Quote:
Originally Posted by tyler1980
of course its image and prestige and that isnt necessarily bad.
think of houses. The same 400k house costs 10 million depending on the neighborhood. The difference is the lot value the house is sitting on. None of that makes any practical difference to the actual house, but the intangibles like location, view, and the neighborhood image command a huge premium. RM is just in a more exclusive part of town.
RM uses cutting edge materials and don't have economies of scale to have a low per unit cost like say Rolex. But none of that takes into account the fact that selling exclusivity is a large part of the mark up and its intentional.
I see no problem paying more for something because its more exclusive and its just as valid of a selling point as 12,800ft of WR as that makes no practical difference in the watch either.
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Tyler, this a great analogy.
The concern buyers should have, at least those who are senstive to the future market prices over the longer term, is whether or not the land right next to your beautiful RM house in the good neighborhood that's so desired right now might be rezoned to be the city's waste disposal facility. Is this what happened to Frank Muller's house?
I say this as an RM fan, if I had confidence that the future values of the RM67-02 or an RM035 would be near or about current market prices then I'd be selling some other stuff to get one of those RMs on my wrist. Problem is I just can't see it and that stops all conversations of acquiring an RM dead in their tracks.