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Watch deal profit margin calculator

This is a profit margin calculator for watch dealers, written in dealer math. Enter the basis, the landed cost, any parts or service, and the sold price, and it returns total cost, gross profit, gross margin, markup, and break-even. On a consignment or memo watch, the owner's payout replaces the basis. No sign-up, nothing saved.

Results
Total cost (COGS)
Gross profit
Gross margin
Markup on cost
Break-even price
Price to hit target margin
Max basis to hit target margin

Enter a basis and a sold price to see the deal math.

How to read the results

Start with the gross margin. It is the number that lets you compare flips of different sizes.

6.7%
$4,000 profit on a $60,000 watch
16.0%
$4,000 profit on a $25,000 watch

Worked examples

Stock

Rolex Submariner 14060M, bought outright. Parts or service is a service and a new crown.

Basis
$7,200.00
Landed cost
$120.00
Parts or service
$380.00
Total cost (COGS)
$7,700.00
Sold price
$8,400.00
Gross profit
$700.00
Gross margin
8.3%
Markup on cost
9.1%
Consignment

The same ref on consignment, with the owner's payout agreed up front.

Owner payout
$7,140.00
Parts or service
$200.00
Total cost (COGS)
$7,340.00
Sold price
$8,400.00
Gross profit
$1,060.00
Gross margin
12.6%

Break-even price

Break-even is the floor: your full cost in stock mode, or the owner's payout plus your costs on consignment. Sell below it and you have paid to move the watch.

Target margin

A target margin adds two rows: the sold price that produces it, and the most you can pay the seller and still hit it, after landed cost and parts or service.

Stock example, 15% target
Total cost (COGS)
$7,700.00
Sold price
$8,400.00
Price to hit target margin
$9,058.82
Max basis to hit target margin
$6,640.00
Questions
What's the difference between margin and markup?Margin is gross profit divided by the sold price. Markup is gross profit divided by cost. Same dollar profit, different base. On the flip above, $700 of gross profit is an 8.3% margin and a 9.1% markup.
What does basis mean?Basis is what you paid the seller for the watch. Landed cost is what it cost to get it in hand: shipping, duties, insurance, authentication. Parts or service is what you spent to make it sellable. Together they are your cost of goods, the COGS in the results.
How does a consignment or memo deal change the math?You don't own the watch, so there is no basis. The owner's payout and any parts or service come off the sold price, and what is left is your gross profit. The math is the same whether the watch is on consignment or out on memo.
Is this gross margin or net margin?Gross. This calculator stops at what the deal itself made, before the business's overhead: rent, payroll, insurance, marketing. Net margin is a company number that comes from your books.
This calculator is the free version of the margin math on the Movement OMS deal screen. On a deal record, basis, sold price, and gross profit sit next to the terms and payments, and the close posts to QuickBooks. Same numbers, already on the deal.
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Watch Deal Profit Margin Calculator | Movement OMS