fongpi Posted February 5, 2012 Report Share Posted February 5, 2012 Just out of curiosity, anyone? Quote Link to comment Share on other sites More sharing options...
seriph Posted February 5, 2012 Report Share Posted February 5, 2012 A bloody fortune, especially the ones who actually supply what's ordered and have something approximating service and after sales support ... but honestly, its not remotely possible to estimate dude Quote Link to comment Share on other sites More sharing options...
FxrAndy Posted February 5, 2012 Report Share Posted February 5, 2012 how much do you earn a year from illegle activitys????????????? Quote Link to comment Share on other sites More sharing options...
seeaye Posted February 5, 2012 Report Share Posted February 5, 2012 Only someone in the business will know. who knows what it costs to manufacture.. at least they sell it for a reasonable price. Think about the gen's and what they make.. thenagain they spend lots on advertising. Quote Link to comment Share on other sites More sharing options...
ademarco Posted February 5, 2012 Report Share Posted February 5, 2012 (edited) Only someone in the business will know. who knows what it costs to manufacture.. at least they sell it for a reasonable price. Think about the gen's and what they make.. thenagain they spend lots on advertising. It is hard to imagine that since most of the watches are not hand made anymore, then where all of the extra money goes for the gens. They either dress up an ETA or make an in-house copy of something similar and ask 10-20x what the reps cost after the profit the TD makes. Rolex has 2 buildings in Dubai (side by side) along the creek and it made me wonder how much they really profit from all the advertising of major sporting events around the world. Edited February 5, 2012 by ademarco Quote Link to comment Share on other sites More sharing options...
Watchmeister Posted February 5, 2012 Report Share Posted February 5, 2012 I am sure big dealers make a good amount of money but my perception (and it is perception) is that the industry has changed pretty drastically. The factories are making the bulk of the profit. At some level dealers are price takers. So my guess is they sell a lot more watches but there is no 50-100% mark-up (at least not on the better stuff) and at the same time they have had to up their infrastructure. I am not saying they are not earning a good living but I used to think they were quietly making milions of dollars on watches they bought for $100 and sold for $200. That is definitely not the case. In fact I have anecdotally heard they even take on lost leaders these days to get traffic in the door. Starting to sound like a legit business...... Quote Link to comment Share on other sites More sharing options...
Adeodatus Posted February 5, 2012 Report Share Posted February 5, 2012 I think they do not make money at all. As a matter of fact I think they buy some gen watches and then resell them as reps for 10% of the price. Chinese people are generous that way. Quote Link to comment Share on other sites More sharing options...
asciwhite Posted February 5, 2012 Report Share Posted February 5, 2012 I think they make like say for a retail $350 watch, about $100 - 150 profit. Only a gut feeling though, I know my dealer pretty well after 4 years of knowing him... Quote Link to comment Share on other sites More sharing options...
fotoman Posted February 5, 2012 Report Share Posted February 5, 2012 The big ones aren't hurting for a good steak dinner now and then. Randy is right, before the time of super reps 100% markup was the general going rate. But that doesn't include returns defective ect. Thats built into the price. Some dealers will make a large purchase on new items I'm sure they get a quantity discount. But the factories are the winners today. They still pay 3 piece of rice and 8 ounces of water a day to the workers, - only those lucky enough to be over 8yrs old, the younger just wait In the shadows till they see a weaker child they can pounce on and take the rice. My guess - based on insider # are 20-25% after defects problems loss leaders. Now, that doesn't include anyone they have to grease to make things happen. And, there are huge risks in moving that sort or material anywhere, - thieves, customs, inside guy leaking a few out. We doent know their volume and my guess is u less you take them to dinner in person your not going to get even an estimate. - now you know why they get pissy about a slightly mis-aligned Lume dot. yeah, were paying $$ that we consider real and feel we should demand perfection. But, they aren't see huge profit from that watch and they could go to jail (let's just say its possible because I know it is) plus your getting much more in a watch, super Lume, double AR ceramics - seriously where can you get that stuff in a no name brand for what were paying? You could build,I did it, it's expensive and risky and your not sure if you will like it. Quote Link to comment Share on other sites More sharing options...
