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20 October 2005, 04:14 AM | #1 |
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How did they do it?
Peter's thread (in-house vs out-house movements) made me wonder this...
In the days before the quartz revolution, all watches were mechanical. I remember as a kid watching the Timex commercials and seeing my parents' friends with mechanical watches from Timex, Bulova, and a host of other now defunct manufacturers. How could they manufacture and sell mechanical watches for the common man with humble means? Mechanical watches were affordable for almost everyone. There were the luxury brands and they were priced relative to the regular mass-produced watches, but everyone had at least a hand-wound mechanical watch. Why is it so difficult to find mechanical watches these days? Canada has some insane import duties that drive prices into the stratosphere. Take for example a simple Tissot Sea Star. In the US you can get an auto Sea Star for under US$400 and yet that same watch in Canada retails for well over CDN$800! Even a Rolex ExpII, which lists in the US for US$4500 (or so) in Canada lists at CDN$6100 plus 15% tax, taking the price up to just shy of $7,000! that's an insane difference. I read a while back that Timex is going to release a new line of mechanical watches, but no info on pricing. Surely with new technologies, basic mechanical watches can be produced cost effectively and sold for a reasonable price. I guess maybe to answer my own question; why invest in mechanical watches when quartz movements can be manufactured for pennies per ebauche? The small investment thereby makes the profit margin that much higher. I wish we could see a number of different manufacturers come through with reasonably priced mechanical watches. It would make it so much more fun and affordable for more WIS' in the making to get into this crazy sickness. |
20 October 2005, 04:24 AM | #2 |
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Good post, Johnny. Dunno why Canada has such high taxes....seems to be the worst place in the world to buy a good watch...or a "cheap" watch for that matter!!
Makes you sit back and wonder how much is the real cost to produce say a Submariner-Date which retails for around $4,000+; also how much the dealer gets it for....what his profit margin is....what the manufacturer's cost is and what their profit margin is? Betcha the Sub-date would basically cost way below a thousand dollars to actually manufacture. We finally pay through our arses for these high-end babies!!
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20 October 2005, 04:37 AM | #3 |
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JJ, I would hazard a guess that to actually produce a SS Sub date (or any SS Rolex) the cost would likely be less than $CDN500 to Rolex themselves. And that takes into account R&D, overhead, staffing, benefits, etc. \
I say this because their model line-up has remained almost unchanged with only evolutionary changes... since the late 1960s. For 'out-house' movement watches, you're likely looking at less than $200 for a movement, less than $30 for a case, maybe $50 for a bracelet and then maybe another $50 for crystal, dial, crown and assembly. I think Al can talk about prices of components from his Avalon watch he just built. The prices are quite inexpensive. I know that when I bought my last bicycle component group, it retailed for $2500 (parts only). My buddy is an importer and he paid about $1000 per group (plus shipping) from his supplier in Italy, who paid about $500 from the manufacturer. Assuming they mark-up the same way, it would only cost the manufacturer $250 to make the group of parts. But it cost the consumer 10X that thanks to middle men and massive profit margins. I'm sure watch manufacturing and distribution is set up similarly. Last edited by Atomic; 20 October 2005 at 04:38 AM.. |
20 October 2005, 04:38 AM | #4 | |
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On the subject of taxes: stay away from my country. Tax on new cars is 42.5 % plus 19% VAT. Tax on petrol, alcohol and tobacco will remain unmentioned because I will blow my top then and start a huge rant
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20 October 2005, 04:40 AM | #5 | |
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And I'll be right behind you with a similar rant! I've seen pictures of the Timex and you're right, they are quite nice! I'll bet dollars to donuts we won't get them in Canada though. Hell, we don't even get Invictas over here. |
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20 October 2005, 06:32 AM | #6 | |
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And the problem is???????????? Aaron |
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20 October 2005, 07:45 AM | #7 | |
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20 October 2005, 07:56 AM | #8 |
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My thoughts on the subject......
I think that part of this is that there is a huge cost benefit in producing in large numbers. Before quartz, mechanical movements were all there was, and everybody made them. They had the ability to turn out huge numbers (far more than all mechanical makers now I'm sure) at a low unit cost. I can only imagine that cost justifications for developing/buying equipment to make certain parts of a watch movement more efficiently were much easier when dealing with the numbers of movements made then, as compared to today. Also, to a degree the mechanical watch today is either a luxury item or somewhat of a novelty, as opposed to "just being a watch" as they were before quartz. I think it's easier to charge more for something that's not really needed, than it is for something almost everyone needs..... As for my project watch, the total cost of materials was about $90 US - I think the ETA movement was $56.95 or something like that...... Last edited by ----; 20 October 2005 at 07:57 AM.. |
20 October 2005, 12:24 PM | #9 | |
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20 October 2005, 12:26 PM | #10 | |
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I agree 100% with you though, it is a luxury item and that is hard to put a price on it that people can easily understand.
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22 October 2005, 08:39 AM | #11 |
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hey guys.. any pics of these new timex?
mamas |
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