The only reason why they post "transparency" videos like this is to fool the suckers into believing they don't have room to negotiate down. The timing is convenient too after so many shady dealers getting exposed, I smell defense mechanism and bs
Secondary watch market is dead .. Rolex shouldn’t sell above retail … drop drop dropping … just saying 😅 All TH-camrs telling folks how it’s worth more than retail
Very skewed post. Very rarley do you guys buy from chats a day to day. Chats are more for calls. Those are great margins on flips. When you guys buy to stock you buy aggressive usually from the public with significantly higher margins 3-7% higher. I want to know what your avg price you buy from customers. Regardless I don’t think your margins are high, however they are higher than suggested in this video.
LB offered me $11,500 for a never worn 41mm Fluted Blue Stick Dial Jubilee 126334 with diamonds. Less than retail! Seen them listed for just under $15,000 - those are almost AD margins!
I suspect Avi is making a bigger margin on watches bought from collectors, over and above watches offered by other dealers in dealer Facebook groups. Every time I’ve attempted to sell a watch to a dealer, I’ve been offered way way less than market. That said, I really appreciate Avi’s discussions about the numbers like this.
The margins aren’t right.. and if what your saying is true.. how could a dealer survive? If a guy sits on the inventory for any length of time he’d be upside down in a short period .
Nobody talks numbers like you. This is wonderful for someone like me who is looking into my first luxury watch. Can you do some models that are recently discontinued. Milgauss style stuff. Also what are the new art dial watches doing. Thank you Ari, luxury Bazaar for the win.
Can you do another one of these for these models: Rolex: (talk about new vs used as well) Panda white Panda black Pepsi RM: 67-01 Ap: Royal oak blue dial (not anniversary)
people will always look at the secondary market and think "If i were there, bla bla bla" like this would be a single person operation , done without legal and financial oversight. kudos for the transparency. it's a breath of fresh air
Quite true Avi, you're in the upper echelon of dealers of luxury watches, therefore your expenses are alot higher. People don't realize how small the margins are on alot of watches, therefore you have to turn them over quickly Really nice work today, looking forward to the next podcast.😊❤👍 👏
Excellent content showing the numbers and real life examples. Also a great video length with timestamps for catching content between meetings. Great job brother!
What happens if you buy a Royal Oak or comparable at the top of the market and it drops $20k before you sell it? I doubt the market moves that fast, but, it seems like a serious risk if you buy significant inventory at this price point across several brands/models. Thanks for the education.
Happens all the time. We typically cut our loses and sell at a loss so that we can use the money to purchase additional products and hopefully make money on it.
Most people not familiar with the industry think the LB team and other dealers make hundreds of thousand per transaction, but they are forgetting that not business HOLD. They are sourcing and selling immediately. NO one can predict the future on the market. There might be a couple models they hold. It's about the volume of transactions that help dealer makes money. If a deal can source the AP for 42k and sells to their client for 60k, you think that customer will return after that transaction?
What are the watches where you have the highest margins? And you mentioned that LB could lose money if the watch sits in your inventory for too long. Is that due to LB purchasing their inventory on credit or lost opportunity costs?
so that people would understand how bıg your overhead ıs you could explain it whit the amount of watch sales that nee to be done just to break even. Just like the royal oak 15510 you explained. So rent was 6-7 Royal Oak. Staff? Electricity, shipping etc etc.. Would be fun to see it all on a graph=) great vid, thanks
Aloha, just found you. New Subscriber! Your content transparency allows viewers on the OTHER SIDE of the fence to understand margins which allows us at least some negotiation power. Keep it up!
Market is equalizing post covid stimulus. Dealers will have to swallow their pride for cashflow. Watch how many shops just sell Rolex and those neo vintage gold watches will be unsellable when people have switched from shamelessly buying a ugly watch simply because it's made of precious metal that nobody wants to buy, to something they actually like.
Something tells me there is a desire to keep prices low and down to be able to have better cash flow and keep margins steady so the market doesn’t jump. Also allows for more purchase of inventory. Grey market pushed prices up and now it realized it makes more sense to keep them down
Avi, you do a great job as a host. Roman is a tough act to follow--I think you are definitely top shelf at LB. Marco and Peter are absolutely great, too.
