New watch price inflation
Discussion
I have an Omega Quartz Constellation which I bought in 1994 for £550. The list price was actually £590 but they let me have it for £550 as the price was increased just before I'd got the money together to buy it.
This one is the same and was listed on Watchfinder for £1,100 in the last few weeks. This is about consistent with a general inflation calculator that I found online.
However, if I look at the nearest equivalent new Omega Constellation, the price is now £2,700.
Have new watches inflated in price far more than general stuff?
This one is the same and was listed on Watchfinder for £1,100 in the last few weeks. This is about consistent with a general inflation calculator that I found online.
However, if I look at the nearest equivalent new Omega Constellation, the price is now £2,700.
Have new watches inflated in price far more than general stuff?
I paid £4950 for a Hulk in 2010; the equivalent is now £9100, so not far off double. Seems like significantly more than the amount of inflation you’d expect. That being said, a Range Rover Sport was about £45k back then and is now mid 80s, so as mentioned above it seems like inflation is way about the official figures. (Neither are exactly essential goods, though!)
Luxury watches have gone up a lot much like the sneakers and handbag market.
Imagine thinking luxury watches are still in demand when all the cool kids, absolute pioneers, already enjoyed watches and got out when the Apple Watch came out? Current owners really live the values of "tool" watches as far as I can tell. Massive "tool" pieces sitting on fairly small sized wrist real-estate. The quintessential tool. Now you get some time only watch for the same price the cool kids paid for a chrono. At least the watch industry has moved beyond manufacture movements, non-stop tourbillon models, blacked-out watches and amazing history narratives
Out with the old and in with the new. And this has aged really well since the Apple Watch came out.
Imagine thinking luxury watches are still in demand when all the cool kids, absolute pioneers, already enjoyed watches and got out when the Apple Watch came out? Current owners really live the values of "tool" watches as far as I can tell. Massive "tool" pieces sitting on fairly small sized wrist real-estate. The quintessential tool. Now you get some time only watch for the same price the cool kids paid for a chrono. At least the watch industry has moved beyond manufacture movements, non-stop tourbillon models, blacked-out watches and amazing history narratives
Out with the old and in with the new. And this has aged really well since the Apple Watch came out.
What hasn't gone up in price? Literally everything has seen significant increase ... its not just inflation. Look at the state of the car market ... consumers are being conditioned to pay extortionate prices for average cars ... anything with an 'M', 'RS' or 'AMG' then the entry fee is £70k. New M2, £70k ... for a small performance coupe, madness.
10 years ago, a top spec bike (road bike) would set you back £6k-£7k .... carbon frame, Dura Ace 9000 etc ... a bike that all the pro pelaton would be riding and the rest of us could buy in the shops. That top spec bike is now £15k + with Dura Ace or SRAM AXS and of course the 'premium carbon frame' (not to be confused with the lower grade, heavier carbon).
We're being shafted for everything ... only a severe global recession will reduce demand and lower prices.
10 years ago, a top spec bike (road bike) would set you back £6k-£7k .... carbon frame, Dura Ace 9000 etc ... a bike that all the pro pelaton would be riding and the rest of us could buy in the shops. That top spec bike is now £15k + with Dura Ace or SRAM AXS and of course the 'premium carbon frame' (not to be confused with the lower grade, heavier carbon).
We're being shafted for everything ... only a severe global recession will reduce demand and lower prices.
Luxury watches are veblen goods, so pricing acts strangely.
As best as I can work out, pricing of veblen goods is not directly linked to inflation. Rather it's linked to the disposable income of your target market and the perceived exclusivity of the goods.
For example, in a period of low inflation living standards (disposable income) rises in a target market. For a product to remain an aspirational purchase pricing has to rise dramatically. This will affect inflation, but not by much.
Purchasing "designer", (a.k.a. veblen) goods is a bit of a mugs game really.
As best as I can work out, pricing of veblen goods is not directly linked to inflation. Rather it's linked to the disposable income of your target market and the perceived exclusivity of the goods.
For example, in a period of low inflation living standards (disposable income) rises in a target market. For a product to remain an aspirational purchase pricing has to rise dramatically. This will affect inflation, but not by much.
Purchasing "designer", (a.k.a. veblen) goods is a bit of a mugs game really.
GilletteFan said:
Luxury watches have gone up a lot much like the sneakers and handbag market.
Imagine thinking luxury watches are still in demand when all the cool kids, absolute pioneers, already enjoyed watches and got out when the Apple Watch came out? Current owners really live the values of "tool" watches as far as I can tell. Massive "tool" pieces sitting on fairly small sized wrist real-estate. The quintessential tool. Now you get some time only watch for the same price the cool kids paid for a chrono. At least the watch industry has moved beyond manufacture movements, non-stop tourbillon models, blacked-out watches and amazing history narratives
Out with the old and in with the new. And this has aged really well since the Apple Watch came out.
