Just How High can MSRP go on New Stainless Sport Models?

[hhh007]

In your opinion, is there a price point on the SS sport models (like a Sub or GMTII) where even the hardcore Rolex aficionado will say "enough is enough, that's just too much"? Let's say for example 5 - 7 yrs. from now the MSRP on a new Sub or GMT is $10000.00 or more, will that be the 'over the top' price point for most people, or can Rolex easily keep raising prices annually with no real resistance?

I can see the steep price increases on the solid 18K models over the years as gold spot prices have risen from about $300.00 per oz. to over $1200.00 in the past 10 yrs. and represents a steep manufacturing cost rise for Rolex, but SS represents a very tiny cost in relation to the manufacturing cost of a SS model.

I remember when the MSRP on a new SS Sub hit about $3500.00 and I thought (at the time) that was pretty high and most people wouldn't ever pay much more for a mass produced SS sport watch regardless of the very powerful Rolex brand name, boy was I wrong.

So how high can they go down the road......does Rolex have virtual unlimited pricing power, and will you pay it?

[JJ Irani]

By the year 2999, I think we'd be looking at an SS Sub-Date costing around one million bucks!!

[dysondiver]

please insert $100,000 for the next three mins of this call ....lol

[Route 66]

Originally Posted by JJ Irani

By the year 2999, I think we'd be looking at an SS Sub-Date costing around one million bucks!!

Funny, by my calculations JJ, it should be much sooner, 2071...

[dysondiver]

theres a thread running here at the moment with a 1960s price list ,,,, ill bet they said a steel watch will never cost 1000 dollars , i must be getting old , i sound like my mother.

[mjm800]

Originally Posted by hhh007

does Rolex have virtual unlimited pricing power, and will you pay it?

No and this is why I'm done. Not done buying Rolex just done buying new Rolexes. 7000 is way too much for a Sub IMO, I won't pay more than 5000 which is why I can now only buy older used watches.

[RRGHOST1]

I have mentioned in other threads, in the 60's and 70's no one really cared for the SS models, and they were seen as the cheap version because you couldn't afford the YG one. So now Rolex can load the price onto the SS as the prime model in the range. The TT models seem the best value to me and even better, used. I suppose its all relative to prices of anything, so i dont think there is a ceiling on price, as people will always pay even if its over MRP.

[Chipmunk]

Originally Posted by JJ Irani

By the year 2999, I think we'd be looking at an SS Sub-Date costing around one million bucks!!

He's back!

[rzielinski]

Today is the September 1; did they raise the prices on Rolexes?

[Dan2010]

What I paid for my new Sub C is the max I'll pay for a SS sport watch. Since I won't be buying another sport watch unless mine gets stolen or something like that, that is how I rationalized spending that much on my Sub C. I don't plan on buying 10 different watches like many of the people on TRF. It's not that I can't afford to pay more, it is that I don't think they are worth much more.

[Fiery]

I think Rolex will do everything in their power to try to limit the number of watches sold. They don't want to make it a more mass-produced watch brand than it already is. And as the world is getting richer, as more and more people start thinking about buying a luxury watch, there's a constantly growing customer base for Rolex. All they need to do is discourage the "least rich" part of that community by constantly raising their prices. I think they are very smart, and I don't think we'd ever get to a point when people would say "It's too expensive for a Rolex". Rolex was expensive, Rolex is expensive, Rolex will always be expensive.

BTW, I'd be very interested looking at numbers of Rolex owners in their 50s or 60s about how much of their salary needed to buy e.g. a SS Sub now, 10 years ago, 20 years ago, 30 years ago, etc. Maybe those numbers would tell a very interesting story about how the world is getting constantly richer, and would dimiss the popular belief of Rolex is getting too expensive lately.

[Zed Homme]

I think Rolex will keep raising the prices until they see a drop off in sales. I think to a degree they do want sales to drop of a little to boost the brand's exclusivity. With wealth rising rapidly in the emerging economies, I think there are plenty of eager people willing to buy if Rolex's sales in traditional markets drops off. However, at some point they will have slow down a little and wait for inflation. I am surprised that they do this consistantly across all markets, youd think that they would take specific currencies' performances into consideration...

