Buying The Statement Watch – What To Consider (Part 2)

The statement watch–the watch that signals to others that you are invested with authority and rank in an organization….or that you are ready to play such a role.

In Part 1 of our series (Reasons and Style),  Ms. Incognita wrote about some of the things you might want to think through before starting the purchase process.  This week we get down to the nitty-gritty— (1) different budget levels and good brands at each level and (2) your choices as to where you go to buy your watch.

Budget and Brands

The budget ranges provided below are meant to be helpful guidelines, not hard and fast rules. In other words, sometimes you can spend a little less in each category, particularly if you seek out some of the cost-effective ways of buying a watch that Ms. Incognita describes later in this article. Likewise, sometimes you will need to spend a little more in a certain category, particularly if you are buying a brand-new watch straight from the watchmaker or an authorized dealer.

In general, the budget ranges in each category are the least you should expect to spend for a statement watch if you fall into that category. If you happen to work in a highly-compensated field or if you are highly ambitious and want to signal your readiness to jump into the next tier, you should consider going up into the next budget level.

The only reasons for buying at a budget level below your category are (1) you already have a statement watch and you are simply filling out your watch wardrobe, (2) you are in senior management but in a smaller or quite casual company where a prestige watch might look overdone, or (3) you truly are uninterested in the boost a statement watch can provide your professional image.

If you fall into that last camp, however, do at least challenge yourself on your reasons for this. Ms. Incognita has noticed in working with a wide range of senior leaders over many professions and industries that women executives sometimes will put themselves last in a way that male executives seldom do.  The cumulative effect of this over time can result in a career image that leads others to put you last, and of course you don’t want that.  So if you are resisting spending money on yourself in certain areas, ask yourself whether the expense you are avoiding is merely an unnecessary cost or is possibly a worthwhile investment. An investment that might ease your way in your career should always be carefully considered and may end being repaid in full or more over time.

Not yet in senior management but expecting to get there

Budget: $150 – 500

What you should look for:

• Simple designs that demonstrate taste and class
• Subdued metallics. Overly shiny metals in this price range tend to look cheap.
• Nothing too oversized or ornate
• Nothing too small or dainty. Overly feminine watches in this price range run the risk of looking like cheap costume jewelry.
• Avoid department stores, and consider the internet or watch brand stores.  Generally the selection will be much broader there, and you are more likely to find the classic designs in a brand that the department store considers too boring.

What you’ll get:

• You won’t reap the benefit of a true statement watch at this price level, unless perhaps if you buy a replica of a better-known and more expensive model. (See the section on replica watches below.) However, your goal in this category is to mirror the tasteful design of a classic statement watch.

Some brands to consider:

• Skagen
• Timex
• Seiko
• Michael Kors

Michael Kors Horn-Bezel Watch $195

On the verge of entering senior management

Budget: $500 – 2,500

What you should look for:

• See previous category.

What you’ll get in this range (assuming you do your homework and stick to respected brands and models):

• Good durability
• Stainless steel or gold color or plate (usually not solid gold)
• Inexpensive repairs and changes (such as a new watch band)
• Little resale value
• Moderate statement value from easily recognized designs like Movado’s Museum watch.  Less recognizable models won’t make a clear statement, but will reflect an appropriate level of class and taste.

Some brands to consider

• Oris
• Movado
• Epos
• Low end of Tag Heuer or Baume & Mercier

Baume and Mercier Hampton Milleis $2,190 retail

In senior management but not yet in the highest tier

Budget: $2,500 – 7,500

What you’ll get in this range (assuming you do your homework and stick to respected brands and models):

• Excellent durability
• Good purchase price value (i.e.,  superior materials and workmanship with less price inflation than the next tier, especially if purchased used or through the gray market)
• High grade stainless steel or solid gold (but only on watch case–solid gold watch bands cost much more)
• Good value over time.  You may not get your full purchase price (or more) if you resell a watch bought in this category. However, if you divide the price differential over the years that you’ve had the watch, it is likely to seem like a very cost-effective purchase.
• Often worth something to the next generation
• Recognition as a statement watch with the broadest range of people since many of these brands and models are well known

