Are Richard Mille Watches the Next Bubble? And Why Richard Mille Watches Are So Expensive
Are Richard Mille Watches the Next Bubble?
Today we look at watches from the famous luxury Swiss watch brand, Richard Mille.
Since their launch just 10 short years ago, Richard Mille watches have become super popular.
Richard Mille the man has done something that very few people have by taking his watch brand from zero-to-100 in so little time.
When you think of Richard Mille, you think of his classic Tonneau-shaped case.
This is his signature and what everyone thinks of when you talk about a Richard Mille watch.
Everybody loves Richard Milles watches.
The prices on his watches are outrageous, with most starting over $70,000. And that is just for the basic time/date watch! Get into the tourbillon’s and we are talking the half-million dollar price range and up.
Richard Mille’s crystal tourbillon goes for $2-million and his limited edition McLaren tourbillon a cool $1-million.
Resale on these watches is just as insane and the reason is simple, supply and demand.
There is a two-month wait list at boutiques to get new model watches from Richard Mille.
If you want to get their newest watch today, expect to pay $5,000 to $10,000 over that price from someone who bought the watch just to market it up and resell it.
Richard Mille RM 11
This is the most recognizable and the most classic shape.
The classic Tanneau case is made of this new composite material which has an unparalleled strength and a unique eye-catching design that comes from 20 spline screws in grade 5 titanium.
Each rough case involves 202 separate machining operations.
Limited Edition Richard Mille Bubba Watson
What is really cool about this watch is that you can see right through this watch.
It is a limited edition of 30 pieces that are named from the professional golfer Bubba Watson.
This watch has the same case size as the RM-11 but it is not a chronograph.
Richard Mille RM-28
This watch features a round face rather than the signature tonneau shape.
This particular model is actually a dive watch and is water resistant up to 300m.
Looking at the watch it is pretty simple; hours, minutes, seconds, date.
Retail price on this watch is $145,000 for the rose gold model and around $100,000 for the titanium model.
Richard Mille RM-63 “Dizzy Hands”
Nicknamed “dizzy hands” because of the number arrangement, when you look at the watch it kind of makes you dizzy, hence the nickname.
Made from rose gold and titanium, this watch retails for $117,500.
Richard Mille is known for using rose gold on his watches as well as using titanium to help bring the weight down.
This watch just has the hours and minutes, no date.
It is incredible the prices that Richard Mille is getting for such simple pieces.
Richard Mille RM-16
This is the first of his extra flat series of watches.
There were only 30 of these limited edition watches made.
Again, not much to this watch except for hours, minutes and date.
Retail price on this watch, a cool $105,000.
Richard Mille RM-33
The round version of the RM-16, this watch is automatic and is again very simple.
Made from rose gold and titanium, this piece retails for $113,000.
Incredible for a watch that just shows the hours and minutes.
Why Richard Mille’s are so expensive
When the RM-11 first came out they were selling for the mid $50,000 range, today, these original RM-11’s are selling for over $100,000.
The materials used in his watches are absolutely phenomenal.
The movements that he creates are exceptional.
Everything about his watches is the best of the best.
Then, he decided to do something that no watchmaker has ever done.
He increased their retail prices by 40% within a 1-year time span and cut his production by over 70%.
The price of some of his watches jumped from $70,000 to close to $130,000 in a very short time period.
This one trick got him so much attention and so much publicity.
Today, all of his watches are made in limited edition.
The question that everyone is asking is if Richard Mille’s watches are in a bubble or if the demand (and price) will last?
The way I gauge if a brand is in a bubble is how many watches are out there.
When I am at a tradeshow, I pay close attention to what is in other peoples showcases.
If I walk around the room and see fifty Richard Mille’s in everybody’s cases, I know there is an issue.
What is happening is that the watches are being traded dealer to dealer and they are not ending up on customer’s wrists. When that happens, that is when a bubble happens.
That being said, I will tell you that when you walk into any tradeshow you will be hard-pressed to find twenty Richard Mille’s in the entire room of 250+ dealers.
Why? Simple… supply and demand.
Richard Mille controls the supply so well and produces so few pieces that they do not end up sitting around.
His watches sell and the people that they sell to love them so much that they do not re-sell them.
In conclusion, as long as Richard Mille keeps doing what he is doing and controls the supply, there will be no bubble.
