Consignment vs Outright Purchase: Which is Right for Your Watch Business?
Two ways to grow your inventory: pay cash up front, or take watches on consignment. Here is when each makes sense and how to manage both cleanly.
Consignment vs Outright Purchase: Which is Right for Your Watch Business? Growing inventory is the single biggest cash flow challenge for luxury watch dealers. You have two main options: outright purchase you own the watch or consignment you sell on behalf of the owner . Outright purchase Pros: 100% of the upside is yours Full pricing flexibility Faster decision making Cons: Heavy capital requirement All downside risk if values fall Stock can sit for months Consignment Pros: Zero capital outlay Wider inventory range Lower risk Cons: Lower margin per unit Consignor relationship management overhead Pricing arguments Two consignment agreement types Stock Manager supports both common structures: Net Price Agreement You agree a fixed payout to the consignor e.g. £14,500 . Whatever you sell abov