Buying a watch that needs service

A watch that doesn't run, won't wind, or keeps poor time often sells for much less than a working example. Most sellers don't know what the fix will cost and don't want to find out. A dealer who can price the repair accurately can buy those watches and sell them serviced. The whole opportunity rests on one estimate, though, and the watch can't tell you in advance whether it needs a routine service or expensive parts.

What "needs service" can mean

The same symptom can have very different causes:

• A routine service, because the oils have dried and the watch has slowed or stopped.
• Worn or broken parts, such as a mainspring, a balance staff, or a worn winding system.
• Damage, from a knock, water, or a previous bad repair.
• Missing or incorrect parts, which on some watches can be hard or costly to source.

From outside, these often look alike. That's the risk you're pricing.

Get a realistic estimate

Build your estimate before you make an offer.

• Know typical service costs for the references you deal in. Ask your watchmaker in advance, so you have numbers ready when a deal comes up.
• Ask what commonly fails on each reference, and what those parts cost and how easy they are to find.
• Look for clues. A watch that runs but badly, a crown that won't screw down, moisture under the crystal, or rattling inside all tell you something.
• Price toward the higher end of what's realistic when you can't diagnose the fault. The pleasant surprise of a cheaper repair is profit; the unpleasant one shouldn't be a loss.

The watchmaker article covers building the relationship that makes these estimates reliable.

How the service cost changes the price

A watch that would sell for $5,000 once serviced. The sale carries a 6% marketplace fee plus 3% for card processing, $125 for outbound shipping and insurance, $40 to ship it in, and a 15% margin target. Everything is the same except the prep estimate.

Prep $150 (light clean-up only)

$3,485.00

Prep $700 (a full service)

$2,935.00

Prep $1,200 (service plus parts)

$2,435.00

Swing in maximum buy

$1,050.00

Every extra dollar of service comes straight off what you can pay. Offering on the light clean-up figure for a watch that turns out to need parts wipes out your margin. Try it with your own figures.

Figures are illustrative, not market data or verified fees. Run your own numbers in the calculator.

Allow for time

A watch at the watchmaker isn't for sale. Service can take weeks, longer if parts have to be ordered, and your money is tied up the whole time. Include that time when you price, since the carrying cost article explains what it costs you, and don't plan on a quick turnaround for a project watch.

When to walk away

• The fault is unknown and the parts are scarce. If the watch might need a part that's hard to find, the worst case can be very bad.
• The watch may not be correct. A non-running watch with doubts about originality combines two risks. The fake watches article covers what to check.
• The numbers only work in the best case. If you can only make a margin if the fix turns out to be cheap, it isn't a good buy.

Selling it after service

A freshly serviced watch with paperwork from a known watchmaker is easier to sell and can support a stronger price. Keep the invoice and any notes on parts replaced with the watch's record, describe the service in the listing, and consider whether it lets you offer a warranty, which the warranty article covers.