Starting a private label watch brand remains a great startup idea, especially if you have a great knowledge of marketing. In fact, some of the most successful clients we have worked with are marketing agencies. The costing of starting a watch brand or company is a simple math problem. The total cost consists of 3 major parts – the cost of watches, international shipping, and import duties.

Cost of Watches

Private label watch manufacturers usually require a minimum order quantity (MOQ), which may vary from 200 to 500 pieces. This is because watchmaking is time and labor intensive but the profit margins are little. Only by producing in big quantities can the watchmakers have a reasonable profit. Just imagine yourself as a watchmaker, and you make 3 US dollars profit out of a watch. By producing 200 watches you make 600 US dollars; by 500 pieces, 1500 US dollars. To make this amount of money, you will have to work for 3-4 months. Just think about that.

The unit price of a watch varies hugely. Almost every watch part can have a major impact on the unit pricing. A minimalist quartz watch usually costs 16-20 US dollars, and a chronograph watch 20-30 USD. Automatic watches cost at least 50 US dollars, with a stainless steel case. Therefore, unit pricing of a watch is really hard to say. You need to talk to your watchmaker to get an estimate.

International Shipping

Watches do not take up too much space (even with packaging), so the best shipping solution is express shipping by DHL, FedEx or other couriers. This usually take 5-15 days. The shipping times become quite unsteady because of COVID-19. The shipping rate to European and North American countries is usually 7-8 US dollars per kilo. If you have a limited budget and can not afford expensive courier shipping, you can ask your supplier to ship it by sea. This takes 20-30 days mostly.

Import Duties or VAT

Another important factor not to be neglected is import duties. This usually accounts for 15% of your watches’ declared value. This is quite easy to calculate – for example, your watches are declared to be worth 6,000 US dollars, you will have to pay import duties around 900 US dollars. The VAT rate varies from country to country. Make sure you check this with your customs in advance.

Anyway, if you have any questions about starting a watch brand or company, feel free to contact us. We are a professional custom watch manufacturer and always here at your service.