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Was listening to NPR this morning and there was a short piece done on consumer spending. Researchers found that if they told a person that a glass of wine was a $35 vintage, the receptacles in the brain open up more to enjoy it, even if in actuality it was a $2 glass of wine. Wine tasters were told to expect excellence and therefore they experienced it. So perceptions of quality are directly linked to the price of a product. Gotta love neurology.
I guess this is why companies spend so much $$ promoting their history/heritage, cutting-edge designs, exclusivity, or association with sports/leisure. Take history for instance. You are told that Brand A was worn by Dwight Eisenhower during WWII and you too can buy into this heritage... for a price. So when you go shopping for the watch, you look at the military design, the army green packaging, and the certificate of authenticity and believe that this watch represents an authentic experience. How much is that experience worth? If you charge $50, what value do you assign it and what are your expectations of the watch? $500? $5000? Your money buys not only a watch, but the feeling that goes with it.
So it makes sense that high-end watch brands don't discount much, because it actually hurts their image/brand to do so; it cheapens the experience. This also may also explain why Invicta or SWI or whoever can claim to manufacture a watch that is equal or better to a higher-end brand, but ultimately, they fall short among collectors. No matter what they claim their MSRPs to be, street price is the determining factor of their true value.
We are all suckers one way or another. So pay more for that watch; in the end, you'll be glad you did.:001_smile:
I guess this is why companies spend so much $$ promoting their history/heritage, cutting-edge designs, exclusivity, or association with sports/leisure. Take history for instance. You are told that Brand A was worn by Dwight Eisenhower during WWII and you too can buy into this heritage... for a price. So when you go shopping for the watch, you look at the military design, the army green packaging, and the certificate of authenticity and believe that this watch represents an authentic experience. How much is that experience worth? If you charge $50, what value do you assign it and what are your expectations of the watch? $500? $5000? Your money buys not only a watch, but the feeling that goes with it.
So it makes sense that high-end watch brands don't discount much, because it actually hurts their image/brand to do so; it cheapens the experience. This also may also explain why Invicta or SWI or whoever can claim to manufacture a watch that is equal or better to a higher-end brand, but ultimately, they fall short among collectors. No matter what they claim their MSRPs to be, street price is the determining factor of their true value.
We are all suckers one way or another. So pay more for that watch; in the end, you'll be glad you did.:001_smile: