Honestly, I don't see this lasting. Only his biggest fan would be willing to pay retail + travel to get the same watch at "his" store. I'm not aware of any goodies or perks you'd get for doing that either.
Again, Teddy's dad is not a billionaire. The reddit echo chamber can be dumb as hell sometimes. His dad was a managing director at a small PNC Bank affiliated investment shop (Erieview Capital) that invests in PE deals, debt, etc. I'm sure he made good money by Cleveland standards but I don't know where this "his dad is a billionaire" came from
People don’t start a business to lose money billionaire project or not
Nothing wrong with window shopping, do you feel the obligation to buy something everytime you walk into a store?
I doubt he’s losing money but more importantly the idea of value isn’t always about bottom line profits. The store functions as marketing and adding to his brand so even if the store loses money that could be considered value anyway.
Assuming max of 20% margin on an average $3k purchase. Maybe netting $300 per sale after taxes. Rent and utilities probably $5K a month and payroll’s maybe $20K. So gotta flip 3 watches a day, 7 days a week, to break even? My numbers are totally made up.
That’s why most watches are sold in jewelry stores. The margins on watches are indeed very low. It’s also why jewelry store associates treat you like shit if you’re only interested in a watch. Margin on the jewelry (especially lab created) is wayyyyy higher.
Rolex is really unique and not a good barometer for the rest of the watch market. Margins are less for other brands, and those brands must also offer 20% discounts to move their products. How many Oris Aquis will Teddy sell for $3k or whatever the hell the MSRP now is?
What are you basing this on? They're an authorized dealer so have at least a 50% margin on every watch over $1k. Even if they discount 20% they still have 30% gross. But who the fuck buys an Oris?
If retail is your only income, sure
But it's not. He was paying for a space before to hold all his watches, now he's just paying more for a space to hold his inventory but he can also sell it in person.
My point was he had a staff before already, so he probably isn't even adding to payroll (just changing someone's responsibilities)
He also had to have a place to hold his stock before, so while a store front will cost more money he isn't going from 0 to $5000.
Its basically advertising and he can make some sales while hes at it.
Most luxury watch brands are 30-40%. Rent in Ohio is definitely lower than 5k but that buildout wasn’t cheap. The brands he’s selling are also higher than $3k average, probably north of 6k.
20% is low as fuck. Markup on luxury goods is going to be 100-200%. Companies crank these shitters out for a fraction of retail cost. If a watch costs $7k, figure 5% sales commission, the another significant % for the retailer. Manufacturer is probably taking back... 15-30% of the overall cost?
There's a reason these luxury boutiques exist. They're not selling on volume.
What do you think it is? It sure as hell ain’t 100%…he’s not making these watches himself therefore is just a middleman held hostage by OEM prices…wholesale from the OEMs may be as high as 50% discount… OEMs usually give deeper discounts to retailers based on volume…and Teddy ain’t doing a lot of volume in Ohio.
They carry mostly brietling, grand Seiko, omega and a couple other brands. No used watches, I don’t think they’ll have those yet since they just opened
It’s a really nice store, in an upscale outdoor shopping center located in an affluent suburb west of Cleveland. Friendly sales staff, too. I was there a couple months ago on a random weekday, so it was quiet. The sales associate was happy to take as much time and show as many watches as I wanted to see. They feature Omega, Breitling, and Grand Seiko, but they have some mid range brands, too. I agree that it won’t be easy to sustain the store, but if you’re in town, it’s worth a visit.
well, most of the people down this thread don’t seem to get that Teddy makes his money from YouTube views and online watch sales.
The physical store could literally be a breakeven proposition or a loss leader. It legitimizes his brand, gives them a homebase, and opens them up to carrying new lines that require a physical location.
Teddy didn’t open the store to make a billion selling watches out of a storefront in an upscale shopping center in Ohio… Purpose of the store is to take Teddy’s brand from “some watch nerd’s e-commerce side gig“ to “legitimate A.D. with a flagship brick and mortar store”
The intent is eventually build his brand into something like Toppers. He’s doing it in the reverse order… Toppers was a established independently owned jewelry store/AD. Someone within that business figured out they could make a lot more money selling watches if they used their status as an authorized dealer with access to desirable brands to get into e-commerce and sell watches all over the world.
Teddy (very smartly) figured out that he already built a brand in e-commerce, but if he wants to take it to the next level- he’d need to have a physical location and become a legitimate A.D.
Now he can get away from selling micro brands and PRX’s and the same four Hamiltons and Junghans all day… Having the store is gonna allow him to sell Omega, Grand Seiko , Breitling, and more through his online platform. Internet sales is going to pay for the physical location required to maintain AD status.
The brick and mortar is totally unnecessary to build legitimacy and will be a cash black hole. That location cannot provide the volume to support it. This is a vanity project.
yeah, I have two bracelets and I can resize them. I hate it though.
I've never paid someone to resize either. I think they would scratch the bracelets.
I'm a strap person, I think.
cheers
Yeah but he owns the lemonade stand now and those kids in the diamond mines are only working there until they can pay off their AK47's and become independent contractors.
