Long term partnership

For almost every business including watches. The need to establish strong, mutually beneficial relationships with strategically-chosen partners is essential. And the longer that relationship lasts, the better for all parties. The advantages include improved performance, making long term profit, greater cost efficiency and helping businesses to develop. The most important factor is Trust built up between partners, if there is no trust, the business would not last.

There have cases that seller is selling a Rolex Daytona at a price of $100,000 to company A consisting of two business partners, One immediate marks up 5% for his own profit then pass it to his group partner for another mark up of 10%, so the final offer to end customer $115,500.

Whereas another company B has two partners also, one received the same offer and they discuss to mark up of 12%. So they offer to an overseas buyer selling at $112,000.  Customer received the same watch quote and naturally order goes to Company B. The company B will be building up capital much faster than A as they have a healthy operation and Good trust between two of the partners.

I have seen quite a few cases that dealer choose the best profit item such as Daytona Green 116508 for sell by himself and give those jelly beans such as Milgauss 116400GV or lady Date Just to his supporting partner to sell.  This is human nature and I cannot say wrong or right. But being your sub dealer would not prioritize selling effort on your product as they know profit is low, hard to sell and likely commission is small aslo. So he also puts his effort on to some other higher profit item for other dealers. Naturally this will not able to move your slow-moving watches…

I have seen a good partnership between two good friends, one is a big collector who has over 400 vintage Rolex and one is Hong Kong dealer. The watch Collector would allow his inclusive partner to sell half of his collection after probably one year or two, he will not question his selling price too much as he is supposed the best in this watch selling business, and what a mutual agreement is that he can get say 4% of the sales revenue as his commission… so this is a partnership program. Though it seems that the commission is trivial, but don’t forget the volume is huge. Assuming one Rolex is $200,000, 200 pieces is about $1.6M of commission, I believe this would have incentive driving more sales. By constantly re-assessing the relationship you have with your partner, you will ensure that any potential problems are dealt with quickly and efficiently. This will lead to a far more fruitful and enduring relationship for a long term.

Commission

I have dealt with buyer who give me 1% commission to looking for his desirable watches in the market. Looks very stingy, yes it is… however, if I can handle within a few hours or a day is OK as his watch value is High. Usually he buys A Lange, Richard Mille, Breguet tourbillon.

Also I have dealt with another seller who offer me 6% of commission on his watch. Whatever it is manageable I will handle, as I think commission is not major concern, more important is by doing so I can broaden the network of my contact. The Buyer’s recommendation to his friend and colleague would be another merit to me. Networking is the key.

HK Snob