What Are The Biggest Challenges Or Risks Associated With Watch Flipping?

Flipping watches seems like an easy way make some money, and it certainly can be. However, it’s not as simple as you might think.

If you are trying to do this as a proper business, you will face a lot of challenges and there are a lot of risks. It is very easy to lose money flipping watches if you are not careful and I will go though some of these challenges and risks below.

Being aware of these is really going to help you avoid running into trouble, so let’s get into it.

Losing Money Is a Big Risk

The main goal of watch flipping is to make money, and this is the biggest challenge around the whole business and also your biggest risk.

You can very easily mess up and end up over paying for a watch …meaning you can’t sell it at a profit.

Even selling to break even is not worth it, as you will have wasted a lot of time and gained nothing for it in return.

A lot of people think that is it is easy to make money from a watch, but it really isn’t. The vast majority of watches will go down in value and trying to predict what ones are profitable is not easy.

You can very easily lose money flipping watches, so you will need to be very calculated with what you are doing.

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

There Is Always The Risk Of A Market Crash

Markets can be volatile and they can crash and this can happen with watches too.

In general the market is pretty steady, but watches are often a luxury item, so if times get hard, the watch market is going to be one the first things to dry up, and that will be a challenge for you. It may mean you are able to buy watches a lot cheaper …but you will struggle to flip them on.

I wouldn’t worry about this too much, the watch market is pretty strong and stuff like this is also outside of your control.

Interestingly during the pandemic in 2020, the watch market actually went crazy. Everyone was working from home and were basically earning money but weren’t allowed outside to spend it on the stuff they normally would …so they all started buying luxury watches. Some models ended up where selling for double their retail value, often even more.

This just shows that you can’t always predict how things will go, as I am sure many people where thinking at the early stages of the pandemic that the market would actually crash.

Evaluating Watches Can Be A Challenge

As I’ve mentioned, you need to sell your watch for a profit, which really means you need to be able to actually evaluate a watch.

This can be done in terms of both its monetary value and its quality and of course these two things will be linked.

This sounds easier than it is, but many people will trip up here. You actually need to know about the watches and be able to spot little things, as well as the more obvious.

You don’t want to buy a watch close to its market value, only to find out that it doesn’t work and it is actually worth far less than you paid for …as you are not going to be able to resell it even to break even.

This is exactly why we have “watch experts” who are able to actually look at a watch and determine if the watch is the value you think it is. A lot of this does come from experience, but if you are just starting out, things can be hard and mistakes can be made. 

Scammers Are Always Going To Be A Risk

There is a lot of money to be made in watches …which means there is a lot of money to be scammed.

This isn’t helped by the fact that there is a very strong market for fakes and counterfeits. There are a lot of bad people out there and they are happy to use these fake watches to rip you off and if you are not sharp, you can get screwed out of a lot of money.

This is a real risk, especially with the high end watches where just being successful with this even once can be extremely lucrative for these horrible people.

You really need to be on the lookout for people trying to pull the wool over your eyes with their actions or their dodgy watches, and if you are not that experienced, this can be a real challenge and no one wants to be taught this expensive lesson 

Buying A Bad Watch Is Always Going To Be A Risk

While the majority of bad watches are going to be pushed by scammers and unscrupulous people, sometimes you can just mess up and buy the wrong watch.

Perhaps you didn’t notice some damage, which getting repaired will wipe out any chance of a profit, or maybe you bought a model that wasn’t as popular as a similar one or any other host of mistakes that mean you end up with a watch that just isn’t as valuable as what you actually paid for and is likely to lose you money.

I imagine all watch flippers have done this at least once. I am sure they all have at least one horror story. This is how a lot of people gain experience, it’s just very costly. 

Having A Constant Flow Of Watches To Sell Can Be A Challenge

If you want to take watch flipping seriously and actually make a business out of it, then you need a steady flow of watches coming in and out.

This can be a challenge, you will have to hustle and work hard to find the watches …they won’t just magically appear.

On paper it sounds easy, just buy some watches and then sell them on. You might be thinking that watches are everywhere, they are easy to buy, and this would be correct …but are they a good price?

Most of the watches you will see are pretty much at the market value, so if you buy them …how much profit can you make? You will probably just breakeven and if you factor in the time and delivery costs …you might be losing money.

You need to find watches that are just below market value, and you need a constant stream of these to make your business work and this is a lot harder to do in reality than you might think. It is not impossible, but it will take you some time and effort to find these deals, as well as some good negotiation skills.

Questionable Sellers Can Be Challenging

You are going to have to talk to a lot of people when buying your watches and this does mean you will have to deal with some stressful people.

Of course there are the scammers I have already mentioned, but then you will also have just straight up annoying and difficult people too, and these can be a real challenge.

They may just be trying to rip you off in some way or be overly pushy, maybe they can’t accept the price you are offering as they haven’t got a clear understanding of the market and don’t know the actual value of their watch.

Many people think their watch should be worth more than they paid, and often this isn’t the reality and it will be a challenge to try and get them to understand. This is really where your people skills and negation skills will shine.

You also have to balance your reputation and also make sure you are getting the deal you need to make a profit, so there can be a lot to juggle here and it isn’t always easy.

Managing Your Cash Flow Can Be Difficult

Flipping watches is all about buying and selling, and this means you need to manage your cash flow.

You are going to find there are times when you get offered a great deal, but you have no cash as it’s all tied up in watches, and basically you can’t buy any more watches, until you start selling some.

This is why you can’t really hold on to watches for too long, as you are not really going to be growing, your money will just be sat in a watch. The argument is of course that the watch could sell at a later date for more profit, but really this is something you will need to decide yourself. You could just wait, or you could sell it now and then use that money to buy some more and flip them for a profit.

There is no right or wrong answer, but this is something you will need to learn how to manage. 

Finding Buyers For Your Watches Can Be A Challenge

You will also need to find buyers for your watch, and while I think this will be the easiest challenge you will face, it’s still not easy.

This is going to be especially true when you are just starting out as you will not have built up any trust and many people will be wary of you and may even think you are a scammer.

This is why reputation is so important. If people can easily identify that you can be trusted and you sell what you say you are, at a fair price, this will make your job a whole lot easier.

Trying To Stay Honest Can Be A Challenge

The watch industry is full of shysters and greedy minded people and it can be hard to not slip into that mindset.

If you are flipping, it’s because you want to make money and that is okay …but you can’t let that overwhelm you. You probably got into watches as you love them and you need to stay true to this.

You need to try and be the person who is helping other people get the watches they want, not just the guy who is ripping people off and price gouging.  

If you can just stay honest and be as transparent as possible, people will respect that and they will be more likely to deal with you. This is all part of your reputation, if you start screwing people over for your own profit, word will get around very quickly.

This is tough, but it’s important you do things right, it will help you in the long run.

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

Conclusion

As you can see there are plenty of different challenges and risks you will face as a watch flipper.

It really isn’t as simple as just buying some nice watches and selling them, there are a lot ways to get screwed over and lose money, either from mistake you have made, or from other people trying to rip you off.

All of these risks can be mitigated and the challenges over come, so hopefully you are not put off from flipping watches, but at least now you will be more prepared for the reality of what you might actually face.

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