TIME 2 CALIBRATE POD

OPINION - WATCH PRICING

I recently heard on a watch-related podcast that one of the hosts expressed a desire for collectors to focus less on pricing, stating that he dislikes seeing comments such as "it's too expensive." This person is evidently detached from reality, as modern watch consumers are more focused on pricing than ever before. Price is likely the most critical factor influencing their decision when purchasing a watch. To dismiss this as a knee-jerk reaction to labeling things too expensive is to ignore your audience's primary concern.

In an era of unprecedented cost transparency and the rise of micro-brands offering exceptional value, it's essential to consider examples like Christopher Ward. Their pricing structure is straightforward: they charge three times the cost to manufacture each timepiece. Yes, this is a direct-to-consumer model, as are many, if not all, of the previously mentioned value-added micro-brands. Today’s consumers are more informed than ever.

Websites like Watchcharts.com and resources like Calibercorner.com make tracking trends and comparing different watch components easy. The days when brands could conceal information behind fabricated movement numbers are over. Knowledgeable enthusiasts can now piece together the whole picture. But how did we transition from where we were to this point? When did five-figure steel watches become the standard? Before we answer that question, let's revisit the early days of watches on the Internet.

Using the Wayback Machine on the Internet Archive, we can step back in time and see what watches used to sell for. The year is 1999, when websites like Timezone.com and watchnet.com once ruled the web. Consider sitting down while reading this. Cartier Santos two-toned on bracelet (near mint) $1350, IWC Fliegerchronograph on bracelet pre-owned $1690 (MSRP $3595), Omega Seamaster Pro “Bond” quartz on bracelet $795 (MSRP $1,395), Rolex GMT-Master ca. 1971 on early jubilee bracelet (near mint) $1,890.

Photo Credit: Don Indiano

Let’s take the Breitling SuperOcean as an example. In 1999, this watch had a retail price of $1,750 when sold with a stainless steel bracelet. Today, its 42mm successor has a manufacturer's suggested retail price (MSRP) of $5,650. While the new model features a ceramic bezel and a more sophisticated clasp, it essentially contains the same movement as it did 26 years ago. However, it is now a Sellita movement, rather than an ETA. $1,750 in 1999 is equivalent to $3,359 today. Is the new SuperOcean $2,300 better than its predecessor?

With economies of scale, improvements in manufacturing, automation, and other factors, the cost of manufacturing these objects would decrease. It has not. Although material costs and labor have risen over the years, they are not the only reasons for the price increases. A lot has to do with supply and demand, which was exacerbated by the worldwide pandemic, and then there’s the Rolex factor.

Whether by design or not, Rolex cannot keep up with demand, and as a result, it has been steadily increasing its prices. Why? Because it can. The impressive prices that its pre-owned watches are fetching only encourage it further. Because Omega desperately wants to be seen as the Rolex alternative, it has also increased its pricing. However, it has stepped up its movement and materials game.

The Omega Seamaster Pro 300m, known for its appearance in Pierce Brosnan's James Bond films, originally retailed for $1,725 (equivalent to $3,311 today). When bought on a bracelet, the current version of this watch is priced at $6,200. Does the new movement and the incorporation of ceramic materials justify the nearly $3,000 price difference? Some enthusiasts even prefer the older model for its slimmer case and timeless appeal, but that’s another discussion.

Sadly for us, Grand Seiko also has its sights on the crown. In the late 1990s and early 2000s, their watches were considered the best value on the market. However, sourcing them was challenging since they were only available in Japan. Since they expanded to global markets, their popularity and prices have risen significantly. I was told by an authorized dealer that they lost the right to sell Grand Seiko watches because they wanted to feature alongside Rolex in another store.

As brands like Omega and Breitling have increased their prices, a gap has emerged for companies such as Oris and Longines to raise their prices to levels similar to where Omega and Breitling used to be. Although Oris and Longines have improved their materials, design, and movements, it would have been hard to believe 15 years ago that a titanium Longines Spirit Zulu Time would cost $4,500. Or that an Oris Big Crown Pointer Date would cost $4,300. In 1999, you could get one pre-owned for under $500.

Photo Credit: Roldorf & Co.

In its wake, Swiss brands like Hamilton, Tissot, Mido, and smaller independent brands like Formex, Oak & Oscar, and Isotope are filling the vacuum. Their recent popularity is undeniable, and many, including myself, believe they are producing watches that offer exceptional value for their price. We are fortunate that Swatch Group brands have a defined hierarchy and cannot rise significantly within it. Let’s hope those other brands remain accessible while continuing to push the boundaries of what is possible.

Social media has also significantly contributed to the price rise, particularly during the global pandemic. We witnessed a perfect storm, with people confined to their homes, having access to social media, and possessing disposable income that would typically be spent on vacations, dining out, and other unavailable activities. That’s when everything got entirely out of hand, and watches from brands like Audemars Piguet, Vacheron Constantin, Patek Philippe, and Rolex started selling pre-owned at 3 to 10 times the retail prices.

