What Are The Key Factors To Consider Before Starting To Flip Watches?

A lot of people consider flipping watches. It seems like an easy way to make some extra cash …and while it can be this, it is maybe not as straight forward as that.

You can maybe get away with selling one or two of your own watches and making some money, but really if you want to give watch flipping a serious go, then you need to take some things into consideration, which I will go through below.

The more serious you take things, the more likely it is that you will see success, so it is worth seriously thinking about the things I am about to discuss. 

Where Will You Get The Watches To Flip?

One of the biggest considerations you need to think about is where exactly you are going to get your watches from and more importantly, how will you find them at the right price.

Your goal is going to be to make a profit, so where can you get below value watches? This can be one of the hardest parts of flipping as everyone has the idea that they will just buy from the authorised dealer and then sell their watch on for a profit.

The reality is that is only really works once. When the dealer sees you have just flipped the watch, they are probably not going to sell to you again, so for many people this is just a one shot thing and even then, not all watches will suddenly go up in value just because you are trying to sell it immediately after buying it.

Do You Understand The Watch Market

You also really need to consider your knowledge of the watch market. If you want to sell watches, you need to know what is in low supply and also in high demand, as this is where the most profit will be made.

The watch market can also be hard to predict at times, so you want to try and learn as much as you can so that you are not just blindly buying things and hoping you can flip them. 

Watches Don’t Always Go Up In Value

I think it is very important to remember that not all watches hold their value. Some may go up, others may go down and there really is no guarantee what will happen.

Watch flipping needs some actual thought behind it, you can’t just buy a watch and expect it to go up in value. I would actually imagine that most deals are done by the flipper negotiating buying the watch just below the market value and then trying to sell it on at market value …where a small profit is still made.  

Can You Afford To Hold The Watches Long Term?

Quite often the value of a watch will go up over the long term. As it becomes rarer and more vintage, the price can start to creep up and this is exactly how you can have100k Rolexs that probably only cost a few hundred when they where first bought 60 years ago.

However this is not an automatic guarantee as some people seem to think and more importantly, can you afford to have your cash tied up in a watch for years and years.

I would argue that you are more of an investor if you are doing this, hoping you make a profit in the long term, this isn’t really what a flipper does, they are more about doing things quickly and keeping a steady cash flow moving in and out, either way, how long you hold onto watches before selling is something you will need to think about.

Do You Understand The Value Of Watches

Understanding the value of watches is going to be pretty fundamental if you want to be a watch flipper and really it is not as easy as you think.

Many people think you just see a nice watch and automatically assume you can make a profit on it, but really it’s so much more than this. The value of watches is partly controlled by the market, which I have discussed above, but it also comes down to the condition of the watch.

Although, this isn’t even as straight forward as you think. You will need to be able to tell if the watch is authentic and all original …as well as in a good condition and not damaged in anyway.

There are plenty of fakes or franken watches out there that are just worthless and you can easily lose money if you are not careful. Actually being able to assess a watch for both quality and resell value is going to require some learning on your part and you will need to think about this before you start.  

(You can read more about – Is Watch Flipping A Profitable Business Venture?)

Are You Aware Of How Watch Scams Work?

Sometimes you may be the one who gets the value of a watch wrong …but often this is helped along by unscrupulous people who are out to rip you off.

The watch industry is full of fake watches and fake people trying to sell you them. There are a seemingly endless amount of ways to get scammed and you need to have your wits about you and you need to be aware of some the main techniques that these terrible humans are trying.

It’s always going to be good to educate yourself about these things to hopefully protect yourself.

Are you Aware Of Other Red Flags

It’s not just straight up scammers you need to be aware of, people can present a multitude of red flags that you need to be aware of and you need to avoid as best as you can.

Perhaps a seller is a little too pushy or a buyer is giving off vibes that they are going to be a nightmare.

You need to ready yourself for these kind of people and try to avoid them as they can quickly get you into trouble or even ruin your reputation that you have worked so hard to build, through no fault of your own.

Where Will You Find Buyers For Your Watches?

A lot of the business is going to centre around finding buyers for you watches, and while I think this is going to be one of the easier parts of things, it’s still not so straight forward.

You are going to have build trust and a reputation in the watch community and that will take time and things will be harder at the start.

If no one knows you …how do they know you are not just another scammer. Just having sought after watches and good deals isn’t enough, you will need to make people know you are genuine and can be trusted to deliver what you say you can.

Do You Know How To Negotiate A Deal?

A lot of flipping watches is about the negotiation and this is why people often fail.

Anyone can buy a watch …but is it going to be an excellent deal, probably not. It’s probably going to be market value …so how can you expect to then make a profit on it?

You will need to negotiate the price down and get a good deal, so that you can make a profit, but of course the seller is going to be wanting the same, so it really is tricky, but this is a skill you can learn and the more knowledge you have about the market the better you will become.

This is also the same for selling the watch. The new buyer will want a good deal, but you need be able to negotiate a price that makes them happy …but also gives you a profit.

You Need To Consider Taxes and Other Legal Stuff

I hate to say it, but you will need to consider all the legal stuff around making money.

Flipping watches is a form of business and the tax man will want his cut, even if it is a side hustle.

You may also face other taxes like import tax if you are shipping watches overseas. Small things like than be a total nightmare as well as the fact that it can steal your profit, so it is wise to just spend some time looking into all the different costs that you might incur while selling a watch.

You need to be making a profit and that means you have to factor in taxes and all the rest to make sure you are actually not losing money on a deal.

Have You Considered Other Costs That You Might Need To Spend?

While taxes are going to be your biggest pain and probably your biggest cost, it is not just these you need to think about.

You will need to think about delivery costs and even repairs and maybe new parts if you are buying watches that are a little beat up.

You may get a good deal on a slightly damaged watch, but how much will it cost to fix it and will there still be a profit afterwards.

Even marketing costs need to be considered, for example if you start your own website, that will need to be paid for somehow, so don’t forget to think about all these extra things that help you get the job done. 

(You can read more about – Is Flipping Watches Worth It?)

How Will You Handle Money Transactions?

Another area that you will need to think about is how you will do money transactions. How can you exchange money safely while not being scammed and how you can also give this peace of mind to your customers.

This is going to be especially true if you are buying and selling online where scams are much more likely and using an escrow service may be a good idea.

How Will You Deliver The Watches To Your Buyers?

I’ve already mentioned delivery costs, but you need to actually think about how you will move watches in and out.

This is again an easy area for scammers to exploit and you will need to look into ways that this can be avoided as you don’t really want to spend a lot of money for a watch, only to receive an empty box and likewise, you can find just as many scams where the buyer will claim you didn’t send something …so you need to be careful and really do your homework on this stuff. 

Have You Considered That People Need To Know and Trust You

I think when most people consider flipping watches they just focus on the watches, they forget that they need to build a reputation and people need to know you and trust you.

This is extremely important, you need to prove that you are legit and that you have everyone’s best interest at heart. If people just think you are out for the money and don’t really care about the watches, or helping people …you will struggle.

You are going to have to get your name out in the community and a lot of people don’t really like this, but buying and selling watches is all about the network you have along with your reputation you have, so this really isn’t something you can avoid and if you want to take watch flipping seriously, then you need to do this aspect of things well

Conclusion    

Hopefully now you can see that there are a lot of things to consider when flipping watches, especially if you want to do it more seriously and actually try and make some real money with it.

It is hard work, and you will need to grind, but if you consider all the things I have discussed properly, there is no reason why you cannot see success. 

(You can read more about – Frequently Asked Questions About – Watch Flipping)