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These watches are design concepts. None of these organizations has ordered one.
David Siegel, watch concierge
A combination of the success of the Apple watch and the AI boom has led to very strong growth in the high-end and creative watch market. People want both the latest digital watch and one or more timepieces of lasting value. I produce limited editions of fine watches for companies, nonprofits, and other organizations.
I work with clients to produce limited unforgettable timepiece collections for their organizations. Independent Swiss watchmakers build each edition, and the organization can give the watches as thank-you gifts or sell them to their most treasured donors, customers, members, and others. We can also make very limited editions for auctions, special gift rewards, etc. This are not promo items, they are treasures that pass from generation to generation. This enhances the brand and brings in more money. One run of 50 watches can bring $5 million in profit to the organization, and the buyers will be thrilled.
These watches are design concepts. None of these organizations has ordered one.
We manage each project in four phases.
The client pays a nonrefundable deposit to get the research started. We talk on Zoom, get their artwork and concepts, write a brief. We spend hundreds of hours to research options, talk with watchmakers, commission renderings, put a full plan document together. Then I go in-person to present three watches at three price points in a two-hour meeting.
The client picks a concept and configures the edition. Then they sign the master production agreement. We only work with extremely reputable manufacturers who have been in business for decades. It will take some weeks to put both sides of the contract together.
The client pays us to create a special marketing site they can use to show the concept, make a video, put all the agreement documents online, let customers configure their watches, and take 50% deposits. Client launches the program. The deposits repay the client's initial cash investment and book the production run. So the initial money comes back quickly.
Buyers pay their balances when their watches are ready to ship. We collect our fee, and the client keeps the remaining revenue. At any time, the client can decide to create or order more watches.
Working with me is like working with an architect. I need to charge for the initial creative, engineering, and economic work before clients pull the trigger on the final concept. Each client pays a nonrefundable briefing fee that we negotiate upfront. The fee pays for all our work up to and including the presentation. I can charge less for a client who wants a simple design, but in my experience it's the memorable, fantastic designs that bring in the most money, because logo-wear doesn't get anyone excited. Our goal is to create heirlooms, not promo pieces. Saving money here is a false economy, but we can start with a "quick win" and build from there. The work in this phase takes hundreds of hours of research, negotiations, rendering, and business planning.
Rights and artwork: We collect the client's official artwork, style guides, and brand standards. The client owns the rights to every design we create for them. I never carry inventory, and I never sell your watches to anyone else.
Design brief: We can work on Zoom and email to put together the brief.
Watchmakers: I will find the three or four independent Swiss watchmakers best suited to the concept, vet them, and get bids. Many of today's watch manufactures are running at full capacity, it takes industry connections to get them to talk to you.
Renderings: To save money at this point, I'll have AI build the renderings for discussion.
Deliverable: The client receives a project plan, the options, timeline, and a financial model for executives to approve.
The TWO-hour presentation
Discovery ends in a two-hour meeting with the client's executives. I'll present three watches at three price points, and the client decides every parameter in the meeting. The second half of the meeting is working through the contract so it's ready to sign.
Each design comes in three versions at three prices. We can go lower, but at some point it ceases to be a status symbol.
Basic, about $220,000. The watchmaker decorates one of its standard watches for the client, with colored diamonds, an image on the dial, or custom hands. There are no changes to the movement.
Modified, about $280,000. The watchmaker adds a custom coin dial or a special treatment, such as etching. No changes to the movement. We can choose any base watch we want, so the price can vary from $200k to $700k.
Custom, $350,000+. The watchmaker designs a unique base movement and custom complication just for the client, such as a game or a moving figure. This can also be a fantastically ambitious work that draws a lot of attention in the watch world and sells for closer to $1-2 million. It can be a special movement whose development can be amortized over hundreds of watches, to bring the price down. We can also make unique pieces or pairs of watches to sell at auction to raise money - for example, one unique piece per year auctioned at the annual gala.
Main considerations for the various options:
To learn more about the options, read Considerations and Complications on this site.
| Per watch | 20 watches | 50 watches | Share of retail | |
|---|---|---|---|---|
| Retail revenue | $220,000 | $4,400,000 | $11,000,000 | 100.0% |
| Deposit | $110,000 | $2,200,000 | $5,500,000 | 50% |
| Watchmaker's price | $77,000 | $1,540,000 | $3,850,000 | 35.0% |
| Our producer fee (15%) | $33,000 | $660,000 | $1,650,000 | 15.0% |
| Client profit | $100,000 | $2,000,000 | $5,300,000 | 45.5% |
| When | What happens |
|---|---|
| Day 1 | Initial discovery fee paid |
| 2 months later | Presentation |
| 2 weeks later | Contracts signed |
| 1 month later | Presale website goes up, certain people notified |
| 1 month later | Presale closes |
| 5 months later | Final payment called |
| 6 months later | Watches begin shipping |
| 9 months later | All of the first batch is shipped out |
At any time, we can open the rest of the allocation for sale under similar terms.
I customize almost everything I own. I used to customize my ski boots, bikes, clothing, belts, and I even made my own cufflinks. In the late 1980s, I painted my Macintosh black (this was the days of the Mac Plus and Mac SE), and everyone had to have that, so I started painting Mac computers for clients. I even had a deal with Apple to get their computer cases and paint them and send them to dealers. I created a special painted Mac for Malcolm Forbes and got my picture in the New York Times.
In the watch world, I lived in Switzerland for four years. I have lived in Biel, the tri-lingual Swiss city of the large watchmaking factories and spent many many hours in Geneva getting to know the brands and industry experts. I visited several watchmakers and had conversations with them. There's a complication I would like to design; they say it's interesting but too hard without knowing more about the market demand for it. I'm involved in the forums, talk with watch traders, and keep up on all the new developments. I'm excited to bring the world of high watchmaking to more people. I see the custom program as a way for companies to reward their employees and investors, and for nonprofits to raise more money at less risk than they can without me. Contact me to discuss how I can help you make some of your most loyal supporters very, very happy.