Even with modern technology, a quality watch can take weeks or months to manufacture. Though the majority of watchmakers would very much like to produce their watches faster, it often isn’t cost effective, and the reason for this is the complexity involved in the watch design, especially their movements.

What Is Watch Movement?

Watch movement, which is also referred to as calibre, is the watch’s engine.  It is responsible for making the watch function and operate. This mechanism will make the hands move as well as power other things like the calendar, time zone or chronograph.  Many if not most of the high end companies produce their own custom movements in-house. The same is true for some mainstream watchmakers.

Watch movement is usually designed in-house because it’s cost effective, but mechanical movements will always be more expensive to produce than quartz movements, and the majority of luxury watches are mechanical. There are brands that purchase movements and then install, decorate or modify them. But the inexpensive cost of a quartz watch is nothing compared to mechanized tourbillon movement.

Additionally, mechanical based movements come in many complications, grades and styles. For example, a simple automated mechanical chronograph that is produced in Switzerland might cost around $250. A quartz chronograph made in Japan will typically cost around $20, which is a big difference, and this does not include the truly exotic timepieces.

Movement Manufacturers Are Notoriously Picky

Manufacturers who excel at making quality movements tend to be picky. For example, some of them must approve a project before agreeing to sell movements, especially if they are intended for watches made outside of Switzerland. They might also restrict their movements for brands which are not part of their parent group. As you can see, this dramatically drives up the movement cost.

For truly exotic watches, the price per movement can reach $10,000 or more. A famous company called BNB Concept actually went bankrupt because the brands were unable to cover their cost for expensive timepiece components. It is not that BNB Concepts overpriced their products; the cost was a reflection of the complexity and difficulty designing their movements. This is the real reason luxury watches are often made in limited quantities. It isn’t just a marketing gimmick; it is because of the high cost involved with producing their movements. High end watchmakers can’t afford to have their watches sitting unsold for long periods of time due to high development costs.

Lower Quantity Results In High Cost

A company like Casio wants to sell millions of watches. As a consequence, their tooling and development costs are usually distributed thinly for each watch. Even if they have to spend millions to produce the watch parts, they know they will get a positive return on investment. A luxury watchmaker who on average manufactures far fewer units must charge more for each, especially when the movement is exceptionally complex.