Why are Watches So Expensive? [2023 Guide]

Watches offer a variety of sizes and forms. Perhaps most crucially, they are available in a variety of pricing ranges. And it’s certainly no surprise that a $20 quartz watch can tell time effective than a $60000 Rolex, or many other high-end timepieces. So, if inexpensive watches can tell the time more precisely than luxury watches in many circumstances, aren’t they “better”? The most intriguing issue, though, is why our watches are so costly if this is the fact.

There are watches for any budget, but what is it that makes luxurious watches so costly? This is a discussion that is frequently asked because those who are unfamiliar with watches, specific, cannot acknowledge and explain how a tiny instrument such as a watch can be so highly-priced, but answering this question is not as simple as it appears, so in this article, we’ll share all of the major reasons why watches are so expensive.

What is meant by the words Pricey, costly, or expensive?

When shopping for luxury timepieces, it’s critical to grasp the distinction between the two. Many people refer to pricey items as “highly-priced,” however the term “expensive” refers to items that are just too high to justify their value. And, certainly, if you don’t understand why watches are so costly, you’ll naturally assume they’re costly, or expensive, in a bad way.

As a result, if you fail to recognize the importance of a watch or anything for that purpose, you will automatically perceive it to be expensive, even though another who sees the genuine worth in an object may perceive it to be inexpensive. Costly watches are those with a price tag that cannot be explained by the items we’ll lust after in this piece.

Now we are discussing with you some important factors because the watches are expensive.

Innovation

Innovation is a time required to develop a watch and it also affects the price of a watch. It’s crucial to remember that, despite their modest size, timepieces are sophisticated devices that were not created overnight.

Stylish watch companies have their production and innovation teams that focus on inventing new models, components, and so on.

Creating a new movement, in particular, is a difficult effort, and getting a progression made up of hundreds of elements to stay correct, maintain pounding, and be everything else that it has to be is much more difficult. Particularly when watch motions are so minute.

The Grandmaster Chime took 8 years to design, and the mechanism of the timepiece has an astonishing 20 complexities in 1,366 pieces, two of which are firsts of their kind (world’s first). The casing of the watch alone took four years to design, and it has a whopping 214 components.

Excellent movements are costly.

Taking the development cost of a movement out of the equation, great and sophisticated motions are rather expensive.

And please remember that there is a significant price gap between the rechargeable battery’s movements seen in low-priced watches and the expense of a decent chronograph motion, whether purchased off-the-shelf or manufactured in-house.

The majority of luxury watchmakers manufacture their movements in-house because it adds another degree of attractiveness to a timepiece.

Many people equate timepieces with externally manufactured movements to premium vehicles with externally manufactured engines. For example, it probably doesn’t feel nice to learn that your Mercedes has an Opel engine, does it?

Design & Materials

Despite appearances, virtually all mechanical timepieces have a stone of some kind within their movements, most commonly a sapphire. Certain watches, with their transparent designs, do display these diamonds, but others do not.

For an eternity, the diamonds let all the cogs, swindles, and gears operate freely. Such watches should preferably be repaired once every 7-8 years, however, even if you don’t, they still perform very well. Other mechanical timepieces that do not employ hard diamonds in their movements must be cleaned regularly, roughly every 3-4 years.

In small quantity

Luxury objects are considered to be produced in restricted quantities, and the fact is that, as previously said, creating a superior mechanical movement is extremely tough.

One problem is that you need trained artisans who can produce and construct them, and suppose you need 50 extra watchmakers to handle the increasing demand; finding them in time is not a simple feat.

Unlike other goods, you can’t just raise output when demand rises since there aren’t enough supplies. And the reality is that having high demand and a limited supply isn’t wholly undesirable for a luxury brand since when there is a high demand for something that has a high supply, the brand will develop in people’s minds and become more searched.

And, as you may be aware, there is a definite link between poor output and high pricing in the luxury market. You may either bulk manufacture your things and charge cheaper prices, or you can keep business at relatively modest and consistent levels and then raise your pricing to guarantee that the company’s image is robust and quite well.

Complicated that only a few individuals are capable of managing

Manufacturing watches, and especially movements, is a difficult operation that requires tremendous talent; yet, some movements are beyond the skill levels of most watchmakers, such as the intricate Grand Chime by Patek Philippe, which has over a thousand pieces.

When it concerns these incredibly intricate watches, there are only a few people on earth who have the tremendous talent required to create these movements, and as a result, the production cost skyrockets, which is eventually passed on to the end customer.

Being a watchmaker at a well-known brand is a lengthy process, and as a result, watchmakers, particularly the most skilled and accomplished watchmakers, prefer to earn a solid living.

Company

We definitely cannot ignore the brands while discussing luxury watch companies and the reasons why watches are so costly.

Humans seek brands that represent something and those others are aware of. But perhaps most notably, while some people purchase watches purely for the sake of the logo and the confidence that comes with everybody having to know what watch they wear.

Others buy a specific brand because they understand the brand’s history, what they stand for, and the attention to detail that they put into their products.

Markups

Okay, so it’s no surprise that, even though luxury timepieces are hard to produce, they command a high price. A markup is required for a brand’s longevity. Because, as previously stated, producing new items is a costly aspect of a watch brand’s company to consistently introduce new, original, and groundbreaking products in the marketplace.

And, since there are so many stages and “middlemen” between the maker and the buyer, the price will automatically rise significantly.

Keep in mind that there is a notable change among gross margin and net income from the standpoint of a dealer/retailer since they must pay rent, commission to the person who sold, interiors, lighting, and so forth. This, however, is a whole other scenario.

Conclusion

When it gets down to it, the answer to the topic “Costly or inexpensive?” will always be very personal. What some individuals perceive to be well worth the money is something that most people would never believe in purchasing.

The same is true with timepieces. Of sure, there are certain pricey items, but, once again, what determines whether or not anything is “worth it” is your perception of the watch’s merit.

To begin, consider the more objective factors such as quality, dependability, workmanship, and so on. Second, it’s wise to look at the used market to get a notion of the industry’s overall perception of the worth of that given item.

The resale price can tell a great deal about how much people are prepared to pay for it, and consequently the worth of that thing in the eyes of the audience.