Where to buy a Luxury Watch?

The watch market has some peculiarities. When you go to your local watch dealer, you will find either of these scenarios:


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  1. he does not offer any of the top brands as these sell their watches only by selected distributors, so called ‘Konzessionäre’
  2. he offers the brands, but most of the watches (esp. the interesting sports models) are out of stock and will only be available within months or even years

That is because the watchmakers found out a simple psychological rule of selling: if you sell less than you actually can, demand will increase dramatically. What you must understand is that people from Switzerland are extremely good in making money. They are famous for that ability.

What they do is a two-step process. First step is: if a watch dealer orders 5 pieces of an expensive watch, deliver 2. The 3 watches you could have also sold, is an investment into the future. It reduces your turnover today, but the strategy will pay off later. The second step is: increase the price for the 2 watches you ship dramatically over time. At least 10\% every year. The result is that a customer has to wait for a watch like e.g. the Rolex Daytona steel for up to 10 years. It becomes real luxury just to have one.

The watch dealer market is divided into two sectors: one, the official dealers, that have the concession of the watchmakers to sell their watches, but often do not have the really interesting watch models in stock. Two, the so called grey market, that have some of the interesting models sometimes even for a good price. The latter are dealers that sell watches unofficially. That is not illegal, as you can purchase and sell luxury watches like any other product, but they do this without the official concession of the watchmakers. And that is a real drawback for the buyer.

If you intend to purchase a luxury watch I strongly recommend to purchase it from an official dealer. Here comes why:


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