@@BufanMuayThai I have.... AP AD wants to me to start with a Code 11.59 that has awful resell value. My two Rolex ADs and Wempe have me on "their lists" but that has been for over 6 months.
Why do u think buyers come to purchase from luxury buzzard than other watch dealers and what set luxury buzzard watchers apart from other dealers like your selfs .
When you ship an expensive item, you have to insure it. Insurance costs money. Keeping time doesn't mean everything functions correctly or that every part is original.
@greymarketpod a business shipping expensive items has a much better rate than a regular person just because of volume and your insurance policy. and as I stated if the watch keeps good time and functions correctly you ain't servicing shit. you will authenticate and move along. if it ain't broke don't fix it
From my experience the margins are not this thin. I have offered LB watches for sale and consignment and their offers reflect min 20% profit margin.
yes I second that
Agree. There’s a lot of employees there.
I find the profit margins on this video hard to believe. Nobody works for peanuts and the F1 race car didn't magically show up there.
The only reason why they post "transparency" videos like this is to fool the suckers into believing they don't have room to negotiate down. The timing is convenient too after so many shady dealers getting exposed, I smell defense mechanism and bs
Secondary watch market is dead .. Rolex shouldn’t sell above retail … drop drop dropping … just saying 😅
All TH-camrs telling folks how it’s worth more than retail
He's talking bullshit.
The buy in prices are way much lower.
Very skewed post. Very rarley do you guys buy from chats a day to day. Chats are more for calls. Those are great margins on flips. When you guys buy to stock you buy aggressive usually from the public with significantly higher margins 3-7% higher. I want to know what your avg price you buy from customers. Regardless I don’t think your margins are high, however they are higher than suggested in this video.
LB offered me $11,500 for a never worn 41mm Fluted Blue Stick Dial Jubilee 126334 with diamonds. Less than retail! Seen them listed for just under $15,000 - those are almost AD margins!
I suspect Avi is making a bigger margin on watches bought from collectors, over and above watches offered by other dealers in dealer Facebook groups. Every time I’ve attempted to sell a watch to a dealer, I’ve been offered way way less than market. That said, I really appreciate Avi’s discussions about the numbers like this.
You're right. We're striving to be the biggest watch buyer from the public for that very reason. Thank you for the comment and support!
The margins aren’t right.. and if what your saying is true.. how could a dealer survive? If a guy sits on the inventory for any length of time he’d be upside down in a short period .
Nobody talks numbers like you. This is wonderful for someone like me who is looking into my first luxury watch. Can you do some models that are recently discontinued. Milgauss style stuff. Also what are the new art dial watches doing. Thank you Ari, luxury Bazaar for the win.
Love the bumbers and real life examples. I appreciate the inclusion of the breitling and Speedmaster.
Do a video on royal oaks under 40k or a video on pateks under 40k
Can you do another one of these for these models:
Rolex: (talk about new vs used as well)
Panda white
Panda black
Pepsi
RM:
67-01
Ap:
Royal oak blue dial (not anniversary)
people will always look at the secondary market and think "If i were there, bla bla bla" like this would be a single person operation , done without legal and financial oversight. kudos for the transparency. it's a breath of fresh air
👍
Quite true Avi, you're in the upper echelon of dealers of luxury watches, therefore your expenses are alot higher.
People don't realize how small the margins are on alot of watches, therefore you have to turn them over quickly
Really nice work today, looking forward to the next podcast.😊❤👍 👏
Excellent content showing the numbers and real life examples. Also a great video length with timestamps for catching content between meetings. Great job brother!
Much appreciated!
Great show my brother! Could due a video and expand more into AP models that would be awesome thanks
What happens if you buy a Royal Oak or comparable at the top of the market and it drops $20k before you sell it? I doubt the market moves that fast, but, it seems like a serious risk if you buy significant inventory at this price point across several brands/models. Thanks for the education.
Happens all the time. We typically cut our loses and sell at a loss so that we can use the money to purchase additional products and hopefully make money on it.
