i know where the profit my father made with his shop went. it was the rent. landlords absolutely bleed their tenants dry. sorry but that is the biggest reason i know for shop closure.In the US, if you pay list, I think about 40 to 45 percent of list is mark up. But lets remember that out of that, they are paying to keep the doors open, paying the staff, the utilities, advertising, store fixtures and interiors, not to mention the paying for the watch and having it sit there until it is purchased. So obviously with all the expenses, the markup is far from all "profit".
Naturally, I prefer a decent discount, but I would never decry an AD for making a living. Profit is the life blood of any business, and it's sole reason to exist in the first place.
What the net margins of the dealers are is hard to guess , however the
gross margins are in a range of 40-45%.
The more watches that a dealer sells the bigger the discount he gets from Breitling.
Hence jewellery retail chains have bigger margins as compared to standalone jewellers since their purchases are higher in numbers.
The inventory holding time of the retailer makes a difference . Hence a dealer will always offer a bigger discount on instore items as compared to
The currency in which the watches are bought , makes a difference.
If the watches are bought and then the currency devaluated marginally as compared to local currency , the retailer loses.
Local taxes play a part . In south east asia , taxes can go upto 20% and the ADs will procure the watch through their network and sell it to you at a discount if you are willing to accept only a stamped warranty card and no invoice.( is that risky ? thats another debate)
ADs will also offer a discount if you pay by cash rather than card as they save on the processing charges.
all these factors determine the final price of a watch. It also helps if the AD is also a watch freak as compared to only being a businessman .
just my inferences from talking to ADs in quite a few places. ( purely out of a love for Breitlings)
Hope that helps,