So are watches cheaper in Switzerland? The question does not have a particular answer. A watch may be cheap in Switzerland but it will quickly accumulate costs in the process of shipping it to your country. Keep reading to find out things that can affect the cost of your watch.
What Affects The Cost Of Watches
- Currency – The currency of purchase can affect the cost of the watch you want to acquire. The value of currencies fluctuates every time. This means when your local currency strengthens against the Swiss franc, watches from Switzerland become cheaper.
However, the Swiss franc is a very strong currency which means that watches made in Switzerland will generally be expensive in most other countries. Even if your currency would have given you an advantage, watchmakers tend to adjust the price of their watch to cancel out the advantage. - Transportation cost – The major reason items are cheaper in the countries they’re produced is because they do not need to be transported across long distances.
The cost of a swiss watch may look cheap when compared to its equivalent in your country, but the fees incurred in shipping the watch to your home country may bring the cost to par with its equivalent in your country.
However, if you are visiting Switzerland for a vacation, buying your favorite watch could be a good deal for you. - Value Added Tax – Value-added tax is a percentage of the cost of a product that goes directly to the government of the country where a product is produced. The price of a product may be $100 but it will sell for $115 if the VAT in that country is 15%. The VAT in Switzerland is 7.7%. which means you’ll get a $1,000 watch for roughly $1,070. If the rate is higher in your country, a watch from Switzerland will appear cheaper when compared with its equivalent in your country.
To encourage export, countries don’t place VAT on products for export. This means you’ll get a VAT refund on a watch you’re buying from Switzerland if you applied for a VAT refund. - Custom fee – To discourage import, countries place custom fees on imported goods. Countries frown more on luxury products ranging from cars to swiss watches so you will want to find out how your country taxes items like these to know if it gives you an advantage or not.
The custom fee eliminates the advantage of a VAT refund bringing the price of a watch bought in from Switzerland to par with the price of the watch in Switzerland. - Supply and Demand – Watch Brands highly regulate their watch supply to ensure maximum profit. This is why luxury brands are very expensive in the first place. However, when certain factors prompt watch brands to increase the supply of a product type, the price of that watch type falls to maximize sales and profit. Unfortunately, it is unlikely for watch brands to compromise price for quantity.
Instead, they do the opposite by decreasing supply sending prices skyrocketing. If they however increase the supply of your desired watch type, it opens up a window for a cheaper deal. When the demand for a watch is high, the price of the watch also skyrockets. When demands fall, watch brands may be forced to reduce the price of their products to make more sales and maximize profit. Demands usually fall for watches that have been in the market for very long making them more affordable if you’re looking for something on the cheaper side.
a good rule of thumb is – The bigger the difference between supply and demand the more expansive the watch is (if the supply is lower than the demand) - Brand – Although many don’t know, a large chunk of the money spent on luxury watches goes to the name of the brand. This is why the brand of the watch you’re going for really matters.
Buying a watch made by watch brands like Rolex, OMEGA, or Patek Philippe is going to be very expensive. You’re not only paying for the quality of the materials the watch is made of or the craftsmanship that goes into making it but you’re also paying to carry the name brand name on your wrist. More than 80% of the total cost of luxury watches is due to the name of the brand, and not the actual quality of the watch.
FAQ
In which Country Can I Get Cheap Watches
The prices of watches are highly regulated by watchmakers making their prices almost the same everywhere. However, getting a fairly used watch is the best way to go.
Is It Cheaper To Buy A Watch In Your Country
It is best to buy a watch in your country however, you can estimate the cost of buying it from another country and shipping it to yours and choose the cheaper option.
We’ve Seen That
A lot of factors play out in determining the price of a watch from a foreign country and that will affect the total cost incurred in the process of acquiring the watch. Take all factors into consideration and choose the options which are best for you.
