Ben Gilbert: belief

Transcript context

…Yup. The real watch nerds will tell you that they actually love Tudors, even though it’s a $4000 watch. The movements are incredibly high quality, and I think consumers actually might be getting a pretty good deal on Tudor watches. If I go out tomorrow and buy an Explorer, that’s whatever MSRP is for $8000 or something, Rolex is making phenomenal margins on that thing. Tudor, they don’t sell that many of them. At a $4000 price point, that’s only $2500 wholesale for a very high quality movement, and there’s not a lot of them made, so economies of scale are really low. Whatever the fixed costs are, there are not that many watches to amortize those across. I think there’s actually pretty significant upfront fixed costs. I don’t know. I’m sure they’re not losing money by having Tudor, but it’s a great deal for customers. You’re totally right. I like your rationale better than mine.…

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