Nets you a couple hundred bucks??? Like hell. More like a grand to $1200
Most people not familiar with the industry think the LB team and other dealers make hundreds of thousand per transaction, but they are forgetting that not business HOLD. They are sourcing and selling immediately. NO one can predict the future on the market. There might be a couple models they hold. It's about the volume of transactions that help dealer makes money. If a deal can source the AP for 42k and sells to their client for 60k, you think that customer will return after that transaction?
On $45k a $2k profit is not enough, is it hard to remain viable with that margin.
What are the watches where you have the highest margins? And you mentioned that LB could lose money if the watch sits in your inventory for too long. Is that due to LB purchasing their inventory on credit or lost opportunity costs?
Great content, out of curiosity the margins mentioned in the video are before tax or after tax or is it assuming no tax? How does the tax part work 😅
so that people would understand how bıg your overhead ıs you could explain it whit the amount of watch sales that nee to be done just to break even. Just like the royal oak 15510 you explained. So rent was 6-7 Royal Oak. Staff? Electricity, shipping etc etc.. Would be fun to see it all on a graph=) great vid, thanks
Aloha, just found you. New Subscriber! Your content transparency allows viewers on the OTHER SIDE of the fence to understand margins which allows us at least some negotiation power. Keep it up!
Please do a Vacheron, it deserves spot light in terms of trading as it's up there with Patek and AP
Market is equalizing post covid stimulus. Dealers will have to swallow their pride for cashflow. Watch how many shops just sell Rolex and those neo vintage gold watches will be unsellable when people have switched from shamelessly buying a ugly watch simply because it's made of precious metal that nobody wants to buy, to something they actually like.
Love when these guys say their margins are tiny. Just try to sell them even a Rolex steel sports, it will be 30% below market
Can you do omega and tudor thank you great video
Something tells me there is a desire to keep prices low and down to be able to have better cash flow and keep margins steady so the market doesn’t jump. Also allows for more purchase of inventory. Grey market pushed prices up and now it realized it makes more sense to keep them down
This was really good, Ari!
Please do more.
How about some Rolex sport models in steel/gold?!
Excellent…thanks for sharing!
JLC and VC added in would be cool. TY!
Avi, you do a great job as a host. Roman is a tough act to follow--I think you are definitely top shelf at LB. Marco and Peter are absolutely great, too.
Thank you for the comment and support!
Great as always…. how about adding collector conversations to your podcasts. It’s great to hear other collectors journey…
I like to examine the world of crappy watches people often get stuck with...to avoid big $$ mistakes..great content much enjoyed.cheers!
Thanks for sharing 👌🏻
where are the pateks???
Currently have a Sub w/ date… want to make a 3 watch collection based around my Sub. Have 60k USD to spend.
Any suggestions?
@@BufanMuayThai I have.... AP AD wants to me to start with a Code 11.59 that has awful resell value. My two Rolex ADs and Wempe have me on "their lists" but that has been for over 6 months.
Great content and presentation.
Much appreciated!
Why do u think buyers come to purchase from luxury buzzard than other watch dealers and what set luxury buzzard watchers apart from other dealers like your selfs .
do the AP 15550st and the 15450st on next episode
So, you don't care about quality, only quantity? 🤔
When it comes to low-margin products, quantity is the game. This is why we also specialize in rare watches where quality is prevalent.
Why don’t you do a video on how much you buy the watches from the public? You offer much less than the ‘buy in’ prices you are quoting
Because most watch dealers and jewelers are full of sht
its called economies of scale... why do you smirk when you say 'margins'...
You pay $50 to ship and I promise if that watches keeping time you ain't servicing it
When you ship an expensive item, you have to insure it. Insurance costs money. Keeping time doesn't mean everything functions correctly or that every part is original.
@greymarketpod a business shipping expensive items has a much better rate than a regular person just because of volume and your insurance policy. and as I stated if the watch keeps good time and functions correctly you ain't servicing shit. you will authenticate and move along. if it ain't broke don't fix it
But we came to learn what's not public, not what anyone can go look up.
75,000 for that patek
Not worth it way over price I’d rather have a Rolex any day
Why is this guy's math so bad. Stop talking about shipping like you're going to service a two-year-old watch
Thsbks do the 126719blro
so low margin ...