Rolex, Patek Philippe, Audemars Piguet. All luxury watch brands; that cost thousands and even hundreds of pounds per watch. But why?
Design cost.
Many of these watches have countless years of design spent on them by experts, which obviously costs a lot of money in itself. A lot of these watch movements are extremely complex, with years of design spent on those alone. Watch makers such as Patek make extremely unique and intelligent movement designs, which you won’t find in any other watch.
Manufacturing cost.
The brands I’ve listed so far usually have an extremely high manufacturing cost. These companies aren’t like Nike for example, where a shoe that costs £15 to make gets sold for £100. Design and manufacturing of these watches are extremely expensive; with a single Patek Phillips watch taking on average a year to make. (Not including design time). So, these watches are clearly made to function to a high level, and are definitely made to last. There are so many small parts and mechanisms that not everyone will understand, so the people making the watches will have to be paid very well for their efforts, adding to the extreme costs of these watches.
Rarity.
Not as much with omega and Rolex, but a lot of luxury watch brands such as Richard Mille and Patek have very low production numbers; some watches made by these companies are 1 of 1 and could be sold for hundreds of thousands if not millions of £. There’s something special about having someone literally no one else has. Something special that people are willing to pay a pretty penny for.
Premiums.
At the end of the day, these brands can charge whatever they want for a watch, and they’re often seen as investments nowadays. These companies know people are willing to pay a lot of money for these watches, so they’ll charge a lot. After all, hundreds of years and thousands of hours of people’s lives have been dedicated to these reputable brands.
On top of all the design, manufacturing, and premium costs, you’re often left with a very big number with a lot of 0’s!
