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Discussion Starter #1 (Edited)
Hi all,

Brand new to the forum here and liking that there is such a large watch community. As for me, I have always been a Tag fan and have been perusing stores in Asia and Canada (I travel a lot) and see lots of price difference. I also follow ebay resellers to see if I can snag myself a deal from time to time. My interest has taken me to a point where I am starting to consider being a Tag reseller/dealer on ebay and provide authentic Tag watches. To me, I can see it being a very nice way to work from home and deal with a product that I like.

So my question is, how does one do that? What does it take to be able to sell Tag watches online and represent their company? Secondly, if authorized dealers are vetted by Tag to provide a level of standard and service, then how are there so many resellers offering authentic Tag watches? How did they manage to acquire such an inventory of Tag time pieces for sale in their online shops?

I have done a lot of searches on Google with very little result on how to go about getting into the business on selling Tag/Luxury watches. If anyone can offer an insight, it would be very much appreciated. Thanks in advance!

Godspeed108
 

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I dont think you can be an online authorized dealer only. I believe you must be a physical store and then sell online.

Most of the online seller are not TAG authorized dealers.

Which leads to the question: where do they get their stock?
Its either directly from TAG (which means they are undermining their own ADs -or- they get it from ADs who act as a supplier.
 

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Discussion Starter #3
I dont think you can be an online authorized dealer only. I believe you must be a physical store and then sell online.

Most of the online seller are not TAG authorized dealers.

Which leads to the question: where do they get their stock?
Its either directly from TAG (which means they are undermining their own ADs -or- they get it from ADs who act as a supplier.
That was my thought too. That somehow a reseller must have an association with an AD who probably makes a small cut from them. I mean, in the end game, as far as Tag is concern, product is being moved. So if an AD is supplying a reseller for a small cut, I can't see how they would see it as being "illegal". I can only imagine that in Tag's eyes they are thinking that here is a store who is ordering lots of product from us because business is good. So why rock the boat.

But, it still doesn't explain the bigger legit so called Grey Market resellers who seem to offer so many luxury watches. That part I don't have an insight too on how they can have such a large inventory from so many watch makers. If anyone has an insight, please feel free to share. Cheers!
 

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Hi- The grey dealers get their watches from ADs. In order to keep their franchise, an AD commits to buy a certain level of product from the brand- I'm not talking about TAG Heuer in particular...its the same for most brands.

So, if the AD feels that they have to buy more stock than they can sell to keep their status, they may be tempted to on-sell to a grey dealer. Others will "over-order" with a strategy of selling through a grey dealer, but I don't think this happens much any more. The brands can track a watch sold grey by the serial number, and so can work out which AD sold the watch and terminate their licence...that is why the grey dealers used to scrub out the serial numbers...not sure why they don't anymore.

Beware: many of the grey dealers don't have the stock that they advertise. They wait and get an order, and then set about calling around their network to secure the watch
 

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I worked for what is probably the largest grey market dealer/wholesaler . We bought a large bank building due to the size of our inventory . On any given day we would have 80,000 watches in stock . Many of the watches came directly from the manufacturers .When dealers stock swap for newer models the watches wind up back in the vaults of the watch companies where they are then sold to grey market wholesalers like the one I worked for .
 

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which explains part of the reason watches cost so much at the retail level. Watches are way over produced, resulting in these buybacks, then sold on the cheap just to get rid of them. the cost is made up through sales at an AD.

I compare it to newstands that charge several dollars for a magazine issue only to have many issues go to waste to make room for next month's issue. If you buy at a newsstand, you are paying for the thrown out issues as well.
 

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I worked for what is probably the largest grey market dealer/wholesaler . We bought a large bank building due to the size of our inventory . On any given day we would have 80,000 watches in stock . Many of the watches came directly from the manufacturers .When dealers stock swap for newer models the watches wind up back in the vaults of the watch companies where they are then sold to grey market wholesalers like the one I worked for .
Jesse - at what percentage of retail did your company buy the watches? If ADs generally buy at 50% of retail, your costs had to be MUCH lower.
 

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It depends on the brand , the bigger the retail the smaller the percentage . On average we were paying 30- 40 cents on the retail dollar .
 

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Discussion Starter #9
Lots of really good insights to the grey market and retail in general. Thanks guys. Jesse, 80,000 pieces in inventory. Wow. Close to 8 to 12 mil worth of watches, or more? Do you still work for the wholesaler? I am interested in a Tag CAF101E-FT8011 Aquaracer. I posted in WTB. No replies as of yet. Hope its okay to ask here. Will edit it if it is not.
 
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