September 08, 14:07
Paying $500 for a watch that isn't made of gold, or other valuable materials, is about buying into an idea. The product didn't cost $500 to manufacture. Or anything close to that. I'm paying for a process of design and management. Fixed cost items on the business budget. High margins.
This is unlike variable cost businesses, such as consumer computers, where the margins are low and the cost of assembly and materials approach the cost of the product. When you run a variable cost business, you can't afford to be lavish with customer service or repairs. When you run a fixed cost business, you can.
At least that's the belief that's fueling my rage over having to shell out $100 to have the strap on my "511" (the title of the watch design) replaced. We're talking $100 to get one-side, without the lock, replaced. A thin slice of silicone coated in metal. $100.
I expect to be fucked on computer repairs or printer refills, but not when buying the idea of design.
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