3 ms·

That's the price, but as someone ignorant of this area, I don't know enough to even guess margins from that. How expensive are the parts? I would assume that gr

That's the price, but as someone ignorant of this area, I don't know enough to even guess margins from that. How expensive are the parts? I would assume that grade of mechanical components aren't cheap. And we should probably price in the labor.

nextos 2y ago
Panerai is a good example to estimate margins. When they were unknown, watches costed $1-2k. This was in the mid 90s. Same models now, distributed by a big luxury conglomerate, cost 5-10x more. Quality and components on comparable models are virtually the same. Likewise, long ago, Rolex was a toolwatch brand and their products were relatively affordable. They are still great, but prices are insane. Vacheron Constantin is on a different class, though, as they sell lots of watches in the high horology category. Insanely complex and difficult to produce. Some similar brands have had financial issues or gone bankrupt.
- wincy 2y ago
  I’d imagine a single one of your watch makers dying/quitting would be catastrophic to your business with something that requires this level of skill.
  - ehnto 2y ago
    I was unsure how to word it, but I think there is a pricesless aspect to the talent that this took. Even though they were probably paid a wage, sometimes outputs by individuals at a company a literally irreplaceable.
noitpmeder 2y ago
The labor and design are probably the most expensive parts. Think hundreds if not thousands of hours of many ultra specialized people's time. The actual raw material has to be a fraction of the worth.
- adriand 2y ago
  Hopefully steep tariffs on Switzerland will bring watchmaking and watchmakers back to America.
  - KaiserPro 2y ago
    It’s already back in America. Plus fr high end customers, there are many ways to avoid tariffs
  - JumpCrisscross 2y ago
    > Hopefully steep tariffs on Switzerland will bring watchmaking and watchmakers back to America It’s actually a good case study. It no longer makes sense to buy a fine watch from an American retailer. The tariffs incentivise a trip abroad. (I’m seeing something similar happen with skis.)
    - secondcoming 2y ago
      You risk paying a tariff when you return to the US though.
      - JumpCrisscross 2y ago
        > You risk paying a tariff when you return to the US though Not really. I’m bringing back a few thousand dollars of mounted, probably lightly-used, skis. Nobody expects to declare random purchases made abroad. Much less an article of jewellery on their wrist.
      - dharmab 2y ago
        I've bought watches overseas. Hypothetically, one could simply wear the watch on their wrist on the flight home. Personal jewelry is not subject to duties.
CydeWeys 2y ago
These are luxury products. That's not the point. They use precious metals when steel would work just as well, and the really high end ones take hundreds of hours of hand labor to very finely decorated the dials and movements. Why? Because it's luxury. It's art. And let's not even get into how much money they spend on marketing and sponsorships ..
colechristensen 2y ago
>How expensive are the parts? They make the parts.

nextos 2y ago

Panerai is a good example to estimate margins. When they were unknown, watches costed $1-2k. This was in the mid 90s. Same models now, distributed by a big luxury conglomerate, cost 5-10x more. Quality and components on comparable models are virtually the same. Likewise, long ago, Rolex was a toolwatch brand and their products were relatively affordable. They are still great, but prices are insane. Vacheron Constantin is on a different class, though, as they sell lots of watches in the high horology category. Insanely complex and difficult to produce. Some similar brands have had financial issues or gone bankrupt.

wincy 2y ago
I’d imagine a single one of your watch makers dying/quitting would be catastrophic to your business with something that requires this level of skill.
- ehnto 2y ago
  I was unsure how to word it, but I think there is a pricesless aspect to the talent that this took. Even though they were probably paid a wage, sometimes outputs by individuals at a company a literally irreplaceable.

noitpmeder 2y ago

The labor and design are probably the most expensive parts. Think hundreds if not thousands of hours of many ultra specialized people's time. The actual raw material has to be a fraction of the worth.

adriand 2y ago
Hopefully steep tariffs on Switzerland will bring watchmaking and watchmakers back to America.
- KaiserPro 2y ago
  It’s already back in America. Plus fr high end customers, there are many ways to avoid tariffs
- JumpCrisscross 2y ago
  > Hopefully steep tariffs on Switzerland will bring watchmaking and watchmakers back to America It’s actually a good case study. It no longer makes sense to buy a fine watch from an American retailer. The tariffs incentivise a trip abroad. (I’m seeing something similar happen with skis.)
  - secondcoming 2y ago
    You risk paying a tariff when you return to the US though.
    - JumpCrisscross 2y ago
      > You risk paying a tariff when you return to the US though Not really. I’m bringing back a few thousand dollars of mounted, probably lightly-used, skis. Nobody expects to declare random purchases made abroad. Much less an article of jewellery on their wrist.
    - dharmab 2y ago
      I've bought watches overseas. Hypothetically, one could simply wear the watch on their wrist on the flight home. Personal jewelry is not subject to duties.

CydeWeys 2y ago

These are luxury products. That's not the point. They use precious metals when steel would work just as well, and the really high end ones take hundreds of hours of hand labor to very finely decorated the dials and movements. Why? Because it's luxury. It's art. And let's not even get into how much money they spend on marketing and sponsorships ..

colechristensen 2y ago

>How expensive are the parts? They make the parts.