Collecting watches is an expensive hobby. We spend exorbitant amounts of money to acquire these objects with which we share our affections. You may have to save up for your next watch. Perhaps you allow yourself to splurge for important events in your life. We all have our own methods and justifications. However, even after acquiring a clock device, the expenses do not stop…
This time, I would like to think about the total cost of ownership of the watches we love. To do this, we imagine a collection of four watches that we plan to keep for the rest of our lives. Disclaimer: For the sake of simplicity, we’ll use today’s prices and completely ignore inflation.
Our imaginary four watch collections
Let’s start by identifying four possible watch collections. Of course, the principles described here apply to individual watches, but this imaginary collection helps illustrate the point. Let’s start with a weekend watch, such as the Seiko King Turtle (610 euros). Second, it’s a watch that can do anything. For this purpose, we choose the current Rolex Explorer (7,550 euros). Since this is still a Fratello, we also have to throw in the current Omega Speedmaster Professional (€7,700) as a third choice.
The fourth pick is an outlier and is a luxury watch. Complete your fictional watch collection with the A. Lange & Söhne Lange 1 (49,800 euros). This brings the total recovery costs to €65,660.
This covers our bases nicely. Between the Turtle, Explorer, Speedy, and Lange 1, there’s no situation you’re not ready for. Now let’s look at other costs you’ll face over the decades. Speaking of decades, let’s assume you’ve owned this collection for 50 years before passing on the watch.
Image: Tempus
Service as part of total cost of ownership
Maintenance is probably the most obvious expense. In order to extend the life of your watch, you need to take care of it. In this example, you maintain the brand-recommended service interval and receive service through a boutique or authorized dealer. The large change in spacing is immediately noticeable. Seiko recommends 3 year intervals. Rolex recommends 10 years. Omega recommends an interval of 6 to 8 years, while Lange recommends 5 to 7 years. Take the longest interval of each.
However, I have yet to meet a watch enthusiast who maintains a basic-level Seiko Diver every three years. Get cocky and push it up to 10. After all, it’s a beater in our collection.
Next, you should check the typical costs of each service. Please note that this may vary depending on the additional work required and possibly the replacement of parts. I assume you are taking good care of your watch, so it doesn’t need anything other than regular maintenance. If provided separately, skip this case.
Image: Tempus
Maintenance costs over time
Full service cost:
Seiko Turtle: Varies – probably around 200 euros
Rolex Explorer: Varies – probably around 900 euros
Omega Speedmaster Professional: €950
A. Lange & Söhne Lange 1: €1,300
Number of services over 50 years:
Seiko Turtle: 5
Rolex Explorer: 5
Omega Speedmaster Professional: 6
A. Lange & Söhne Lange 1: 7
Total maintenance cost over 50 years:
Seiko Turtle: 1,000 euros
Rolex Explorer: 4,500 euros
Omega Speedmaster Professional: 5,700 euros
A. Lange & Söhne Lange 1: €9,100
Total: 20,300 euro maintenance costs over 50 years
Image: Tempus
Total cost of ownership: storage and insurance
The following categories largely depend on personal preference. I know collectors who keep their exotic watches in their sock drawers without insurance. If you’re like me, you want to keep your valuables, and your family, away from danger. To achieve this purpose, you can rent an external safe from a professional storage company. In the Netherlands this costs 550 euros a year and includes up to 90,000 euros of insurance, which is enough for our imaginary collection.
Dream basement with an old bank safe
Alternatively, you can purchase a safe to keep in your home. For a decent example fixed to the floor or wall, the price can be upwards of 500 euros. Your watch may be covered by homeowners insurance, but probably only for a certain (insufficient) amount. Such insurance is often increased to include valuables. One example I found offered a limit of 50,000 euros for 140 euros per year. Please note that such insurance often places specific demands on the safe, which can make it more expensive to purchase. Also note that the 50,000 euro limit is not enough for a collection of four watches, so you are at risk.
There are two more options. One is to purchase specific insurance for each watch. The advantage is that it also covers theft and damage outside the home, where theft and damage is most likely to occur. However, in our scenario it could cost several hundred euros per watch. Another option is not to insure your watch at all. After all, you can live without them. In this scenario, choose a middle ground between a home safe and valuables insurance. Cost over 50 years: 550 euros + (50 × 140 euros) = 7,550 euros.
Other costs
The above does not take into account issues that are not part of normal service. Maybe you’ll want to have your watch refinished once or twice in your life. Perhaps at some point the crystal will crack. You may need to put back a bracelet that has been stretching out for years. If your toddler drops the watch on the tile floor (or does it yourself and blames it on them), the case may become misshapen. Such repairs can quickly become very expensive. Of course, it may be covered by homeowners insurance, but it may not be covered.
As mentioned earlier, all of the above also means that the world will be frozen for 50 years. But what happens if a watch brand raises prices above inflation? Or what if income doesn’t keep up with inflation? And what if your current watch becomes vintage by the end of its scheduled period? Don’t forget to be a product. Because of this, vintage watches require special servicing, which can be even more expensive. Sourcing parts can be more difficult and costly.
It also does not include the necessary accessories. Maybe you have a habit of changing straps, putting your watch in a fancy pouch or case, or buying an expensive camera to take pictures. After all, enthusiasm for watches tends to lead to all sorts of expensive and irrational behavior.
Total cost of watch ownership
Putting it all together, what can you reasonably expect to be the total cost of ownership for a watch? Let’s start with four watch collections in a few different scenarios.
50 years of service plus purchase of safe and increase in home insurance for valuables: 27,850 euros
50 years of maintenance and rental of external safe: 47,800 euros
This means that, excluding the first purchase, owning a €65,660 watch collection for 50 years will cost between €27,850 and €47,800. Of course, there are ways to lower this number. This is just an explanation. For example, you can extend the service interval or look for a cheaper watch manufacturer. Similarly, you can use a stocking box and not insure it. Finally, your watch can increase in value over time, so if you sell it at some point, you may eventually get your money back.
Still, I think it’s always good to have a rough idea of what your hobby really costs. If you have any specific insights or advice on how to manage this, please let us know in the comments section below. My tip? Split your service costs into monthly amounts and automatically transfer them to separate parts of your savings account. That way you won’t feel the hit when it hits. I look forward to reading your tips!
