How To Become A Watch Dealer? A Complete 8 Step Guide 

Rolex expert Peter Piccolino, shares how he started watch-flipping with $2,500. He bought and sold his first Rolex on Craigslist, and made $900 on his first deal. He was motivated by the profit and looked for more deals on Facebook Marketplace. He’d often drive long distances to land the best deals. Peter used Chrono24 and eBay to identify the selling price for each watch. His watch business slowly grew because he reinvested the profits. He leveraged his network to get more business referrals. 

Despite watch-trading's popularity, not everyone thinks it's a good business idea. Flipping watches takes luck and a lot of work. There are so many factors you need to get right in watch-flipping. 

This article shares a complete 8-step guide on becoming a watch flipper. It discusses the skills and qualifications of a watch dealer and the legal requirements involved in the business. I'll share how watch-flippers make money and some pros and cons. Personal experience of those who have done this biz is also shared in this article. 

What are the Skills and Qualifications of a Successful Watch Dealer?

Successful watch dealers have a strong understanding of the watch market, the different brands and models, and the latest trends. Technical skills are also necessary to assess watches from the inside out. Knowledge protects dealers from counterfeit and costly defects. Watch dealers should also be excellent negotiators and salesmen. 

They should be able to provide great customer service to build a loyal customer base. Dealers should also be able to understand cash flow and manage an inventory. They should pay close attention to details to examine the watch’s condition and authenticity. Watch dealers should be meticulous in keeping an accurate record of all purchases, sales, and inventory. This keeps the business operation smooth and trouble-free. 

What are the Legal Requirements To Become a Watch Dealer? 

Pejman Ghadimi’s 5 Tips For Successful Watch Flipping in 2024

Best Watches To Flip For Beginners

The best watches to flip for beginners include Hublot’s Big Bang, Aero Classic, and Classic Fusion. These models are popular for their distinct “skeletonized” dials. Ulysse Nardin’s Marine Chronometer and New Freak are beginner-friendly watches too. They're known for their precision and power reserve indicator. 

Cartier’s Skeleton, Roadster, and Santos stand out with their open-worked designs and iconic cases. Panerai’s 1950 models are valued for their robust, cushion-shaped cases. The Seiko SKX Series is an affordable ISO-certified dive watch. The Omega Speedmaster, the “moon watch,” has a rich heritage. Tag Heuer’s Carrera has a clean dial and chronograph movement, while Tudor’s Black Bay Fifty-Eight is loved for its classic dive watch look.

How Do Watch Dealers Make Money?

Watch dealers make money by buying below market value and selling them for a profit. Flippers search the secondary market to find profitable deals. They also build networks with other flippers and collectors to get first dibs on great deals. This is important since Chrono24 found that 70% of successful watch flippers rely heavily on their connections within the watch community. Flippers focus on watch models that have the potential to increase value. Limited editions and discontinued models often have significant price appreciation. 

How Much Watch Dealers Make?

Full-time flippers who have been in the business for quite some time make from $50,000 to over $100,000 annually. Part-time flippers make from $5,000 to $20,000 annually depending on the type of watches they flip. Those who have a good eye for valuable pieces can earn more. Some Rolex models make a profit of 20% to over 100% of its purchase price. Patek Philippe’s Nautilus has the potential to make 50% more than its retail price. 

Pros and Cons of Dealing Watches

What People Think of the Watch-Trading Business

This Reddit commenter thinks watch flipping is a great way to make money. However, you'll only make little profit out of it. 

This commenter believes only Rolex and Patek increase in value. He warned against the high cost of entry. Watch appreciation is a bit slow. You may need to hold on to the watch longer to make substantial profit. You can't command the market if you're not an established seller. 

Watch enthusiasts think flippers are "clogging up the waitlist". He said flippers should consider their current network before starting. They should have access to real buyers of luxury timepieces. Flippers also need a wide knowledge of the different brands and models before making it a business. 

Flippers Share Their Sentiments in Watchuseek’s Forum

This flipper warned about the costs. He said Paypal fees, shipping, and depreciation quickly pile up. 

Another one said he lost more money on expensive watches. 

Impatience is a killer on the watch flipping biz. This commenter says he marks down watches that don't sell fast and moves on to the next. 

My Low-Risk and Stable Alternative To Watch Flipping

My low-risk and stable alternative to watch-flipping is local lead generation. This business builds simple websites and ranks them on Google. Income with local lead gen is far more consistent than in watch-flipping. Lead gen is a business, while watch-flipping is more like a hobby. The watch-flipping biz is at risk of counterfeits and defects. Some counterfeit watches are nearly indistinguishable from genuine ones. 

The luxury watch market is very volatile. Changes in a brand's reputation, economic conditions, and consumer trends can cause price fluctuations. New traders might get tempted to overspend or mismanage funds. Authenticating watches requires expertise. It's not a beginner's business because of its complex nature. 

I prefer local lead generation because ranked assets only require minimal management. It has higher profit margins of around 85% to 90%. There's lower competition because I'm competing with local businesses. Local lead gen is a dependable online business that's enough to replace my 9-to-5.