I'll go into a few (but not all) of the reasons why the luxury watch brand is so pricey now. There are both pro-industry points as well as concerns that are less attractive in the sense of the watch industry.
1. Watches are Costly to Manufacture and Produce.
How much I hear about watch movements that have taken years to work is amusing. It's fun to see a team spend so much time on the "problem," but they want to do it in a "different way," which is already solved.
That is, they have to build a new watch movement to say time, but to "name, their own" just differs from it.
In today's highly qualified micro-mechanical engineers worldwide, before ever they are produced, create models for new watch movements and modules on computer.
It can take years to proceed. Particularly when there is a desire for something new or difficult to make complications.
Not only do watch movements cost a lot of money to design, but they also cost a lot of money to get them to work and last. This will necessitate much further research.
A new "caliber" will cost millions of dollars to build. And that's just the beginning. Since it is not a computer, designing a watch case and bracelet is simpler, but it is challenging – particularly when dealing with tolerances that are sometimes non-existent.
The bottom line, great watches are made of high-quality materials. The best materials necessitate a great deal of manual labor or attention.
Although machines are commonly used to produce small pieces, high-end watches employ teams of people to meticulously finish and decorate each piece.
It is for this purpose that selling luxury watches online – directly to the user – is so appealing to businesses.
They've been able to sustain a pricing system for years, also provide luxury watch sales to attract more customers to them and they can charge the customer the very same price and make a lot of money.
Furthermore, the consumer's experience is almost identical, except they may be able to purchase a watch more quickly.
A quality timepiece can take anything from a few days to several months to make. Even high-demand brands often have trouble getting enough products to market. This problem results in increased consumer demand and a production bottleneck.
Many brands wish to produce more watches than they currently do, but this isn't always feasible or cost-effective.
Owing to the time and complexity involved in manufacturing high-end timepieces, high demand is an issue that no one wants to have. This relates to the fact that watches are costly because of low demand and high-cost suppliers.
2. Small Quantities Equate to High Prices.
Many lux watches are expected to be mass-produced in the millions. As a result, the initial production and tooling costs (to set up machines to properly produce watch parts) can be thinly spread throughout each piece.
Even the best luxury dive watches costs a few million dollars to develop, only pennies of that cost will be reflected in the price of each timepiece.
But what about a watch that is limited to just 1000 pieces or less? The same basic industrialization principles apply. Many brands buy motions, but they also need to spend money on pieces.
Several manufacturers are also commonly employed. They make parts for them and are even responsible for the costs of tooling. It can only be very expensive to make watch hands.
While you are talking about the comparatively low cost of Asian watch production, the lower the watch amount, the higher the costs of each watch must be due to the costs of design, production, and the purchasing of the watch components.
The more fascinating is the watch, the more likely it is that components that cost much more are customized and difficult to produce.
3. The Majority of Watch Companies Aim to be Premium Brands.
Few of them arrive legally, and those who can afford to pay to be there are few as well. The well-to-do favor brands that have a tradition of being chosen by the wealthy and have names that are associated with luxurious lifestyles and, ideally, quality.
Value and exclusivity are what have made historic luxury watch brands what they are now.
The notion that wealthy people have the opportunity to choose the best and most attractive options. As a consequence, whatever they decide must be successful.
So how is a brand trying to leap to its "luxury brand" image? It is difficult to be the best and to use the best.
It's even not possible sometimes. It needs generations of experience, a lot of money, access to resources, and a lot of research and development time.
Marketing and logo are the shortcuts. Create a lifestyle identity, tell people you're luxurious and exclusive and trust that the customer won't be able to tell the difference.
Start searching for watch brands with a slogan that sounds like (or is) "Luxury Swiss Timepieces” used for watches of swiss.
They're essentially asking you what they want you to believe – whether or not it's real is up to you to decide. We live in a world where the majority (but not all) of customers are clueless about most things.
People learned a lot more about clothes back when they had to make their own. You could get something from the Sears catalog to see whether it was junk or not. Today we live in a community of only paper pushers or highly skilled individuals
When it comes to comfort, there's an assumption that someone "thought of anything for me." That you're purchasing a more expensive item because the people behind it know what they're doing, and that connoisseurs who have the freedom to do whatever they want to do so with "this."
This is something that marketers at (supposed or real) luxury brands are well aware of. As a result, they strive to establish the idea that this happens. If that condition exists, they only strive to improve or strengthen it.
I don't say that there's never "real luxury." If it didn't, I wouldn't be into nice stuff – but enough businesses can use people's luxurious desire.
Some of you disagree with my definition of luxury and point out strictly economic concepts, but accept the term as it relates to it.
Brands, therefore, produce artificially high prices and make a strong investment in marketing to build the picture they hope would conform to the watch concepts that they admire because of their wish to have good things and other "knowers".
Overall, there are a lot of decent watch qualities out there – and some that are worth it even though they are costly.
Simultaneously, there are brands out there seeking to mislead unsuspecting consumers with a false sense of luxury and misleading pricing practices. You simply need to look at these watches to see here Watches and Crystals if any others are worth their money.