That's the price, but as someone ignorant of this area, I don't know enough to even guess margins from that. How expensive are the parts? I would assume that grade of mechanical components aren't cheap. And we should probably price in the labor.
Likewise, long ago, Rolex was a toolwatch brand and their products were relatively affordable. They are still great, but prices are insane. Vacheron Constantin is on a different class, though, as they sell lots of watches in the high horology category. Insanely complex and difficult to produce. Some similar brands have had financial issues or gone bankrupt.
And let's not even get into how much money they spend on marketing and sponsorships ..
The actual raw material has to be a fraction of the worth.
It’s actually a good case study. It no longer makes sense to buy a fine watch from an American retailer. The tariffs incentivise a trip abroad. (I’m seeing something similar happen with skis.)
Not really. I’m bringing back a few thousand dollars of mounted, probably lightly-used, skis. Nobody expects to declare random purchases made abroad. Much less an article of jewellery on their wrist.
Hypothetically, one could simply wear the watch on their wrist on the flight home. Personal jewelry is not subject to duties.
They make the parts.