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[Question] What is the real cost of a luxury watch?
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c173rick is in Question
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Hi everyone,

I got in watches in the last months, and I'm thinking now to buy my first automatic "luxury" watch (thinking of Tudor). I'm a person who always wants to get the most value for money, so the price-performance (or price-quality) ratio is the most important factor for me. (BTW I have a small collection of 1 Casio, 1 Skagen and 1 Tissot, all Quarz)

Now what I don't fully understand is how much does the watch really cost? I totally get that, like any product in the world, we pay a price for the product itself and probably a price for the brand (BTW I'm not talking about fashion watches, but as an example, Gucci would sell a 10$ watch for 500$ just because it's Gucci, so we pay 10$ for the watch and 490$ for the brand).

Does this apply to high quality watches like Rolex, Omega, Tudor, etc...? Are we paying thousands of dollars for a 100-500$ watch anyway?

The main reason I'm asking this is that after my research, I concluded that brands like Hamilton and Tissot are excellent, quality is great, and they even have some great history behind them. So why does a Hamilton/Tissot cost ~500$ and say a Tudor/Breitling ~5k. Is the difference really huge that it costs > 4k more? (I'm aware that some watches cost more because of the diamonds and gold that come with. I'm not talking about that)

Talking about movement and watch quality, is the Tudor/Breitling (maybe even Rolex) by far better than something like Hamilton/Tissot so that the huge price difference makes sense? Like, what is the true cost to make a Tudor/Breitling or any luxury watch?

I want to rather pay for the great price-quality ratio since I don't want to pay for the brand. This is what I'm trying to figure out.

EDIT: Thanks y'all for the helpful comments and insights. I really appreciate it and hope it helps others in the future ✌️

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2 years ago