Some brands to consider

• Cartier
• Ebel
• Omega
• Rolex

Cartier La Dona de Cartier $5,250 retail

In top tier management, especially at a large corporation or law, professional services, or consulting firm

Budget: $7,500 – 20,000; even more for rare or particularly prestigious models

What you’ll get in this range (assuming you do your homework and stick to respected brands and models):

• Most of the attributes of the previous category
• More complex design and perhaps hand-made;  limited production; and/or premium materials
• Possibly a good investment with a resale value that may exceed or surpass your original purchase price if you’ve selected the right brand and model
• Likely to be an heirloom watch, something you will pass on to the next generation
• Perhaps less recognizable to a broad range of people, but more impressive than previous categories to those who are sophisticated and worldly

Some brands to consider

• The higher end of the brands in the previous category (for example, a Cartier Tank with a solid gold watch band)
• Patek Phillipe
• Jaeger-Le Coultre
• And a host of other possibly less recognizable names such as Bregeut, Vacheron Constantin, and Audemars Piguet

Jaeger LeCoultre Reverso Classic $9,200 retail

Where to Buy

You have a number of considerations to weigh when it’s finally time to make your purchase of a statement watch.  Is your primary goal to save money (and if so, how much)? Or is your primary goal to limit risk (and if so, how much)?

Only you can make that decision, but here are some general observations as to the different ways of acquiring a watch (authorized dealer; gray market sellers; used and vintage sellers; and replica sellers) that will help you get started.

Authorized dealers

• An authorized dealer is a watch seller who is authorized to sell premium brands by the manufacturer of those brands.  The seller can be a watch store, a jeweler, or a store owned or licensed by the manufacturer itself.  Authorized dealers often do not sell over the internet due to restrictions from the manufacturers.  However, many can advertise over the internet and take phone or fax orders.

• Pros
  • Often the only way of obtaining a manufacturer’s warranty. Such a warranty will be honored at any other authorized dealer or directly by the manufacturer.
  • The ability to examine and try on various watches, as well as to further educate yourself by talking to someone in the business.
  • The ability to establish a continuing relationship that may be helpful with future purchases and issues with your current watch

• Cons
  • Price. New watches come at a premium price that depreciates immediately after purchase. In addition, authorized dealers generally have limited ability to discount their prices due to the financial commitments they have made to the manufacturer to be authorized in the first place. To get a discount on a popular brand and model, you will have to work at it and even if you are successful, the discount is likely only to be 10-20%.
  • Limited selection.  Due to space limitations, an authorized dealer will often have only certain brands and certain models within those brands. A dealer can always order a model for you, but in that case you may as well explore your own ability to order the watch.
  • Excessive handling of merchandise by other customers or swapping out of parts by dealer to please past customer. The extent to which this is a risk, of course, depends on the reputation of the dealer.

• Ms. Incognita’s view?
  • A dealer feels like the “safe” way to go, but she wonders whether it is truly necessary given the usually consistent reliability of good brands and models.  At this point in her career, she would be more likely to go to a dealer to examine models but would think twice about actually purchasing her statement watch there, except at the very highest budget level.

Gray Market Sellers

• The gray market consists of sellers who are not authorized by the manufacturer. Many of these sellers are very legitimate, selling genuine brands and having a trustworthy reputation for service and reliability.  Most of them sell only over the internet, although some also have a single walk-in store. You can find them simply by doing an internet search of  the type of watch in which you’re interested and then reading about the sellers and the type of business they do.

• Pros
  • Price. Many gray market sellers offer discounts of up to 30 – 60% for new watches in their original packaging. How can they do this? For one thing, their overhead is considerably cheaper than authorized dealers. They also acquire their stock at lower prices. Authorized dealers are often required to make minimum purchases each year from the manufacturer as part of their contract, but this amount can exceed their ability to sell to customers. The excess gets sold at lower prices to the gray market so that the dealer can recoup at least some of its costs.
  • Greater selection and availability.  Because they aren’t constrained by the space limitations of a standing store, gray market sellers often have larger and more varied stock.
  • Less pressure. Because most gray market sellers display and sell their stock over the internet, you can review and revisit what they have without feeling any pressure to buy.

