When It Comes to Buying a Luxury Watch, You Want to Find the Sweet Spot

Jonny writes:

Companies like Panerai raise prices on watches, which actually helps owners because the re-sell value also increases, but I cannot help but wonder what the "real" value of a Panerai is compared to, say, an Oris.

I mean, I don't doubt increase in quality. I've seen the difference between a $100, $300, $500, $1K, and $3K watches. But at some point the curve shows diminished increase in PERCEIVABLE quality, while prices continue to rocket. For me the key is finding the "sweetspots" and watches that represent good value for the price they cost - value in terms of the quality of the build, design, movement, etc.

Bill brings up a good point:  how perceived value and price tag impacts desire. It's hard to look at a $10K Panerai completely objectively. I mean, I love them but I can't say I love them more than, say, my Orient Saturation Diver. Is it a better watch? More beautifully designed? I cannot say.

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Comments

[jonnybardo]

We could collaborate on a watch-buying guide based upon our experiences.

I'm also reminded of something I learned on Watchlords, that in terms of value per dollar you get the best value with micro-brands, then Japanese brands (Seiko, Citizen, and Orient in particular), then Swiss and German brands. There's no clear formula, but a $700 micro-brand diver is similar quality to a Japanese watch a few hundred dollars more, which in turn is similar in quality to a Swiss/German watch twice or more the price.

This is why I'll probably never own a Rolex. For half the price you can get a better watch: The Seiko SBDB001 with spring drive. Among Swiss and German brands, Oris may represent best value - $1K - 1.5K for a high quality timepiece. Above that, you've got the Omega Seamaster, costing $2-3K, and still good value. But beyond that? You're mainly paying for name and heritage.

Micro-brands don't have the name or heritage, so some might balk at spending $500-1K on a no-name watch with questionable service. But you're also able to buy watches with cutting edge designs that look like Swiss/German watches priced 3-5x as much. The Viking Tempest is a good example of this.