Boutiques vs Authorized Dealers vs Resellers
I've been wanting to get a tissot gentleman. So I have been calling tissot boutiques and dealers listed on tissot's website and enquiring about the availability, price and discounts on the watch. I've noticed significant amounts of differences in MSRP in different places and the MSRP in some of these places have a difference of nearly US$175 from the original MSRP listed on tissot's website. I didn't really understand what is causing these differences as all of them offered me the same 2 years international warranty from tissot. I asked the boutique and one other reseller about why I should buy from them and not the other seller where I'm getting it for cheaper (Idk the difference, but the reseller selling it at a higher price than the authorized dealer was very strange to me) and he told me that the other sellers might have older stock from two years ago. There was nothing else he said that seemed convincing apart from this. The boutique, however, had a different story in store for me. They told me that they have stock counting audits every 6 months or so. And the stocks that haven't moved are sold to the resellers at lower rates (imo, 6 months doesn't feel like a reasonable time to consider watches to be slow moving or fast moving as they are luxury item. Tissot is an affordable luxury brand in all aspects). This enables the resellers to again increase the MSRP (which is still waayyyy below the original MSRP) and then offer a "discount" to us buyers and still generate a profit margin. But my question is why is tissot (or if pervasive, all the other brands) selling their watches to resellers for lower rates after such a short amount of time??
So I have a few questions. How do AD's get their stock of watches? How do AD's offer such hefty discounts (in my case, nearly $200 below MSRP for an affordable luxury watch) How do resellers get their watches at such low prices that they are able to resell it at such low rates and still get a profit? How are they still able to offer the same warranty? Can you call them Grey market sellers (but they are still offering 2 years international warranty from tissot)? Thanks!! Have a great day and an awesome journey
Want Omiwatari 🥺 (yes that's a screenshot from max's video 🥲)
Boutique = AD. They are one and the same, with the exception that some boutiques are stand alone stores, IE, they only sell Tissots. in most cases the boutique is owned by a larger store.
ADs get their inventory from the brands. With the exception of Rolex and the high end brands (PP, VC, AP, etc), most dealers cannot afford to keep inventory on hand for more than a set window of time. They will discount down until they can longer afford the overhead. Some will do in store promos, others will wait for buyers to negotiate. After that time window hits, dealers will unload their wares en masse to their grey dealer network (grey dealer is different than flipper). They usually sell the pieces for cost plus a small percentage just to make something. No store can afford to keep dead inventory.
That is where the likes of Jomashop, Authentic Watches, Watchmaxx, etc come into play. They sit on the sidelines scooping up that inventory. That is why you can see an Omega at one of their stores for 20-30% off MSRP. They play an important part in the process freeing up capital for the ADs to get newer inventory.
Now, how does this impact the buyer? First rule, NEVER pay full price for any watch in a store, unless it is a holy trinity brand, Rolex, or a few others at the top of the pyramid. Second rule, do not rush to buy immediately when it is released. Dealers are not incentivized to discount on new watches. 2-6 months later (depending on brand, model hype etc) that watch will hit the grey market. Three; if the watch has been out more than a few months and is still at an AD, start your negotiations at the price grey dealers are selling, if not lower. In most cases, the AD will be glad to be rid of the inventory.
Lastly, regarding your warranty question; This varies on brand. In most cases, the warranty follows the watch. IE, both my Omegas were bought grey, came with full factory warranty as well as the store warranty. At this points brands know and accept this reality and in fact many embrace it. Some grey dealers suck and will keep the cards, but for the most part the market has sorted those folks out.
Boutique = AD. They are one and the same, with the exception that some boutiques are stand alone stores, IE, they only sell Tissots. in most cases the boutique is owned by a larger store.
ADs get their inventory from the brands. With the exception of Rolex and the high end brands (PP, VC, AP, etc), most dealers cannot afford to keep inventory on hand for more than a set window of time. They will discount down until they can longer afford the overhead. Some will do in store promos, others will wait for buyers to negotiate. After that time window hits, dealers will unload their wares en masse to their grey dealer network (grey dealer is different than flipper). They usually sell the pieces for cost plus a small percentage just to make something. No store can afford to keep dead inventory.
That is where the likes of Jomashop, Authentic Watches, Watchmaxx, etc come into play. They sit on the sidelines scooping up that inventory. That is why you can see an Omega at one of their stores for 20-30% off MSRP. They play an important part in the process freeing up capital for the ADs to get newer inventory.
Now, how does this impact the buyer? First rule, NEVER pay full price for any watch in a store, unless it is a holy trinity brand, Rolex, or a few others at the top of the pyramid. Second rule, do not rush to buy immediately when it is released. Dealers are not incentivized to discount on new watches. 2-6 months later (depending on brand, model hype etc) that watch will hit the grey market. Three; if the watch has been out more than a few months and is still at an AD, start your negotiations at the price grey dealers are selling, if not lower. In most cases, the AD will be glad to be rid of the inventory.
