What are the benefits (in 2022) of buying from an AD

Hey all- hoping for some advice. I’m relatively new to the watch hobby (only two pieces so far - a Speeedmaster Date from the late 90s and a Seamaster ‘57 reissue - both bought pre-owned).

I’m about two months away from buying a Speedmaster Pro; I stopped at an AD to have a convo about the watch and I hold him point blank that I was there because I heard that ADs can give discounts where boutiques cannot. The guy said “we don’t really do that anymore.” 
 

Does anyone else have that same experience… because if I’m not going to get a discount, then maybe buying new from the grey market (Jomashop, for example) makes more sense.

And realistically, I’m only expecting 5-10% off… speedmasters are moving at a good clip… so I don’t expect a radical discount.

Thanks!

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The only reason I’ve ever purchased from a boutique was to develop a relationship in order to get early access to limited edition and rare pieces. Otherwise, all my purchases are via the grey market. 
I‘ve developed a really amazing relationship with a grey market dealer who I trust implicitly and who has given me amazing discounts - and since he’s “out of state,” all purchases have “tax included” in that discounted price… wink, wink. 
If you’d like intros, happy to connect you with him. 

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I wondered about this as well, and then I had an issue with a watch. Since I bought it from an AD, I was able to get the problem taken care of with no hassle whatsoever. No matter what they may advertise, I have never even heard of a gray market seller having anywhere near the customer service that an AD usually does. That alone makes paying full price at an AD worthwhile in my estimation. 

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Mr.Dee.Bater

The only reason I’ve ever purchased from a boutique was to develop a relationship in order to get early access to limited edition and rare pieces. Otherwise, all my purchases are via the grey market. 
I‘ve developed a really amazing relationship with a grey market dealer who I trust implicitly and who has given me amazing discounts - and since he’s “out of state,” all purchases have “tax included” in that discounted price… wink, wink. 
If you’d like intros, happy to connect you with him. 

Well, I stand corrected. I now have heard of a gray market seller with excellent customer service. 😂

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Mr.Dee.Bater

The only reason I’ve ever purchased from a boutique was to develop a relationship in order to get early access to limited edition and rare pieces. Otherwise, all my purchases are via the grey market. 
I‘ve developed a really amazing relationship with a grey market dealer who I trust implicitly and who has given me amazing discounts - and since he’s “out of state,” all purchases have “tax included” in that discounted price… wink, wink. 
If you’d like intros, happy to connect you with him. 

Interesting. So, yeah, I think making the aquantience of your dealer would be good - if not for my next purchase, then for a purchase down the road...

But you said something else that I want to probe on. As of today, I don't have a relationship with anyone (my purchases have been via eBay and a local watch resale store). Do you think I should buy the Speedy Pro from the boutique, just to set myself up for access to a yet-to-be-determined limited edition piece down the road?

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OlDirtyBezel

I wondered about this as well, and then I had an issue with a watch. Since I bought it from an AD, I was able to get the problem taken care of with no hassle whatsoever. No matter what they may advertise, I have never even heard of a gray market seller having anywhere near the customer service that an AD usually does. That alone makes paying full price at an AD worthwhile in my estimation. 

That's a bit of my fear as well.. especially when you are shelling out over 5000 USD for a watch (shimmy shimmy ya by the way)

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OlDirtyBezel

Well, I stand corrected. I now have heard of a gray market seller with excellent customer service. 😂

Ha!  Yeah, Seth is an individual, who became a watch enthusiast, and then decided to become a grey market dealer.  

Effectively, he's an "arbitrageur."  So, for example, a while ago, there was a particular Breitling that caught my eye:

  • Let's just make the math simple, and say that the MSRP on it was $10,000
  • Based on supply and demand, NOBODY is buying that watch at $10,000, and it just sits in the display case of an authorized dealer for eons
  • So, I ping him, and say, "Yo, dude, I'm interested in Watch X.  Can you source it for me?  And how much would it cost me?"  
  • Apparently, ADs pay ~35% of MSRP as their wholesale price on Breitling.  So, Seth reaches out to his network of ADs, and says, "I have a customer who is interested in Watch X.  He has agreed to buy the watch for $6,000 all in - tax included.  That leaves $2,500 of margin to be split 50/50 between you and me.  Shall we do it?"  
  • If the AD agrees to sell the watch to Seth to sell on to me, they each get $1,250, and I get a watch for 40% off MSRP, and since Seth is "out of state," tax was included!  So, effectively, I got a 47.75% discount off MSRP!!!
  • Since the watch comes from a fully authorized Breitling dealer, the full 5-year warranty is intact and in my name.  Tags, box, papers...  everything included as though I'd purchased it directly from the dealer
  • Seth overnights the watch to me via Fedex, and it's a win-win-win situation for all parties concerned

Now, different brands have different margins, and supply and demand determine the real discount levels you can get.  So, the highest discount off MSRP I've ever gotten was that 40% (plus another 7.75% with tax included).  The lowest discount I've gotten to-date has been MSRP for a model that was just released and very high in demand (though I still got the "out of state" sales tax treatment).

