Why do watches cost so much?
Many will wonder why some watches are worth $70K+ when they do nothing more than a watch that costs $100. There are many reasons for this offset in price. They include materials used, craftsmanship, quality, prestige of the brand. No matter what people say or what people admit, when you are buying a watch that costs more than $1,500, you are paying for the brand name. Most luxury watches have an 80% markup, meaning that the cost to manufacture the watch is about 20% of the final retail price. That being said it is one of the only multi-billion dollar a year industries in the world. Quality and craftsmanship go hand-in-hand. The real luxury watches such as Corum or AP or Patek are all handmade, the in-house movements are assembled by hand (designed and produced exclusively by these companies). The materials used is major factor in determining price point. Luxury watches have a higher grade of stainless steel (Rolex uses 904L). I will go more into steel here. Omega and every other luxury watch company that uses steel uses 316L. The only thing different when comparing 316 steel to 904 is the amount of nickel used. Some people have skin which is irritated by nickel, so it seems like a disadvantage to use this. However it is slightly, very slightly more corrosive resistant in salt or fresh water and there is no noticeable difference. However, if you are going through sulphuric acid or sodium hydroxide you will be better off with 904L. So basically, it is useless. The other thing with materials is clearly gold or steel. Gold is going to cost more, so that will raise the price. Thanks for reading!
Jake Fogarty is the founder of It's All About Watches and writer for most of what you will read here. If you want to contact me you can visit the contact and advertising page.
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