Originally Posted by StephenB
Why would a "fake" watch manufacture use all the same materials and construction techniques then sell if for 5% of his competitors? Why not slap his own brand on it and sell it for more? At that point its no longer "fake" and just a "value brand". But you don't want that, you want a fake watch somehow made in the exact way as the real one for 5% of the cost...Not sure if real, or just trolling.
5% is a figure I made an educated guess about, but, yes, the gold, steel, crystal, and labor necessary to create a $20,000 watch is nowhere near $2,000 - let alone $20,000.
Advertisement, research and development, huge overhead (i.e. retail stores in Manhattan), and a massive, disproportionate, unexplainable/untied-to-cost price inflation on top of that; that's where the cost of a non-replica watch goes. Whereas with a replica watch you pay for material, labor, bare bones overhead, and a pencil-thin profit margin (due to actual competition) - and you get the same product.
At least, that's my understanding of it, based upon an hour of reading Google results on the subject.
Edited by BigRob - 11/1/13 at 7:11pm