The Patek Philippe Nautilus 5726/1A-014 is beautifully expensive.
In the world of luxury pricing trends Patek Philippe Nautilus tells an interesting story about the retailers that sell this watch.
Since WisePricing started tracking various retailers who sell Patek Philippe watches a few pricing trends have emerged.
Patek Philippe operates in a world of price inelasticity.
Patek Philippe’s authorized retailers don’t want to undercut the brand by selling watches at below MSRP.
At WisePricing media we have covered several stories describing the relationship between Patek Philippe and their authorized retailers.
But today I wanted to focus on pricing inelasticity because I think that is one of the other interesting pricing trend that we have noted.
First let’s talk about the watch
The Patek Philippe Nautilus 5726/1A-014 came out in 2019 and is the most expensive of the 3 Patek Philippe watches we’ve been tracking with a listed MSRP of $68,712 (see below).
Data from WisePricing (Aquanaut 5167A)
Data from WisePricing (Calatrava 6196P)
Data from WisePricing (Nautilus 5726/1A-014)
So what makes the watch more expensive - well according to 1916, the work on the metal band and the general sturdiness of the watch is a big contributor.
But the big driver of the really high prices according to WisePricing data is from the non-authorized retailers. Here’s WisePricing data showing the difference in prices between authorized retailers vs. non-authorized retailers (see below).
Data From WisePricing (Authorized retailers pricing)
Data From WisePricing (Non-authorized retailers pricing)
So what does the pricing trends show
While the pricing is variable, the WisePricing data paints the same picture about this watch as well as the Aquanaut and the Calatrava.
And the picture is pretty clear - watch buyers love this watch and are willing to pay these prices.
This is why the price remains so high in the gray market. It’s also why the pricing trends have barely changed at all in the gray market since we have been tracking various retailers (see below).
And this is what we mean by pricing inelasticity.
This pricing inelasticity remains despite the economy being in a state of uncertainty - which as an aside should be the word of the year based on the number of times I have heard this from various news outlets.
And this pricing inelasticity is excellent news for Patek Philippe. This is a luxury watch brand with a very long history of making beautiful watches that customers love.
And the customers they serve are saying one thing clearly - keep the prices high because we will still buy the watches no matter what the rest of the economy looks like.
Before you go…
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