[Zed Homme]

Wow Fiery, you must be telepathic....

[MartC]

There certainly comes a point when I say enough is enough, and resort to hunting down used examples. For instance, there is no way I would pay £2100 for a Omega Seamaster that 5 years ago cost me less than £1000.
The same thing is going to happen with Rolex for me.

I haven't had a pay rise for over 2 years and most watches I like have gone up at least 20%

[rad87gn]

I already stopped buying new model Rolex 5 years ago. I think they are already overpriced.

[buke45]

A Price increase will also affect the second hand market.

[Luxe Time]

I think prices will continue to increase as long as people continue buying Rolex watches and the company remains profitable. At some point sales will plateau or begin to diminish and Rolex will probably be forced to re-assess the situation.
Today is September 1st- any news from anyone on the predicted price increase?

[WARVET]

Originally Posted by mjm800

No and this is why I'm done. Not done buying Rolex just done buying new Rolexes. 7000 is way too much for a Sub IMO, I won't pay more than 5000 which is why I can now only buy older used watches.

I have to agree, Omega watches are starting too look really nice

[scarlet knight]

My Aqua Terra, Speedmaster Pro and Seamaster pro black quartz watches combined only cost a tad more than my GMTIIC.

I love my Rolex, but I don't really want to drop that much coin again.

[mjm800]

Originally Posted by WARVET

I have to agree, Omega watches are starting too look really nice

I was gong to buy a new Daytona the thought of dropping the cash made my stomach turn.

Instead I bought a used N series GMT Pepsi and a used S series No Date Sub and both still came out to be less money than one Daytona.

I just cannot do new anymore not when I can pick up fine well cared for used watches for significantly less.

[HL65]

As long as people are willing to buy and demand is there--prices can go higher!

[sparky_magoo]

My DSSD was worth every penny to me. I think some high end luxury cars are grossly over priced and they won't appreciate like a Rolex will.

[ydna808]

Originally Posted by SteelerFan1965

As long as people are willing to buy and demand is there--prices can go higher!

and will go higher I'm sure. You can take that to the bank

[snowbird]

There are other makers who sell steel models for higher prices than Rolex of course, but the numbers of watches they sell are small. I understand Rolex has cut production due to the recession so higher prices make some sense in the short term. The other factor is many watch companies are doing very well in China even though business is generally down in the US and Europe, so if enough buyers there are willing to pay it may be ok for Rolex to see sales drop in the US and Europe.

[SaabBob]

Today in discussing price of men's watches and women's jewelry a lady friend mentioned the old "two months salary"rule of thumb for engagement ring.
So.. anybody have a rule of thumb / benchmark for what a guy might pay to buy himself a good watch?

PS Being new here, I really appreciate all the info, the banter, and the level of intelligence found on TRF. THANKS!

[ersnyder]

IMO, as long as discretionary income increases, how much people are willing to spend on any luxury item (Rolexes included) will increase.

[springer]

I don't see them going down, so I guess they will keep raising prices - all the way to the moon.

[ObscureLight]

Rolex can go ahead and raise their prices. The more exclusive a brand becomes the more they are likely to be picked up by rich people. That's why some people have way too many cars. Rolex is counting on those people to buy way too many watches.

[hhh007]

Originally Posted by SaabBob

Today in discussing price of men's watches and women's jewelry a lady friend mentioned the old "two months salary"rule of thumb for engagement ring.
So.. anybody have a rule of thumb / benchmark for what a guy might pay to buy himself a good watch?

PS Being new here, I really appreciate all the info, the banter, and the level of intelligence found on TRF. THANKS!

I think that rule of thumb of 2 months salary was invented by the diamond cartel to try and subconsciously persuade men to spend more than they would have liked on a ring

[sparksgmt]

As I see it, Rolex watches are a bargin. For a company that makes every part of the movement inhouse and sells them for under 10k, seems like a deal. Now granted I am not as educated on watches as some here, but for example and SS IWC Big Pilot on a leather strap retails for over 10k.