How Do I Price Products?
I try to run with a fairly gentle profit margin so as to be as fair as possible to the watch collectors and enthusiasts who have given me so much over the years.
What I don’t do is sacrifice quality for the sake of price and profit.
Let me give you a quick example of my pricing:
A single OEM Seiko SRP77X crown costs £25 to buy including tax and postage.
On top of the initial purchase price I need to pay:
The cost of my time to design the engraving that will go onto the product and liaise with the engravers to get everything just right.
The cost of the initial setup charge by the engravers (which can run to several hundred pounds) before a single crown is even engraved.
Shipping cost of the crown from Seiko to me.
Shipping cost of the crown from me to the engraver.
Shipping cost of the crown from the engraver back to me.
The cost of the engraving itself.
The cost of packaging the crowns to post on to the end user/buyer.
The cost of my time to arrange and organise all of the above as well as my transport costs.
As you can see, there isn’t much change left from the £59 I charge for the final product. I do try to constantly look for ways to reduce overall costs as long as the method does not include a reduction in the quality of the final product and that’s why I use OEM or NOS official Seiko products whenever they are available and appropriate. I believe that the customer who wants the products that we produce expects the highest quality components for his watches and has no interest in second best. And with all due respect, nor do we.