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I just stumbled across this last night and it caught my attention, but am curious if anyones had any experience with them. Company is called Eleven James, for a monthly fee from $249 for 3 watches a year 4 months each, (upto 1k+ a month for 6 of the higher end ones), you can rotate through watches from their collection (think netflix for watches?). Looks like a rather decent selection, Cartier, Ulysse, IWC, Rolex, Paneri, Hublot, GP, AP, Vacheron, Patek, etc. Im debating giving it a try but wanted to know if anyone else has used them yet.
 

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Went to site. Went to apply for membership just so that I could see their entire collection.... but it wanted me to go ahead and commit to a membership. That makes me sketchy especially since it says in the FAQ that one can only see the collection if a member. I see a lot of people talk about buying replicas so that they can see how the real piece will feel before investing in the legit piece. Even if its sincere, there's no way one can get an actual feel for the real thing by wearing a fake. So..... this could be a relatively inexpensive way to "test drive" a certain piece for a reduced price before investing in a purchase. But there is no way I commit to a plan without seeing the entire collection first.
 

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Copied from their site:

Eleven James regularly cleans and inspects all of our timepieces before they are sent to members.We also maintain insurance on all our inventory for damage, loss, and theft of watches. We encourage all members to consider additional insurance in the event of an incident.

Why? I don't get insurance on a rental car because its already covered thru my car insurance. Why would I need additional insurance if it's already maintained by them?
 

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Discussion Starter #4
Hmm, they do offer a decent selection on the collections page, but i also put in a request to be contacted with more information so i can find out more. I did like a number of the ones they listed, the Hublot and AP i really liked, as well as a couple of the Rolexs. Could easily rotate through those for a year to, as you said, get a feel for which id like most before picking up one myself.

As for the insurance thing....good catch i didnt see that part, i will ask about it once they contact me. Tho my guess would be that there are a few incidents that may not be covered by their provided insurance, but again im not sure and will ask.
 

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I had this idea a while back and had a thread on it and spent about a month figuring out how to start one. Problem is NOBODY will insure the pieces. There are 3 ways to do this business.

1 rent people fake watches to offset the risk of theft and make money for long enough until your reputation turns to shit and you go under.

2 rent real watches and take their entire value on credit card as an authorized amount (hold) which nobody will either be able to afford or allow you to do

3 rent real watches and I figured 1/5 would get destroyed or stolen.


If you can get insurance on them somehow then let me know im ready to launch a rental/lease company
 

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I had this idea a while back and had a thread on it and spent about a month figuring out how to start one. Problem is NOBODY will insure the pieces. There are 3 ways to do this business.

1 rent people fake watches to offset the risk of theft and make money for long enough until your reputation turns to shit and you go under.

2 rent real watches and take their entire value on credit card as an authorized amount (hold) which nobody will either be able to afford or allow you to do

3 rent real watches and I figured 1/5 would get destroyed or stolen.


If you can get insurance on them somehow then let me know im ready to launch a rental/lease company
Insurance is going to cripple these guys. I did the same as everyone here, applied to see the whole collection. Too many hoops to jump through so I stopped. I wouldn't be shocked to find out they rent fakes.
 

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Seems sketchy to me.
 

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which market is this going for exactly and how does the math work out logically?

if there is a $10k watch @ $249/mo (using the TechCrunch article's info), they need to rent it out for 40 months to break even--forget about making a profit. this would be okay for a rolex sub/daytona because their styles dont change that often, but some other companies have styles that change somewhat frequently it seems.

my guess is they overpromise/underdeliver in the $249 price range--but i could be biased because i'm cheap and wouldn't want to pay this much per month for a $10k watch :)
 

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which market is this going for exactly and how does the math work out logically?

if there is a $10k watch @ $249/mo (using the TechCrunch article's info), they need to rent it out for 40 months to break even--forget about making a profit. this would be okay for a rolex sub/daytona because their styles dont change that often, but some other companies have styles that change somewhat frequently it seems.

my guess is they overpromise/underdeliver in the $249 price range--but i could be biased because i'm cheap and wouldn't want to pay this much per month for a $10k watch :)

Your not seeing the big picture, there is serious money in this if you can mitigate the risk...
for arguments sake, say you buy 20 mint AP's for 15k a pop and start with 300k of assets
It would be easy to lease for 10% down 249/mo for 24mo with say a 50% residual (BASED ON MSRP of 24k) if they decide to buy it out. That's 50% ROI in 24mo with zero risk (assuming it is insured) if they turn it in, if they buy it out and your cost was the same as the agreed residual then its a 100% ROI.