Lastly, regarding your warranty question; This varies on brand. In most cases, the warranty follows the watch. IE, both my Omegas were bought grey, came with full factory warranty as well as the store warranty. At this points brands know and accept this reality and in fact many embrace it. Some grey dealers suck and will keep the cards, but for the most part the market has sorted those folks out.
Absolutely NAILED it. Nothing to add beyond "buy the seller".
OP, If you're going to go grey or pre-owned, ESPECIALLY for more expensive watches, make sure to purchase from reputable places and not someone who will be gone in 3 months when you might need to cash in on the warranty being offered.
Boutique = AD. They are one and the same, with the exception that some boutiques are stand alone stores, IE, they only sell Tissots. in most cases the boutique is owned by a larger store.
ADs get their inventory from the brands. With the exception of Rolex and the high end brands (PP, VC, AP, etc), most dealers cannot afford to keep inventory on hand for more than a set window of time. They will discount down until they can longer afford the overhead. Some will do in store promos, others will wait for buyers to negotiate. After that time window hits, dealers will unload their wares en masse to their grey dealer network (grey dealer is different than flipper). They usually sell the pieces for cost plus a small percentage just to make something. No store can afford to keep dead inventory.
That is where the likes of Jomashop, Authentic Watches, Watchmaxx, etc come into play. They sit on the sidelines scooping up that inventory. That is why you can see an Omega at one of their stores for 20-30% off MSRP. They play an important part in the process freeing up capital for the ADs to get newer inventory.
Now, how does this impact the buyer? First rule, NEVER pay full price for any watch in a store, unless it is a holy trinity brand, Rolex, or a few others at the top of the pyramid. Second rule, do not rush to buy immediately when it is released. Dealers are not incentivized to discount on new watches. 2-6 months later (depending on brand, model hype etc) that watch will hit the grey market. Three; if the watch has been out more than a few months and is still at an AD, start your negotiations at the price grey dealers are selling, if not lower. In most cases, the AD will be glad to be rid of the inventory.
Lastly, regarding your warranty question; This varies on brand. In most cases, the warranty follows the watch. IE, both my Omegas were bought grey, came with full factory warranty as well as the store warranty. At this points brands know and accept this reality and in fact many embrace it. Some grey dealers suck and will keep the cards, but for the most part the market has sorted those folks out.
This is perfect! Only thing that I would add is the difference of an AD to boutique. A boutique within the watch world or fashion is owned by the company. Usually ADs are owned by an individual or conglomerate. That being said ADs are technically re-sell accounts buying wholesale and purchasing at a mark up of around 50-60% depending of the Scale of the AD . Boutiques on the other hand are direct from the manufacturer and will probably not negotiate due to the fact that their inventory isn’t sitting on a floor plan we’re the principal not the interest would be due to the bank after 30days(which incentivizes moving inventory and discounts)
This is perfect! Only thing that I would add is the difference of an AD to boutique. A boutique within the watch world or fashion is owned by the company. Usually ADs are owned by an individual or conglomerate. That being said ADs are technically re-sell accounts buying wholesale and purchasing at a mark up of around 50-60% depending of the Scale of the AD . Boutiques on the other hand are direct from the manufacturer and will probably not negotiate due to the fact that their inventory isn’t sitting on a floor plan we’re the principal not the interest would be due to the bank after 30days(which incentivizes moving inventory and discounts)
It’s a good point regarding boutiques and also a misunderstanding for many. Most brands, Rolex, Tudor, PP, etc the boutiques are all owned by a chain brand, think Tourneau, Watches of Switzerland etc. For example, the Tudor boutique in NYC is owned by Tourneau, the Rolex boutique in Boston is owned by Long’s. It is quite rare (relatively) to have any luxury watch brand do it’s own distribution via brick and mortar.
This is perfect! Only thing that I would add is the difference of an AD to boutique. A boutique within the watch world or fashion is owned by the company. Usually ADs are owned by an individual or conglomerate. That being said ADs are technically re-sell accounts buying wholesale and purchasing at a mark up of around 50-60% depending of the Scale of the AD . Boutiques on the other hand are direct from the manufacturer and will probably not negotiate due to the fact that their inventory isn’t sitting on a floor plan we’re the principal not the interest would be due to the bank after 30days(which incentivizes moving inventory and discounts)
Exactly. If I go to a Cartier boutique there’s no way I’d get a discount. A nice bag to carry away my watch, yes. My AD sells Cartier and I get a discount but no nice Cartier bag.
Exactly. If I go to a Cartier boutique there’s no way I’d get a discount. A nice bag to carry away my watch, yes. My AD sells Cartier and I get a discount but no nice Cartier bag.
https://www.hodinkee.com/articles/rolex-acquires-storied-retailer-bucherer?utm_source=newsletter&utm_medium=email&utm_campaign=hodinkee-daily-082423&_kx=_LfdAKx2YEpsm3y6tJ73H55Lam19Ed_J9X99bLXoRN4%3D.UHTEkW
Rolex is setting themselves up by aquiring a 100 store retailer that is also the parent company of tourneau… pretty interesting 🧐