Consignment (Kommission)

Consignment (in German Kommission or Kommissionsverkauf) is a sales arrangement where the owner of a watch gives it to a dealer to sell on the owner's behalf. The dealer does not buy the watch. The dealer holds it, photographs and lists it, and accepts an offer subject to the owner's approval. When the sale closes, the owner is paid the sale price minus a pre-agreed commission.

Why owners choose consignment

Owners of higher-value watches often prefer consignment over outright sale because they keep the upside:

• A direct sale to a dealer typically lands 10 to 20 percent below the open-market price (the dealer's holding cost plus margin).
• A consignment sale targets the open-market price, with the dealer typically taking a 5 to 10 percent commission depending on watch value and time to sale.

For a €40,000 Patek Nautilus, the difference between direct sale and consignment can be €4,000 to €6,000 in the owner's pocket. The trade-off is time: consignment can take weeks or months.

Why dealers offer consignment

Consignment lets a dealer offer inventory without tying up working capital. For a small dealer with €200,000 of buying power, consignment can effectively double the active inventory and broaden the catalogue. The dealer earns a smaller margin per piece but takes no holding-cost risk.

Contract requirements

A consignment contract should specify:

• Asking price and the minimum acceptable offer the owner pre-authorises.
• Commission rate as a percentage or flat fee.
• Duration and what happens at expiry (return, re-price, or auto-renew).
• Insurance during the dealer's custody.
• Authentication outcome if the watch fails an inspection — usually returned to owner with documented findings.

In Germany the underlying contract is typically a Kommissionsgeschäft under § 383 HGB, where the dealer acts in their own name but on the owner's account. The owner remains the legal owner until sale.

Related: trade-in, bill-of-sale, secondary-market, authorized-dealer.