OJ Whatley: “How to Get the Most Money When Selling Your Luxury Watch”

• • The demand for quality preowned luxury watches is at an all-time high.

• • The scramble to buy luxury watches draws many dealers of uneven quality.

• • OJ Whatley offers insight for finding the “good guys.“

• • Whatley has been buying and selling luxury watches for over fifteen years.

• • His guidance prioritizes maximum net returns and minimum aggravation.

The luxury timepiece market is awash in pitches to buy watches.

Market demand for preowned luxury watches has never been greater than it is at present, and the allure of profit has drawn a confusing mix of rivals for the chance to sell your timepiece. Some of them are upstanding industry stalwarts with long histories, resources, and vast clienteles. Other would-be buyers are pure opportunists with little investment in the watch community and even less to offer their clients.

How do you sort “18-karat” sale and consignment specialists from the gold plated hucksters? Simply think critically, seek clarity, and demand added-value. Savvy sellers who follow these guidelines can place themselves in commanding positions to enjoy seamless experiences and the highest possible net returns.

Critical thinking is the foremost weapon in an empowered seller’s arsenal. Given the sheer number of rookie and one-horse “watch buyers” on the current landscape, a careful review of credentials can eliminate many of the worst candidates to sell your watch.

A critical perspective will scrutinize the history and visibility of a prospective sales outlet. If a dealer has an eBay store, consider the number of transactions in his history. Place particular weight on the quantity and quality of his feedback. The more history, positive feedback, and visibility, the better. Remember: “hit-and-run” scams become exponentially less likely as a dealer’s history and investment in his reputation grow, and this is an essential insurance policy for smart owners looking to sell.

eBay feedback is not a perfect measure of quality, but it is a strong one, and a quick review can establish how long, well, and widely the dealer has been trading luxury watches. Too many red flags here generally amount to a “no-go.”

Visibility is critical. While eBay is a key element of a high profile seller, examine how many other channels the dealer employs. Does the dealer own and maintain a comprehensive (and Google-relevant) sales site under his own name? Does the dealer use watch and luxury goods-specific sales channels such as Chrono24, JamesEdition, and Lionseek?

The world’s finest luxury watch eBay seller  won’t be an “eBay island.” The exemplary dealer uses many channels and demonstrates mastery of all via his feedback, forum standing, references, and testimonials. Moreover, remember that the best watch buyers simultaneously are the best watch sellers.

Dealers with a high inventory turnover and constant need for luxury watches will be the most motivated to win your business and the best agencies to market your consignment.

When investigating a dealer’s reputation, start with Google. Isolated malcontents are a fact of business in the Internet era, and some of them are extraordinarily vocal. But don’t dismiss long-term patterns out of hand.

Repetitive complaints of a similar nature including misrepresentation, paucity of communication, fraud, damaged consignments, inaccessible dealer personnel, and low-quality sales photography are red flags that should redirect a watch owner’s search for a sales partner.

Moreover, testimonials and references are key, and this is where “critical thinking” segues to “seeking clarity.” Most watch dealers who propose to sell or buy your watch will offer some form of testimonials. Those who don’t should be eliminated from a savvy seller’s search.

Once the testimonials have been viewed, critical thinking and clarity become essential.

Are the testimonials detailed, varied in style, and – above all – signed with full names and contact information? Anonymous testimonials can be considered tantamount to astro turf: fabricated, artificial, and obvious. The best testimonials will contain necessary information to perform a follow-up that transforms the testimonial into a reference.

Truly outstanding dealers will be able to forward many willing references upon request and without delay. A client willing to act as a spokesman is the ultimate endorsement.

Seeking clarity is an interactive process. Discuss the difference between a dealer’s proposed consignment price and the same dealer’s proposal for an outright purchase. First, the best dealers will agree to a consignment price and a purchase price at the time of consignment. Second, the value of a purchase will be lower than the consignment due to the greater risk undertaken on the dealer’s part, but the spread should not exceed 20 percent of the consignment value.

Purchase deltas above this level are evidence that the dealer is trying to low-ball the owner in order to strong-arm a consignment. And demand to know whether a return fee will be imposed if your consignment doesn’t sell. Considering his failed effort to sell your watch, the dealer has no right to impose a penalty fee.

Speak to a candidate dealer about your own expectations after performing due diligence on his reputation. Be sure to specify your time frame for selling the watch when selecting consignment. Does the sale represent and urgent need or is time less important than outcome. Giving the dealer a reasonable time frame to market your consignment improves the chance of obtaining one’s desired net return.

Moreover, clarify the value range of your timepiece before forwarding it to the dealer. The best dealers are transparent regarding their appraisal criteria and have the experience to offer a reasonably accurate sale and consignment value based on your accurate descriptions and phone photos. Dealers who do not offer remote appraisal and demand shipment first should be rejected.

Ask the dealer whether he requires you to leave a consignment watch in his custody for a minimum period. The best dealers will recommend a period but will not impose a hard freeze on a client’s property. Any dealer who does so should be ruled out. Furthermore, ask the dealer how long he expects to be marketing one’s consignment before achieving a sale.

The best dealers will set reasonable expectations, but they should not quote more than 60 days, and 90+ is absurd. This is a hallmark of low-profile or inefficient operations. You know the drill; walk away.

In pursuit of our second objective, clarity, we arrive at our third: added-value. Marketing and added value are essential concerns when seeking optimal return on a consignment. A seller must ask up front what a dealer will do to market consignments and add appeal that a private sale cannot provide.

Demand to know what a dealer will do to improve your watch vs. a private sale scenario. Aforementioned muti-channel listings are part of this equation, but they are not the entire story. Outstanding value propositions should include no-cost cleaning, polishing, professional studio photography, timing and evaluation of the movement, and servicing of the movement if necessary.

Seek advance clarity regarding whether these services will be provided. If not, ask why. A dealer should feel privileged to receive your property in pursuit of his own profit. If the dealer is unwilling to make a reasonable investment in the process, he doesn’t deserve your business.

Finally, clarify whether the photography and service improvements will be transferred to you for free if the watch does not sell on consignment.

At the end of the day, the bottom line is your bottom line. As a seller of a luxury watch, you hope to obtain the highest possible net by means of a timely sale and painless customer service. Dealer policy should support this outcome.

Empowered watch sellers who employ critical perspectives, seek clarity, and demand added-value place themselves in a commanding position to obtain the highest net yields.