[Revolution]

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:

 

[boscoe]

Revo, your post hits the nail on the head.
Here's an actual verified ancedote:

When asked by a journalist, "How's the watch business?" the chairman of Rolex sniffed, "We do not sell watches! We sell luxury."

So luxury is part of the buying equation.

That said, most watch geeks have learned to avoid that trap. We tend to be better educated about the actual products. Many here think an Invicta is just as well-made as, say, a Rolex. I don't go that far, but there is a point where price just becomes silly and bang for buck drops off dramatically. I'd say that's in the 6k-plus suggested retail range - street prices are usually 3-4k in this niche, sometimes less.

 

[ru06]

Yea it's like the one bar my friend used to work at... they sold 'Milwakees Best Beer', which is around 30 bucks for a keg to people for $5 a glass and told them they made it in house. Boy you'd be surprised at how many people actually liked this beer! (Probably only because they associated quality with a higer price point) lol.

 

[Rusty]

A bit OT, the father of a colleague of mine owned a men's clothing business and when my friend was young, his father told him to change the price on a counter full of $5 neckties to $10. When he did, the ties sold out. . . same ties but double the price.

 

[145]

kind of like a Renato selling for much more than other watches with the same movements and case or case finish. Or Invicta selling a Subaqua for $3000 just because it has a 7750 when HAmmy and Philip can sell the same movement in a great watch for 1/3 the price.

 

[triton]

kind of like a Renato selling for much more than other watches with the same movements and case or case finish. Or Invicta selling a Subaqua for $3000 just because it has a 7750 when HAmmy and Philip can sell the same movement in a great watch for 1/3 the price.

I have not seen a Hammy or Philip compare in the style of the Subaqua,nor have I seen a Subaqua sell for $3000.00:confused1:

 

[145]

I have not seen a Hammy or Philip compare in the style of the Subaqua,nor have I seen a Subaqua sell for $3000.00:confused1:

The shopping network has a couple listed at $2999. And I will match my frogman against the subaqua. both are 7750 driven, both have different looks.

 

[timebender]

"Its All Good"

Collectors, be it watch, knife, gun, etc., are varied in how and why they collect. Some do just that, collect, never or rarely selling off anything they purchase. Others are constantly buy, selling and trading. For those, rate of return means a great deal. Does a used brand A do better on the market than a used brand X? There is really not good or bad to it. Any brand is, what it is, be it Invicta, Seiko, Omega, Rolex, etc.

When I was in knife collecting I often purchased a knife that I myself did not really want. But, I saw a really good deal that I knew someone else may want and I picked it up at a good price to use for sell or trade. Some knife brands to better than others. Case for one with some models will actually appreciate in value. Others like frost, who make some very fine knives generally do not. Even when there is not a substantial gain in value, some brands resale better and for more than others.

So, why would someone pay 6K or more for a Rolex? One reason is they hold their value and when it comes time to unload it you take a minimal loss. Is paying that much for a watch stupid? No, if that is what the buyer really wants it could very well be an investment. How about $50 for an Invicta? Again, the person buying that watch is getting something he or she wants. What you get is most likely a good looking watch that keeps great time and gets a few comments on how nice it looks from friends. Is that an investment? Not really. It is just a very good deal on something you want to wear.

I recently spent $3500 on a used Rolex for my wife. My bet is in 5 years I would get a better return on it (if I had the guts to sell it) than I would if I had purchased a new Invicta for $3000 and then put it up for sale. I still don't think either is a bad deal. As I stated earlier, each is, what each is. Or, when it comes to watches and you are a WIS, "it's all good".:thumbup: