Is $20,000 The New Price For Rolex SS

[dmash]

Originally Posted by TakeYourTime

I don't get it how people pay so much above MSRP for a SS watch.
Go PM with a fair discount and build up a relationship with your AD to get the SS watches (you want) at MSRP.

Yes, indeed, the market is hot and even with my excellent purchasing history I cannot buy all SS watches as fast as I want (that's annoying but also exciting) but I will NOT pay those crazy grey prices... you know that "we" are creating those prices and I will neither support that nor burn my money.

BTW, I'm looking at a WG DD40 right now. I think money cannot buy the value of that watch in 10-15 years. Money is what you spend, value is what you get (thanks Warren). Everyone who has a clue of investment or wealth in general understands that... for those who don't... cmon spend 20K$ on a 9K$ SS watch which doesn't even have the paperwork on your name lol

You’re underestimating the sheep of today who place an extreme amount of ‘value’ on a certain amount of instagram likes or 5 seconds of recognition/fame. It’s truly unbelievable at the price they are willing to pay for it

[breitlings]

Originally Posted by dmash

So who is supporting the market in a crash? I don’t understand ywhat you’re trying to say..?

you're suggesting the average man is the main consumer of rolex, I don't think that has been true since quartz watches.

The earning power of and the number of those middle class and those in the middle class who can purchase a rolex has been getting smaller. Therefore the market of rolex will be fewer, higher earners and $20k may actually make rolex more attractive to them. these high earners will replace the market lost by moving from 10k to 20k.

it should also cut costs as well because in theory it should be cheaper in terms of COGS to make fewer watches with higher premiums.

It's like arguing the average man can't buy a 50' boat anymore so the makers of 50' boats will fold.

Don't take my message as elitist, I wish the middle class was stronger and the common man more empowered.

[dmash]

Originally Posted by breitlings

you're suggesting the average man is the main consumer of rolex, I don't think that has been true since quartz watches.

The earning power of and the number of those middle class and those in the middle class who can purchase a rolex has been getting smaller. Therefore the market of rolex will be fewer, higher earners and $20k may actually make rolex more attractive to them. these high earners will replace the market lost by moving from 10k to 20k.

it should also cut costs as well because in theory it should be cheaper in terms of COGS to make fewer watches with higher premiums.

It's like arguing the average man can't buy a 50' boat anymore.

Ah I follow now

I definitely disagree, but that’s what a forum is for, to share opinions.

Also, obtaining a SS Rolex never was, and never will be comparable to buying a 50’ boat, not sure where you’re coming up w that correlation. People go out and buy a sub to mark a milestone, for their sons graduation, etc, it’s at a price level where that’s feasible. Nobody (or at least incredibly few) goes out and grabs a 50’ boat like that. The ‘average man’ also never could afford a 50’ boat. The average man could afford a Rolex after some odd years of saving.

[DTNSS]

Originally Posted by antoflo

that's maybe what Rolex wants

This

[breitlings]

Originally Posted by dmash

Ah I follow now

I definitely disagree, but that’s what a forum is for, to share opinions.

Also, obtaining a SS Rolex never was, and never will be comparable to buying a 50’ boat, not sure where you’re coming up w that correlation. People go out and buy a sub to mark a milestone, for their sons graduation, etc, it’s at a price level where that’s feasible. Nobody (or at least incredibly few) goes out and grabs a 50’ boat like that. The ‘average man’ also never could afford a 50’ boat. The average man could afford a Rolex after some odd years of saving.

I knew some people who had 50' boats but were middle class, it would be a miracle for that now. My fiancee's grand parents had a such a boat and were lower upper middle class. 30-40' boats may be a better analogy. It's interesting to hear your thoughts on the matter.

[dmash]

Originally Posted by breitlings

I knew some people who had 50' boats but were middle class, it would be a miracle for that now. My fiancee's grand parents had a such a boat and were upper middle class. 30-40' boats may be a better analogy. It's interesting to hear your thoughts on the matter.

I guess I’m just looking at this purely from a dollar to dollar standpoint. I’m from Florida so I know a bunch of people with both of these things. You do realize a 50’ Sundancer is like one million dollars? That’s outside the price range of a HOME for even upper middle class, how in the world are you comparing that to a $8500 Rolex? I just don’t really get what you’re saying.

