What Are Luxury Watches And What’s Their Price?
When you see the price of some watches, it often happens to be amazed. And I can honestly say that many watch collectors react in a similar way. Why do some models cost so much? Clocks can easily be divided into two categories: new and used. Their prices vary considerably and there are several reasons that explain their value.
From raw materials to watches
The process of creating a new watch or any other consumer product starts with a design and a prototype. Depending on the complexity, the development of a timepiece can take several years. It follows the construction of models that are subjected to numerous checks. As soon as you finish, you can finally move on to production. So before investing in a watch, you need to invest a lot of resources. This partly explains why watches with manufacturing movements are more expensive than those with standard or (slightly) modified movements.
To those who have never been in a watchmaking factory, I can say that the workshops resemble a sterilized operating room. Offices apart, throughout the company it is mandatory to wear special clothing and shoe protection. There are even dust prevention systems. In addition to these unique working conditions, the tools and machinery necessary for processing raw materials into watches are extremely expensive, both when purchased and when they are repaired. And like any object they have a limited life cycle. Then we move on to the actual manufacture of luxury watches, that is, the manual assembly of hundreds of very small and very delicate components. Many professionals have to do a lot of difficult tasks before a clock starts ticking for the first time.
Marketing and advertising
The production of a new watch requires a large sum of money and no model is sold during this process. This is where we move on to the next phase: to promote the new timepiece, we need to start marketing campaigns. It is not infrequently that during a world premiere event there is an international press on the guest list. Marketing is the key to the business and without it nobody would know about the new models. And even less would it buy them.
Finally, clocks are distributed to dealers to reach the (potential) clientele and / or collectors. In order for retailers to earn a living and give customers as much support as possible, part of the retail price goes directly to them. If all these aspects are considered, the high price becomes more understandable. But as already mentioned, sometimes even collectors can not understand why. In recent years, prices have risen so much to ask whether the final result is really worth the money invested. After all, everyone has to decide if he wants to spend so much on a particular model. Despite the take-off of prices, the watch industry is still very strong, the timepieces often change their ownership and retailers are still able to sell many models.
Demand raises prices
Apart from the basic costs, even the demand for a specific timepiece affects the final price. Very desired luxury watches reach a higher selling price. Traders use the retail price as the selling price, but the lucky buyers of the early hours tend to sell as soon as possible to make profits. Although considered second-hand luxury watches, these models usually still have the original label. Excellent examples are the new ceramic Rolex Daytona and the Omega Speedy Tuesday. If you are lucky you can find a watch at the original price directly at the source, otherwise you will be forced to pay several thousand above the recommended retail price.
The same applies to the rest of the second-hand market. If you buy a very popular watch you will have a good chance of selling it at a good price. Some models made of unusual materials can be particularly interesting for collectors and their value is higher; an excellent example are A. Lange & Söhne watches made of non-precious metals. Although their true retail value would be lower than that of the models in a precious metal, they cost more for the simple fact that they are more rare.
Whether it’s a NOMOS for less than 2,000 euros, an 11,000-euro Daytona or a 300,000-euro Patek Philippe , luxury watches are simply expensive goods. And as long as your phone’s battery is working, you will not need a time-consuming clock. But luxury items, by definition, are not necessary and exist for the pure beauty and pleasure they offer. If you buy a famous model of a popular brand and later decide to sell it, you do not risk a big loss and you could even take advantage of it. Luxury watches are certainly expensive, but prices are relative if you think about what’s behind it.
The important thing at the end is the value that the watch represents for you. If it makes you happy, then the expense could be more than justified. Even if the price of watches seems to increase more and more, I am convinced that you should continue to wear them at any cost. The fact that their value increases is one more proof that it’s worth it.