2020.10 Latest Edition!! How much money can you get back if you resell the watch you bought at Commit Ginza?

Hello everyone. This is Commit Ginza. Thank you very much for your continued patronage of our store.

Thanks to you, our store will be celebrating its sixth anniversary in January next year! We owe this entirely to your patronage and support, and we are deeply grateful.

Well, I'm sure there's a good reason why we receive such gratitude.

Therefore, this time we would like to provide you with an updated version of our previously very well-received article on "Resale and Buyback Guarantees."

No matter how many years pass, buying a luxury watch is still a huge event in life, and while it can be exciting, it can also bring about a lot of anxiety.

"What if I try it and it doesn't suit me?"

"What if a different watch would be better?"

"How much will it sell for?"

Of course, Rolex, Patek Philippe, Audemars Piguet, and other watches are not cheap. I can truly understand the feeling of being unable to take the first step towards a purchase, wondering, "Should I buy it? What should I do?"

In order to ease such concerns even a little, we will be revealing all the data from the opening to the present about what happens if you sell the watch you bought at Commit Ginza again (= if you have it bought by Commit Ginza again).

It's an expensive watch, but you don't need the courage to buy it! It won't go down even if you use it!

You won't see an article like this very often, so please read to the end.

An astonishing resale rate (purchase rate)!!!

Below is the total data on watches that have been purchased and resold to our store from January 2016, when Commit Ginza opened, to the present day.

The average resale value of all these cars was an astonishing 97.1% . (This is the amount that the customer actually received, excluding our commission, etc.)

In other words, the watch purchased for 1 million yen was sold for 971,000 yen .

In other words, you can wear a luxury watch for just 29,000 yen .

This data also includes nearly 20% of unused items, which means that even if you enjoy using them and then sell them for almost their original price.

Similar figures were released for 2017, as shown below.

That's a 2.4% increase from back then.

Average purchase guarantee price at general watch stores

Surprisingly, the average buy-back guarantee at a typical watch store is said to be around 70%.

In other words, a watch purchased for 1 million yen will be bought back for approximately 700,000 yen !

The difference is a whopping 271,000 yen !!

Even if you only wear the watch for one day, you will lose 271,000 yen. By the way, these figures are still on the better side. Normally, if you buy a new luxury watch and sell it, it is common sense that you will get less than half the price.

So why does this happen? I would like to touch on that a little bit.

Three reasons why the purchase guarantee value is low

① Selling price = The price at the time of purchase is high

The first is the selling price, or the price you paid when you bought it. The reason why the purchase price is low is because there is a gap between the selling price, or the price you paid when you bought it, and the buying price, or the price you paid when you sold it.

Of course, there are many watches that are priced at a premium. So the important thing here is the market price. Is the market price really set appropriately? This is one of the most important points to consider when buying.

② Differences in assessment ability

The second reason is that, although there are exceptions for current products whose market prices are somewhat fixed, differences in appraisal ability are also a reason for low purchase guarantees. So, what happens if an appraisal cannot be made properly?

It's simple and clear. If you can't properly appraise it, you have no choice but to buy it cheaply, taking into account the risk that it won't sell.

③ Number of loyal customers

The third is the number of loyal customers. If you have sold a watch before, you may have experienced this, but when you apply for a bulk appraisal or appraisal from multiple stores, it is rare that only one appraisal ends up with a higher price. Now, why is that?

The reason for this is also clear. It's because the buyer of the watch has already been decided. Which one can you get a higher price for - buying a watch with a buyer already decided, or buying a watch without a buyer already decided? Of course, the answer is the former. A store with many loyal customers can make a sale without any risk.

The reason we can achieve such an overwhelming resale rate

I've said a lot so far, but what is it exactly that is it that our store, Commit Ginza, is able to achieve such an overwhelmingly high resale rate?

As most people have probably already noticed, the answer lies in the paradox mentioned above regarding why purchase guarantees are of low quality.

In short, by thoroughly determining fair pricing - i.e. accurately determining the current market value of each product - and putting the customer first - i.e. buying at the highest price in Japan and selling at the lowest price, we have come to have a large number of loyal customers .

summary

Since opening Commit Ginza, we have consistently adhered to a "customer first" approach, and I believe that this has resulted in such astonishing results.

After all, a company is a company no matter what.

CtoC businesses have seen an increase in demand recently and are seeing active customer use, but while they are able to engage in maximum price competition, it is difficult to increase trust or the quality of service.

What about BtoC companies? After all, if you try to maximize your credibility and service, you will have to incur various expenses such as labor costs and advertising costs, as well as the risk of reselling, so you will inevitably have to make a profit from the unit price of each watch. This is what you can consider to be the average buy-back guarantee of about 70% at general watch stores.

Meanwhile, Commit Ginza prioritizes "customer profits, not store profits." This is because they believe that "store profits cannot be made without customer satisfaction." If they can continue to prioritize customer profits, they can achieve both "low profit margins" and "high sales." It is precisely because of this management policy that they are able to achieve a resale rate of 97.1% .

lastly

Every time I write an article like this, I am forced to think about what a "purchase guarantee" really means.

In the first place, customers have two opposing goals: they want to buy as cheaply as possible, and stores want to sell as expensively as possible.

Let's say there is a watch called A with a price (current market value) of 1 million yen.

[1] A customer purchases A for 1 million yen

[2] Customer purchases A for 1.3 million yen

If you were a purchasing store, in which case would you be able to avoid causing a loss to your customers?

The answer is obviously [1].

In short, if you sell at the "cheapest price in Japan," you can buy it at the "highest price in Japan."

By the way, what we consider to be a "purchase guarantee" is

"Providing a sense of security to customers who purchase our products"

I think so.

If we define it like that, the figure of "about 70%" that is the purchase guarantee value of general watch stores is "resale = profit" It is undeniable that they are taking these factors into consideration. What purpose does this guarantee serve for customers? I think that customers may feel a sense of satisfaction or peace of mind.

To make buying and selling luxury watches more enjoyable.

If this article can be of any help to our customers, I will feel that I have been rewarded in the watch industry.

Next time we will go deeper and publish data by brand and model.

*The numbers written in this column are average values ​​and do not indicate a "purchase guarantee" etc.

*Various factors such as market conditions, individual condition, and exchange rate fluctuations must be taken into consideration, so there may be variations. This is the actual result as of October 2020.