Why luxury watches are so expensive

But have you ever wondered why Rolex watches cost a fortune? Prices of Rolex watches vary by model and by collection. Rolex would like to have its watches available for everyone, but resources and materials used during production require consideration too.

These are only some of the factors involved in watch pricing. Despite this, some top Rolex watches still have a starting price similar to that of the auctioned Rolex watch.

Below, we explore possible reasons that might further explain why Rolex watches are so expensive. To make them stand out from the crowd, Rolex gives its luxury watches a classic, unrivalled design. This includes the use of quality stainless steel, L.

This steel type is much stronger and shinier than the normal L steel, which is commonly used by other watchmakers. Rolex started using this steel usually referred to as Corrosion-Resistant Superalloy extensively in Considering all Rolex watches are usually made in-house, most existing tools and machines were replaced to produce L stainless steel. It takes special skills and extra work to manufacture this steel type.

Hence, most watchmakers continue to rely on the L steel. As a result, Rolex is probably the only watch company to use L steel. Rolex has a very extraordinary Internal Research and Development department. After all, companies will price their products for what the market will bear.

The second reason watches are so expensive is the overhead incurred to produce them. Overhead for a watch company, like any other industry, includes materials, production, custom machinery, prototyping, design, and research and development. A brand that outsources many of these functions, having cases made in Asia and sourcing off-the-shelf movements from third-party providers like ETA or Miyota, can avoid these costs and typically can sell watches for far less than companies that devise in-house movements , make cases and push the boundaries of what is possible in watchmaking.

It takes a team of watchmakers years to design complicated movements, create working prototypes and even build custom machinery to make specific parts before ramping up into production. An extreme example here is a company like Rolex , who for years has operated its own foundry to alloy its own gold and forge its own cases.

The Big R is an example of a vertically integrated company that covers all aspects of watchmaking from soup to nuts, or rather from bezel to hairspring. This complete control of its products is what helps Rolex maintain a sterling reputation for quality, but it also helps keep prices high. When many people think of luxury watches, Rolex is the first name that comes to mind — though in the overall spectrum of brands, it is decidedly middle of the pack, price-wise.

For a while, the Swiss slipped when the Japanese watchmaker, Seiko, introduced the battery-powered quartz oscillator. But the Swiss clambered back to the top in the s with the creation of the Swatch watch in direct response to the "quartz crisis" and have stayed there since. Dress watches : The best dress watches are handcrafted, often in 18ct yellow or rose gold, sometimes enamelled or guilloched, and slim enough to be hidden under the sleeve of a shirt or suit. Most dress watches often just have the hour and minute hands.

Breguet Guillochage watch. Technically, the name chronometer can only be obtained by those who were tested and passed the day test of Controle Officiel Suisse des Chronometers COSC , a testing institute in Switzerland. Moon Phase watches: The moon phase watches indicate the phase of the moon based on the calendar of the watch.

Dive watches: These are designed to withstand water. Breguet Classique Moon Phase. Complication: Any function on a watch beyond displaying hours, minutes and seconds. These can include unseen things such as an automatic winding function or a Tourbillon.

Crown : A button on the side of the case that pulls or screws out, allowing the wearer to adjust the time and date or synchronize the seconds. Screw-in or screw-down crowns seal the watch to keep out water at extreme depths. Enamelling: Most watch dials start as a disc of raw metal, which is painted and finished using a myriad of techniques. The enamel dial watches are not just stunning but cost as much as a luxury car. Jaeger-LeCoultre sapphire crystal watchface.

Enamelled dials: Created by fusing a soft glass made from silica onto a metal substrate into really hot oven—are difficult to make. Simply Save Know how to deal with unfair claim rejection. Not everyone can pay for a mechanical watch; therefore, those that own high-end, luxury watches show their affluence.

Brands will use this knowledge and price their watches in the sector that they want to be considered. So now you know what makes a watch so expensive or at least some of the reasons.

Did we miss a reason? Let us know in the comments below! With proper care, quality watches can last for years or even generations. However, if you do not maintain your mechanical watch, it can break in no time at all. How to Maintain a Mechanical Watch. I do not wish to leave a rating at this time. Click the button above or drag and drop images onto the button. You can upload two images. We are adding your Comments.

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