Maybe you have heard the term “consignment” before, or maybe this arrangement is brand-new to you. For both seasoned consignment veterans and newcomers to watch consignment, we have put together a comprehensive guide to consigning your luxury timepieces. In addition to defining consignment, we’ll cover some pros and cons, where to consign high-end watches, and why you might consider this strategy as you build a watch collection.
What Is Consignment?
Consignment is a business arrangement in which a third party is authorized to sell an item or items on behalf of another party. Now, that is Investopedia’s formal definition, but what does consignment really mean, in terms everyone can understand?
To better understand the concept of consignment, let’s use an illustrative example. Imagine that you own an antique chair that you are hoping to sell. You know that this chair is valuable – it possesses tradition and history, and it was handcrafted years ago by a talented Colonial artisan. You could try to sell the chair yourself by reaching out to friends and family or listing it on a public marketplace, like eBay or Facebook. But will you really get the best value for your gorgeous antique chair this way?
Instead of handling the sale yourself, you may opt to consign your chair. In this scenario, you may visit a local antique dealer with a reputation for expertise in Colonial-period furniture. This seller already has numerous connections in the world of antique sales. They also have a budget dedicated to marketing and reach that you could not possibly have as an individual. For instance, they may be able to auction off your antique chair at a dealers-only event that would not be available to you on your own.
When you visit the seller and drop off your chair, you will enter into a consignment agreement. This means that the owner of the item and the seller of the item will come to a conclusion regarding commission. In exchange for selling your item, and likely getting you a much better deal, the seller will take a cut of the revenue. For instance, you may agree on a 30% commission rate. If a buyer purchases the chair for $1,000, the seller will pocket $300 of that and you will receive the remaining $700.
How Do You Make Money With Consignment?
When you consign an item that is successfully sold, you will make a percentage of the revenue from the sale. The third-party seller takes home the remaining percentage. This leaves many people wondering, why would I consign an item? Why not simply sell it myself?
The reality is that when you are selling certain items, especially luxury goods, you may not have the reach or the resources to find the best possible buyer on your own. Let’s consider another example. This time, you are looking to sell a vintage Rolex watch. Maybe it’s similar to this one, a 1984 Rolex GMT-Master “Pepsi” edition – highly desirable and in great condition.
You’ve loved this watch for a long time, but you’re trying to diversify your watch collection and shake things up a bit. Therefore, you’ve decided to part with this treasured piece. You want to make sure, however, that you get the best possible price on the sale – after all, you’re hoping to reinvest the profit into another timepiece, maybe even an Audemars Piguet.
On your own, you probably do not have the means to get the maximum price for this timepiece. You don’t have an advertising budget or an existing luxury watch audience, meaning you will not be able to get all of the right eyes on the piece. You might be able to find an interested buyer by listing it online, but it’s not a given – and you’ll probably have to devote lots of time and energy to doing so. Best case scenario, you might get a bit less than $10,000 for the watch.
Your other option, of course, is consignment. You take the Rolex to a trusted secondary market luxury watch retailer. The seller will inspect the watch, ensure it is in good working condition and is a genuine designer timepiece, and then you will come to a consignment agreement. Let’s use round numbers and say that the seller will keep 10% of the sale while you will receive 90%.
With the additional resources and reach of this third-party seller, they are able to find a buyer who is willing to spend $17,000 on the vintage Rolex. You take home $15,300, and the seller pockets $1,700. Although you received 90% of the profits as opposed to 100%, you still were able to make more money on the watch than you would have selling it on your own!
In short, this is the major benefit of consignment: You can actually make more money by leaving the marketing and selling process in the hands of an experienced professional. Their robust networks make it more likely to find motivated buyers who are willing to pay a higher price for the item in question – plus, their advertising means you can often find a better buyer, faster.
What Kinds of Items Can Be Sold on Consignment?
Items often sold through consignment arrangements include art, jewelry, musical instruments, furniture, luxury watches, and even clothes. Generally speaking, consignment makes the most sense as an option when used for items with a higher ticket price. These are the situations when finding well-qualified buyers can be more difficult for an individual. Established sellers, however, already have the connections to find the right person to purchase each speciality item.
Pros and Cons of Consignment
Consigning a luxury timepiece comes with both advantages and drawbacks – ultimately, building an understanding of how consignment works is essential to find out if it is the right option.
The pros of consignment include…
The cons of consignment include…
For many people, the fee associated with consignment is a small price to pay for the convenient, seamless process that you will experience when you consign your item with a seasoned professional.
How Do I Consign a Luxury Watch?
Are you sold on the power of consignment yet? If so, let’s dive deeper into consigning your luxury watch!
At Avi & Co., we offer consignment services to help you have a smooth and painless experience finding the perfect buyer for your luxury watch. We showcase your timepiece in our upscale showrooms (you can find us in New York, Miami, and Aspen) alongside some of the finest watches in the world. Our exclusive clientele can stop by and discover your watch in an environment that they already know and trust.
With Avi & Co., your consignment wristwatch will receive the utmost in exposure and care. Our experienced and talented sales time is dedicated to finding you the perfect buyer and pairing your watch with a happy home. Your watch will also be listed on our online website, which attracts numerous visitors interested in acquiring a piece just like yours!
Consigning with us is ideal for anyone hoping to maximize their watch’s sale price. Our white-glove consignment service includes everything from securely storing your timepiece to acquiring and vetting buyers and even shipping and delivery. Plus, we only take a small 10% commission from the final sale price (excluding taxes and fees) – that means we are motivated to maximize the value of your watch! When we get the top dollar for your timepiece, we both make more money. That’s what we call a win-win!
So how do you get started? Head over to our consignment page and fill out the interest form. This will kick off the process of us evaluating your watch and determining if it is the right fit for us to consign. You’ll also submit some photos of your watch, and we’ll get back to you ASAP to talk through the details of consignment. We can’t wait to work with you!
Consign Your Watch With Avi & Co.
With our Avi & Co. consignment program, we accept most luxury brands, including Richard Mille, Patek Philippe, Audemars Piguet, Rolex, and many more. Ultimately, the final decision on whether or not your timepiece is a good fit for our consignment program will be made at the discretion of our expert sales team.
Start the consignment process today and experience best-in-class access to a prestigious audience with a proven interest in luxury watches just like yours. We look forward to working together and kicking off the beginning of a top-tier partnership.
