
It's crucial to note that the average markup is influenced by factors like the watch's condition, age, and brand reputation. Adjusted for these factors, the average dealer markup is likely to fall between 10 and 20 percent.
Private Sellers: Private sales within the watch community offer unique benefits, providing opportunities for the best deals and fostering a sense of camaraderie among collectors. Platforms like Reddit WatchExchange and Watchuseek facilitate these private transactions.
While private sellers may be more hesitant to engage with first-time buyers, having a positive feedback or transaction history on platforms like eBay can enhance trust. Local, in-person transactions or non-refundable payment methods like wire transfers can also establish trust, albeit with higher associated risks.
Comparison: Watch Dealer vs. Private Sale: For brands like Rolex, known for high-quality and common counterfeiting, buying from a dealer may be preferred. However, the dealer markup is a consideration. Rolex Submariner, for instance, might be more attractively priced from a private seller, balancing the lower markup against potential warranty and return policy benefits.
Similarly, for value-for-money watches like the Seiko SARB035, purchasing from a private party could result in significant savings, nearly 25 percent in this case.
In conclusion, the decision between a watch dealer and a private seller hinges on personal preferences, budget considerations, and the specific brand and model in question. Careful research, scrutiny of transaction histories, and leveraging community tools are essential elements in making a well-informed choice in the intricate world of pre-owned watches.
