It's true that some watches are pricey. However, that doesn't mean they offer poor value for the money because certain goods are expensive for a purpose. Depending about whether something is genuinely worth the investment that people are paying for it, something can be both cheap and expensive. So why are high-end timepieces, such as beautiful Swiss watches, so expensive? These are a few of the causes.
Time taken to manufacture them
Some timepieces require extensive design and manufacturing time. Teams of engineers must work for years to create special watch movements and ensure that everything functions as it should. It takes time, effort, and careful attention to detail to make new movements robust and fluid.
Even creating cases and bracelets might take a lot of time. It takes hours to perfect every aspect of a timepiece in order for it to look good. A watch which has required years to make should be pricey since time equals money.
Some watches are expensive simply because there is a much higher demand for them than there are available. The Rolex Daytona is one illustration of this. The new steel versions of this watch were in such high demand for a considerable period of time following the turn of the millennium that there had been a five-year waitlist to purchase them.
Older versions of this watch, such the 6241 as well as the 6239, are equally hard to find because they weren't well received when they were originally introduced. It seems sense that more individuals will be prepared to pay for a watch if it is more difficult to obtain.
Value of materials
Best materials are needed to make a watch of the highest caliber. These materials can be costly and challenging to work with. The price of the finished item is increased by the cost of obtaining them and the level of expertise needed to craft them into a beautiful timepiece.
Skilled craftsmanship required
Some timepieces are made by extremely skilled craftspeople. Magnus King told us that these kinds of clocks are expensive in line with the level of skill required to create them. They cost more to produce because the people who develop them are compensated in accordance with their expertise. Additionally, keep in mind that not just the watch manufacturer receives a portion of the profit. High-quality watches are expensive to produce, but they are also expensive to sell and supply, which raises the cost of them.
The sum necessary to acquire some timepieces is influenced by a wide range of various hidden expenses.
Luxury firms put a lot of effort into being more opulent and exclusive.
We cannot ignore this crucial aspect. This applies to the entire luxury industry, not just high-end watch brands. Operating a luxury brand differs significantly from operating a typical firm.
I've previously touched on a few points, such as the fact that you should not just focus on increasing sales and production, but also on strengthening your product and making it much more unique. If you have a premium product but no true reputation, you are just a brand without high prices. Because of this, high pricing, and the way a watch company is run are two crucial factors that contribute to both more demand and higher prices. A great luxury watch is something that many people aspire to obtain because, in the eyes of many, it represents true achievement.
Exclusiveness and a good reputation are the two key characteristics that set luxury watch brands apart from the competition. People purchase luxury goods because of the names, but they are willing to spend more because they believe they are getting a fantastic deal for their money in terms of both quality and prestige.
The cost of production is high.
We've already touched on this briefly, so let's clarify the actual costs associated with manufacturing premium timepieces. You might be surprised to learn that the margin on cheap watches, especially fashion watches, is far higher than the margin on luxury watches brands. Expensive watches might cost less, but fashion watches far outpace them in terms of proportion.
For instance, a Tommy Hilfiger wristwatch costs about $160. However, if you were to examine the watch's production costs alone—as many people do with luxury watches—you would find that they are actually quite low. max. 10 bucks. That markup is absurd.
Luxury watch companies don't even come close to that markup. Furthermore, it's important to realize that the price of the materials is not the only factor in luxury watches. You might not be aware of how much extra money goes into creating a luxury watch. The designing comes first and creating a design that customers will appreciate requires a vast team of designers. Then comes the years-long process of developing its movement, the actual fabrication of the motion by a trained watchmaker, the creation of new parts and equipment required for the watch, such as Rolex's distinctive Cibachrome bezel, and so on.
The question then becomes: Is it worthwhile to spend a sizeable sum of money on a watch that you believe will perfectly complement your personal style? It may be claimed that since appearance is significant, the expense is justifiable.
You are paying for a quality that will give you an air of sophistication, and such attributes are not inexpensive. In terms of watches, you typically get what you paid for. Paying little money will result in something which looks cheap; spending a little more will increase the likelihood that you will get something you enjoy.
It is a good idea to take your own time and does a research on watches before you buy from an expensive brand. Then you can make sure that you are purchasing the best possible watches that you can buy for the amount you spend out of your pocket.