Why are Swiss watches so expensive?
• The assembly of high quality handmade mechanical masterpieces involves a highly trained, very specialized, and extremely costly labor force. • The manufacturing process is very capital intensive. Besides the high cost of labor, lengthy production schedules tie up precious metals and gemstones for extended periods of time. • To maintain brand recognition and prestige, huge sums are spent annually on advertising and promotion. • The world demand for fine Swiss watches is exceeding production capabilities further fueling price increases. • The spiraling costs of maintaining a conventional retail establishment (rent, personnel, insurance, etc.) mandates high retail mark-ups. • The demand for certain models exceeds production capabilities thereby further driving up the price.