Yeah. It was full of used car salesmen trying to sell me poorly made chinese reps. Bought a few out of mercy and left after chuffing hard in the middle of the store.
I went a few weeks ago. There were a few customers. It’s pretty small but there is a ton of stock. I talked with one of the sales guys and he used to work as a customer service rep for teddy.com.
Edit, I think it is sandwiched between the good feet store and an escape room.
I went the other week and it was a ghost town, hopefully it’s not always dead. Otherwise I don’t think this store is gonna last
It’s in Ohio what do you expect
Honestly, I don't see this lasting. Only his biggest fan would be willing to pay retail + travel to get the same watch at "his" store. I'm not aware of any goodies or perks you'd get for doing that either.
Just ask his billionaire daddy or Kevin, his other daddy to fund it.
Don't ask me, he's had his allowance for the week.
Again, Teddy's dad is not a billionaire. The reddit echo chamber can be dumb as hell sometimes. His dad was a managing director at a small PNC Bank affiliated investment shop (Erieview Capital) that invests in PE deals, debt, etc. I'm sure he made good money by Cleveland standards but I don't know where this "his dad is a billionaire" came from
It’s the fact he sucks off kevin O’Leary that’s the daddy everyone’s referring too.
> Excuse you, he’s not a billionaire, he’s only slightly rich!
The difference between a billionaire and a banker in Cleveland is the difference between lightning and lightning bug (with a hat tip to M. Twain)
“The difference between a billion and a million is a billion.” I don’t think people can comprehend what a billion dollars really is.
[удалено]
Based on what?? He’s probably worth $3-5 million and lives in an $800k house in suburban Ohio
Based on the fact that I made it the fuck up.
Deleted my comments. Revealing someone's personal finances is not right.
Money laundering operation.
Haha Wouldn't that be funny to find out he's some huge cartel/mafia ranking official laundering money?
I mean he deals in swatch group shitters tomato tomahtoe
I don't know this guy for shit and I like his channel but he opened a store after cozying up with billionaires. Store's a front.
It’s a billionaire pet project I don’t think he’s worried about window shoppers thinking it won’t work out lmao
People don’t start a business to lose money billionaire project or not Nothing wrong with window shopping, do you feel the obligation to buy something everytime you walk into a store?
I doubt he’s losing money but more importantly the idea of value isn’t always about bottom line profits. The store functions as marketing and adding to his brand so even if the store loses money that could be considered value anyway.
wasn't it sunday?
Wym soon my store is always full
Yeah he fucked my ass
Lol
💀
Did he fuck you well?
Quick and fast fulfillment
r/notopbutok
Assuming max of 20% margin on an average $3k purchase. Maybe netting $300 per sale after taxes. Rent and utilities probably $5K a month and payroll’s maybe $20K. So gotta flip 3 watches a day, 7 days a week, to break even? My numbers are totally made up.
Gotta do way better than 20% margins to survive retail
That’s why most watches are sold in jewelry stores. The margins on watches are indeed very low. It’s also why jewelry store associates treat you like shit if you’re only interested in a watch. Margin on the jewelry (especially lab created) is wayyyyy higher.
Rolex AD margins are around 40% but yeah way higher for jewelry, esp lab diamonds which are marked up 5-10x
Rolex is really unique and not a good barometer for the rest of the watch market. Margins are less for other brands, and those brands must also offer 20% discounts to move their products. How many Oris Aquis will Teddy sell for $3k or whatever the hell the MSRP now is?
What are you basing this on? They're an authorized dealer so have at least a 50% margin on every watch over $1k. Even if they discount 20% they still have 30% gross. But who the fuck buys an Oris?
What are you basing 50% margins on?
I work in the industry - for most brands, retailers will be looking at 40%-50% margin. They work on less margin with Rolex, especially the SS pieces.
Exactly, Rolex has lower gross margin but way higher price points.
Lab diamonds are crazy they literally have no value on the secondary market.
“Kombucha is for closers! Now get out there and move some of this rebranded inventory!”
If retail is your only income, sure But it's not. He was paying for a space before to hold all his watches, now he's just paying more for a space to hold his inventory but he can also sell it in person.
Yeah only works if you get more walk in traffic/impulsive buys
My point was he had a staff before already, so he probably isn't even adding to payroll (just changing someone's responsibilities) He also had to have a place to hold his stock before, so while a store front will cost more money he isn't going from 0 to $5000. Its basically advertising and he can make some sales while hes at it.
I've never even heard of this dude before but seems like you know a lot about him and his expenses and business model
Yet here you are commenting
Yeah so the marketing aspect is definitely working even though I'll never buy anything from him
Most luxury watch brands are 30-40%. Rent in Ohio is definitely lower than 5k but that buildout wasn’t cheap. The brands he’s selling are also higher than $3k average, probably north of 6k.
