Selling pre-owned watches is like running a 'candy store' as Trump's tariffs loom

Business Insider

2 days ago

While luxury retailers are bumping up the prices of watches, the pre-owned market is sitting pretty.
Douglas Kaplan, chief commercial officer at Bob's Watches, told Business Insider that the company's sales jumped 20% from March to the end of May. BI viewed documentation verifying the increase.
Meanwhile, Switzerland-based Rolex, one of the most sought-after luxury watch brands, plans to raise prices for watches due to tariffs and the increasing cost of gold.
Bob's Watches is a marketplace for pre-owned watches. About 90% of its inventory is discontinued styles from collectors' favorite luxury brands. Unlike the watches imported from Switzerland, Kaplan said his company deals mostly with US sellers. That means it has plenty of supply and isn't "jumping to raise prices because of a tariff," Kaplan said.
"We really are like a candy store of the industry," Kaplan told BI.
Switzerland is facing a 31% tariff on goods imported to the US. The country is home to some of the biggest luxury watch makers.
Swiss-made brands are shipping more watches to the US to get ahead of the tariff, which is paused until July. Exports from Switzerland to the US were up 149.2% year-over-year in April, when tariffs were announced, the Federation of the Swiss Watch industry reported.
Kaplan is more worried about the impact on watch sellers than buyers. Bob's Watches buys watches from sellers and lists them on its website. Sellers may want to be paid more for their pre-owned watches if retail prices for similar models are spiking due to tariffs. Kaplan said his company may have to revisit how it negotiates prices if complaints from sellers become widespread.
The company operates internationally, but sellers outside the US don't make up a significant amount of its business, Kaplan said. The company charges a $150 shipping fee for orders from abroad.
Kaplan has been at Bob's Watches for six years and in the Swiss watch industry for 27 years. He's worked at brands like Movado, Fendi, and Swatch Group.
He said business has grown recently in part because of younger buyers. They aren't as interested in the $300 to $500 watches they can purchase at a department store. Luxury watches are an asset that can appreciate in value, depending on the style and condition.
"They have their eyes on something for the future because they now understand," Kaplan said. "They're educated."