What are we paying for in a watch?

[sanguoich]

This post is not meant to be inflammatory, I just want to get your opinions.

As far as watch collecting goes, I'm barely at the beginner level.
Currently, I have  5 watches, mostly "tool" watches like my Casio pathfinder, G-shocks or my divers (because I like the look  ) 
I have seen some higher end (more than ~2K) watches that I like the look of.

But before I pull the trigger, what I would like to know is what determines the price of a watch above the RM5K region?

Is it the movement?

From just reading around, some of these watches are sharing the same movement. For example, ETA, Miyota, China made.
However, the prices can range from 100 dollar difference up to thousands of dollars?

Or how about materials? Stainless steel + sapphire glass + solid bracelet/good leather strap. I think this is pretty standard  for watches in this range, so there shouldn't be too much difference there unless you are using some exotic materials like diamonds or gold plating.


So what exactly is it that can cause this wide price gap? Is it just the branding?

[G.MAC]

a watch is a piece of art as said by the CEO of omega. You cant put a price on art. If art is viewed as just some " piece of canvas with paint on it" then it would not warrant a high price. More or less it is more of the appreciation of the timepiece in this case. Although the movement maybe similiar or that the materials maybe the same, no watch should be viewed as the same or similiar. There is no justification to buying an expensive watch as the main function of a watch is just to tell the time which anything nowadays is capable of doing so. Just consider buying an expensive watch as something self-satisfying. Just my 2 cts.

[chrisyen]

U ask here in Mwf, u will get the above answer
bcoz we all r watch nuts

same question u post it in another forum, ppl wil tell u now his car got clock, hphone got clock, rm10k also tell time... So y pay mo?

Watch is art, symbol, status, character, acessories, tool, jewel, toy... To some1 if he love watches.



 

[Friedrice]

It's usually the branding for watches equipped with ETA movements (ie. how much they think their customer base is willing to pay). A Ball and Tag Hueur is on equal footing when it comes to fit and finish but what sets TH apart (besides the price) is that they are much better at marketing than Ball. Same thing with the in-house giants, Rolex and Omega, where both are on equal grounds when it comes to fit and finish but Rolex is just slightly better at advertising (hence the price disparity). In the world of watches, it is all about the image and brand recognition. The more exposure (ie. advertising) that the brand gets, the more expensive it will cost.

So, it all boils down to whether if you want a watch that is instantly recognizable (Rolex submariner and rolex datejust) or a watch that only a hardcore watch nut would know (Omega Speedmaster Pro and Jaeger LeCoultre Memovox).

[Angryrodent]

I actually check what time it is over n over during the day.. and if at the office and no real work to do I play around with whatever watch im wearing,to have something that you're more or less inlove with on your arm is worth alot money to me  But the same goes with everything... what kind of car do I really need (spent to much)? should i be looking for a vintage fender strato when I'm not that good at playing (gonna spend to much)? Aslong as I'm happy I dun care what anybody else thinks about it.. just want to know what time it is i'm sure ure cellphone can tell you

[hanz079]

You actually pay 30% for the watch and 70% for whatever it comes with.
My 2 sen. 

[TheHobbit]

Here I am on holiday and I do not have Internet connection, sigh!! anyway, basically like hanz079 said, the actual value of the watch is lower as compared to the asking price. The price you pay includes things like advertising, packaging, incidental cost like fighting against fakes, etc. If you consider discounts, profit to the distributor, profits to the shop, etc, the actual value of the watch is a lot lower as compared to the asking price.

[GlySinn]

U are paying for the feel good (syiokalingam) factor for yourself 

[terrenceterrence]

you're paying for some fat arse swiss guy's retirement fund and also financing their world class state welfare system

[gapper]

U are paying for the feel good (syiokalingam) factor for yourself 

i second that. u r paying for the self-syiokaism!

[zameenzahari]

I paid for nice watches...I try not to think too much and I stopped counting long ago!

[sanguoich]

you're paying for some fat arse swiss guy's retirement fund and also financing their world class state welfare system

LOL! This is my favourite answer! 

