Lots of people ask the timeless question “why are luxury watches so expensive?” Well, there are many reasons why luxury watches cost so much, and we will cover the top three in this post.

Brand Name

Cost of luxury watches increases because you’re purchasing a Patek Phillippe, Rolex, or Cartier watch and these are not just any watch. Imagine purchasing two identical watches, but on the dial of one is the word “Rolex”. The unbranded watch costs significantly less than the branded watch because with the branded watch you’re purchasing not only a device to tell time but also a symbol of luxury.

Finest Materials

Makers of luxury watches use superior quality materials to build both the outside and in of each watch, from the gold watch case to the diamond-covered bezel to the mother-of-pearl dial. Even though watch makers could use less-expensive materials like gold-plated metals or  stainless steel, the longevity of the piece is increased by using these exceptional materials.

Furthermore, some brands have a significant distinction in the materials used to build their luxury watches. Namely, Rolex is the only watch brand to create its own gold. In fact, Everose is the Swiss watchmakers own shade of rose gold which they developed and patented.

Usually Only in Limited Quantities

Luxury products are by definition rare, whether they’re watches, sports cars, or handbags. Producing these items is expensive and their desirability to the select shopper who can afford to pay these high-costs are only heightened by their exclusivity. With that said, the reason luxury watches are produced in limited qualities is not necessary to provide an illusion of rarity.

Scaling production is not an available option as many luxury watch brands hand-finish their products. Moreover, luxury brands need tight control over the process of manufacturing to ensure exacting specifications and internal precision is maintained. This is simpler to accomplish in smaller quantities.