Why are luxury watches so expensive?
Have you ever wondered why premium Swiss horology is superior, what a diving watch is, or why brands rely so heavily on in-house movement? Luxury products are pricey. That is hardly a novel or groundbreaking idea. However, whereas purchasing a sports car or an art painting results in a price tag that most people are willing to justify, as a whole, competitive landscape, roughly equivalent objects from the world of timepieces are frequently held up as “quite ridiculously priced.” That’s not to imply that it’s a good idea to buy a watch that costs the same as a sports vehicle. Noob watch Factory must realize, however, that the man-hours, research and development, and tactile improvements that go into manufacturing a luxury vehicle also apply to something tiny and worn like luxury watches.
You are, in fact, purchasing R & D.
A premium item is frequently defined by the extraordinary attention to detail applied to every aspect of its creation. Whereas we now place a greater focus on speed and efficiency in many areas thanks to technology, prestige watch firms continue to rely on the steady hands of artisans who must train for over a decade before they can begin making pieces. When you make your first major watch purchase, keep in mind that you’re not just purchasing company recognition, but also the millions of hours of effort that go into making a variety of goods, some of which could have never seen the light of day.
First things first, let’s get the obvious out of the way: wristwatches have a significant markup. We can’t tell for sure what the markup is because Swiss brands are famously tight-lipped about things like production statistics and expenses, but we’re quite sure it’s far north of 100 percent. Remember, we’re only talking about the cost of making the watch itself, not the entire overhead of R & D, marketing, and so on. We’ll get to that shortly. To charge a premium for their watches, established companies may use their reputations and the cachet of “Swiss Made,” although evenly moist, that may be imprinted on dials.
The best materials are used to create luxury timepieces.
From the diamond-encrusted bezel to the gold watch case to the mother-of-pearl display, luxury watches are built with high-quality materials (both inside and out). As a result, these valuable minerals have a direct correlation to a higher price tag. While less costly materials such as stainless steel or diamond metals might be utilized, using these fine materials increases the piece’s longevity. The second reason watches are so costly is the cost of production. Noob watch factory do not only talk about raw materials here, but they can be more expensive for watches with precious metal casings. Materials, manufacture, bespoke machinery, prototypes, design, and research and development are all examples of overhead for a watch firm, just like any other sector.
The materials used to construct a watch may also be a key point of differentiation for some companies. Rolex, for example, is the only watch company that manufactures its own gold; the Swiss watchmaker has gone further to operate its own golden refinery in order to become the sole maker of the jewelers in use for its wristwatch casings and bracelets.