Quote:
Originally Posted by mosesbotbol
That does not mean much. You can buy a basic ETA movement for like $40. It's the polishing and finish work on the movement that drives the price up. All the blue screws and hand work can add up. The 8 day power reserve costs like $70 alone and needs a lot of finishing to be in a high end watch. Not to say that the profit margin on Breitlings and Rolex would leave a sour taste in anyone that owns one. Watches are one of the most profitable items in sense. World wide shipping and distribution costs nothing. It's all about the sales network and not discounting too much.
I was told that on a stainless watch, that the case, dial, bracelet/strap only account for 10% the watch's cost. Don't take this to the grave, just something I was told a while back.
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That percentage sounds about right. Take into account the amount of money spent on promotion alone, it will drive the cost up. I was merely pointing out that even in some of the "high end" watches ,the guts underneath are all the same. Finishing is one thing, but building is another. I mean heck Seiko and Omega even have in-house movements (Seiko's spring drive is just amazing). To me the higher end watch makers need to at least make their own movements. I used to think AP's were grossly overpriced. But after watching their vids that they put out on making of a watch, you come to a new appreciation of the work involved. Where as some of the other makers are just putting a nice face on a $40 movement.
However, a lot of that will change in the future with the news of ETA not making movements available as they once did. A lot of maker's will be forced into in-house movements.