Horological Meandering

mkvc
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It's hard to discuss value.

I think most of us would agree that a lot of companies seem to have decided that the "value" or "value for money" approach is not for them. That is their privilege: they are in business to make a profit, and if they decide they will optimize their profits by paying attention to marketing or image instead of value, they are entitled to take that approach. If they have guessed right, they will make a lot of money; if they have guessed wrong, they won't.

At least three factors make the "non-value" approach appealing: (a) it is available to every company instantly, instead of requiring years to build up a history or a reputation for quality; (b) much of the buying public is poorly prepared to evaluate value; and (c) much of the luxury goods-buying public actually seems to take comfort in being overcharged, as that is an indication that they are buying something truly luxurious.

I think the original post may go more to the proposition that no matter how much true horological "value" a watch may have (whether by virtue of design, finishing, new materials, traditional techniques, or otherwise), there is a price point at which it ceases to provide reasonable value for money. I think that is true, and it is clear that the watch companies are daily testing our "squeal points" in that respect. I have no doubt that each time they raise prices they carefully monitor the effect on sales in order to determine how much more the market will tolerate.

Sometimes the market moves away from us old-timers: we remember what we paid for the watches we already own, and that sets value expectations that the companies are no longer willing to meet. When that happens our collecting slows or changes direction.

Our value expectations are very subjective and situation-based. That is why, for example, a no-prestige watch company will suddenly introduce a $100,000 specialty watch: by comparison, it makes its $2000 watches that happen to be priced at $5000 seem like a good deal. We also have a tendency to forget about real value propositions when they are not in front of our noses. I submit, for example, that rather few $8000 "me too" ETA-based large divers would be sold if each one were offered with a $4500 MIH watch right next to it. Luxury marketers understand that, and the watch industry is highly competent in exploiting our analytical weaknesses.