Why are some watches so expensive?

You can endlessly discuss prices of watches. What one finds expensive, the other finds it fine to pay, and where some feel that an expensive watch is a waste of money, others see it as a beautiful possession and a valuable investment. Whatever your opinion is: the price differences between watches can be huge. Why are some watches so expensive? A simple answer cannot always be given here, but the factors below almost always play a role to a greater or lesser extent.

Supply and demand & exclusivity

You can make it as difficult as you want, but also a fairly simple principle applies to watches: that of supply and demand. Suppose there are two comparable watches on the market and one watch has a circulation of two hundred thousand copies while the other watch only produces fifty pieces. It needs no explanation that the exclusivity influences the demand for the watch and can therefore be included in the price.

Innovation and development

The watch case can hold anything and everything: from generic mechanics of average quality to unbelievably complex feat pieces. If you are talking about a manufacture from the last category, then you will understand that a watch manufacturer has had to incur (very) high costs in the field of research & development. Costs that of course have to be recovered.

Use of materials

The materials used for the watch case, the strap and not forgetting the glass and the individual parts can have a major impact on the price of a watch. You will understand that a steel case is cheaper to produce than a gold, titanium or carbon case. You can also make similar comparisons with other components: a NATO strap is a lot less expensive than a strap made of Italian quality leather and a simple crown made of plastic costs a lot less than a silver copy. Not to mention any decoration with precious stones and diamonds.

Quality that you don't see

One of the most talked about brands when it comes to price is Rolex. For most lay people, a Rolex is the embodiment of an expensive watch. Rolex is also one of the most imitated brands. This immediately provides an excellent example on the basis of which price differences can be explained. A frequently heard argument is: 'This watch looks exactly like a Rolex but costs a tenth. Then why would I want to buy a Rolex?

Image and reputation

One of the less tangible factors, but no less applicable: image and reputation. This is not unique in the watch world but inherent in almost all luxury products. Some brands simply have 'a name' and / or a proven reputation. People are willing to pay more for things with a good name and reputation than for things from manufacturers with less respect. Whether you like it or not: it's just how it works.

Future, continuity and value

There are watch brands that have been around for hundreds of years and that are likely to still exist in hundreds of years. In addition, they have a reliable dealer and service network. In other words, if you now have such a watch and you do it on a day on to your son, it is likely that even your grandson about fifty years the watch can still leave serviced.

Value retention can also be of influence. Perhaps not so much on the new price but all the more on the second-hand market. If you are almost certain that a watch will earn just as much money years later, or perhaps even more, you are undoubtedly willing to pay more money than for a watch that loses eighty percent of its value in ten years.

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Jagdish Prajapat is a professional digital Marketer & best SEO expert in India. He is a passionate writer and has actively writing useful blogs and articles about technical stuff.