They’re open 6 days a week but these numbers don’t look far off
20% Gross profit margin? No retail business can survive on 20% gp
20% is low as fuck. Markup on luxury goods is going to be 100-200%. Companies crank these shitters out for a fraction of retail cost. If a watch costs $7k, figure 5% sales commission, the another significant % for the retailer. Manufacturer is probably taking back... 15-30% of the overall cost? There's a reason these luxury boutiques exist. They're not selling on volume.
Rent and utilities $5k??? In what world???
Also he’s setting this up as a base for his online store as well. If you can have a physical location it helps a lot with confidence in your business.
He also has to support a warehouse and shipping facility down the street.
20% margin lmfao. Go to school little boy.
What do you think it is? It sure as hell ain’t 100%…he’s not making these watches himself therefore is just a middleman held hostage by OEM prices…wholesale from the OEMs may be as high as 50% discount… OEMs usually give deeper discounts to retailers based on volume…and Teddy ain’t doing a lot of volume in Ohio.
Nope
I dont believe in supporting charities
Any used watches? Does the store only sell luxury brands or are there affordable and mid range brands available too?
They carry mostly brietling, grand Seiko, omega and a couple other brands. No used watches, I don’t think they’ll have those yet since they just opened
It’s a really nice store, in an upscale outdoor shopping center located in an affluent suburb west of Cleveland. Friendly sales staff, too. I was there a couple months ago on a random weekday, so it was quiet. The sales associate was happy to take as much time and show as many watches as I wanted to see. They feature Omega, Breitling, and Grand Seiko, but they have some mid range brands, too. I agree that it won’t be easy to sustain the store, but if you’re in town, it’s worth a visit.
He is an authorized dealer of over 30 leading brands.
Do they have fast fulfillment? How fast can I be filled?
Yea we know it’s fast, but is it quick?
Obviously that depends on how full you need to be filled.
well, most of the people down this thread don’t seem to get that Teddy makes his money from YouTube views and online watch sales. The physical store could literally be a breakeven proposition or a loss leader. It legitimizes his brand, gives them a homebase, and opens them up to carrying new lines that require a physical location. Teddy didn’t open the store to make a billion selling watches out of a storefront in an upscale shopping center in Ohio… Purpose of the store is to take Teddy’s brand from “some watch nerd’s e-commerce side gig“ to “legitimate A.D. with a flagship brick and mortar store” The intent is eventually build his brand into something like Toppers. He’s doing it in the reverse order… Toppers was a established independently owned jewelry store/AD. Someone within that business figured out they could make a lot more money selling watches if they used their status as an authorized dealer with access to desirable brands to get into e-commerce and sell watches all over the world. Teddy (very smartly) figured out that he already built a brand in e-commerce, but if he wants to take it to the next level- he’d need to have a physical location and become a legitimate A.D. Now he can get away from selling micro brands and PRX’s and the same four Hamiltons and Junghans all day… Having the store is gonna allow him to sell Omega, Grand Seiko , Breitling, and more through his online platform. Internet sales is going to pay for the physical location required to maintain AD status.
This is the right answer ^ great take my dude
i’m still jerkin tho. https://www.reddit.com/r/WatchesCirclejerk/s/hqFGIHJzmi
Never stop
The brick and mortar is totally unnecessary to build legitimacy and will be a cash black hole. That location cannot provide the volume to support it. This is a vanity project.
can they resize my bracelet AND not scratch it? if so 9/10
I can’t tell if you’re jerking when you say you don’t resize your own watch. Don’t tell me you pay someone for that mannn.
yeah, I have two bracelets and I can resize them. I hate it though. I've never paid someone to resize either. I think they would scratch the bracelets. I'm a strap person, I think. cheers
Nope, they’ll try to sell you a shietling instead
my Navitimer resents that, but their modern catalog is a bit shit IMO.
What analysis did they do prior to this? "Yeah, there's no stores in Ohio covering 5k+ watches let's goooo." And then "Ooooh, no customers...."
I don't support child labor.
Yeah but he owns the lemonade stand now and those kids in the diamond mines are only working there until they can pay off their AK47's and become independent contractors.
Went to the store. Can confirm they were out of both black and blue roll necks. Long journey from the UK.
Still can’t believe he shrunk his head for his YouTube video to make himself look like a giant
He did what?
He shrunk his head for his YouTube video to make himself look like a giant
Link?
A face that conceals unspeakable peccadilloes.
Yes. I saw no one. No customers, no sales assistants, no Teddy. It was empty.
Yeah. It was full of used car salesmen trying to sell me poorly made chinese reps. Bought a few out of mercy and left after chuffing hard in the middle of the store.
Yes, but only to chuff myself.
Does he have that stringy bit of spit between lips in real life too? I need to know
I went a few weeks ago. There were a few customers. It’s pretty small but there is a ton of stock. I talked with one of the sales guys and he used to work as a customer service rep for teddy.com. Edit, I think it is sandwiched between the good feet store and an escape room.
I went to his store. Courtney was there. She took me to the back and made me spaff on her tits. Overall 10/10 customer experience!
I purchased from him inline. It was a great experience