How to Calculate The Price For Your Watch
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your watch brand.
Please input below:
More Tips On Pricing Your Watch
How To Price Your Watch
One of the most challenging aspects to starting a watch brand is determining how much to charge for your watch.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your watch, it's critical that you first identify all of your costs and consequently mark up your watch so you can factor in a profit.
The actual cost of your watch may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your watch, you'll want to create goals for revenue + how much profit you want your watch brand to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your watch is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your watch fits best in the marketplace.
All of these factors play an equal part in pricing your watch, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful watch brand:
Delray Watch Supply ($3.84M/year)
John Pietrasz from Miami, Florida, USA started Delray Watch Supply about 4 years ago, a watch brand.
- Revenue: $320,000/ month
- Founders: 2
- Employees: 4
- Location: Miami, Florida, USA
Hi! My name is John Pietrasz, and I am co-founder of Delray Watch Supply, DelrayWatch.com - informally known as Delray Watch. We are a tech-driven luxury watch dealer with a focus on the true watch collectors, casually known as “watch geeks”. By aid of a proprietary algorithm, we, my business partner Federico Iossa and I, are able to offer collectors the most for their pieces on trade, while still remaining competitive in our listing prices.
The core of our business is the buying, trading, and selling of luxury watches priced between $3,000-$6,000. Though, we do work with some higher-level pieces up to the $60,000 mark, as well as some more approachable models in the $1,000 range. We also have a grand complications master watchmaker on staff, Hans, that helps us to offer Swiss-level watch service on each and every piece that floats through our doors.
I started this business with my partner, Federico Iossa (popular from the YouTube series ‘Federico Talks Watches’) 20 months ago with $4,000 in a kitchen, and now see sales of over $3.3 MM annually, at the age of 28.
Theo & Harris ($1.8M/year)
Christian Zeron from New Jersey, USA started Theo & Harris over 6 years ago, a watch brand.
- Revenue: $150,000/ month
- Founders: 1
- Employees: 3
- Location: New Jersey, USA
I’m Christian Zeron, I’m 23, the founder of Theo & Harris and I get people excited about old watches.
Really, I should be getting out of law school in May (with 200k in debt) but instead, I’m turning out over $2M in vintage watch sales a year.
Elliot Havok ($1.8M/year)
Steven Elliot Ng from San Francisco, CA, USA started Elliot Havok ago, a watch brand.
- Revenue: $150,000/ month
- Founders: 1
- Employees: 5
- Location: San Francisco, CA, USA
My companies started when I was looking for quality fashion products that wouldn’t break the bank. But most brands we found that actually created decent watch or wallet had an exorbitant price tag. Currently, the accessory market is dominated by big brands with huge retailer, wholesaler, and simply middlemen markups.
Furthermore, there aren't many quality brands that offer socially conscious products. That means using quality, responsible materials, and offering them at a reasonable price. On top of that, we believe in the quality of our products so much, that we offer extended warranties on our products.
Button Watch ($1.32M/year)
Chema Echanove from Madrid, Community of Madrid, Spain started Button Watch ago, a watch brand.
- Revenue: $110,000/ month
- Founders: 3
- Employees: 5
- Location: Madrid, Community of Madrid, Spain
Hello to you all! I’m Chema Echanove, one of the three co-founders alongside Javier Echanove and Daniel Ferrandis.
We are Button Watch, the first watch in the world with interchangeable cotton straps that fastens with a button, just like a shirt. With more than 1000 combinations between cases and straps, we surely can say ‘’One watch, infinite looks’’.
After almost two years we’re going to close 2019 with $1.5M in revenue.
Ronnie Teja from Vancouver, British Columbia, Canada started Branzio over 3 years ago, a watch brand.
- Revenue: $25,000/ month
- Founders: 1
- Employees: 10
- Location: Vancouver, British Columbia, Canada
Hey guys, my name is Ronnie Teja and I am the Founder and CEO of Branzio Watches.
I work with a 100% remote team of over 10 people, and my main base so to say would be Vancouver, Canada. I started Branzio with an inspiration to provide men and women quality watches for a good price with the best service possible.
My focus is primarily men's fashion watches, which are made with the best quality materials which we source to China to assemble the watches. Our watches are designed here in Vancouver, BC and manufactured in China.
NOVO watch ($72K/year)
Steve Christensen from Alberta, Canada started NOVO watch over 5 years ago, a watch brand.
- Revenue: $6,000/ month
- Founders: 1
- Employees: 0
- Location: Alberta, Canada
Hi! My name is Steve Christensen and I handmake watches using reclaimed materials such as military tanks and train tracks at Novo Watch. I consider myself a horologist so my profession ends in -ist and my mom thinks I made it.
Our flagship product is BY FAR our Coalbanks collection watch. They’re timepieces made using train tracks made between the years of 1882 - 1885! Originally they were made in Wales or the UK and shipped to my hometown of Lethbridge to be used at Mine #8 where they facilitated the transportation of coal to build our city.
It is an iconic place to many people and it’s where we found our original traction. It even made the National news in Canada, which was wild. We completely sold out of our first limited 15 piece editions immediately and had our first-ever $16,000 day!
Bruder Watches ($18K/year)
Marcus Taylor from Bristol, UK started Bruder Watches about 1 year ago, a watch brand.
- Revenue: $1,500/ month
- Founders: 3
- Employees: 1
- Location: Bristol, UK
I’m Marcus, Co-Director of Bruder Watches Ltd, the youngest of three brothers from Bristol, United Kingdom. We pride ourselves on offering high-quality, timeless watches that don’t break the bank. Our company is in its infancy but we have already seen a fantastic appetite for our new range of timepieces called "Fortis". The range consists of five watch styles each designed to look great whatever the occasion. Our company was born at the beginning of the Covid-19 pandemic, so as you can imagine, logistically, it wasn’t without its challenges getting to where we are today.
Nevertheless, the appetite of our customer base has been encouraging, we have seen a steady increase in sales with our target audience is the modern-day gentleman aged between 18-50.
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