Why are luxury watches so expensive? Why are watches selling way above retail price? These are some of the questions the community of 93,000 people ask Indian Watch Connoisseur on a daily basis. So what's the difference between retail value & market value?Retail value refers to the price at which a watch is sold by the manufacturer or retailer to the end consumer.
The market value, on the other hand, refers to the price at which a watch is currently being sold in the open market, taking into account supply and demand dynamics. This value can fluctuate based on many factors, Market value can be higher or lower than the retail value and may also differ from the original purchase price. Anyone with a interest in luxury watches knows to expect to have to pay higher ( or sometimes lower)than retail prices for the top brands. Watches have always been a symbol of status, luxury, and craftsmanship. But why do watches sell for such high prices?
Long Waitlists
The most coveted high-end watches from authorized vendors often entail enduring a prolonged waiting period. If a customer is seeking to acquire an Audemars Piguet Royal Oak, it is highly probable that they will need to exercise patience. Similarly, obtaining a Rolex GMT Master 2 watch would entail a wait of several years. Numerous customers are unwilling to wait for years to get their hands on a watch and may opt to pay a higher price in the unauthorized market to acquire it more quickly. If a particular model is in high demand and has a long waiting list, even pre-owned watches can fetch exorbitant prices, as essentially they are paying a premium to bypass the queue.
Brand Reputation:
Rolex, Patek Philippe, Audemars Piguet, JLC, Vacheron Constantin, etc have positioned themselves as novelty brands, and their items are now associated with eminence,
superiority, and selectiveness. Individuals are ready to pay a higher price for the distinction and reputation linked with owning a watch from these brands.
Rarity and Exclusivity:
The exclusivity and collectible value of limited edition or rare watches lead to higher prices. Certain luxury watch brands produce only a limited quantity of these timepieces each year, causing them to be highly desired by collectors and enthusiasts. The scarcity of thesewatches can increase their price, as buyers are willing to pay extra to own a rare and exclusive piece.
Luxury watches can sell for a higher price due to a combination of factors, including brand reputation, quality, and craftsmanship. While the price tag of a luxury watch may seem
steep, it is often a reflection of the quality and exclusivity of the product, as well as the
prestige associated with owning a watch from a prestigious brand. Now one may think that navigating through the world of horology maybe be complicated. That is where Indian Watch Connoisseur steps in, not only do they share recommendations, new launches, and industry updates but they connect buyers, and sellers and are revolutionizing the way you learn about watches.