Do you think you’re getting ripped off by watch deals, discounts, and sales?
It’s not as bad as you think.
Watches are not the money maker that most would tend to believe.
In fact, watches make very little income for jewelers. Most jewelers don’t even want to carry them or sell them.
Watches are just a big pain in the butt. If they could get rid of all watches, it would save them big headaches like: links, batteries, warranties, and adjustments.
They are time consuming and a waste.
But jewelers feel obligated to sell watches because that’s what their customers want. Their devoted clientele wants to buy watches from the same jeweler that they buy everything else from (rings, pendants, bracelets).
Predetermined retail prices:
So why don’t jewelers make that much money selling watches? Because they don’t have the leisure of marking the prices up. This is because watch prices are determined by the watch companies and not the actual jeweler (that’s a big plus for customers). All the prices from store to store will be all the same price. It keeps price gouging down (and the greedy jewelers at bay). Jewelers can either sell the watches at their predetermined retail prices, or not carry their watch line at all. It’s their choice.
Some watch companies and manufacturers go so far as to say, that jewelers can’t even discount their products. No sales. No markdowns. No special offers. Not even a penny off. It’s not only control, but maddening, because jewelers always have to put exclusions in their sale ads: “Sale Excludes Movado Watches!”)
But what about the watch lines that do allow sales and discounts? How can you tell if you’re getting the best deal from them?
To determine the best deals on wrist watches, you’ll need to know one very important piece of information regarding watch prices…
They are priced at keystone.
Keystone means, the watch is marked up one time. For example, if the cost of the watch is $100 (what the jeweler pays for it), then the retail of the watch will be $200. Doubling the cost gives you keystone.
Which also means that you can quickly look at the retail price (the manufacturer’s price tag) of any watch and know the exact cost of that piece. If the watch is marked $149 retail then you know the cost is half that, or $74.50.
So what’s a normal watch discount and sale price?
Most jewelers can comfortably sell their watches for 20% off on any given day (some prefer to do this for holidays like father’s day, sweetest day, and valentine’s day). On a $100 watch, the jeweler will make a $30 profit (that’s at the 20% off discount). It’s not too bad really. That’s probably what most jewelers will strive for (and then they still have to pay overhead and commissions).
How about 30% off?
Now you will also find some jewelers that will discount their watch lines up to 30% off! 30% is usually the maximum discount that most jewelry stores will go. 30% really cuts into the profit.
A 30% off discount leaves the jeweler making only $20 on that $100 watch. That’s slim. Considering they still have to take the time and effort to adjust the watch links to fit your wrist (and possibly replace the battery if it’s dead)… So you see, there’s really no profit left in a watch sale. It’s not really worth it. This is why most jewelers hate carrying watches. Big pain.
Discontinued watch lines:
Jewelers that are able to discontinue a watch line give you the best deals. Sometimes they’ll put 40% off red sale tags on their watches. 40% Off is a steal! If you see those discounts, grab them.
And if you happen to be the lucky individual to stumble upon a 50% off discount, well, that’s just unthinkable. Because that means that the jeweler is selling that watch at cost. They are giving you the watch for what they paid for it!!! You couldn’t get a better deal, even if you owned your own jewelry store. 50% off is a crazy watch deal.
And if the jeweler is desperate and trying to turn a quick buck, then be prepared to buy. Because sometimes cash flow is essential to a jeweler, and if they have watches that have been sitting around in their cases for years… Ones that are stuck in inventory and won’t sell… Then expect to save big time.
It’s not uncommon for the jeweler to discount those stagnant watches for 60-70% and even 80% off. That’s like giving you the watch and handing you money at the same time. Insane!
When you find a jeweler that’s willing to take a huge loss on a watch just to dump it, then it’s a rare case, and a great opportunity for you. Discontinued watch lines are awesome. Look for them. Jewelers will normally take whatever they can get for them. But like I said, that’s extremely rare, so don’t expect it (but it doesn’t hurt to cross your fingers either).
You’re not getting ripped off:
So if you think you’re getting ripped off by high watch prices, all you have to do is to take a peek at the manufacturer’s retail price. You’ll know instantly what the jeweler paid for the watch, and know exactly how much they’re making on the deal.
Keep in mind, a normal watch discount is a standard 20% off all across the board. 30-40% at Christmas time, maybe.
And if you see that shockingly low 50% off sale, lucky you! You’ve just hit the jackpot.
Because that’s a watch sale, that you should really watch out for 100% of the time.
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