How to Make Money Buying and Selling Watches

Are you looking for valid ways to make money buying and selling watches? If YES, here are 4 valid ways to make money buying and selling watches.

For years, people have been making money buying and selling watches without properly owning a jewelry shop or having access to auctions. While some claim they make full-time profit from buying and selling watches, others seem to do it for fun and a bit of extra pocket change.

However, buying and selling watches successfully doesn’t happen overnight; it takes time and understanding of what works and what doesn’t, and like every other business, you’ll need to experience trial and error.

With so many watches and different brands, it can be quite challenging to even know where to start. Indeed, making money is all about understanding what you are involved in to enable you to limit possible risks and make your attempts more calculated.

Note that the more research you do, the more likely you are to succeed and the less miscalculation you will make. Indeed, these miscalculations will happen at least more than once but the allure of it is that just like the stock market, what you lose on one trade, you can earn back twice as much with the next.

Also, note that cash is paramount just like in every other business endeavor and more than ever in this scenario. Have it in mind that with every hardship in life, things like jewelry and watches are the first to go. These hard times entail that you can source worthwhile timepieces at a fraction of the cost.

According to reports, dealers will purchase watches at about 25 cents to 30 cents on the dollar for mint pieces, fitted with boxes, papers, and documents. Most deals should be negotiated as close as you can to those numbers.

To calculate, just take the retail price of the watch and take 30 percent of that, then try to negotiate to purchase watches as close to that as possible. Ideally, a few brands operate with that 30 percent rule: Patek, Audemars, Hublot, Panerai, Ulysse, Jaeger, and Rolex, all of which are high-end pieces and should be purchased at least 2 years old.

Note that watches less than 2 years of age might deliver closer to 50 percent owing to their new nature and valid warranty card.

In addition, watches bought from online sources rather than authorized dealers will bring in less than 30 percent, and watches with wear marks, blemishes, worn down bracelets, or lack of documents will bring in far less. Nevertheless, selling is quite more challenging than buying and requires you to exert patience and fearlessness.

Have it in mind that there will be times when you list a watch for weeks with no interest and suddenly list it again and sell it in a few hours.

Remember, there is always someone searching for that piece, you only have to ensure your piece is priced accurately and well marketed. Lastly, note that won’t make a penny from buying and selling watches unless you are a watch enthusiast yourself.

4 Ways to Make Money Buying and Selling Watches

When it comes to buying and selling watches, there are numerous ways to make money.  Transactional selling is the major method that comes to mind and it is most times seen as the only way. However, if you limit yourself to just these methods, then you are costing yourself increased profits. Ways to make money buying and selling watches include;

1. Traditional Sales

This is more or less the primary way to make money buying and selling watches. A good number of people assume that the amount of money made per watch is calculated at the point of sale.  This is a misconception. Notably, you set yourself up to make profits at the time of the purchase.

To do this successfully, a proper understanding of the market is imperative to reduce the risk of overpaying, getting stuck holding on to a watch for a longer period, and/or ultimately taking a Loss.

One of the most vital means to gain market knowledge is through your network of watch dealers. It is important to ensure that your network is very open to discussing watches and their valuations. Knowledge is power and it offers you the platform to calculate and take risks.

2. Consignment

In recent times, consignment has become one of the best ways to grow a business without an initial capital investment. Sellers are looking to move their watches but are not so eager in the selling process and managing the transactions.

Oftentimes, sellers will let you know the minimum acceptable amount they would collect for the watch. They will more or less agree to let you earn anything over that amount or a certain agreed-upon minimum like $250 or $500 depending.

However, one way to achieve success in this line of business is to be very honest with your seller. Do not over-promise or inflate the market price. Always ensure that the seller’s price is reasonable and that there is adequate room for you to make money.

3. Brokering Watches

Brokering watches is another common way to make money buying and selling watches. In some situations, your customers are searching for watches that you presently may not have in stock.  However, as a great dealer, you are quite conversant with different model watches and you have a network of other dealers where you can source these pieces for your customer.

However, always remember that brokering assumes various risks. One risk is the condition of the watch. Once you target a specific model, you are limited to availability, and although it is always a good practice, it is imperative to make sure that the watch is in a condition that your customer will buy.

The second risk is the deal. Note that your customer may seek a watch that you normally would not carry in inventory or want to sell.

So, before buying this watch, you want to be certain that the customer will purchase it for agreed-upon terms. The best way to ensure that your customer will not back out is to take a non-refundable deposit. Do not forget that this transaction is different because you are looking for a specific model.

4. Parts and Accessories

Just like with watches, there is money to be made by selling watch parts and accessories. This remains one of the easiest ways to make money in the wristwatch business. It might shock you to realize how much can be earned by having spare links, buckles, bracelets, and straps. In addition, people that visit you for parts will one day, most likely, become watch customers as well.

Conclusion

As an ever-growing industry, there is no doubt that you can make decent money buying and selling watches. However, when buying your first watch to resell, you have to set your budget or initial investment.

Agreeably, this can be a risky business, so you must go into it with the mindset of “I’m ready to lose that money.” Whether that is $200 or $1, 000, just be ready to invest that money and consider you might lose it or possibly make a profit!