Everyone knows having ?expensive watch? is fashionable and prestigious, but few know what exactly the price of ?expensive watch? is based on. The majority of inhabitants is confident it is directly-proportional to precious metals specific weight and stones used in case manufacture and inlay.
The last enters this family as the only similar complexity retired from the scene, which became public and, consequently, lost its moral value (it should be noted that market leaders keep prices for chronographs at the same status level). Grandes Complications in various combinations ensure an increase in the number of zeros in price, and you can safely invest money in such watches – their price grows like the one for works of art and luxury real estate.
You can just open any Antiquorum auction catalogue and be surprised with prices for seemingly nondescript napless lots with prestigious logos on faces. Piece unique – ?single copy? – represents all connoisseurs’ and collectors’ dream. It is an exclusive mark of owner’s exclusivity. As a final pricing stroke, we would mention the above-mentioned handwork. Alas, every year it can be met less and less. Industrialization of horology, which began in the first third of the XIX century, did not deduct its course for a moment, and today the term ?handwork? refers to such operations as ?grinding?, ?engraving?, ?adjustment?, even ?assembly?, but not ?fabrication?. You cannot find a watch with ?hand signs? in the price category up to 3-5 thousand dollars. This does not mean the whole process of creating a robotic chronometer is bad – it means it is relatively inexpensive. However, it is concerning, because sure ?conveyor? Rolex watches cannot be called buy. Moreover, Rolex, along with Patek Philippe and Panerai constitute the triarchy of brands, whose works become expensive, regardless of market conditions (for example, according to experienced collectors). This is a superfluous confirmation of the brand’s magic and,movado watches, in case of Panerai – a consequence of meager circulation in past.
If you compare one class watches with similar functionality and complexity,Breitling Watches, but manufactured, for example, by manufacture from the first dozen of the world table of ranks and the one from the end of the hundred, the difference in price would be awesome. It cannot be explained either by good production, or highly qualified professionals, or high-quality control – only the brand. Royal Oak represents an illustrative example – a famous model, launched by Audemars Piguet in 1972. Steel case, three arrows and … the price of a first class gold chronometer. The whole Europe talked about an unprecedented AP marketing mix, which did not fail, as analysts predicted, but even gave birth to a global trend. Today virtually every prestigious brand offers simple steel watch for 8-10 thousand dollars and more. And it is no surprise, because this is the way it should be.
Now we can talk on mechanical complexity. Complexity varies. On the one hand, there are such common additional functions, as pointers of date, day of week, dual time,bvlgari watches, and even moon phases. All above mentioned affects retail price insignificantly. On the other hand, there are such grandes complications, as tourbillion, repeater, perpetual calendar and chronograph.
You should not fear disturbing reports from Asian market, where they already learned stamping sanctum Swiss tourbillion quite tolerably. This growing shaft of consistent fakes is not terrible for real brands. There are two reasons for this. First, manual work is very important while tourbillion manufacture. And secondly, considering still not proven tourbillion functional benefits, watchmakers just can add something not having adverse impact on accuracy movement, i.e. tourbillion slides that frame anchor and align force of gravity in the minimum degree. By the way, let us say we do not mention here copying of perpetuelles and repeaters: they are too complex in manufacture and treacherous flaws become apparent too quickly. The following pricing factors include new technologies and inventions. In a pursuit of reliability and accuracy, leading brands collaborate closely with scientists, funding their works to create ideal watch materials.
Patek Philippe, Breguet, Ulysse Nardin, Audemars Piguet and other industry leaders significantly moved towards creation of key chronometric details (slope, balance wheel, driving wheel, and even spiral) from diamond and silicon variations: durable, resistant to temperature differences and requiring no lubrication. As accuracy also depends on selected components ideal size, technologies of their manufacturing, which standards are now calculated in fractions of a micron, also changed. Watchmakers use new materials for production of cases more often. Hublot has been long experimenting with a ?cocktail? of titanium, tantalum, ceramic, carbon, rubber, and other ?eclecticism?; Harry Winston produced a series of watches from zallium (aerospace alloy, which resistance leaves titanium behind), Zenith even invented their own blend, and christened it ?zenithium?.
A couple of words about Rolex phenomenon. Phenomenon – because it is the only luxury brand in the world that managed to keep its status, with millions of output. It is adored in the United States and Latin America, but in Europe relation towards it is ambiguous. On the one hand, it is, of course, a real name, and on the other – too commercialized and simple in appearance. After all, despite fans’ statements, ?oysters? design looks extremely boring and does not fit into the rising trend of demand for original things … Completing this modest analysis, we would like to identify the category of ?expensive watches?. Models that cost above 40-50 thousand dollars are considered expensive. Watches costing 10-20 thousands represent average price level, sometimes called ?gift? ones. Top managers, oligarchs, kings and sheikhs acquire small quantities of these chronometers from time to time, as gifts to their surroundings and family. While they prefer more expensive products, and often order self-assembly watches. This service is provided by many watch houses and is used not as a source of income (because the final price barely covers the cost of production), but as a powerful marketing tool.
Consequently, watch price is determined not only by natural carats. Let’s try to understand factors influencing chronometric pricing. We?ll start with the principal. Not with compound of mechanics, but with brand name. Humans are exposed to high-profile names magic, and enterprising merchants always tried to use this. We cannot judge whether it is good or bad, we can only state the obvious. History of Swiss watchmaking is full of legends, many of which still live in oblivion and wait for being revealed. And those that were lucky with that, captured minds of billions people long ago (and this is not an exaggeration).
This is true only in part – after all, no one would deny apparent high cost of gold, platinum and diamonds. Occasionally, however, it may happen that even a piece of platinum, entirely besprent with gems, will cost less, than chronometer of same size without visible signs of luxury.
The same can be said about pieces uniques with a set of unique and original design functions. Here we can talk about profits: each such decision will be definitely used in serial collections later, and pay a thousandfold for money invested in them. So, in conclusion, let us consider the contribution of materials to the retail watch price. It’s quite simple. The most expensive metal is platinum, the most precious stones – diamonds, rubies, sapphires and emeralds, which vary in price depending on weight and purity. Gold coating is measured by thickness (2 to 30 microns) and purity (14 or 18 carat). Same with bracelets. Leather straps made from unusual animals are popular, although they are less durable, but look more solid. The most expensive glass is sapphire, they preserve their original ?white?, even when the whole body has scratches and attritions. It is now almost completely replaced a recent watchmakers’ favorite – mineral glass. Plexiglass is never accepted in haute horlogerie family.
The fact all this costs extra money is obvious. To same can be said of mechanical improvements. Despite a widespread assertion that all important horology inventions were made even in times of Breguet, the box of chronographic patents is regularly replenished every year. This was no exception. We can recall two highly effective innovations: a new ultra precise escapement in Audemars Piguet Millenary collection and uniform system of energy transfer from clockwork spring to Tourbillion Force Constant Academia from DeWitt … Now a few words about print run. Again, humans like possessing unique things. The less similar subjects – no matter watches or, say, cup holders – exist in the world, the more expensive they are. A plain steel Patek Philippe model, issued in edition of ten copies, will definitely become an expensive collector value, leaving behind any serial platinum caliber, ?burdened? with a set of complications.