The best watches to flip for beginners are:
Watch enthusiast Phil Reid claims to make $10,000 a week by selling Rolex watches. He started with an initial investment of $5,000 and used this to purchase a few high-quality watches. Phil was great at spotting in-demand watches that had the potential to appreciate. He prioritized limited editions that typically hold or increase in value. He closely monitored market trends and sold the watches when the demand was high. Phil sold over $15,000 worth of watches in 6 months. After subtracting his $5K initial investment, Phil made a $10K profit over that period.
However, not everyone thinks watch flipping is a good business. This Reddit commenter said the business is very dependent on third-party service providers. You can't run the business on your own terms. You’re always at the mercy of the watchmaker’s time and expertise.
This article reveals the best watches to flip for beginners. It will give you an insight into the best watches to pick and avoid. The factors that affect the watch’s value and the steps for buying your first luxury watch are covered. As well as the risks of the business model.
Best Watches to Flip For Beginners
What Watches Are Not The Best Choice For Beginners?
High-end brands like Audemars Piguet (AP), Richard Mille (RM), Patek Philippe, Rolex, and Vacheron Constantin may not be the best choice for beginners. These watch models are very volatile. Only experienced flippers should flip these models.
The Audemars Piguet Royal Oak Offshore can fluctuate up to 20% within a year. Richard Mille watches are expensive and volatile. Some models appreciate by 30% over a short period. Others depreciate just as quickly. Patek Philippe's Nautilus, particularly the Ref. 5711 had a dramatic 50% price surged since it discontinued production in 2021. The watch market is so dynamic. Flippers should have a deeper understanding of market trends and price movement history before jumping in.
What are the Factors That Determine the Watch’s Value?
Why Should Beginners Start with Watches that are Less Than $10K?
Beginners should start with watches worth less than $10K to limit the financial risk. Watches under $10k are generally affordable so you don’t lose so much money in case you can’t sell it. Watches in this price range also have a bigger buyer base. This means you have more potential buyers who can afford your items.
Affordable watches let beginners gain experience in the nuances of the watch market. They can observe the pricing, authentication process, and market trends without the high stakes. Beginners are prone to making mistakes as they learn. These mistakes are less expensive when you’re dealing with lower-end watches. Watch collector and flipping coach Pejman Ghadimi believes in this strategy. Flippers can slowly build their margins without being affected by the market's fluctuations.
Step-By-Step Process on How To Buy Your First Luxury Watch
Additional steps for buying pre-owned watches:
Check for authenticity: Only buy from authorized dealers and reputable jewelers. Certified pre-owned watch sellers are also reliable. Look for the serial numbers, original papers, and packaging.
Evaluate the condition of the watch: Check if the watch has been regularly serviced and request service records. Physically inspect the watch and look for signs of wear and tear, scratches, and dents.
Bob’s Watches’ Tips for Buying Your First Rolex
How Much Money Do You Need To Start a Watch Flipping Business?
You need about $5,000 to $10,000 to start a watch-flipping business. This covers the value of an entry-level luxury watch, transaction fees, insurance, and other incidental expenses. Entry-level luxury watches from Omega or Tag Heuer typically range from $3,000 to $5,000. Transaction fees on eBay are around 3% of the sale price for items under $15,000. Insurance usually ranges from 1% to 2% of the watch’s value. As you gain experience and profits, reinvest your capital to acquire higher-end watches. Successful watch flippers often achieve profit margins of 20% to 30% per transaction. Repeat the process to slowly expand your watch-flipping business.
Pejman Ghadimi Believes Luxury Watches Are Recession-Proof Assets
Watches are recession-proof because they are liquid, mobile, and retain their value. Pejman Ghadimi likens watches to gold because of their immunity to market instability. Luxury watches are status symbols. You wear your name and reputation wherever you go. The watch market is typically cash-based. Unlike real estate, luxury watches are bought with cash so you’re not affected by high interest rates. Watches are very liquid assets. You can easily move and sell them into different places without complicated permits as with real estate and cars. Top watch brands deliberately limit their production. There’s always high demand for exclusive watches and their value increases over time. Pejman Ghadimi shares more of his insights in the Watch Trading Academy.
What People Say About the Watch Business on Reddit
Unless you're a professional watchmaker, it's hard to do watch-flipping. Most of the cost comes from auction fees and shipping costs. He made $2K after spending 250 hours of work on a single watch. He believes he got lucky.
Don't do it unless you're a competent watchmaker, this commenter warned. He is a decent hobbyist and has been trading for 25 years.
This commenter flipped a few and lost. His biggest issue is that some watches are presented differently online.
Loss builds up quickly in the watch-flipping biz. Watch out for Paypal's fees, shipping, and depreciation.
How To Flip Watches
To flip watches, you must first learn every aspect of the watch business. Buy smart and always aim for the bottom cash value. Purchase watches that you're willing to keep in case you can't sell them. Evaluate the condition of the watch and asses for damage that could affect its value. List the watch, along with detailed descriptions and clear photos. This shows buyers that you are a credible seller.
What Makes the Watch Business Risky?
Price Fluctuations: The luxury watch market can experience sudden changes in value. The price of a Rolex Daytona can vary by several thousand dollars within a short period. Economic downturns or financial crises directly affect luxury goods markets.
Prevalence of Counterfeit Items: The watch market is flooded with counterfeits. The Swiss Customs Office seized over 100,000 counterfeit watches in 2019. Some fakes are nearly indistinguishable from genuine items without expert analysis. New watch traders should be extra careful when buying from the secondary market.
High Capital Requirement: The luxury watch market requires significant upfront investment. You need at least $10K to start a watch-flipping business.
Cost of Maintenance and Repair: Luxury watches require regular maintenance. Servicing a high-end watch can cost between $500 and $1,000. Replacement of genuine parts may cost even more.
Highly Saturated Market: Online marketplaces and social media have made watch flipping more accessible, making the watch market more competitive. As certain models become too saturated, they also become harder to sell at premium prices.
My Low-Risk, Low-Capital, But High-Reward Alternative to Watch Flipping
My low-risk but high-reward alternative to watch flipping is local lead generation. This business builds simple websites and ranks them on Google. It’s a low-risk business because the lead gen market is always stable. Local businesses will always need leads to keep their competitive edge. The initial capital requirement is also much lower compared to watch flipping. You’ll only need about $500 to start a lead gen agency, whereas with watch flipping, you’ll need at least $10K.
Overall, watch flipping is ideal for watch enthusiasts and collectors. The business requires deep knowledge and experience in the watch business. Watch-flipping is a demanding business because you need to carefully choose the watches to secure profit in your investment. Local lead gen is the number 1 online biz for me because it’s hands-off and the income is stable and consistent. Ranked lead gen sites make money on autopilot, and they don’t need much maintenance. You can do it as a side biz or a replacement for your 9-to-5.
