Well, most of us are fond of luxurious watches, don’t we? But, when we check the price tag, a question tends to raise in our mind- why watches are so expensive?
So, are you interested in knowing the truth behind this common query? Then, for your interest, we are here to explain it.
So, without worrying, let’s jump on this article. Shall we?
Cost Expenses to Manufacture and Develop
Strangely, watches need years to get entirely made. In this modern world, high technology can help engineers to plot out new models.
But it requires time, and all the employees, including watch engineers, are paying highly. Because the process may take years to fulfill, the company has to carry all the expenses which are projected as through the price tags of the watch.
Mainly, if you want to grab something unique, it is challenging and complicated to make. A beautiful timepiece may need between a couple of days or even months to make.
However, famous brands often may not get sufficient products for marketing. It is a huge problem that creates rising demand in the market and production.
Many brand’s concept is that their products are expensive because of the low output but costly suppliers. For this, you may wonder why watches are so expensive!
Mechanical Movements Costs Extensively
Usually, some top-notch companies bring their movements. Even many average companies can deliver their campaigns as well.
Giving rise to your inherent tendencies widely implies that movement expenses might be slightly cheaper, but still, mechanical movements are costly to formulate.
Almost all companies have to purchase watch movements for their clocks. However, you can not compare the expense of an automatic movement with the costing for a quartz movement.
The mechanical movements have bundles of styles, ratings, as well as categories complication. For example, a normal Swiss automatic mechanical chronograph movement tends to expense more.
However, this mechanical movement is correlated to a Japanese quartz chronograph movement, which only costs a few bucks. Just think a while, how many times it costs in mechanical movements!
Low Amounts Means Increased Expenses
While making the millions of watches, the initial expense will be very higher as usual. Thus, there might need at least a few million bucks to establish a new timepiece.
That is why watches are extensively expensive. Even if any model is made only a thousand pieces. Then the similar fundamental principles of mechanization have to apply, so a company still has to fund in every part. Accordingly, the expense of creating a timepiece gets enormous.
A Race to Be Luxurious
This is another common thing that most of the brands wish to become a luxury brand for wristwatches.
Those brands who are newcomers want to define themselves as luxurious one. At the same time, those who retain an elite history continue to keep their classy and luxurious lifestyles.
In doing so, their watches come with high-quality and top amenities. Let us introduce a renowned brand for watches- the Patek Philipe. Patek Philipe has earned it’s in their long run of establishing fabulous clocks.
You will find a lot of celebrities prefer the brand to use. This is not all about marketing policy, though. They maintained the strategy of “High quality and top materials, no matter the price.”
Like them, many other brands do the same job. In addition to this, many brands also make artificially increased prices and invest highly in marketing. Thus, the price may get higher, as well.
The customers want to feel superior about themselves
A few years ago, a renowned watch company reduced its regular market prices of all watches. Guess what! The company was unable to make any tremendous amount of sell.
The moral lesson is that if you see any price tags, it is something psychologically attach to you about self-worth.
You feel superior about your worth if you purchase any expensive watches, no matter it is worthy of that amount of price or not. This is the real business scenery of the watch industry.
Prices may be based on the desire of the market. It is considered that if the amount of the items is at a specific level, people can associate with it easily. On the other hand, lower-priced things are not always useful.
It is the central ideology of us. So the company’s are taking advantage of our mental satisfaction and increases the price of the watch. That’s why you have to cost a high price for watches.
Distribution of Total Profits
Maximum folk wants to through the statement, “Do you have an idea how much it cost to create? It charged (the X amount) to me!”. Timepieces are expensive for many reasons.
For example, it needs design, trade, manufacturing, distribution, as well as marketing. To dip profits, there are a lot of things to do. For example, let a timepiece needs an average cost of 1,000 USD to produce maintaining the costs of parts and labor.
The manufacturer would charge 1,500 dollars to the distributors. And the distributor will charge more to the retailers. When the distributors carry the clocks out of a country into other countries, it would cost them more.
Plenty of import and export taxes and duties are charged. In this way, a watch of 1000 dollars gets up to 5000 dollars once it reaches in the market. As a result, we have to pay a lot more to buy a watch from the market.
Let’s Wrap Up!
So, this is a brief explanation of why watches are so expensive. Above this discussion, it’s sure that you will get enough ideas about the topic.
So, next time while checking price tags of watches, you will undoubtedly understand the price policy before purchasing it.