[The Libertine]

Originally Posted by enjoythemusic

Thx and yes indeed tho that thread is really just the New Pepsi. Overall, seems ~$20k is the new SS price for models guys like us desire to own and wear often. i 'get it' and all that with grey pricing, yet guys like me who wear 'em can't help but see the bubble.

We live in interesting times.

Prices are out of control.

[breitlings]

Originally Posted by dmash

I guess I’m just looking at this purely from a dollar to dollar standpoint. I’m from Florida so I know a bunch of people with both of these things. You do realize a 50’ Sundancer is like one million dollars? That’s outside the price range of a HOME for even upper middle class, how in the world are you comparing that to a $8500 Rolex? I just don’t really get what you’re saying.

If you think in terms of ratios of comps you would get pretty similar ratios. Rolex functional comp/Rolex vs boat functional comp/50 foot boat would result in similar ratios. I got .04 and .02.

My point is at one time new 50' boats could be bought by upper middle class saving up, now it would be very difficult and the small pleasure yacht industry hasn't folded.

I think we have taken this conversation pretty far, good discussion. FWIW I'd prefer rolex and boats and in general things would be more affordable for more people to enjoy.

[dmash]

Originally Posted by breitlings

well I think comparatively an 8500 or 20k rolex against a $200-400 watch which can do similar functions is analogous to a 40-50' boat which people who made like 100k per year used to be able to save for and own. Rolex functional comp/Rolex vs boat functional comp/50 foot boat would result in similar ratios. I got .04 and .02. My point is at one time new 50' boats could be owned by upper middle class now it would be very difficult and the small pleasure yacht industry hasn't folded.

I think we have taken this conversation pretty far, good discussion.

That's why I enjoy this forum, even when members disagree, we can respectfully try to see each other's viewpoints

I understand where you're coming from, I still just think it's a bit of an extreme comparison is all.

[meganfox17]

I love Money more than Pepsi...

[douglasf13]

This may not end well for Rolex one day. Current buyers think back fondly to adventurers and “cool” guys wearing these tough little tools. The kids of today are going to look back at these watches as the status symbols of middle aged dads and/or wealthy guys. As I’ve said before, think Harley Davidson.

[rblair]

Rolex has done an excellent job of creating interest, almost to the point of frenzy in some of its models and thereby training everyone to get very comfortable with the idea of paying full retail. The days of asking for discounts are slowly being driven away by Rolex. Overall a good strategy for keeping its brand premium and aspirational. It should be the case that we all pay retail. If you need to spend less money, then perhaps pursue another model or another brand. Although I'm glad I always get a discount :) And I'm ticked I need to keep waiting and waiting and waiting for a stupid watch with a white face that I'll never use to time anything.

[G.D.BeanCounter]

So, roughly 136% markup!? This has to be the largest premium we've seen on new models over the last couple years, right? Even the Daytonas and SkyDs were closer to 50-70% above retail. ADs are going to lose their minds over this one. I can hear it now, "You want a SS Pepsi?" "You have to buy a Platinum piece." Yup, I think I will be enjoying this watch vicariously through all you guys fortunate or lucky enough to get your hands on one. Thanks in advance!

[richard371]

Agreed. Rolex knows exactly whats going on here and they are doing it for a reason. They have full control here. They just wont tell us their rationale instead I'm sure they are having fun sitting around watching all the attention and drama over their SS watches.

Originally Posted by DTNSS

This

[superdog]

Originally Posted by douglasf13

This may not end well for Rolex one day. Current buyers think back fondly to adventurers and “cool” guys wearing these tough little tools. The kids of today are going to look back at these watches as the status symbols of middle aged dads and/or wealthy guys. As I’ve said before, think Harley Davidson.

Harley seems to be doing pretty well.

[Mystro]

Originally Posted by dmash

I can’t argue with you there.
I (and my younger brother) are in the age range of most of these new owners. Buying these watches right now is the equivalent of picking up a hot pair of sneakers, a new electronic gizmo or a cool duffle. It’s simply a trend accessory to them, nothing more. :

This is what the mid to late 80's was like with Rolex. It pretty much defined Rolex as THE wrist status symbol the masses could easily recognize. Call it "cool" today or "status" back in the 80's, people dont change much. Social Media has pretty much defined the current "Look at me" generation that image is everything.

