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Discussion Starter #1
I found from some sources that Rolex produces about 600.000 watches a year... Patek Philippe about 38.000 and Vacheron Constantin 20.000....

do you know about other companies? i would really like to know about more limited production...in which i think A.Lange belond...and of course smaller companies like greubel forsey or roger dubuis....
 

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No I think that there are a few manufactures that make very limited pieces like 5-10 a year or something crazy like that.
 

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Discussion Starter #9
No I think that there are a few manufactures that make very limited pieces like 5-10 a year or something crazy like that.
I wonder how they manage to have profit with so limited production...

maybe they take already made and tested mechanisms...and they do no research....

i think MB&f told they want 3 millions per year for research....
 

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Steven,

On average how long does it take to complete a single MB&F?
Each Machine takes 2.5 - 3.5 years of development. So, since we come out with a new Machine each year, that means we are always working on three new pieces. Right now we are working on HM7, starting on 8 and just delivering 4.

Of course that means the cost of development is astrononical. Eventually we would like to be able to put $3m yearly into R&D but it is not quite possible yet. Margins are very slim and we do not want to grow. At the absolute most we will do in the low 200's of pieces per year. Definitely not a business to make anyone rich, but it is about being creative and making products which we truly love.

-Steve
 

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Discussion Starter #11
Each Machine takes 2.5 - 3.5 years of development. So, since we come out with a new Machine each year, that means we are always working on three new pieces. Right now we are working on HM7, starting on 8 and just delivering 4.

Of course that means the cost of development is astrononical. Eventually we would like to be able to put $3m yearly into R&D but it is not quite possible yet. Margins are very slim and we do not want to grow. At the absolute most we will do in the low 200's of pieces per year. Definitely not a business to make anyone rich, but it is about being creative and making products which we truly love.

-Steve
I dont know about your list prices...but from what you said i could unterstand and accept very high prices....

what i do not unterstand is why for example patek or A.lange is so expensive...since they produce so much more pieces of each one...

so why 200.000 or half million for a double split second chronograf...since materials and research dont justify that amound of money...

i m not saying that they should be cheap...but definately NOT so expensive...maybe a quarter of the price would be better value for money....
 

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I dont know about your list prices...but from what you said i could unterstand and accept very high prices....

what i do not unterstand is why for example patek or A.lange is so expensive...since they produce so much more pieces of each one...

so why 200.000 or half million for a double split second chronograf...since materials and research dont justify that amound of money...

i m not saying that they should be cheap...but definately NOT so expensive...maybe a quarter of the price would be better value for money....
I've wondered the same thing. My justification is this. At some point, a watch goes from a good timepiece to a work of art. A true piece of jewelry that you are buying for the 1 in a million value. Still too much for my little brain, but somehow I can justify spending $150k on a car that gets you to a destination the same basic way that a $5k car does.
 

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Discussion Starter #13
I've wondered the same thing. My justification is this. At some point, a watch goes from a good timepiece to a work of art. A true piece of jewelry that you are buying for the 1 in a million value. Still too much for my little brain, but somehow I can justify spending $150k on a car that gets you to a destination the same basic way that a $5k car does.
I can too justify the prices of cars...i think there are only some that are overpriced...and the difference is 10 or 20 percent....in comparison to 200 or 500 per cent for watches...

A car needs much in research and the materials cost much....

For example a ferrari which is 200.000 has the same price with a platinum Audemars( if it has 200g of platinum this is 8.000 usd in the cost of the material)

also the most basic A.lange is like a golf....
 

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Each Machine takes 2.5 - 3.5 years of development. So, since we come out with a new Machine each year, that means we are always working on three new pieces. Right now we are working on HM7, starting on 8 and just delivering 4.

Of course that means the cost of development is astrononical. Eventually we would like to be able to put $3m yearly into R&D but it is not quite possible yet. Margins are very slim and we do not want to grow. At the absolute most we will do in the low 200's of pieces per year. Definitely not a business to make anyone rich, but it is about being creative and making products which we truly love.

-Steve
But, 200 watches @ ~ $100,000/piece = Seroius bank!
 

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I dont know about your list prices...but from what you said i could unterstand and accept very high prices....

what i do not unterstand is why for example patek or A.lange is so expensive...since they produce so much more pieces of each one...

so why 200.000 or half million for a double split second chronograf...since materials and research dont justify that amound of money...

i m not saying that they should be cheap...but definately NOT so expensive...maybe a quarter of the price would be better value for money....
One reason they are so expensive, is because people will pay the price. I mean look, people will pay, way over MSRP to have the latest greatest PAM, as just one example. Companies like these, pay someone, or pay other companies a lot of money to figure out at what price point they will make the most profit. That's a very important part of selling anything, that most people don't think about.
 

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Discussion Starter #17
One reason they are so expensive, is because people will pay the price. I mean look, people will pay, way over MSRP to have the latest greatest PAM, as just one example. Companies like these, pay someone, or pay other companies a lot of money to figure out at what price point they will make the most profit. That's a very important part of selling anything, that most people don't think about.
+1

mostly you buy exclusivity and you pay for your passion about watches...
 
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