For others, it is quite different. In some, the manufacturer will sell a product to distributors, who will sell these products to retailers, who will, in turn, sell them to the end consumer. All these players sell with a margin each time, and the end buyer finds himself paying the cost of the watch to be produced, and all the margins added up.
This is the case for all consumer products. Still, again the production of a watch is expensive and sometimes very expensive like the Rolex air King, which means that the production price that will then be multiplied is already a significant amount.
Absorption Of Marketing Costs
As mentioned above, research and development costs must be absorbed. Logically, the same applies to everything, such as the marketing costs, which are sometimes considered for certain brands which want to build or maintain their image.
Sponsorship of international events, television spots during the most-watched broadcasts on the planet, entire pages in some of the most printed magazines in the world, outlets that exude luxury located on some of the most expensive avenues in the world. It is, run by employees who are watchmaking specialists who can speak more than five languages. All of this represents considerable sums of money, and this is reflected in the final sale prices.
Rarity And Seniority
The concept of rarity is often associated with that of luxury, in the sense that what is rare is expensive, and the price increases with the level of rarity. This is where the idea for the limited edition came from.
This is partly the case with the world of fine watchmaking. Almost all brands offer limited editions of their various models, often priced higher than the classic model. Indeed, the production of luxury watches takes time. Still, the brands also want the rarity to intensify the feeling of buying luxury and exclusivity for the customers when they finally manage to get hold of them, on a watch that the elites are snapping up but out of stock.