[red1108nyc]

I better sell my ceramic white Daytona now..

[peterpl]

I wont be paying anywhere near $20k for a SS Rolex anytime soon.

[brandrea]

Interesting times for sure. I won’t be paying that kind of premium to MSRP. Then again, I’m not looking to acquire any of those models.

[Yobber76]

I won't pay for more than MSRP. If that goes too high, I won't buy either. I have 2 Rolexes, they are wants, not needs.

[Danny83]

Originally Posted by travisb

It seems to be. I won't pay it. I'll wait my turn at retail.
I can see the SkyD and Pepsi settling a little eventually (maybe) but who knows. No time soon for the Pepsi and the Daytona wouldn't surprise me to stay as is continue rising. Interesting times for sure. Many of us can remember days of 20-25% off retail on SS sport models (not including Daytona of course).

That was just a year ago

[Starwalker]

I am fortunate enough to get whatever Rolex model I want at list price.....(even though I will have to wait - my 116500 took 14/15 months). However, with the current grey-market pricing, hype, rolex mania, and not being able to try the model you want at a store (i find it ridiculous) and yearly pandemonium for the latest new offering and the exorbitant premiums, waiting lists, politicking and this endless cycle of s$$$t......and also taking into account my collection is decently rolex heavy (the only model I would like to add is the new James Cameron Deep-Sea Blue - but it can wait)......I have decided to move on for the timing being....and went with something "very rare" indeed.....incoming to follow soon!

[LINVS]

Scarcity, and consequently, exclusivity justify that price.

SS Sports Rolex is getting to be for guys at the top of the pay scale. The “cool” models have become the playthings of the rich.

This is actually good for the other brands like Omega. For the young professional, there are other, very good options out there. I think this Rolex game off limiting supply might backfire in the end. The tradition of getting a Sub at graduation or after that first signing bonus will become less common. Without these young guys who live the adventure wearing Rolex, Rolex might lose its magic. When the very wealthy get tired of their Red Subs and ceramic Daytona’s and move on to vintage motorcycles, baseball cards, or Chinese Jades, then Rolex will be struggling.

[SeaAndSky]

Originally Posted by breitlings

I've said it a few years ago but I think 20k will be about the MSRP soon for many SS references including 500.

These things in stainless steel aren’t worth 20K. We’re definitely venturing into more money than brains territory.

[rblair]

I think there is going to be a lot of uptake with other premium brands. Rolex isn't the only game in town for attractive premium watches.

[DTNSS]

Originally Posted by richard371

Agreed. Rolex knows exactly whats going on here and they are doing it for a reason. They have full control here. They just wont tell us their rationale instead I'm sure they are having fun sitting around watching all the attention and drama over their SS watches.

Yeah. Because of it, I did my man math and end d up paying msrp on a WG Daytona oysterflex... but whatever, I love the watch. Plus, it’ll put me closer to the SS GMT BLRO at msrp.

[Andad]

Originally Posted by superdog

Harley seems to be doing pretty well.

Is a 6.7% drop in international sales from 2016 -2017 doing well?

[WJGESQ]

Yeah--no SS watches justifies that for me--at that price. At some point silly becomes stupid.


But--the invisible hand of the market will decide. Each to his own.

[WJGESQ]

Originally Posted by directioneng

Is a 6.7% drop in international sales from 2016 -2017 doing well?

Hard to believe that they still make those things.

[WJGESQ]

Originally Posted by LINVS

Scarcity, and consequently, exclusivity justify that price.

SS Sports Rolex is getting to be for guys at the top of the pay scale. The “cool” models have become the playthings of the rich.

This is actually good for the other brands like Omega. For the young professional, there are other, very good options out there. I think this Rolex game off limiting supply might backfire in the end. The tradition of getting a Sub at graduation or after that first signing bonus will become less common. Without these young guys who live the adventure wearing Rolex, Rolex might lose its magic. When the very wealthy get tired of their Red Subs and ceramic Daytona’s and move on to vintage motorcycles, baseball cards, or Chinese Jades, then Rolex will be struggling.

All good points.


Scarcity can't be contrived for the long term very often--unless your DeBeers.