If wages are so high in Switzerland of course it is going to effect the price of everything that is manufactured in that country, including their watches . Why do you think that clothing companies are located in China, Viet Nam and Cambodia instead of Austria, Switzerland and Germany ?http://www.bbc.co.uk/news/business-27459178
And, frankly, I doubt the minimum wage in any nation impacts the price of a fine Swiss watch.
JohnWN
Switzerland --and most specifically Geneva, where most of the very expensive watches are made-- has indeed a cost of living among the highest in the world (ask me, I live and work there).If wages are so high in Switzerland of course it is going to effect the price of everything that is manufactured in that country, including their watches . Why do you think that clothing companies are located in China, Viet Nam and Cambodia instead of Austria, Switzerland and Germany ?
Yes, it makes sense, it's the same as an automobile such as Mercedes or Rolls Royce. Even with a 70 or 80 per cent discount ,would a worker in the watch factory be able to afford such an expensive watch like Patek ?Switzerland --and most specifically Geneva, where most of the very expensive watches are made-- has indeed a cost of living among the highest in the world (ask me, I live and work there).
This being said, the cost of manufacturing a top of the range Patek is said to be only about 20-30% of final retail price (at least this is the "at cost" price at which employees can purchase one watch every year for family)... but I strongly doubt a Rolex is that costly to make : they churn them out of a factory like Volkswagen used to make Beetles, and they are still the biggest single brand in annual sales.
So yes, cost of labor does have an impact on the base price of high-end Swiss Watches, but final price is only a function of what (filthy rich) buyers WANT to pay to get/give the impression they own something unique... which was true in days past, but the recent pressure to come up with new models every year, abuse of "Limited Editions" strategies to inflate prices, etc. has made the whole thing rather disgusting and meaningless I believe.
=> the price of an entry-level no frills Patek will buy you three or four vintage 1970s Hi-Beat Seiko divers (or if you prefer four NOS 6105-8110 like the one currently offered on eBay #201084461416) : does it make sense??
:iagree:.... So yes, cost of labor does have an impact on the base price of high-end Swiss Watches, but final price is only a function of what (filthy rich) buyers WANT to pay to get/give the impression they own something unique... which was true in days past, but the recent pressure to come up with new models every year, abuse of "Limited Editions" strategies to inflate prices, etc. has made the whole thing rather disgusting and meaningless I believe.
Well if you take that approach then abolish the minimum wage and let those folks work for a buck an hour or whatever the employer deems to pay them and while you're at it lets cut all wages by 50% I'm sure that will help the economy.well bottom line...it will increase costs for every business...foolish when people push to increase minimum wage..just create better paying jobs...not make the bottom jobs money...only people who have never run or owned a business push for this...
