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Old 5 January 2008, 08:31 AM   #42
DJF881
"TRF" Member
 
Join Date: Dec 2007
Location: New York
Posts: 248
The APs retail for more than the Rolexes, but Furman discounts them over 20%, and I would not be surprised if retailers do the same.

With the super-luxury brands like Audemars or Patek, you're paying a significant premium for exclusivity.

Fans of the brands will also say you're paying for "craftsmanship." But the larger commitment of watchmaker attention dedicated to each watch doesn't necessarily make a better timepiece, though it does necessarily limit the number of watches the company can make (hence, exclusivity).

A lot of the reason Omega is cheaper than Rolex and Rolex is cheaper than AP or Patek is that the fixed costs of a company can be distributed across more watches. This is also why it's Seiko inventing the Spring Drive, Omega inventing the coaxial escapement and Rolex inventing the Parachrom hairspring.

Patek or AP or Vacheron are better equipped to make more intricate, complicated movements, which require many more watchmaker labor, while Rolex or Omega can invest in R&D and high-tech new machinery because the cost of that is distributed over hundreds of thousands of watches a year, rather than tens of thousands.

Economies of scale also means that the service network for Rolex or Omega is going to be more efficient, and therefore less expensive.

A Rolex is substantially more expensive than an Omega, especially when you consider the street discounts from SRP that you can expect from Omega, but not from Rolex, and a Rolex is going to be substantially cheaper than a similarly appointed Patek or AP in most cases.

Any chronometer certified watch is going to be a very fine movement. Most honest comparisons between a Rolex and an equivalent model Omega generally agree that the Omega is almost always the better value for the price.

Going from a Rolex to a more exclusive brand nets you even less substantial performance improvement, considering the movements in the Daytona and the new GMT are widely held to be as accurate as a mechanical watch can be. I've seen people compare Rolex and Patek to BMW and Ferrari, but the Patek is like the Ferrari only in that it is hand assembled; the performance differential that comparison suggests does not exist.
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