We all love to shop online and even more we love to shop for hot items that are very hard to find. So certainly there are folks right now that are trying to purchase a Rolex or Patek Philippe that are impossible to find at retail. If you can find these hard to find timepieces, it can be difficult to find at reasonable prices. Dealers and others who promote products of artistic and or luxury watches know that perception and availability of these products for folks is critical and much more important than cost. So long term or short term demand of some products pushes the supply low and causes collectors and others to purchase the products regardless of pricing or true value. While some of the timepieces in demand can be valuable and hard to find, this makes them even more exclusive and can get the attention of collectors from around the globe.
Many of the timepieces by these high end luxury brands are also done in limited editions and limited quantities and therefore cause an even more scarcity of the watches. Brands can control some of this with limited supply of the initial release of timepieces, and some companies are now limiting supply of high-demand timepieces, like sport watches, in order to drive that demand up. Sometimes the profits for a brand can be reduced when this initial tactic is implemented, but can in the long term increase market demand for the brand and the products.
Some Watches by Rolex and Patek Philippe are impossible to find at retail because of the strategy the brand chose at release. A precious metal-based timepiece will have better availability than some of the simple steel pieces which can be difficult to find. Brands know which pieces are going to be more attractive to consumers and therefore they can simply limit supply to retail stores and create a intended limited supply. Retail stores don’t know what shipments will be arriving either so it is difficult to take orders or satisfy customers that are wanting the in demand timepieces. So when an in demand timepiece does arrive at a retailer, they might contact a loyal customer that is willing to pay much higher than retail for the piece and make a sale in that manner. The most exclusive in demand luxury watches can be a hot commodity for retailers who have consumers who are willing to do business in that manner.
Consumers with a high disposable income have no problem working with retailers who can provide them exactly what they are looking for at the right price. These rare timepieces can have a value to collectors that far exceeds their inherent value. Like any collectible item the demand and value of the item is based on perception and desire of those wanting it. Collectors understand with education and experience how valuable a watch can be and realizing that value is what keeps this process working. While some large corporate interests have grown their markets over the last few years, Patek Philippe, Audemars Piquet and Rolex are not owned by a large group and can execute a strategy of producing less, keeping demand high and creating a scarcity, which in truth is how the world of luxury products works. Educating yourself about luxury timepieces is knowing what you should be looking for and understanding what it should be worth.
