There are several reasons why people buy expensive watches. These include social perceived value, inherent value, limited supply, and taste. There are also some economic benefits to buying an expensive watch. However, you should carefully consider the cost and benefits before making a final decision. A luxury watch is an investment, so it should be treated as such.
Inherent value
It’s not always easy to determine the intrinsic value of an expensive watch. Although some things are obvious (such as a watch with an 18k gold case is more valuable than a watch with a steel case), there is still much mystery surrounding the issue. While some watch enthusiasts use a variety of methods to guess the component costs and determine whether the retail price is fair, most of the time the process involves guesswork.
Luxury watches can have an inherent value because of the materials and complications that go into making them. A luxury timepiece is not only made with the highest-quality materials, but it also requires precise engineering and assembly processes. It’s important to recognize that these timepieces should be considered mechanical pieces of art, not just items that can be resold for a profit.
Social perceived value
When you’re shopping for a luxury watch, there are two main considerations: the social perceived value of the watch and its inherent value. Social perceived value arises from the shared perception that an item has a higher value than its actual intrinsic value. The perceived value of an item is a measure of its social status, and it’s an important factor to consider.
Social perception is a powerful motivating factor in buying expensive products. In general, people seek expensive items and services to signal wealth and social status. This is because these items are rare and expensive, and they are perceived to be a status symbol. The socially savvy luxury consumer is likely to be an opinion leader and an influencer on social media.
Taste value
Although the concept of taste is highly subjective, most people agree that it’s crucial for discerning a luxury item. That means handling and learning about a wide range of watches, and then selecting the one you like best. In other words, taste is what gives luxury items credibility. Luxury items are considered to have the highest perceived value when they are owned by people with a high level of taste.
Limited supply
Demand for luxury watches is expected to exceed supply in the near future. Many models have long waiting lists and limited allocations. As a result, prices are rising in the secondary market. For example, a Patek Philippe Ref. 5711 Green Dial which normally retails for $35,000 has recently been sold for $490,000. Another watch that has risen in price is the Rolex Day-Date 40, which has increased by 76% since last year.
One factor contributing to the price rise is the escalating manufacturing costs and fluctuating exchange rates. This means that the market for luxury watches is moving steadily upmarket. While some luxury brands continue to sell inexpensive watches, others continue to raise prices in response to high demand. Even Oris, a company known for making accessible mechanical timepieces, has seen an average price increase of 10% in the past year. In October 2020, the company will launch the Calibre 400, a new in-house movement that will cost $3,300 on a rubber strap or $3,500 on a stainless steel bracelet. This is a substantial price increase over the current Aquis Date model without in-house movements.
The problem with the limited supply of expensive watches is that demand is exceeding supply. This is an extremely frustrating situation for consumers. Fortunately, there are several ways to address the situation. One way is to increase awareness of luxury watches. First of all, you can buy a replica of a high-end luxury watch to sell for much more than the original purchase price.
In the secondary market, Rolex GMT-Master II models have an extremely long waiting list. According to Steven Dickens, a Tiffany-branded version of a similar model sold for $125,000 at auction in 2019.
Status symbol
Expensive watches are a status symbol. While having such an item does not necessarily mean that you are rich or privileged, it can project an image of wealth. There are many ways to flaunt the status symbol. Here are some ways to show off your expensive watch. The first is to make it stand out from the crowd.
The second way is to wear it. Luxury watches are often made of expensive materials. Because of the high price, they are often given as gifts. Luxury watches are also viewed as investments. Although a luxury watch is a status symbol, it isn’t very useful. This is especially true when it comes to being a symbol of wealth.
Luxury watches are made of expensive materials, such as platinum or gold, and feature intricate craftsmanship. The most expensive watches are also made from rare gemstones. However, you must be aware that the price of such watches can vary wildly. Some watches can cost thousands of dollars, while others can be as low as $30.
