And why customers pay 3× more for the same product. Two watches sit next to each other on a jeweler's counter. Both keep time within a few seconds a day. Both use similar internal mechanisms. Both are made from stainless steel with sapphire crystal faces. Look at them side by side with the logos hidden, and even a watch collector would struggle to tell you which is the €400 one and which is the €12,000 one. One is a Seiko. The other is a Rolex Submariner. The mechanical diffe