I’m sure there’s a reasonable point in there somewhere, but what’s the deal with this “out with the old…” crap that you’ve posted about 50 times? Seems very odd behaviour. Imagine thinking luxury watches are still in demand when all the cool kids, absolute pioneers, already enjoyed watches and got out when the Apple Watch came out? Current owners really live the values of "tool" watches as far as I can tell. Massive "tool" pieces sitting on fairly small sized wrist real-estate. The quintessential tool. Now you get some time only watch for the same price the cool kids paid for a chrono. At least the watch industry has moved beyond manufacture movements, non-stop tourbillon models, blacked-out watches and amazing history narratives
Out with the old and in with the new. And this has aged really well since the Apple Watch came out.
BrokenSkunk said:
Luxury watches are veblen goods, so pricing acts strangely.
As best as I can work out, pricing of veblen goods is not directly linked to inflation. Rather it's linked to the disposable income of your target market and the perceived exclusivity of the goods.
For example, in a period of low inflation living standards (disposable income) rises in a target market. For a product to remain an aspirational purchase pricing has to rise dramatically. This will affect inflation, but not by much.
Purchasing "designer", (a.k.a. veblen) goods is a bit of a mugs game really.
Agreed, but I think not all watch brands are truly Veblen goods. There are also others which are just caught up in the rising tide raises all boats scenario.As best as I can work out, pricing of veblen goods is not directly linked to inflation. Rather it's linked to the disposable income of your target market and the perceived exclusivity of the goods.
For example, in a period of low inflation living standards (disposable income) rises in a target market. For a product to remain an aspirational purchase pricing has to rise dramatically. This will affect inflation, but not by much.
Purchasing "designer", (a.k.a. veblen) goods is a bit of a mugs game really.
The rise in the most desirable products (i.e. Rolex et al) has also dragged up the prices in the rest of the market too. As disposable income dries up, I expect the likes of Rolex will be able to just tread water on pricing and wait for the market to catch up, but the second tier might struggle as customers perceive their watches to be now too expensive? It'll be interesting to see what happens over the next couple of years in the middle ground watches.
GilletteFan said:
Luxury watches have gone up a lot much like the sneakers and handbag market.
Imagine thinking luxury watches are still in demand when all the cool kids, absolute pioneers, already enjoyed watches and got out when the Apple Watch came out? Current owners really live the values of "tool" watches as far as I can tell. Massive "tool" pieces sitting on fairly small sized wrist real-estate. The quintessential tool. Now you get some time only watch for the same price the cool kids paid for a chrono. At least the watch industry has moved beyond manufacture movements, non-stop tourbillon models, blacked-out watches and amazing history narratives
Out with the old and in with the new. And this has aged really well since the Apple Watch came out.
Imagine thinking luxury watches are still in demand when all the cool kids, absolute pioneers, already enjoyed watches and got out when the Apple Watch came out? Current owners really live the values of "tool" watches as far as I can tell. Massive "tool" pieces sitting on fairly small sized wrist real-estate. The quintessential tool. Now you get some time only watch for the same price the cool kids paid for a chrono. At least the watch industry has moved beyond manufacture movements, non-stop tourbillon models, blacked-out watches and amazing history narratives
Out with the old and in with the new. And this has aged really well since the Apple Watch came out.
Bungleaio said:
Bought an Omega planet ocean for £1700 back in early 2010 and a speedy pro in late 2019 for £3000. Both are significantly more expensive now
I bought a new hesalite Omega speedmaster professional for £3066 back in 2019 from Heathrow so got the equivalent of the tax taken off but it was still a sub 4k watch. I'm sure they are well over 6k now although I think they upgraded the movement to the 3861 calibre. Over £7k for the sapphire. MitchT said:
I have an Omega Quartz Constellation which I bought in 1994 for £550. The list price was actually £590 but they let me have it for £550 as the price was increased just before I'd got the money together to buy it.
This one is the same and was listed on Watchfinder for £1,100 in the last few weeks. This is about consistent with a general inflation calculator that I found online.
However, if I look at the nearest equivalent new Omega Constellation, the price is now £2,700.
Have new watches inflated in price far more than general stuff?
You need to check two sources. The ONS's inflation calculator AND Sterling / Swiss Franc exchange rates. It will all become clear. The pound has crashed and it is this, probably caused by government counterfeiting / quantitative easing, that makes the difference. The ONS tool is far better than the BoE equivalent, because you can choose the year and your salary paid yearly/monthly/weekly and then see how much you would need to earn now to have an equivalent buying power. The Swiss appear to be profiteering until you factor in the exchange rate at which point you will see that they really aren't.This one is the same and was listed on Watchfinder for £1,100 in the last few weeks. This is about consistent with a general inflation calculator that I found online.
However, if I look at the nearest equivalent new Omega Constellation, the price is now £2,700.
Have new watches inflated in price far more than general stuff?
toon10 said:
Bungleaio said:
Bought an Omega planet ocean for £1700 back in early 2010 and a speedy pro in late 2019 for £3000. Both are significantly more expensive now
I bought a new hesalite Omega speedmaster professional for £3066 back in 2019 from Heathrow so got the equivalent of the tax taken off but it was still a sub 4k watch. I'm sure they are well over 6k now although I think they upgraded the movement to the 3861 calibre. Over £7k for the sapphire. Gassing Station | Watches | Top of Page | What's New | My Stuff