The market has since corrected itself, but prices have not returned to pre-pandemic levels. The issue is that many brands became overly optimistic, believing that demand would persist indefinitely. Those who took risks regret their decisions, contributing to the underwhelming Watches & Wonders shows of the past few years. As brands reduce production, they are reluctant to cut their profits. Consequently, many have chosen to raise their prices instead. By selling fewer watches while maintaining higher profit margins, they benefit from this strategy. Unfortunately, it is the customers who ultimately bear the cost.

I understand what you might think: We should all buy micro-brands and be satisfied. Unfortunately, it isn't that simple. My local watch group and I recently discussed pricing and branding deeply. While we like to consider ourselves non-snobbish watch enthusiasts, the reality is that it's nice when someone recognizes and admires the watch on your wrist. Regardless of snobbery, these watches are aspirational items, and for many, especially those outside our circles, the brand name carries significant meaning.

I believe that the value of items—whether cars, electronics, or even watches—depends on what people are willing to pay for them. Currently, that seems to be the case. As long as individuals are willing to wait months or over a year for a five-figure watch, brands will continue to set high prices. Personally, I hope prices return to a more reasonable level. While these items are intended to be expensive, I find it excessive that Girard-Perregaux has introduced a vintage-inspired 200m dive watch on a rubber strap priced at $15,100. In my opinion, that is simply… Way too expensive.

Our Favorite Releases of the Year (So Far…)

 

NEW PODCAST

 With the help of two of my Canadian Friends, we started a podcast!

Time 2 Calibrate Podcast is a about watch WISdom. The Oxford Dictionary defines wisdom as the ability to make sensible decisions and give good advice because of experience and acquired knowledge. Unfortunately, it’s too late for sensible decisions; however, we’re not lacking in experience. As seasoned Canadian Watch Idiot Savants, we invite you to join us semi-weekly as we discuss the world of watches and the insensible decisions we make, so you don’t have to.

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Marc @marctime2watch - Bob @timetogo1978 - Robi @calibre321

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It's about more than watches, it's about memories!

Watches are meant to be worn. You have probably heard that before and I am very much guilty of repeating that phrase multiple times. It is not to say that a watch cannot be a safe bound collectible, I mean there’s nothing wrong with that. Gerry: No, no, of course not! People's personal watch wearing preferences are nobody's business but their own! However, there’s more to this than just wearing it for the sake of wearing it.

Over the years, I have come to see my watches as talismans of our shared history. At any given moment, if I see an old picture of one of my watches, memories come flooding back. For example, a couple of weeks ago, someone posted a picture of an Omega 2254.50 (the black one that came out right after the Brosnan Bond model) on the Worn & Wound+ Slack Community and I immediately thought of the America’s Cup version (same watch, but with white gold bezel) I wore during the birth of my first child.

Felt like it was just yesterday, timing contractions on my Omega and the anticipation of meeting my little man for the first time. Labor was a lengthy thirty hours and wound up in an emergency c-section. Once the nurse took my son from my arms and I was asked to leave the O-R, I was still in a state of shock. I remember backing out into a side room and falling into a bench frame that was missing the seat. There I was, no one else around, I was stuck and so overjoyed, crying and I looked at my watch. It was 4:30pm on Jan 4^th, 2002. Happiest day of my life.

After this event, I had vowed to have a chronograph, should I ever find myself in the same position again. Timing contractions with a dive bezel was challenging. Fast-forward two years later and I was racing to the hospital with my wife, sporting a Credor Phoenix time only watch. Go figure, the horological Gods were playing a joke on me. Not even a timing bezel this time! Not that I would need one, this time it was only 45-minutes and voila, my second micro-dude was brought into the world.

Even though I do not own either of these watches anymore, the memories associated to them will always make me smile. This is why I started my Instagram page. Not to gather followers, or get watch news, but to catalogue my journey through watches. This way, I could scroll down and as I see my collection ever changing, I can remember the good and bad times I had while wearing those watches. Like the time I found out my father-in-law had cancer, on the same day I received my Omega Planet Ocean 8500. Or when my mother passed away in January of 2018. I was wearing an Omega Seamaster 300 when I was cleaning out her apartment and got a pretty big scratch on its clasp while moving some furniture.  

Our watches follow us everywhere and are worn more consistently than any piece of clothing. Some of us even wear them to sleep and we stare at them incessantly, sometimes without even noticing the time. While I truly admire the craftsmanship, the details, the accuracy, and the precision of watches, it is the memories I have built into them, as life passes by, that I love the most. Allow me to offer one more recent story.

