Original article in Savoire Faire
In the ever-evolving world of luxury goods, few names resonate with as much authority as Michael Mack. As the founder of Max Pawn Luxury, Mack has established himself as a leading expert in the second-hand luxury market, particularly in luxury watches. Recently dubbed ‘The Birkin Matchmaker’ by The New York Post, Mack’s insights and expertise provide invaluable guidance for those navigating the complexities of this niche market.
Michael Mack’s journey into the pawn industry is deeply rooted in family tradition. A fourth-generation pawn broker, his great-great-grandfather started in the industry, even selling Jimi Hendrix’s first guitar—a notable claim to fame. Mack and his brother took over their father’s store 19 years ago, expanding and eventually selling it. After serving as a city councilman in Las Vegas, Mack opened Max Pawn 15 years ago. Initially focusing on traditional pawn services, Mack saw an opportunity to specialize in luxury items. Today, Max Pawn Luxury operates three locations in Las Vegas, with plans to expand to southern Florida. The business boasts an $8 million inventory, turning it over twice a year, and is set to feature in an upcoming Hulu documentary.
When it comes to luxury watches, Mack’s expertise is unparalleled. He emphasizes that Rolex remains the gold standard for value and resale. “Rolex is still the best, for value and resell,” Mack explains. The market experienced significant fluctuations during and after COVID-19, with brands like Dakota and Audemars Piguet (AP) reaching values three to four times higher than usual. Despite the rise of technology, classic watches remain a staple piece in men’s wardrobes, with younger generations continuing to invest in these timeless pieces.
The issue of counterfeit watches is a significant challenge in the second-hand market. Mack’s extensive experience and technological tools play a crucial role in maintaining authenticity. “We have a software program we use to check the watches and find out if they’re fake or not. We find them and see them every day,” Mack states. The fakes are so sophisticated that without technology or dismantling the watches, it can be nearly impossible to tell the difference.
When asked about the most valuable and desirable watch brands currently, Mack lists Jacob & Co., Audemars Piguet, Rolex, Patek Philippe, and Cartier as the top players. These brands maintain high value and strong market presence. In contrast, brands like Michael Kors and Invicta, while popular, do not hold the same resale value in the luxury market.
Mack attributes his success in the second-hand luxury market to his roots in the pawn industry. “If you ask me why I’m successful in the resell game, it’s because I am successful in the pawn game,” he notes. This success allows him to maintain competitive resale prices. Unlike the traditional pawn model of buying low and selling high, Mack’s strategy involves a more balanced approach, with a 20-30% markup. “Pay the fair price and sell at a fair price,” he emphasizes.
As the second-hand luxury watch market stabilizes from its peak in March 2022, down 31%, Mack’s insights are timely and invaluable. His expertise helps inform purchases for occasions like Father’s Day, graduations, anniversaries, and National Watch Day on June 19th. With a deep understanding of market trends and a commitment to authenticity, Michael Mack continues to lead the way in the second-hand luxury watch market, offering both seasoned collectors and new buyers the guidance they need to make informed decisions.
Michael Mack’s journey from a family pawn business to a leading authority in luxury goods is a testament to his expertise, dedication, and innovative approach. As the second-hand luxury market continues to evolve, Mack’s insights and Max Pawn Luxury’s commitment to quality and authenticity ensure they remain at the forefront of the industry.
