Canal street, how do they do it?

this watch was $50 and lasted 8 years or a penny a day. Finally became unreliable when the "ten" mark let loose and would randomly jam minute hand.

we will see how long this $40 watch last (price has come down)

How are they are able to sell $1,300 omegas for $50 on canal street? the only thing I can figure out is since they have no actual building their overhead must be very low.