What makes a Watch Expensive

Have you ever wondered why some watches cost much less than others?

Some watches cost much less than the others. Brands like Geneva, are selling their watches mostly for less than $50. Brands like Casio, offers diverse range of models. Some entry-level models cost as low as $30 while on the high end range, certain models may cost as high as $1,000. Then there are Armani Exchange watches that typically cost in the low range of hundreds. Then there are brands like Patek Philippe and Cartier. It is not uncommon to see certain models selling for $50k. What is it that makes a watch more expensive that the others?



First of all, you need to know that there are generally two types of watches. The first type is based on quartz movement and the other type is based on mechanical movement. Quartz crystal has become a commodity and they are produced in masses. The cost of Quartz crystal can be as cheap as less than $1. With $10-$20, one can easily get Quartz crystal of the highest quality. On the other hand, mechanical watches are much more complex. Real mechanical watches are products of art rather than science. The cost of mechanical watches vary largely and determined by many variables. Like any other art form, the value of an art piece is in the eye of the beholder. And as with any art piece, its value is dictated by the artist or creator. A piece created by a renowned artist is valued more than a piece created by an entry-level artist.



Then, there is the unique factor. Anything that is produced in limited quantity carries collectors' worth. If you buy, say Armani Exchange watches, there is no sense of uniqueness as Armani Exchange watches are churned out of factory rather than craftmanship. Brands like Casio, has the best of both world. They have collections that are produced in masses. Usually, these collections are entry-level and do not fetch premium prices.



Some three decades ago, Casio started the G-Shock collection. While G-Shock is known for its toughness, the most expensive G-Shock watches are usually those that are produced in limited quantities and they are classified as Limited Edition. This alone is not enough. G-Shock has fostered partnership with various parties, such as famous artists or even distinguished organization, to produce limited collaborative edition. These watches can usually fetch a premium and attract brand loyalty.



With any form of consumer products, the bulk of what we pay for usually goes into the marketing of the brand. When you buy Armani Exchange watches, significant part of what you pay for goes into the advertising. The advertising that you see on the billboard and the endorsement from celebrities. These are the price that yo pay when buying Armani Exchange watches. Perception of Armani Exchange watches as cool and chic is formed as a result of all the advertising that they build around the brand.



Last but not least, of course, is the technology that goes into a watch. Companies such as Casio and Citizen are known as the industry pioneer when it comes to breakthrough technology. For example, g-shock watches are well-recognized for its unparalleled toughness and water resistance. It is not a technology that many watch makers are willing to invest in. For Citizen, they are best known for their solar-powered Eco-Drive technology. Until today, we have yet to see such technology being adopted as mainstream.



As you can see, there is so much that goes into the making of a watch. What makes a watch expensive is usually a combination of some of the factors highlighted above.