Seeing the exorbitant prices on some luxury watches, we cannot help but wonder why these high end time pieces command such high numbers! Starting at 10 000$ and ending at a whooping 55 million $ with Graff’s Diamond Hallucination; the industry known for being one of the most luxurious in the world, banks on many factors to keep breaking pricing thresholds.
Here are the reasons why luxury time pieces are that expensive:
1- Research and Design:
Well renowned watch makers do not randomly produce pieces and send them down the market. They actually invest a lot in research, product development and design to make sure every new edition and style are the epitome of both art and functionality. This process takes up months of hard work by a large team of designers and engineers.
Expensive watches are actually made of the most refined material available, from gold, diamonds and other precious metals and stones. These materials are often sourced from several parts of the globe to be joined in one unique piece by the end of the manual production process.
Watch makers do not produce massive quantities of any design that they’re looking to price on the higher end. The supply is often kept so low and exclusive; and is not meant to respond to demand to start with.
The making of high end watches is a manual process that is centered around excellent craftsmanship honed from years and years of education and practice. The price tag on human talent and excellence contributes enormously to the final price of these time pieces.
The longer the history of the brand, the most inspirational and “human-based” is its brand story, and the more fame it has from the particular historical point of view; the more it is viewed as a legacy-based brand; which is an important factor in the pricing process.
6- Brand Prominence:
The more prominent the brand is within the upper crust of society, globally; the higher its capacity to command premium prices. Prominence for watch makers doesn’t equate general fame; but rather fame within high net worth individuals.
7- Brand Association Prestige:
For high end watch makers, being associated with royalty, rulers, socialites and billionaires gives the brand the power of selection; which also means the potential to command an even higher premium for allowing clients to virtually belong to a club of very privileged people.
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