What does “Spread” mean?

The spread is the gap between the price a dealer pays for a watch and the price they sell it for. It is the dealer's gross margin before costs such as shipping, insurance, servicing, photography, fees and the time the watch sits in stock.

Spreads vary with the watch. Fast-selling, easy-to-price models tend to trade on thin spreads, because many dealers compete for them and the risk of holding them is low. Rare, vintage or slow-moving pieces usually carry wider spreads, since they take longer to sell and need more expertise to price and authenticate. When a private seller is surprised by a dealer's offer, the spread is usually the reason: the dealer is pricing in the work and risk between buying and selling. Dealers also talk about the spread between the bid and ask in a market, which narrows when prices are stable and widens when they are uncertain.

Example: 'Spread on these is too tight to bother with unless you can move it the same day.'