Why do luxury watches cost so much?

Cost of a watch = History + Reputation + Quality + Brand Message + Exclusivity

History: How long have they been around, did they do anything significant horologically in the past, did someone famous wear it doing something famous, how well do they channel history into their current messaging

Reputation: Are they all in house, are they owned by a conglomerate, are they suffering any quality problems, how well known is the brand outside of watch aficionados, how much mind share do they own in luxury buyers

Quality: How well made is the case, how high tech is the case or the movement, is it a thoroughly checked and highly decorated movement beyond the standard

Brand Message: Which demographic does this brand target, is it sporty, dressy, elitist, historical, etc and how are they perceived in their price segment.

Exclusivity: Does this brand ever have large sales, how does it hold up in the resale market, do they offer significantly lower priced entry models to spur sales and adoption, how deeply do their dealers discount

For example, if working on a scale of 1 to 6:

Rolex = History(4) + Reputation(5) + Quality(4) + Brand Message(5) + Exclusivity(5)

Omega = History(5) + Reputation(3) + Quality(4) + Brand Message(4) + Exclusivity(3.5)

Tag Heuer = History(2) + Reputation(2) + Quality(3) + Brand message(5) + Exclusivity(2)

Zenith = History(4) + Reputation(3) + Quality(4) + Brand Message(3) + Exclusivity(3)

IWC = History(4) + Reputation(4) + Quality(4) + Brand Message(5) + Exclusivity(4.5)

Breitling = History(3.5) + Reputation(4) + Quality(4) + Brand Message(5) + Exclusivity(3)

Longines = History(3.5) + Reputation(2) + Quality(3) + Brand Message(2) + Exclusivity(2)

Panerai = History(2.5) + Reputation(4) + Quality(4) + Brand Message(4) + Exclusivity(5)

Ball = History(3.5) + Reputation(3) + Quality(3) + Brand Message(3.5) + Exclusivity(2.5)

Audemars Piguet = History(5.5) + Reputation(5) + Quality(5.5) + Brand Message(5.5) + Exclusivity(5)