Price is Irrelevant

I’m going to say something very controversial. Price should be completely irrelevant when it comes to luxury watches.

Watches are a luxury item now, the whole point of luxury is to be able to buy something just because you like it. Now you might have a lot of reasons to buy a watch: you might like the design, you might like the brand, you might like the technology, or you might need to hide a few grand from the wife in the divorce…but when you are buying a luxury item, price should never be a factor…it is what it is, you can either afford or you can’t.

With luxury goods, the same exact item can sell for $5,000 or $10,000 or $15,000…the product itself is irrelevant…the whole point of luxury goods is to show the rest of the people, that you can afford to shell out that much to get what you like.

Thats the thing…isn’t it? If you like the watch, its NEVER overpriced…just look at all the people going gaga for Rolex right now. 5 years ago, these watches were considered “overpriced” and you could walk into any boutique, and there’d be a sea of Submariners and GMTs waiting for you…hell the dealers would even negotiate. Then Rolex got extra popular, and suddenly, they were no longer overpriced…suddenly they were an AMAZING deal….a deal worth paying a 50% markup just to get the watch…and suddenly Rolex no longer had any watches available to sell.

So if you like the watch, regardless of what the price is, as long as you can afford it, just buy it. Because if you like it, chances are that other people like it too, and when enough people like a luxury good, prices tend to go up because these manufacturers simply don’t have the capacity to meet actual demand. Who knows, it might be one of those buys, where 5 years later, you’ll end up doubling your money.

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