Coming from the exotic car rental industry watches are a NO BRAINER if the theft can be sorted.
No maintenance, can all be done out of your grandmas attic with a website, facebook and a working credit card. Advertise 50 different watches and once a contract is signed go and buy one and ship direct to customer.... start this biz with 10 grand.


Seriously, if anyone wants to revisit this with me, LMK
 

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Your not seeing the big picture, there is serious money in this if you can mitigate the risk...
for arguments sake, say you buy 20 mint AP's for 15k a pop and start with 300k of assets
It would be easy to lease for 10% down 249/mo for 24mo with say a 50% residual (BASED ON MSRP of 24k) if they decide to buy it out. That's 50% ROI in 24mo with zero risk (assuming it is insured) if they turn it in, if they buy it out and your cost was the same as the agreed residual then its a 100% ROI.

Coming from the exotic car rental industry watches are a NO BRAINER if the theft can be sorted.
No maintenance, can all be done out of your grandmas attic with a website, facebook and a working credit card. Advertise 50 different watches and once a contract is signed go and buy one and ship direct to customer.... start this biz with 10 grand.


Seriously, if anyone wants to revisit this with me, LMK
The problem here is that insurers don't have a loss ratio on this type of risk. It may be possible to insure the pieces through a surplus lines or a lloyds insurer. You have PM.
 

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Discussion Starter #13
Their 'concierge' service reached out to me yesterday, tho I had just also gotten a lay off notice from work so didnt bother to get back to them today. Asked about the insurance and such. Will post back their reply
 

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Here is the reply i got:

Thanks for your inquiry and interest in Eleven James.

We currently have the Aficionado collection (watches between 7 - 15k) and the Connoisseur collection (15 - 30k). The Virtuoso collection (watches above 30k) will be available in 2014.

You are correct that not all of our watches are on our website at this time. Our collection is continuously expanding and one of the largest attractions for our members is their ability to weigh in on our watch purchases. We do carry a variety of watches from almost all of the top brands and some boutique brands as well.

Please let me know the best time to reach you and we can discuss any question you might have about insurance or if you want to know more specifics about the watches we currently have in our collection.

Best,
******
Eleven James Concierge
 

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Your not seeing the big picture, there is serious money in this if you can mitigate the risk...
for arguments sake, say you buy 20 mint AP's for 15k a pop and start with 300k of assets
It would be easy to lease for 10% down 249/mo for 24mo with say a 50% residual (BASED ON MSRP of 24k) if they decide to buy it out. That's 50% ROI in 24mo with zero risk (assuming it is insured) if they turn it in, if they buy it out and your cost was the same as the agreed residual then its a 100% ROI.


Coming from the exotic car rental industry watches are a NO BRAINER if the theft can be sorted.
No maintenance, can all be done out of your grandmas attic with a website, facebook and a working credit card. Advertise 50 different watches and once a contract is signed go and buy one and ship direct to customer.... start this biz with 10 grand.


Seriously, if anyone wants to revisit this with me, LMK
There's a few problems here. Most importantly, the biggie which you mentioned is the theft/insurance issue, which is non-trivial. Watches are easier to steal than cars. Heck, why couldn't I get jewelry insurance for the rental, then "lose" it, and then "find" the watch a few months later after the heat dies down? I could do that once, I would expect, but for that grail... ;-)

But even if everyone is honest...you'd be buying a watch today, and getting 50% of that investment back over the next two years (in the example of the $15k watch). Then you try to sell the watch for 50% of retail ($12k) here. So your profit, after two years is $4500. That's a decent ROI, but if you can't sell the watch, or if you have to discount further, you'd be in trouble. Obviously these guys have figured it out, or think they have. Maybe that $3000/year I'm paying only gets me a watch that retails for $12-15k. But the insurance issue is the big one...
 
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