What are the factors that influence the purchase price of brand watches? | JEWEL CAFÉ Malaysia

Date published: May 26, 2020

What are the factors that influence the purchase price of brand watches? | JEWEL CAFÉ Malaysia

When assessing the purchase watches of what you all as Rolex and Omega, the assessment amount may vary greatly depending on companies. Although the condition is not good, there are cases where it was presented with an unexpectedly high price and also vice versa, honestly, “Although it is a popular brand watch, it was presented with a surprisingly cheap price compared to when I bought it. There is also a case.

Why does such a difference come out despite the same brand and similar watch status? Here are some of the reasons why there is a big difference in the purchase price of popular brand watches. If you are wondering “Why?”, Of course, please use it as a reference in order to prevent future failures. (* This column explains the general elements of purchasing companies, so it may differ from the information about our company.)

What are the four factors that divides into the purchase price?

1.Whether the body is in good or bad condition

Even with the same popular brand and model number, there are many cases where the current state of a used watch affects the assessed amount. A typical example is
〇 It is out of order or does not move
〇 There is no evidence of proper maintenance.
〇 Missing accessories
〇 There is a scratch on the body.
Etc.

Of course, unlike ordinary watches, most branded watch which are popular brands such like Rolex, accept most of the purchases even if they are damaged or broke down. However, in such cases, from the point of view of the dealer, it is necessary to properly repair and maintain (overhaul, etc.) after purchase before selling it, and the cost of that part will be included in the calculation and the purchase price will be reduced. For this reason, it is not uncommon to be confused as to ” why is this so cheap?” When the purchase price is presented. Also, when it comes to luxury brand watches, many people are more concerned about “satisfying the desire to own”. Demand for items that do not have complete accessories will be low, and the purchase price will be modest.

2.Is it popular among the same brands?

For example, even with the same Rolex brand’s similar products, it is often the case that “the suggested purchase price differs considerably from the purchase price!” (For example, a watch is bought at a price of 100, a watch with a different product number that is also in a very good condition is suggested to buy it at 50, and another product number says 30.)

After all, it is important to say “whether it is popular”, and the more popular it is, the higher the price will be. On the contrary, not all items (model number model) are popular even with popular brand items such as Rolex. If the item number of the item to be sold fits the so-called “unpopular model”, it can be difficult to expect expensive purchase.

But how do you know if your model is popular? As one guide, you can also think of “popularity = distribution volume”. The easiest way to do this is to search for “brand name, model name, product number” on an auction site such as “Yahoo Auction” and see how many are currently on sale. If there is a considerable number, it can be expected that there will be a lot of circulation and a rotation (that is, popularity), and on the other hand, if it is not so much exhibited, it may be considered as “popular, shortage or rare”. On the other hand, it is natural to think, “Isn’t the fact that the volume of distribution is small because it is not so popular?” * Of course, it cannot be said that “The second-hand buyers always sell immediately” because the volume of distribution is large.

If you are going to sell a so-called “unpopular model”, the purchaser thinks “I want to resell it as much as possible so I should get a more popular model …” and if it can not be sell for a long time, In many cases, we will consider increasing the profit margin (that is, lowering the purchase price). The attractiveness of “product numbers that do not sell well even after purchase” is low due to the high risk, so the purchase price tends to be low.

3.Whether the purchaser has a strong sales force

From the point of view of buying used watches, they can only make a profit by being able to resell the watch. (The money comes out first.) If the popular model seems to sell well in a few days to a week, I would like to buy it even if I lower the honest profit margin to about 20% to 30%! This means that we are willing to buy at a high price, but in the opposite case (where it takes a few months to a year to sell), it is dangerous unless you significantly increase the profit margin (lowering the purchase price).

People who assess by consciously “how soon to sell or about to sell” setting the purchase price, but this “selling” has a big influence other than “popularity / unpopularity of models. “Sales power” is, of course, important, but at the same time, “whether there is only physical store, online sales, or both,” and “whether the actual store has advantages such as a good location or name popularity? ”And so on.

The route for resale of purchased items and whether the selling power is high or low is quite important, and that is why it is generally said that large-scale stores with strong selling power have an advantage in expensive purchasing. On the other hand, if you are using a “store-only sales style” (or online only), even if the item is a popular model with a certain amount of distribution, the number of people who can purchase it is limited, so the time until resale is also limited. There is a risk that it will become long and push down the purchase price. If you feel that the assessed value is strangely low, you can increase the purchase price by confirming whether it is a vendor with abundant resale routes or by asking another vendor for assessment. There is also a method.

4.What is your profit margin policy?

From this point onwards, it will be a delicate issue because it is related to the policy of each company, but each company naturally has a manual-like thing to “secure such a profit margin.” In some cases, we may give the purchase staff a lot of discretion, but we should at least secure this amount of profit and set the purchase amount. “

Such as a “profit margin standard to be set” is a point that is difficult to check from outside because it is related to the setting of the intermediate margin. Generally, the purchasing shop “resells the purchased watch, and pays expenses such as salary and rent by the profit from it “.

Therefore, large-scale stores may require a large amount of cost, and the purchase price may be limited to secure more profit. (On the other hand, if the sales force is strong, it will be offset or even more bullish purchase will be done.) In some cases.

In any case, if you feel that the appraisal amount of a branded watch is surprisingly “cheap,” it is worth paying attention to these four. You can make preliminary predictions by consciously conducting preliminary research on cases 1 and 2, or change the situation by requesting an assessment with another contractor for cases 3 and 4. There are also cases, because it’s a branded watch that costs a lot of money to buy, I think it’s possible to get closer to a convincing form by taking some actions when selling it.

Thank you for reading.

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