As someone who does product development for a living, here's a theoretical breakdown:
Let's assume, generously, they wanted a 60% margin (few things have that good of margin).
If true, working backwards, the FOB cost (cost from the factory) would have to be around $950.
- This is assuming they went for a $2950 wholesale cost (50% retail margin), 20% duty (because the HS code for the teriff is confusing since I don't know the specifics of their movement). I don't know their freight charges and the packaging costs, so let's say it's $1.00 per unit per carton. Landing at the port, the total would be $1,169.
So $950 to make each one.
If they were working on a lower margin, like 50%, the cost to make it would be $1,175. And if the duty rates are better than 20%, then it would be even more expensive. 15% duty and 50% margin puts it $1,225
I guess they might amortize the mold fees into each unit, and if they are genuine when they say it's 100% made in Switzerland (including every single mold cost, nut, and bolt, drop of ink, leather, etc), then it would obviously be more expensive than those same bits from China. Labor rate is higher too.
Here's my math:
It seems really high, and they could have probably done a better job at sourcing some stuff. But I don't know the Swiss clock industry right now, maybe this is a good price.
😕😕😕
Either way, who want's to carry a travel clock anymore?