I love watches and at Toc, we think that everyone should be able to have a quality luxury watch. But how can Toc ensure the quality remains high and still keep the price down?
It’s quite simple really. Toc is cutting out all the middlemen along the way and selling directly to you, the end consumer.
Yes, this is not the typical traditional model but it is becoming more & more common today and it makes perfect sense for the savvy consumer looking for the best value. With this direct-to-consumer model we cut out distributors, wholesalers and retail stores ensuring you don’t have to pay for their healthy margins.
When you walk into your local jewelers on the main street and peer through their elegant polished glass cases, do you ever stop and wonder what makes up the price on the tag of all the beautiful watch brands. How does €1,500 or €2,500 end up on these barely visible price tag?
There is a lot of margin built in at every stage to cover various costs. Most retailers normally add about 50-60% margin on the watch, and more in some cases. Before this happens, 20% of that price is already gone to the importer or distributor.
So what does this mean in real terms?
Take your typical €2,000 luxury watch. How much of this is the actual value of the watch?
Using the above margins, assuming the retailer takes only 50% in this case, this means the retailer keeps €1,000 of the sale price, the importer keeps €400 leaving €600 for the manufacturer to cover the cost of production, materials, staffing, marketing etc. So, when you even strip this away the actual production cost of the watch is much lower in fact.
There you have it, by cutting out all these middlemen, Toc is disrupting the traditional distribution channel ensuring you the end consumer gets the best possible product without having to pay all the price increases along the way.
This way, by avoiding all the middlemen, we can offer you a hand wound watch for €379. What’s even better is, that for a limited time only, we will be offering it to you for less than €180 on the crowdfunding platform Kickstarter.com.
The Toc19 is coming to you, very soon.
Written by Will, Toc Watch.