Overpriced limited edition watches
It seems that many unknown brands are trying to surf on the "limited edition" trend to increase the opportunity to promote overpriced watches
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Limited edition watches can be overpriced, so mind the step!
We would like to draw your attention to the increased number of overpriced so-called limited series of watches, commercialized by almost unknown or new brands.
There has been a significant increased of this trend in 2012, and it might remain the same in 2013.
This trend affects negatively the reputation of prestigious brands as well as the relationship between customers and brands.
What are limited edition watches?
Limited Edition watches are luxurious models produced in small, very small quantity or even unique and most of the time of great vlaue (ex: BLUE SENSATION by GRIEB & BENZINGER).
They are usually produced for a special occasion, like the anniversary of a brand, the celebration of a famous person or any other special events, which the brand wants to promote.
Prestigious watch manufacturers create Limited Edition watches on regular time frames. These timepieces are pretty amazing, produced with a deep intention to create an exclusive and luxurious product for their consumer as well as the watch collectors. Needless to say, that the Limited Edition is an effective way to raise the brand visibility and create a “buzz” around the brand.
What is rare is expensive…and the Limited Edition watches are often marketed at slightly higher prices. This is understandable, as the manufacturers do not benefit from any economy of scale during the production flow. Most of the time the brands are not even financially benefiting from the sales of this small quantities timepieces.
So the special editions are mostly a fantastic way to make people dream about the brand and enhance the awareness of the brand. This increased visibility is crucial in a market, which has become extremely competitive after the major crisis of the watch industry in the 80's.
So why are some limited edition overpriced?
Well, it’s pretty simple to explain. When a market is developing strongly like the market of luxury goods has been doing during the past 10 years, it means there is money to make...
How many brands have invested money to gain market shares in the past years?
In fact, a lot of unknown brands try to take advantage of small edition series for two reasons:
- Increase sales and revenues through the buzz factor: "Wow, this is a Limited Edition, I have to buy now or I’ll miss it!"
- Generate increased margin by selling a product over its real market value
How can you protect yourself from buying an overpriced so-called luxury/high-end Special Edition watch?
Our advices before to purchase a special edition timepiece
If you are looking to buy a Limited Edition watch that will cost over 500$, you should first try to ask to yourself the following questions:
- For how long has the brand been on the market?
- What is the reputation of this brand? (You can use forums for this: watchuseek, watchfreeks, watchprosite)
- What is the movement? (Ask the retailer for this information)
- What are the technical specifications?
- How long is the guarantee (Do I really want to spend 4000$ on a watch that comes with only a 2 years guarantee?)
- How many models of this "Limited Edition" are available on the market?
- Take your time (When you like something, try not to buy it the same day. You should take some time to compile all the information and think about it. "A wise man will always take his time, only fools rush")
Limited Editions are most of the time great value and fantastic conception, but not always… so you should collect the relevant information before making your final decision of purchase.
To conclude, we would like to quote Johan Pelli
"Limited Editions is nothing without uniqueness"
Johan Pelli is a wostep-certified watchmaker with a deep love of all timepieces and the man who can fix anything related to time!
If you have any question please do not hesitate to contact us!