Hope that makes sense!

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Free coffee, snacks and possibly some swag. And they size the bracelet for me. 😎

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Mr.Dee.Bater

Ha!  Yeah, Seth is an individual, who became a watch enthusiast, and then decided to become a grey market dealer.  

Effectively, he's an "arbitrageur."  So, for example, a while ago, there was a particular Breitling that caught my eye:

  • Let's just make the math simple, and say that the MSRP on it was $10,000
  • Based on supply and demand, NOBODY is buying that watch at $10,000, and it just sits in the display case of an authorized dealer for eons
  • So, I ping him, and say, "Yo, dude, I'm interested in Watch X.  Can you source it for me?  And how much would it cost me?"  
  • Apparently, ADs pay ~35% of MSRP as their wholesale price on Breitling.  So, Seth reaches out to his network of ADs, and says, "I have a customer who is interested in Watch X.  He has agreed to buy the watch for $6,000 all in - tax included.  That leaves $2,500 of margin to be split 50/50 between you and me.  Shall we do it?"  
  • If the AD agrees to sell the watch to Seth to sell on to me, they each get $1,250, and I get a watch for 40% off MSRP, and since Seth is "out of state," tax was included!  So, effectively, I got a 47.75% discount off MSRP!!!
  • Since the watch comes from a fully authorized Breitling dealer, the full 5-year warranty is intact and in my name.  Tags, box, papers...  everything included as though I'd purchased it directly from the dealer
  • Seth overnights the watch to me via Fedex, and it's a win-win-win situation for all parties concerned

Now, different brands have different margins, and supply and demand determine the real discount levels you can get.  So, the highest discount off MSRP I've ever gotten was that 40% (plus another 7.75% with tax included).  The lowest discount I've gotten to-date has been MSRP for a model that was just released and very high in demand (though I still got the "out of state" sales tax treatment).

Hope that makes sense!

It does! And I may ask for an intro to see if he can get me a deal on that Tudor 1926 I’ve been wanting. 

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Mr.Dee.Bater

Ha!  Yeah, Seth is an individual, who became a watch enthusiast, and then decided to become a grey market dealer.  

Effectively, he's an "arbitrageur."  So, for example, a while ago, there was a particular Breitling that caught my eye:

  • Let's just make the math simple, and say that the MSRP on it was $10,000
  • Based on supply and demand, NOBODY is buying that watch at $10,000, and it just sits in the display case of an authorized dealer for eons
  • So, I ping him, and say, "Yo, dude, I'm interested in Watch X.  Can you source it for me?  And how much would it cost me?"  
  • Apparently, ADs pay ~35% of MSRP as their wholesale price on Breitling.  So, Seth reaches out to his network of ADs, and says, "I have a customer who is interested in Watch X.  He has agreed to buy the watch for $6,000 all in - tax included.  That leaves $2,500 of margin to be split 50/50 between you and me.  Shall we do it?"  
  • If the AD agrees to sell the watch to Seth to sell on to me, they each get $1,250, and I get a watch for 40% off MSRP, and since Seth is "out of state," tax was included!  So, effectively, I got a 47.75% discount off MSRP!!!
  • Since the watch comes from a fully authorized Breitling dealer, the full 5-year warranty is intact and in my name.  Tags, box, papers...  everything included as though I'd purchased it directly from the dealer
  • Seth overnights the watch to me via Fedex, and it's a win-win-win situation for all parties concerned

Now, different brands have different margins, and supply and demand determine the real discount levels you can get.  So, the highest discount off MSRP I've ever gotten was that 40% (plus another 7.75% with tax included).  The lowest discount I've gotten to-date has been MSRP for a model that was just released and very high in demand (though I still got the "out of state" sales tax treatment).

Hope that makes sense!

It seems to me that this illustrates something important. It is important to look at the particular dealer rather than getting caught up in AD vs. grey market dealer. I mean, not every grey market dealer is going to be the Timepiece Gentleman. 😂 I have had good experience with the warranty from Jomashop, one of the largest grey market dealers of which I know. I had an issue with an Orient Mako II and they took care of the problem no problem. 🤣

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Maybe I'm too new to this, but I've bought from both ADs and non-ADs and I honestly can't tell the difference lol 

The only piece of advice I would offer is that maybe if the watch is new and hella expensive, I'd go through the AD path to avoid any mishaps but otherwise, most dealers (that aren't sketchy) are there to build a strong clientele and get 5-star reviews. Why would they jeopardize that.

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Quality of the purchasing experience. Clicking on a Jomashop is not a luxurious experience.

Supporting your local economy.

