Exclusivity
Watches that are made in very small numbers or limited editions are priced accordingly. George Daniels watches are all hand made. These are exquisite timepieces and are understandably expensive.
Rarety
Some watches are rare by circumstance or by virtue of the original owner. These watches are unique enough to claim a high price.Example: All of the Omega Speed masters that were part of the Apollo mission are owned by NASA, (US Government property). A Bulova watch was worn by astronaut David Scott when his Omega crystal popped off. This Bulova was Scott’s personal watch that was worn on the moon.
Branding
Things that are associated with luxury are expected to be expensive and because of the name on a dial the price can be stratospheric. The underlying sentiment is, “We should set prices based on what our customers are willing to pay, not based on our costs.”
The very idea that part of the expense of high end watches is vested in R&D is ludicrous. If Tissot can develop a new movement and charge less than $500.00 for this innovative design, surely Patek Philippe can sell their precious pieces for less. It is the mythos of Swiss craftsmanship hidden behind parts provided by ebuches that should make the buying public second guess their choices.Actually high end watches are only best at separating people from their money. Those companies are best at marketing or influencing public perception. Why else would Audemars Piguet, Hublot and Rolex pay dearly for celebrity endorsements if not to convince the public that their brand was worth the extra thousands they charge