Gray market stuff (watches specifically)
 

My wife bought me a Tag Heuer link a couple years back. She shopped online and I suppose got a decent price, but the watch didn't come with a factory warranty.

Seems that "authorized dealers" are not allowed to discount these watches below the suggested retail. So now, I've found a pretty cool ladies watch for the wife and its about $4k retail. I've seen it offered as "new in box" from the gray market for about $1K less.

How does this work exactly? Where do these watches come from? What happens to the factory warranty card? Is it worth the extra to go from an authorized dealer? Anyone been burned down this path?

Google, etc has been remarkably silent on this, so if you can point me to a decent reference I'd appreciate it. Also, it seems this sort of market would apply to a number of other "luxury items"

Re: Gray market stuff (watches specifically)
 

There are different ways it "works", I'm sure. My brother used to have a thing going with Fossil watches. At one time he worked there, and they sold certain batches of models at extreme discounts, and it was fine if the employees bought them (sometimes at further discount.) He had a profitable little mini business on eBay for awhile.

Re: Gray market stuff (watches specifically)
 

[ QUOTE ]
My wife bought me a Tag Heuer link a couple years back. She shopped online and I suppose got a decent price, but the watch didn't come with a factory warranty.

Seems that "authorized dealers" are not allowed to discount these watches below the suggested retail. So now, I've found a pretty cool ladies watch for the wife and its about $4k retail. I've seen it offered as "new in box" from the gray market for about $1K less.

How does this work exactly? Where do these watches come from? What happens to the factory warranty card? Is it worth the extra to go from an authorized dealer? Anyone been burned down this path?

Google, etc has been remarkably silent on this, so if you can point me to a decent reference I'd appreciate it. Also, it seems this sort of market would apply to a number of other "luxury items"

[/ QUOTE ]

This Article talks about the gray market with respect to watches.

FWIW Tomorrow I'm going to an authorized dealer to buy my watch.

Re: Gray market stuff (watches specifically)
 

Nice article Manque. I don't see a problem with buying gray and would recommend alanfurman.com, which seems trustworthy and has the best prices I've found.

Re: Gray market stuff (watches specifically)
 

In the photography world gray market is stuff that was supposed to be sold overseas getting shipped here and sold. Usually the downside is that the manufacturer won't honor the waranty.

Re: Gray market stuff (watches specifically)
 

From reading the article, it looks like the sellers are just doing an arbitrage of sorts. As long as the watch is legit, it becomes a question of how much you want to pay for the warranty.

Re: Gray market stuff (watches specifically)
 

I looked at Grey market TAG, and honestly I didn't feel the discount was worth the uncertainty. I've heard from some that grey market watches often have small imperfections (such as a misaligned second hand and the like) and can't be sold at authorized dealers. I'm not sure that I believe this, but I like the piece of mind that comes with buying from an authorized dealer.

Re: Gray market stuff (watches specifically)
 

[ QUOTE ]
From reading the article, it looks like the sellers are just doing an arbitrage of sorts.

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Isn't that what all sellers (all businesses, really) do? I want to buy a watch at $3000, the manufacturer wants to sell that watch at $1500, the watch shop makes it happen.

Re: Gray market stuff (watches specifically)
 

[ QUOTE ]
I looked at Grey market TAG, and honestly I didn't feel the discount was worth the uncertainty. I've heard from some that grey market watches often have small imperfections (such as a misaligned second hand and the like) and can't be sold at authorized dealers. I'm not sure that I believe this, but I like the piece of mind that comes with buying from an authorized dealer.

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I agree. The prices I saw from gray dealers were not significantly better than from an authorized dealer. I wanted my first watch purchase to go smoothly and not have there be any doubts as to what I'm getting. For that I'm willing to pay the premium.

Re: Gray market stuff (watches specifically)
 

I would probably not purchase a gray-market watch with one exception: Costco. They sell high-end watches, and I'm comfortable with their guarantee -- they will give you a full refund if you are not completely satisfied.
Costco watch page

Re: Gray market stuff (watches specifically)
 

Some more research has found the watch from an out of state AD for about 75% of the MSRP, with full warranty etc. Pretty sweet, huh?

Here is said lady TAG balla watch:
http://ecx.images-amazon.com/images/...PL._SS500_.jpg

Re: Gray market stuff (watches specifically)
 

[ QUOTE ]
[ QUOTE ]
From reading the article, it looks like the sellers are just doing an arbitrage of sorts.

[/ QUOTE ]
Isn't that what all sellers (all businesses, really) do? I want to buy a watch at $3000, the manufacturer wants to sell that watch at $1500, the watch shop makes it happen.

[/ QUOTE ]

Sort of. From what I gathered the watches come from other regions where the cost to buy was cheaper. For example, say a US dealer can get the watch from the factory for $1k and a South American dealer can get it for $500. The South American guy offers it for sale to Americans for $800 but it is not an authorized sale so no factory support, and he is undercutting the US dealer.

Re: Gray market stuff (watches specifically)
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
From reading the article, it looks like the sellers are just doing an arbitrage of sorts.

[/ QUOTE ]
Isn't that what all sellers (all businesses, really) do? I want to buy a watch at $3000, the manufacturer wants to sell that watch at $1500, the watch shop makes it happen.

[/ QUOTE ]

Sort of. From what I gathered the watches come from other regions where the cost to buy was cheaper. For example, say a US dealer can get the watch from the factory for $1k and a South American dealer can get it for $500. The South American guy offers it for sale to Americans for $800 but it is not an authorized sale so no factory support, and he is undercutting the US dealer.

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Sounds similar to buying cigarettes made for export to another country or an Indian reservation.

I don't smoke but I know at some tobacco stores you can find cheap cigarettes and the only difference is a sticker on the box saying made for export. So they are obtained cheaper bc taxes were not paid on the product. Apparently a lot of the cigarettes exported to Canada and smuggled back in through an Indian reservation on the border of Canada and New York.

Some companies produce more cigarettes for certain small counties than can possibly be smoked by the population. Conventional wisdom would tell you that these companies are supporting the grey market on purpose/.

Same with steroid companies in Mexico. They don't pay taxes on Veterinary drugs. In turn they produce and export tons of steroids that sell for a fraction of the price of the "human grade" equivalent of the same exact product. Throw a farm animal on the label and profit.

Im assuming the watch thing is similar to all this and a good deal probably can be had assuming you felt that you were not dealing with counterfeiters.

Re: Gray market stuff (watches specifically)
 

I can give a detailed answer where loads of the so called outlet clothes come from, at least in europe. There is no such thing as Gucci selling pieces after a season to some 2nd hand retailer. I know this for a fact. In short, if you don't want to support organized crime I would not buy it like that. Not sure about watches though..

Re: Gray market stuff (watches specifically)
 

[ QUOTE ]
I can give a detailed answer where loads of the so called outlet clothes come from, at least in europe. There is no such thing as Gucci selling pieces after a season to some 2nd hand retailer. I know this for a fact. In short, if you don't want to support organized crime I would not buy it like that. Not sure about watches though..

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id be interested in hearing this

Re: Gray market stuff (watches specifically)
 

Where I live, parallel imports are completely legal. That's why sometimes I find coca-cola from Thailand being sold in some markets, and stuff.

It is generally legitimate and above-board. When you are at a shop, the salesperson will say it's a grey-market product and remind you that the warranty is not valid. However, it is still the same product, within a shrink-wrapped box, and so on.

I believe in the US, parallel imports are prohibited. You can thank your copyright lobby for that!