• Cons
  • The lack of a manufacturer’s warranty. However, reputable gray market sellers often provide their own warranties.  Research such things as consumer ratings (via Google or other rating services), warranty terms, and length of time in business to determine if a seller warranty is acceptable.
  • The greater risk that a gray market seller is shifty.  This risk exists because a seller with bad intentions thinks it’s easy to evade unhappy purchasers on the internet.  In general, the same research you would do for a warranty should also help protect you against the risk of buying from a bad seller. You should also confirm before purchase that the serial number of your watch has not been removed, a frequent hallmark of a bad seller who sells inferior or suspiciously obtained products.
  • The inability to inspect watches before purchase.  You can mitigate this risk by first reviewing watches at an authorized dealer and then ensuring the gray market seller is both reputable and has an acceptable return policy.

• Some examples of gray market sellers
  • Please note that Ms. Incognita has not vetted these sellers but has merely listed them as a start for your own exploration.  They appear to have been in business for decades, have good consumer ratings and warranties, and respectable (but seldom generous) return policies.
  • www.prestigetime.com
  • www.authenticwatches.com
  • www.bernardwatch.com This firm seems to have slightly higher prices and a more limited selection than the first two, but receives glowing testimonials as to integrity.

• Ms. Incognita’s view?
  • The combination of consistently reliable watches, highly-rated gray market sellers, and low prices makes buying over the internet much more attractive than it used to be. She has previously bought from authorized dealers but will probably go the gray market route when she buys her next statement watch.

Used or Vintage Sellers

• Used and vintage watches are sold both over the internet and by some authorized dealers and jewelers. In general, some of the same pros and cons apply to both settings.

• Pros
  • Price. You can get an excellent deal on a lightly-used watch due to the substantial depreciation that can occur immediately after the watch was first sold.
  • Uniqueness. In addition, vintage watches can offer the cache of greater character or rarity.

• Cons
  • Condition of watch. You can assess the outside of a used watch, but it’s hard to determine whether it was dropped or otherwise mishandled by the previous owner.  You will want to consider the reputation of the seller, the due diligence it performed when acquiring the watch, and the warranty offered by the seller in determining whether a particular used watch is a good purchase.

• Some examples of used or vintage sellers
  • Once again, Ms. Incognita has not vetted these sellers, but they appear to be respected by consumers.
  • www.bernardwatch.com
  • www.wannabuyawatch.com What a great name!

• Ms. Incognita’s take?
  • Prices can be extremely affordable in this category, and Ms. Incognita loves the retro feel of some of these watches. She feels they could be eye-catching in a good way in the boardroom. She will probably take the plunge and purchase a used or vintage watch sometime in the coming year.

Replica Seller

• Exactly what you think it means. Replica sellers can be found on the internet, and the better ones provide adequately performing watches of decent materials in styles that duplicate or are similar to better-known brands and models.

• Pros
  • Price. A statement watch look for an entry level amount. Replica watches generally sell in the $100 – 300 range.

• Cons
  • Reliability of the seller and quality of the watch.  There is a risk that a replica will end up performing worse than a cheaper department store watch.  You can mitigate this risk by doing some of the same homework you would do on other internet watch sellers.
  • Lack of long-term durability. However, at this price point durability may not be a big concern. You could always buy another one if the first finally gives out.
  • The risk that a truly knowledgeable observer spots that you are wearing a fake. However, if the replica is good enough that risk may be fairly small.
  • The fact that you are benefiting from a possible infringement of the original manufacturer’s rights.  There is probably little legal risk to you, but do you want to support such a venture?

• An example of a replica sellers
  • www.watch-replica.net Ms. Incognita has definitely not vetted this seller.

• Ms. Incognita’s view?
  • Buying a replica seems to be an intriguing option if you’re not yet in the senior management ranks or if you already have a good watch and want to expand your watch wardrobe. The buzz is that replicas are better-made than they used to be. However, Ms. Incognita is personally queasy about both the purchase risks and the possible infringement issues.

That’s it for now on our series on statement watches, but stay tuned for occasional updates.  And if you have any advice or recommended resources, be sure to pass those on via comments on this post or suggestions to me.  Be sure to consider as well some of the excellent observations one of our readers Priya made when commenting on an earlier post.  Ms. Incognita has copied them below in the comments section.