Watches are good items to buy and sell as a fine watch is valued for its craftsmanship and tend to increase in value over time. Additionally it can give an immediate boost of confidence to any person who wears one. It is appreciated and can spur emotions similar to diamonds being a “girl’s best friend”.
If it is a hobby of yours or you fancy fine watches, likely, you’ll also be interested in buying and selling watches. However, is it profitable? The short answer is YES, but there are still a lot of things to consider.
Who wouldn’t want to wear a fine watch to the office, an important meeting, or a special occasion? Men also notice other men who wear fine watches too. They usually develop an immediate connection that helps build business and personal relationships.
Online selling being rampant nowadays can give you an upper hand in scouting luxury watches and your target market. Of course, there would always be a risk of losing money, but if you do it right, the profit is well, and you’ll find it enjoyable too.
It also depends on what you find profitable. It has a different algorithm than buying and selling cars. In basic economics, there is a correlation between risk and profitability. Knowing that, read on to learn how to profit from buying and selling luxury watches.
The Process Of Buying And Selling Watches For Profit
1. Save up money for capital
Money that creates more money is called capital. When a watch is considered as a rare piece it has a significant dollar value attached to it, and this why you should save up significant money for capital. Keep in mind the resale value of a timepiece is dependent on its perceived value, whether it is real or artificially scarce as most marketers do nowadays by withholding stocks from the public.
2. Network and create business relationships
In this business, jewelers are your best friends. Present yourself as a consistent buyer with jewelers once you have have saved some money as capital. As with any business relationship, build rapport with a dedicated jeweler and you are well on your way securing quality timepieces you can sell.
3. Focus your buying from one source
Your jeweler should be able to offer quality pieces, and place you on the top of their priority list once you have proven you are a reliable buyer. Focusing on a single jeweler as your source will prove less work on your end hunting for quality bargains.
4. Hold back and don’t be greedy
Entrepreneurship is a study in taking calculated risks, so you must do your homework and know how much capital you can fork over and how much less margins you can take. It is important to not overestimate the value of timepieces, as prices may drop at any time which will affect your bottomline.
The next thing to research is where to scout your buyers. Having the right products are a great start, but knowing where to find your market seals the deal.
Where To Find Buyers of Watches
1. Buy and sell websites
Craigslist has a lot of watch dealers who also resell in their home countries. It is a vast marketplace that has something for everyone. Do your homework to screen out real buyers from scammers. Aside from Craigslist there are other buy and sell websites in the Philippines where watch buyers congregate to buy pieces.
Instagram has a good audience of watch aficionados, one can reach these people organically or through paid ads. In this case it is handy to learn digital marketing and know concepts such as engagement rate, pay-per-click and return on ad spend.
3. Your personal network
We are all connected in some way. Everybody knows somebody. Your buyers can be men and women in their 30’s, entrepreneurs, collectors, or even regular people wanting to have nice things for personal use or gifting.
4. Online shopping/e-commerce platforms
There are already a lot of online shopping/ e-commerce platforms in the Philippines. We have Shopee, Lazada, Sulit.ph and the like. Most of them already have built-in courier services, so you don’t need to worry about shipping. All you need to do is to advertise and market your products effectively. Since it’s all online, show buyers the authenticity of your products, provide high-quality photos and all the necessary details for a smooth transaction.
eBay also has a wide range of both buyers and sellers. You can also use this platform to check and make sure your pricing is competitive and sells the most. Like any other online platform, always do background checking and keep a record of your transactions to protect yourself.
Make a profit with watches by building your capital and buying reputation
It may sound ridiculous to buy a watch for thousands, but it will make sense when you can sell it for almost double its price years later. Take advantage of your connections and capital when basic material prices have been increasing rapidly for years and will most likely continue to rise in the years to come.