But seriously, my thinking is aligned with you guys.
And I think GMACC hit the nail on the head with what he said about there being no limit to the price you put on art...

Its all about the self syiokism; owning an amazing looking timepiece that incorporates human ingenuity and precision engineering into its design, powered by the movement of your wrist. Now thats really amazing. 

[hanz079]

"self-shiokaism" and "shiokalingam" is two new words I learn today that can actually be used in real life situation!! 

[kltime]

you're paying for some fat arse swiss guy's retirement fund and also financing their world class state welfare system

Personal opinion of 'self-proclaimed' WIS and finance trained watch lover :

Watch price = Materials + movement + brand equity

In Swiss watches, the brand equity or branding for high end watches perhaps as high as 80%.
For the 'affordables' segment of the market,e.g. Seiko/Citizen (Japanese) or Vostok (Russian) , the brand equity is probably 10-20%.

 

[kenixck]

i have a friend who have never own a watch in his whole damn life ... 
why ?
he doesn't like the feeling of something around his wrist, he views time on his HP. ( a strange but good guy )

[kokies]

For me resale value and how much i make my wife angry

[Angryrodent]

yes the explaining to wife why one spent so much on a watch is priceless
errrr.....errrrr....hmmmm... It's an investment love! Incase something bad happens i can sell it.

[ry]

For me it is brand,design and recently simplicity.I ve got a Franck muller with ETA movement and a Panerai with Valjoux movement(no doubt tweak by them),simply speaking mass market movement,yet pay a premium for the watch.My last few watches were all very basic watches,manual winding,no date and no second hand ie PAM 000,PAM249 and PAM 183.Trouble with this facination is it ll never end,you will be eyeing other watches and for me the hope is to sell my earlier collection to part finance my newer ones.It helps too with an understanding wife and sacrificing luxury cars for Malaysan made cars.

[Friedrice]

Yeah, tell me about it. My Honda Accord is already 4 years old. My wife has been nagging me to upgrade to a Jaguar but I kept putting it on hold because of my watch hobby. My wife got so fed up that she bought a Mercedes C200 for herself and made me pay the monthly installments on it. And worst of all, she did an 85% 5 year loan which is the maximum so I have to pay through my nose for the interest. Before this, we usually buy stuff with cash. This is the first time we're on loans. And I can tell you that it hurts so much that I'm putting off my plans to buy the Patek Philippe 5035YG from my friend on hold.

[GlySinn]

Hence.... someone should start a spin-off thread :
If got money, but u can only buy 1 item, buy nice car or buy nice watch?

 

[Cotsner]

Well,those watch maker spend alot of money in choosing good material, arranging abwhole bunch of wheelsband gears! All to fullfill the 'syiokaism' of a watch lover! Well go for it! It's worth it afterall! Cheers

[siodee]

For watch lover, if compare to land, house or car, when disaster strike, at least I still can wear all my beloved watches and run to a safe place...

[Omnipotent]

For watch lover, if compare to land, house or car, when disaster strike, at least I still can wear all my beloved watches and run to a safe place...

how many pieces do you have? if you take time to wear them all at once, you might not be able to make it out during disaster strike 

[Friedrice]

We already have more property than we can shake a stick at. Buying more would be redundant. My parents and hers have assets totalling up to 8 digits, both locally and overseas. And between us, we already have 2 condo units (one in Mont Kiara and the other in Cheras). Both are currently being rented out. So, why buy more properties when you have to pay land assessment, sinking fund, maintenance etc on all of them. Not to mention that we have to make sure that all the tenants pay up every month. Makes me feel like a loan shark sometimes. At least with watches, I only need to overhaul them once every 3-5 years.

And don't get me started about offshore investments. The last time I checked, my overseas portfolio of bonds and forex are not doing too hot (well, except for the singapore dollars which was a wise investment).

[Cotsner]

Watch n properties are sumthing not to be compared! Well,let's just hope the wife can understand our feeling when the husband is buying a $5000 watch instead of a $5 watch frm de street! Some principle : can they bring a 80cents plastic bag to do shopping instead of a $800 branded bag? Hehe! Cheers!