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WatchProSite|Market|Digest

Officine Panerai

Absolutely Right

 

It really boils down to the number made in the limited edition. The R&D costs need to be spread over thousands of units in order for the watch to be profitable, if you're spreading it over a few hundred, then in order for it to be profitable, it's going to be very expensive.

Some companies simply don't make a profit on some watches, but they're exhibits of technological know-how.

Let's take Formula 1 racing. This is a most unprofitable endeavor. But they do it simply to prove the car company has the technical know-how to make it.

Many times, these companies store a limited edition away and then make a new movement but adding upon the base movement of that LE. Take the Jaeger-LeCoultre Reverso Septieme; this movement is basically a Reverso Grande Date with a day/night indicator. Whoa, look at the Reverso Grande GMT. The Septieme is basically a Grande GMT without the second time zone.

The Septieme would be one of those pseudo limited editions.

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14 Comments view entire thread 

19K for a simple titanium watch isn't cheap .... BUT

 
By: Bruno.M1 : January 31st, 2009-03:31
Does anybody know more about the production cost for a rare watch ? The thing is, 300 pce is very rare. We all know a zillion of other so called limited watches. AP, Panerai, Hublot, even Patek . Let's take an offshore for example. You just don't want to ... 

You're absolutely right, Bruno

 
By: amanico : January 31st, 2009-04:22
That was a bit the problem with the JLC Polaris. With a Limited Edition of a bit less than 1000 Watches ( 998 ) , you have a new case, a dedicated plexy, and a new dial, specific crowns, etc... It would have been a bit less espensive if it wasn't a LE. As... 

Agreed it wasn't much...

 
By: Jester : January 31st, 2009-09:41
But only if OP will make 300 pieces and 300 pieces only! I'm not exactly convinced that at EUR19k for 300 pieces OP would make enough to recoup the tooling cost so what would they do next on the 60mm case size? Adding GMT, Power Reserve or chrono function... 

honestly

 
By: Bruno.M1 : January 31st, 2009-10:34
I don't think a 60mm watch could ever become a regular production model.

Agree a normal production 60mm is

 
By: Jester : January 31st, 2009-19:22
probably a far fetched possibility but I can't help but wondering what OP would do to recover the R&D cost? They're a business afterall and no reason for them to knowingly make a watch for a loss. Let's take a quick look at their limited edition pieces th...  

I was just going to ask the same question Jester!

 
By: AnthonyTsai : January 31st, 2009-11:11
I have a feeling that this 60mm Egyptian will not be a one time unique production. Panerai has spent a lot of money with tooling and producing these cases. I would not be surprised at all if Panerai comes out with different versions of the Egyptian such a... 

Absolutely Right

 
By: patrick_y : January 31st, 2009-13:16
It really boils down to the number made in the limited edition. The R&D costs need to be spread over thousands of units in order for the watch to be profitable, if you're spreading it over a few hundred, then in order for it to be profitable, it's going t... 

Tooling and production costs.

 
By: BDLJ : February 1st, 2009-16:43
Without knowing the exact manufacturing method, it is difficult to determine cost per watch. If the case is formed via multiple stage presses followed by a polishing process, then it follows that amortising the tooling cost will push up the cost per piece...