Why Luxury Watches are so Expensive?

The world of luxury is mysterious. Wondering why? The items that could otherwise be very affordable and within your budget can cost you multiple times that price. Plus, the world of luxury timepieces is no different. A simple watch from an entry-level brand can cost you a few hundred and even thousands of dollars, and even more. For example- brands like Richard Mille, Patek Philippe or Rolex can cost much more than you can imagine. So why are luxury watches so expensive? Let's explore the popular reasons-

Expensive Material

One of the most apparent reasons luxury watches are expensive is that it takes expensive physical materials to manufacture them. Like any luxury item, the watches are designed of certain build quality to command a hefty price tag. When the manufacturer uses expensive materials or precious metals, they can't use plating or capping; they have to use either gold or platinum. Likewise, even stainless steel is made to be of a certain quality, and therefore, the price of watches goes up.

Level of Finishing

Feeding off the point about the materials, the material that makes up a luxury timepiece will also usually be finished to be of the highest standard. It means the case surface has been polished and brushed to look immaculate and fit together perfectly. You may notice luxury watches look different from afar than less expensive watches. It is usually due to their higher level of finishing presenting itself through the surfaces and more.

Time to Produce

Closely linked to the level of finishing that goes to the timepiece is the time it actually takes to achieve a level finish. The luxury timepieces cannot just be thrown together as they require highly trained experts to spend much of their time on each watch to attain a luxury standard. As luxury watches are often hand produced, they involve a high level of detail, which takes longer and therefore are expensive. For instance- Rolex watches take more than a year to manufacture from start to finish. This one year involves overhead costs, labour, rent, bills and other expenses to cover.

Luxury timepieces are sold by luxury experts who have to pay a myriad of costs such as expensive high street rent, staff, expensive furniture, decor and other costs to provide a unique luxury experience. Sales tax, VAT and another cost to get added up in the final price of the watch, making them all the more expensive.

R&D

This is one of the most easily ignored and overlooked aspects contributing to the cost of luxury watches. As luxury timepieces are, by their very definition, luxury items, their customers would not be happy if the watches they are buying were not becoming more and more advanced. Luxury watch owners come with the highest standard, and so they rightfully expect their timepieces to perform well. In addition, the brands are often in various stages of R&D for various potential movements, some of which will be commercial successes. These costs need to be worked into the prices of their watches. The higher the brand's movements, the more expensive their R&D, and the more expensive the watches.

Brand Reputation

Finally, luxury watchmakers have built up a reputation for quality and excellence. Consumers are, therefore, willing to pay a premium price for watches made by these brands due to their long-standing name and commitment to excellence. It's the reputation as well that helps drive up the cost of luxury watches in the market. 

Looking for one of the most trusted luxury watch dealers in London? Contact Xanco Jewellers. The professional experts can help you find the finest watches at unbeatable prices.