Keeping quality retailers in your local shopping precinct.

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OlDirtyBezel

It does! And I may ask for an intro to see if he can get me a deal on that Tudor 1926 I’ve been wanting. 

I'll DM you his info!

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dbj1906

That's a bit of my fear as well.. especially when you are shelling out over 5000 USD for a watch (shimmy shimmy ya by the way)

Protect ya neck ✋🤚

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dbj1906

Interesting. So, yeah, I think making the aquantience of your dealer would be good - if not for my next purchase, then for a purchase down the road...

But you said something else that I want to probe on. As of today, I don't have a relationship with anyone (my purchases have been via eBay and a local watch resale store). Do you think I should buy the Speedy Pro from the boutique, just to set myself up for access to a yet-to-be-determined limited edition piece down the road?

I'll DM you his info.

With regard to your question about building a relationship with an AD / boutique for access to exclusive pieces:

  • If you are really focused on Omega as a brand, then I'm not sure what the payoff really would be.  There was a gentleman on this forum who recently posted that he'd acquired the Speedmaster "Silver Snoopy Award" after buying 6 other Omega watches.  So, if you got that kind of bank, and you're THAT devoted to getting your hands on a particular piece, then, yes, have at it!  But, otherwise, Robert-Jan Broer of Fratello recently mentioned in a video (don't remember which one, or I would link to it) that Omega are no longer doing limited editions - everything moving forward will be regular production.  Even still, Omega will have stuff like the Silver Snoopy that are impossible to get.  But, then, are you willing to purchase 6 other Omegas to get one?
  • I bought from the Miami GS Boutique specifically to develop the relationship and to get my hands on a piece that I couldn't otherwise get.  Moreover, GS continue to produce LE models that only "VIP" GS Boutique customers will ever get a chance to purchase.  Nonetheless, there's a tradeoff - you get access to stuff that otherwise you wouldn't be able to get, but it costs a pretty penny.  If you have the financial wherewithal, and your wife's blessing, then it's just another fun thing to do.  Otherwise, it's probably not the best way to stay married.  Here's the post I did on that particular dumb decision of mine:  https://www.watchcrunch.com/Omeganut/posts/so-i-accidentally-906

Thus, if you're an infrequent buyer, just go with someone like Seth.  If you're building up a massive collection, and you got the means, why not get access to stuff that nearly nobody else will ever have access to, yeah?

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Everyone - thanks for the feedback... gives me quite a bit to think about. I think a combo of a "Seth" and an AD makes sense. I love the boutiques, but buying there doesn't make sense long term (I plan to be a 3-5 watch guy, with a mix of brands). 

I think going to the AD might be good for the Speedmaster, because those watches are not sitting display cases for months on end... they are moving and moving fast. Plus, I like being able to try watches on the wrist, and I kinda feel bad when I go into a store to try on a watch, but then I don't buy ANYTHING from them. Maybe buying one watch will earn "try on for 2+ years" privledges.

"Seth" (an honorable grey market dealer) might make sense for a watch that is not popular... the Omega Globemaster is a great example (I love this watch, but I think I am the only person in the US that loves it). That watch retails for $7200... I wouldn't pay more than $4500 for it.

Now all I need to do is save up some cash, and sell my Speedy Date (no reason to have two Speedmasters in the collection).

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For watches that lose a lot of value, buying either pre-owned or through the grey market makes the most sense to me, unless you can negotiate an appropriate discount from an AD. For new watches that tend to hold their value, I personally prefer the AD route.

When you purchase from an AD, you have the assurance that you are buying an authentic watch, in pristine condition, complete with full manufacturers warranty, and no concern with possibly buying a stolen watch.  If the AD is local, you are also supporting your local economy, and have the opportunity to have the bracelet sized for you.  The value of that depends on the AD  (they may be a**holes that you don't want to support), and the bracelet itself. For example, sizing a bracelet on the new Speedy 3861 is a pain in the butt, however sizing the bracelet on the Santos De Cartier is a piece of cake.

ADs also can provide a valuable service in terms of allowing you an opportunity to try on a watch prior to purchase, and can act as intermediary between you and the manufacturer in the event warranty repairs are required. 

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I have two ADs. One in my hometown. He is my first choise if there is a watch that I like and he has it in his line-up. I don’t hazzle that much about discounts. I support his local business, God know how long they survive. I tell him what’s out there on the web but take the offer he gives.

The other is in the capital. They have a lot of major brands including Rolex that I like. My experience with this particular AD is that they have a good knowledge of the market. I have got a fair discount on JLC, no discount on BB58. I assume I will have a discount on Omega (except new Speedie), Cartier etc. By having watches I like I also have the possibility to go the Rolex ladder without buying things I don’t like. Have not had the possibility to buy a Rolex yet but believe I will get my Sub no date 2022.

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Omeganut nailed it.

Period. The end.