If I asked you what are the World’s Best Luxury Watch Brands? You may have a few brand names in your mind such as: Rolex, Patek Philippe, Audemars, Cartier, Hublot, Bulgari etc. But do you know that all of these brands are known as swiss watches. These watch brands are globally renowned and very expensive at the same time. In fact, many of us might consider swiss watches a bit overpriced. Let’s take a look deeper into the incredible rags to riches story of the swiss watch and answer the question: are swiss watches really overpriced or worth your money?  

Reasons Why Swiss Watches are Expensive

We are not telling you that a watch that's manufactured in Switzerland doesn't mean, it gets the right to be expensive. There are few specific reasons that make these brands so expensive. So let’s take a look at for what reasons most of the Swiss watch brands are expensive. 

Top Quality Component

Swiss watches are made with high-quality components, like gold, titanium, and other precious metals, that are proven to be durable and can last for years. 

One of the reasons why Swiss watches are so expensive is because only the richest of materials are utilized in the making of said watches. These high-quality materials are durable and accurate.

Take, for instance, the Audemars Piguet Royal Oak with components made in diamond and gold that make the model. Then, there’s the Patek Philippe costs more than the best-paid executive’s yearly salary. 

So, it’s obvious that the price of Swiss watches will be more than it costs. 

Manufacturing Cost

Manufacturing cost is the sum of the costs of all resources consumed in the process of making a product. It starts from the research and development stages. To develop a model of a Swiss watch, most brands spend months of R&D to refine each step of the process, including specialized dial mounting, finishing techniques, long-power reserves, and in-house movements. 

Because of its slow production time and high market demand, luxury watch price rates tend to increase. For example, a Patek Philippe Grand Complications watch may take more than six years to produce.

Economy of Scale

Economics of scale is the cost advantage that enterprises obtain due to their scale of operation. For example, a company spends $5000 on R&D and produces 50 units of product. So, R&D costs $100/unit. But if the company produces 5000 units, it will take $1/unit. 

In the case of Swiss watches, companies produce only a few watches which makes the watches so costly but expensive. 

Exclusivity

Swiss watches are so exclusive that only a few people are going to wear the same wristwatch all over the world out of 7 billion and you are not paying only for its production time and materials. But for the brand image it creates in people's minds. 

Though Swiss watches are very expensive, People around the world wish to wear a Swiss watch. Recently, the Swiss luxury watch brand Rolex increased the price of its timepieces sold in Britain in September of the year but customer demand still outstrips supply. 

Conclusion

Swiss watches are worth for its unique features, top-quality components, and exclusivity which has accurate time-telling abilities and lasts for centuries. Obviously, these watches aren’t for everyone; they’re tailored only for those who can afford it, and those who desire perfection.