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How are watches priced?
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Author:  FirstLing [ Sun Nov 06, 2011 8:27 pm ]
Post subject:  How are watches priced?
I have just joined the forum and have been reading through many posts to get some general knowledge. Congrats on such a great knowledge resource and everyone I have come across has been helpful too.

Now to the question: How are watches priced, in general and specifically Breitlings. E.g. I noticed that the Navitimer is priced higher than the Super Ocean Heritage Chronograph, although I know that the Navi is not as water resistant. So, what is the order of precedence for pricing? You can arrange the following factors if you like in a text post, or just select three from the poll above.

- Brand identity
- Precision engineering
- Material
- Accuracy
- Desirability
- Uniqueness
- Design
- Size
- Endorsement (which celebrity wears it)
- Amount of manual work in building

Should be interesting to see your replies :poke:
Author:  RJRJRJ [ Sun Nov 06, 2011 11:11 pm ]
Post subject:  Re: How are watches priced?
Brand Identity / Precision Engineering / Desirability. I wish it weren't the truth, but it is.
Author:  Driver8 [ Mon Nov 07, 2011 5:32 am ]
Post subject:  Re: How are watches priced?
I agree 2/3 with RJ. I totally agree that Brand Identity and Desirability are two of the major factors in pricing. Take Panerai for instance. Their base models are time only (no date) and run the ETA/Unitas 6497 manual wind movement that's be lightly "tickled" by Panerai. There isn't too much of difference between those and some of the ETA 6497 powered watches that the likes of Steinhart produce..... but the Panerai versions sell for 10 times the price. Why? Because of brand image and desirability.

For my third option I've gone for Material. To my mind you can guarantee 100% that a watch will cost more if it's made of sold gold or platinum as opposed to steel. That said there are plenty of very expensive steel watches out there.... but you can be sure that if the same watch is also made in gold it'll be 3 or 4 times as much.
Author:  1952 [ Mon Nov 07, 2011 5:38 am ]
Post subject:  Re: How are watches priced?
Referring to the Navi vs. SOHC pricing, a 7753 (cal.23) or inhouse Cal.01 movt costs more than a cal.13 aka 7750
Author:  Iantheklutz [ Mon Nov 07, 2011 10:41 am ]
Post subject:  Re: How are watches priced?
I went for Brand Identity, Material, and Uniqueness. The first two are somewhat self-explanatory - I don't feel that they should carry so much weight in the pricing of a watch, but they certainly do. Brand image is literally the starting point for any pricing strategy. As with almost any luxury good, you're paying for the name, first and foremost. I also fully understand the challenges of handling and developing precious/exotic materials and can clearly see how this would impact the price of a watch.

I picked "uniqueness" as my third because I thought it was the closest to what I really think dictates the price : Exclusivity. Exclusivity is more like a combination of Uniqueness and Desirability in my mind. A watch that is truly exclusive, and just doesn't have the air of exclusivity ::cough:: Rolex ::cough:: will be priced accordingly.
Author:  SimonC [ Mon Nov 07, 2011 12:53 pm ]
Post subject:  Re: How are watches priced?
I think brand identity is certainly a huge factor, especially when you take into account second hand values; Rolex watches for example seem to hold their value much better than others, but on pure quality I think they are behind Breitling.

My brother had a steel/gold datejust which he got when I got my Chronomat GT in steel/gold as well, price wise as new they were about the same. However I feel the Chrono felt a far better quality product; much heavier of course but it just felt so much more solid. Don't get me wrong, Rolexes are very nice but compared to an equivalent Breitling...

Today, on second hand value you can get a nice steel Chrono with Pilot bracelet for a lot less than a Rolex; but people see the Rolex name and it straight away has a bigger appeal. So the manufacturers' name on the dial has a huge factor.
Author:  RJRJRJ [ Mon Nov 07, 2011 3:33 pm ]
Post subject:  Re: How are watches priced?
Driver8 wrote:
I agree 2/3 with RJ. I totally agree that Brand Identity and Desirability are two of the major factors in pricing. Take Panerai for instance. Their base models are time only (no date) and run the ETA/Unitas 6497 manual wind movement that's be lightly "tickled" by Panerai. There isn't too much of difference between those and some of the ETA 6497 powered watches that the likes of Steinhart produce..... but the Panerai versions sell for 10 times the price. Why? Because of brand image and desirability.

For my third option I've gone for Material. To my mind you can guarantee 100% that a watch will cost more if it's made of sold gold or platinum as opposed to steel. That said there are plenty of very expensive steel watches out there.... but you can be sure that if the same watch is also made in gold it'll be 3 or 4 times as much.


Im with you on material cost, but precious metal/gemstone watches are such a niche market that I didnt factor them in. Id say that generally speaking, a "watch" is a stainless steel unit (not counting g-shocks and the like). 99% of mechanical watches out there priced from $500-$10,000 share materials that are more or less the same, but I find that the quality and precision of the construction and finishing is what separated them the most (especially when comparing like models to like models e.g. chrono vs. chrono, gmt vs gmt etc.).
Author:  FirstLing [ Wed Nov 09, 2011 6:56 am ]
Post subject:  Re: How are watches priced?
What is interesting that no one chose accuracy as a factor in pricing (COSC certification doesn't add value?).
Author:  Roffensian [ Wed Nov 09, 2011 9:50 am ]
Post subject:  Re: How are watches priced?
FirstLing wrote:
What is interesting that no one chose accuracy as a factor in pricing (COSC certification doesn't add value?).



COSC doesn't have anything to do with accuracy per se, it's just a measure of accuracy, not an indication of increased accuracy. Some in house standards are stricter than COSC - JLC for example.
Author:  FirstLing [ Wed Nov 09, 2011 11:01 am ]
Post subject:  Re: How are watches priced?
Tell us more, Roff. What is JLC?

In any case a certified accurate watch should be more valuable than an uncertified one, right? Assuming that the timekeeping is still a main function of a watch.
Author:  Roffensian [ Wed Nov 09, 2011 11:21 am ]
Post subject:  Re: How are watches priced?
FirstLing wrote:
Tell us more, Roff. What is JLC?

In any case a certified accurate watch should be more valuable than an uncertified one, right? Assuming that the timekeeping is still a main function of a watch.



JLC = Jaeger LeCoultre

I would rather have an accurate watch over a certified movement (COSC doesn't certify watches). COSC adds some value, but I wouldn't put it anywhere near the top three factors.

Additionally, if you want accuracy a $10 Chinese quartz will beat a $1,000,000 Swiss tourbillon every day.
Author:  Shadow Navigator [ Wed Nov 09, 2011 5:49 pm ]
Post subject:  Re: How are watches priced?
I submitted my vote before I scrolled down and read the text. I was surprised to discover I am the lone submitter of "accuracy" being a top factor. Thus why I'm such a fan of the SQ...like I've read in previous threads, the SQ accuracy comes in VERY handy when providing aircrew "time hacks" prior to sorties. I understand others positions such as Roff's who believe the quartz accuracy is comparable to what's available on a typical cell phone...BUT, there is something to be said about going a year and having your piece be a second off at most!
Author:  F14D_Tomcat [ Fri Nov 18, 2011 11:41 am ]
Post subject:  Re: How are watches priced?
Likewise Shadow Navigator. I voted Brand Identity.

An easy example comes to mind: A 50 (or more, depending on your choice) gran' Hublot with an ETA movement that can be found almost anywhere. Like we say in French: chapeau bas Mr. Biver.
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