Story Highlight
– Swiss watch servicing is costly and time-consuming.
– Consumers unaware of future servicing expenses when purchasing.
– Service costs vary significantly depending on watch complexity.
– Servicing generally unprofitable for retailers and manufacturers.
– Suggested solutions include transparent pricing and payment plans.
Full Story
Rob Corder, editor-at-large at WatchPro, reflects on a common plight shared by owners of high-end Swiss mechanical watches: the often frustrating experience of servicing these luxurious timepieces.
Like automobiles, a mechanical watch’s intricate components are subject to wear over time. Parts can become less effective, seals may lose their integrity, and lubricants degrade, affecting the watch’s performance. While advancements such as synthetic materials and improved design can enhance durability, manufacturers still advise servicing watches every five years, ideally every decade, to ensure precision and reliability.
With production figures nearing 10 million mechanical Swiss watches annually over the last 30 years, an estimated 300 million modern timepieces now exist that necessitate regular maintenance, leaving aside the complexities of vintage models.
Despite substantial investment in the enhancement of watch technology and customer service, the maintenance aspect appears overlooked. Owners often face substantial costs and lengthy repair times, drawing unfavourable comparisons to the more streamlined servicing typically associated with prestigious cars.
Retailers, too, find themselves in a tough position. They aim to foster enduring relationships with customers, but the servicing process often undermines this goal. John Shmerler, CEO of The 1916 Company, highlighted the two principal flaws in the servicing system during a recent discussion on The Luxury Society podcast. “The first problem is that brands rarely explain the true cost of ownership when selling a watch. Customers aren’t told they’ll eventually need servicing that may cost several thousand dollars. The second issue is turnaround times. Waiting months, or sometimes much longer, for a watch to be repaired simply isn’t acceptable,” he stated.
While manufacturers provide estimates for service costs and durations, the real-life figures can be daunting. Servicing a basic automatic watch can range from £500 to £700, often taking up to two months. For more complex models like GMTs or chronographs, costs can soar by 50% with longer wait times. Complicated pieces, such as tourbillons or minute repeaters, can demand bill amounts reaching £10,000 and take almost a year to repair.
The conversation around the total cost of ownership often goes unaddressed at the point of sale, and Corder argues it warrants consideration. He suggests that the cost of servicing—approximately 10% of the purchase price—could potentially be incorporated into the initial buying price, similar to extended warranties.
Alternatively, he advocates for retailers to consider offering manageable payment plans, allowing buyers to spread the service cost over time. This would provide a less noticeable financial commitment and enhance customer satisfaction.
While discussing solutions, Corder notes the apparent lack of industry response to these issues. For instance, Watches of Switzerland provides a service page that outlines the necessity of maintenance but appears limited in scope by promoting an extended warranty that does not cover servicing costs.
Despite the high expense associated with servicing, this segment of the industry is not particularly lucrative. The maintenance process demands thorough disassembly, cleaning, parts replacement, lubrication, reassembly, and calibration—an intricate procedure that might take certified watchmakers over eight hours to complete. Added to this are the substantial salaries for these skilled workers and the investment required for fully equipped workshops.
Most retailers itemize servicing as a cost rather than a revenue source, leading to operational choices that exacerbate service delays. This often results in a shortage of skilled personnel and necessitates reactive inventory management, further complicating timely service delivery.
Corder proposes a shift towards transparency regarding servicing expenses and duration, suggesting a new business model could enhance profitability. Such a change might necessitate higher initial service fees but could be made more palatable through incorporation into the watch’s selling price or distributed across multiple years.