In September of 2019, just as the school year was starting up again, I wanted to take the family on one last small trip to mark the transition from summer break to the grind of the school year. I was trying to find some place not too far away and something he had never done before. That is when Google steered me to Mont-Mégantic dark sky preserve and its observatory at the top of the mountain. I have always been an astronomy fan and I figured the kids would really get a kick of seeing the night sky away from the city’s light pollution.

So, I booked tickets and a quaint bed and breakfast at the base of the mountain. On the Friday at the end of my boys’ first week of school we set off. We picked up the kids from school and started our 3-hour trek to Mont- Mégantic. We did not tell the kids where we were going. They were so excited but were really getting puzzled the further and further we got from Montreal. By the time we had picked up McDonald’s for supper and got within the dark sky preserve they were starting to get worried. Why are there no streetlights and why are some of the house lights red and pointing downwards?

When we got to the base of the mountain, I popped the trunk and told the kids to suit up. All our winter weather gear was in there. The temperature difference from the base to the peak was 10 degrees C and the observatory scope was open to the elements, as the scope’s lenses would/could fog up if there was a temperature difference between the outside and inside. That is when I told them where we were and why we were there. Their eyes lit up and they were so happy. I guess all those years of listening to the Star Talk Podcast with me must have ignited some curiosity.

We got very, very lucky with this trip. Not only was it a clear night with no clouds, but it was also a Moonless night, which meant that we could see even more. It had been a long time since I had seen the sky this way, not since my childhood in the scouts and the rest of my family had never seen the milky way with their own eyes, in the open sky. It was even more impressive than I remember. There was barely any black in the sky, just white dots everywhere.

There was an astronomer there, with a laser pointer, explaining what we were looking at outside. Jupiter, some of its moons and Saturn were easily visible to the naked eye. They have a large telescope outside, on the ground that we could take turns looking through and then inside the observatory, we could climb the stairs and look through the giant scope. It is one thing seeing Saturn and Jupiter online and in books, it is an entirely different experience seeing them through a scope, clearly. We spent hours there.

Much later that night, sitting up in my bed at the B&B, talking with my family about what we had just witnessed. My Omega Railmaster was resting on my lap. I could not help but feel blessed to have shared this incredible experience with my family. The next morning, we visited the even larger research scope at the very top of the mountain, the one reserved for university scientists and then made our way back home.

That Railmaster meant a lot to me, until I was the victim of a Watchuseek.com scam and it wound up in the hands of an Icelandic thief, but that is a story for another day. My point is wear your watches, enjoy them, allow them to accompany you through life’s adventures. Put some scratches and bumps on them. Build in your memories, just like Blake Buettner’s Rolex Submariner reminds him of his son’s sporting events and recently Chris Antzoulis wrote a terrific piece about his friend’s pocket watch and how it got him out of a funk.

Watches are meant to be worn. Wear them!

Chance to bid on Geddy Lee's watches & help a charity!

If you are not familiar with Dan Tanenbaum, perhaps you recognize his Instagram handle @watchpartsmotorcyle. His artwork made of watch parts has been catching my attention for years and when I heard that he was organizing a charity auction I had to find out more. However, first I had to know more about his art.

I directly messaged him on Instagram and asked how it all got started. “I’ve been collecting watches for over twenty years; I was captivated by the intricate movements within these timepieces. I love the sentimental journeys these watches have taken, the significant life events they have witnessed… I couldn't bear the thought of their final resting place being a garbage heap. This is what led me to breathe new life into them, via a different artistic form.”

I figured acquiring all those watch parts would not be easy, so I asked him how he does it. “My quest for parts takes me to numerous antique shows, estate sales, and flea markets. Additionally, various watchmakers send me pieces that are no longer in use or are damaged. It's important to note that no watches are harmed or dismantled for the sake of creating my sculptures.”

If you have seen his sculptures, you must wonder how he makes them look that way. Here is what he had to say. “The primary challenge is that all watch parts are flat, while some of my artwork requires a delicate bend to conform to specific shapes. Preserving the integrity of these watch components while incorporating them into pieces with intricate curves demands strategic bending and manipulation.”

Having satisfied my curiosity, I figured I should finally ask him about his charity auction since that is why I contacted him in the first place. “My twin boys were both diagnosed with Crohn's disease, 18 months apart, and having experienced firsthand the impact of this condition, and wanting to raise not just funds but also awareness, I decided to organize this Charity Watch Auction to support Crohn’s and Colitis Canada. I've been fortunate to gather support from remarkable collectors, brands, and micro brands, including a very generous donation of five remarkable watches from Geddy Lee of Rush, an avid watch collector.”

From Geddy Lee’s vintage Heuer Camaro chronograph, to a MB&F M.A.D. 1, to a brand new donated Zenea Ula Diver, there is something in this auction to please every horological palate. Why not treat yourself and help a great cause? For more details and to bid, follow this link below. The auction is March 10th at 4:00pm Eastern Time.

A MATTER OF TIME - A CHARITY WATCH AUCTION