Why are Richard Mille watches so expensive?

First of all, it has to be said that the cost of producing an RM is very high, but not as high as the price suggests.The profit margin is a “big” part.

Watches start from €70,000 (?) and ends at €1,500,000 for the Saphier RM 056

(RM 056 -> 1,460,000€)

The average price is about 200,000€ of which I about 120,000€ -140,000€ (60%-70%) marketing and prestige.

The more expensive the watch becomes, the more marketing surcharge is added to it. Starting at a price of approx. 400,000€, I could imagine that from then on only because of the prestige the surcharge exists and the manufacturing costs do not rise too high.

RM watches can be imagined as limited-edition shoes.Most of the watches only exist 100 pieces and from 300,000€ the number shrinks drastically. Of the most expensive model (056) there are only 5 (!) Copies.

Whether a Richard Mille is beautiful or ugly, you have to decide for yourself (I find 90% potty) but you should consider these watches less as a watch, but more as an art object.

Many of the models have something “special” that make them:

  • The only watch in the world whose case is made of saphier glass (056).

This is an absolute masterpiece, unique and almost unimitable.

  • A watch consisting partly of meteorite rock (RM 018):
    • An erotic watch (RM069 <- what a coincidence at 69)

    (While other manufacturers have produced similar and even more perverse watches (see Ulysse Nardin Hourstriker Erotica Jarretiere” or the “Classic Voyeur”[1) this watch is still something special.

    The watches themselves are produced at the highest level (should one expect at the price) although I think that a certain level of perfection simply cannot be exceeded.

    Such a level also has e.g. Patek Philipe or A. Lange & Söhne and these watches do not (normally) reach 200,000€ (the average price of an RM).

    The materials are extremely expensive (platinum, gold, saphier glass, diamonds, meteorite)

    The function(s) are unimaginably complicated and complex.Only a handful of watch manufacturers possess the knowledge to produce a tour billion (to improve accuracy). This is the Absolute Elite. It takes several months just to develop the concept of a watch and to develop and ultimately build several years of engineering feat around the clock. Few people understand how hard it is to do something mechanical (!!!!!) that the time is perfect and without a large time deviation.The accuracy of these watches is so clean that they are hardly different from the accuracy to the “perfect” quartz watches. Such watches usually have more than 300 different parts in their movement and that in the smallest space (the dimensions of the watch). Some parts are a fraction of a millimetre in size and are manufactured in the most elaborate manual work for weeks in absolute perfection with the help of microscopes.

    By and large, the price is made up of the materials used, the complexity of the movement and the resulting workload.However, the main part of the prize is made up of marketing and image.

    Personally, I wouldn’t buy RM, even if I could easily afford them simply because I don’t like them visually.I would always prefer a Patek, Long and Sons or a “cheap” and “simple” Rolex to an RM. In spite of this, an RM as mentioned is less a clock, but a work of art and tastes are different.

    I hope I could answer your question

    Arni :)

    Footnotes

    [1 Video – manager magazine

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