Rolexman Posted February 5, 2012 Report Share Posted February 5, 2012 Look here for an golden oldie Quote Link to comment Share on other sites More sharing options...
valerian Posted February 5, 2012 Report Share Posted February 5, 2012 87'525.75 USD after taxes. As everybody knows. Val. Quote Link to comment Share on other sites More sharing options...
cougar1 Posted February 5, 2012 Report Share Posted February 5, 2012 Wasn't there a story a couple of years ago about one well known dealer, not sure if he was even supplying the forums...who cleared $30M profit in one year ....had his own yacht Quote Link to comment Share on other sites More sharing options...
Rolexman Posted February 5, 2012 Report Share Posted February 5, 2012 Wasn't there a story a couple of years ago about one well known dealer, not sure if he was even supplying the forums...who cleared $30M profit in one year ....had his own yacht Yup! It was Paul. Read post #10 Quote Link to comment Share on other sites More sharing options...
pizzanooo Posted February 6, 2012 Report Share Posted February 6, 2012 When some of the long time dealers are selling upwards of 100-300 or more watches of a hot new release the first month, and how many new releases there are now days and the many hundreds & or thousands of other watches they offer & sell every day. Even at 20%, that`s some bones. Do they have problems-issues on some level, yes. But that kind of bottom line has a way of making you forget all those problems. Quote Link to comment Share on other sites More sharing options...
mikellem Posted February 6, 2012 Report Share Posted February 6, 2012 I am sure big dealers make a good amount of money but my perception (and it is perception) is that the industry has changed pretty drastically. The factories are making the bulk of the profit. At some level dealers are price takers. So my guess is they sell a lot more watches but there is no 50-100% mark-up (at least not on the better stuff) and at the same time they have had to up their infrastructure. I am not saying they are not earning a good living but I used to think they were quietly making milions of dollars on watches they bought for $100 and sold for $200. That is definitely not the case. In fact I have anecdotally heard they even take on lost leaders these days to get traffic in the door. Starting to sound like a legit business...... +1 K Good judgement wm.. MM Quote Link to comment Share on other sites More sharing options...
lhooq Posted February 6, 2012 Report Share Posted February 6, 2012 Wasn't there a story a couple of years ago about one well known dealer, not sure if he was even supplying the forums...who cleared $30M profit in one year ....had his own yacht Phong's real name is Tom Vu. Quote Link to comment Share on other sites More sharing options...
Logan Posted February 7, 2012 Report Share Posted February 7, 2012 I know one of the high profile dealers has about 8 full time staff.. so I suppose that gives some guide to the size of the business, if not the profitability Quote Link to comment Share on other sites More sharing options...
gran Posted February 7, 2012 Report Share Posted February 7, 2012 There might be more money in replica OMEGA, ROLEX and TAGs that in genuine ones? anyhow the dearlers can make a very large profitt indeed...if they can get their hands on enough replicas and keep their reputation afloat Quote Link to comment Share on other sites More sharing options...
Watchmeister Posted February 7, 2012 Report Share Posted February 7, 2012 I know one of the high profile dealers has about 8 full time staff.. so I suppose that gives some guide to the size of the business, if not the profitability It actually doesn't tell is much other than labor at the dealer level is a very small piece of the costs. The average wage for legit full-time union jobs in factories in Guangzhou is under $800 a month. The minimum wage for legitimate jobs was just raised to $233 per month. You too can have a full time staff of 8 for anywhere from $20k-$80k. And that assumes that "black market" inudstries pay minimum wage or more. Or put differently a person working full time for a month in a legitimate industry is worth somewhere between 1/2 and 2 rep watches at retail price. Quote Link to comment Share on other sites More sharing options...
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