This limitation, coupled with the pressure to purchase new collections from luxury watch brands, can lead to a buildup of unsold stock. In other words, the salesperson really can’t give you 40% off, even if they wanted to. Official retailers often face restrictions when it comes to offering discounts to their customers, even during slow sales periods. One of the primary reasons for the existence of the gray market is the need for authorized dealers to liquidate their excess inventory. How Do Watches End Up On the Gray Market? Gray market sellers exist as the Yin to the authorized dealer’s Yang. This agreement will outline the minimum advertised price (MAP) for each watch and the expected volume for the dealer to purchase each period. An authorized dealer (AD) is a business that has a distribution agreement in place with a watch brand.
