Authorized Dealers are Obsolete

In the age of the internet, authorized dealers are obsolete.

The way the watch industry works is that most watch makers are wholesalers. They sell their watches to distributors who then sell them to authorized dealers….who then sell them to you.

Here is the thing though, at every step of the process, you end up doubling the price. A manufacturer spends $500 to build their watch, then they sell them to a distributor for $1,000, who then sell them to the AD for $2,000 who then sells to you for $4,000.

In the age of the internet, manufactures can skip the BS and just sell this stuff themselves. Most people who shop for watches these days, do their research themselves, the only time they go to the dealer is because thats the only place to actually buy the watch. If manufacturers offered their watches on their own websites, the customers could just buy direct.

If you are selling a $500 watch and only want to get $1,000 back…the manufacturer can then spend a whopping $3,000 to make get the customer. That’s a lot of money to put towards ads, towards events and to making sure the customer gets the best possible experience on the planet from your brand. Plus best of all, as a manufacturer, you won’t need to worry about spending all that money getting the customer to the AD, only to have the AD show them a new Rolex so they buy that instead.

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