Why On Earth Has Rolex Not Increased Prices in Six Years?

[Chiboy]

Obviously, I am speaking from a U.S. perspective, because I believe they have increased at least U.K. prices to adjust for Brexit currency fluctuations/devaluations. But this is a heck of a long time to keep prices static. It's not like they are selling computers where prices staying level is almost like prices increasing. They obviously are leaving a lot of money on the table as secondary prices for more and more watches are now higher than MSRP. This is like the Rolling Stones pricing their tickets at $50, knowing scalpers are selling them for far more. While Rolex may be owned by a charitable trust, it isn't like they are a charity trying to promote mechanical watch ownership around the globe. Explain!

[037]

They've increased prices with updated models. Be grateful they haven't increased across the line.

Not sure why you're disappointed over this.

[piratepress]

Last Year, my BLNR was $8950. Now, I'm looking at $9250 for a Pepsi. I'm just thrilled it isn't more!

[RHIII]

Sounds to me like this is more about the secondary market differential - under the cover of a price increase....yawn.

Rolex leaving money on the table? Because of the secondary market cost deltas? So you think a Stainless Daytona should sell for $20k?

Rolex is a (nearly) $10b company...I would submit they know exactly what they are doing. All of the supply ‘issues’ are truly creating a hyped up frenzy - which in turn could be increasing exclusivity - without badly injuring ‘their’ retail market. Pointing potential customers to boutiques and ADs vs. secondary markets...

Chalk up the ‘leaving $$ on the table’ to FREE advertising (from all the hype). Sounds like a GREAT deal to me — for what — MAYBE 10-15% (if that) increased profit from increasing the retail on the models that would truly sell for increased costs....

That’s my .02 worth


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[tyler1980]

Originally Posted by piratepress

Last Year, my BLNR was $8950. Now, I'm looking at $9250 for a Pepsi. I'm just thrilled it isn't more!

different bracelet and new movement. I think its not an increase at all. Its an "upgrade"

[tyler1980]

The watches are underpriced. Its true and we are due for an increase.

The top 5%, which lets be honest, is their "target" market. Their net worth is has increased dramatically since the last price increase so the watches are substantially cheaper then 2012 for sure as far as how much of their money it takes to acquire one.

Then you have the crypto people and they are buying a Rolex with the few hundred dollars they bought bitcoin with.

Its a case of too much money on the table and watches priced at the point where people dont think twice and buy as many as they get offered.

[mulgogy]

Originally Posted by piratepress

Last Year, my BLNR was $8950. Now, I'm looking at $9250 for a Pepsi. I'm just thrilled it isn't more!

new movement and jubilee. I think prices jump $100 on DJs when going from Oyster to Jub. so seems to be right inline. Waiting for the 4 to 5 figure jump though!

[Bigblu10]

Originally Posted by Chiboy

Obviously, I am speaking from a U.S. perspective, because I believe they have increased at least U.K. prices to adjust for Brexit currency fluctuations/devaluations. But this is a heck of a long time to keep prices static. It's not like they are selling computers where prices staying level is almost like prices increasing. They obviously are leaving a lot of money on the table as secondary prices for more and more watches are now higher than MSRP. This is like the Rolling Stones pricing their tickets at $50, knowing scalpers are selling them for far more. While Rolex may be owned by a charitable trust, it isn't like they are a charity trying to promote mechanical watch ownership around the globe. Explain!

They have no shareholders and no one to be accountable for except themselves. Translation: they can do anything they damn well please.

[037]

Come to think of it, prices in the US have gone up for many. Discounts are gone on stainless models and in many cases it's MSRP only.

I still don't understand the overall complaint, however.

[Speedbird-1]

You're THAT KID in school, ain'tcha!

[lecorsaire]

Originally Posted by Chiboy

Obviously, I am speaking from a U.S. perspective, because I believe they have increased at least U.K. prices to adjust for Brexit currency fluctuations/devaluations. But this is a heck of a long time to keep prices static. It's not like they are selling computers where prices staying level is almost like prices increasing. They obviously are leaving a lot of money on the table as secondary prices for more and more watches are now higher than MSRP. This is like the Rolling Stones pricing their tickets at $50, knowing scalpers are selling them for far more. While Rolex may be owned by a charitable trust, it isn't like they are a charity trying to promote mechanical watch ownership around the globe. Explain!

With this bull market the only thing increasing retail would accomplish is raising the market prices even further. These are luxury goods and there are always people with more than enough cash to burn no matter how ridiculous prices are. I don’t think most of us would be very happy with new SS GMTs and Daytonas going for $30k.

The only thing that would curb resellers is if people stopped paying these premiums and that simply is not going to happen with Veblen goods. Some people will pay any price for status. In fact higher prices make them more desirable if anything.

Perhaps if Rolex had never introduced the ceramic Daytona which was the catalyst for this craze, prices would still be normal today.

[redfoxer]

Because Rolex are a charity :D

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[Rashid.bk]

Originally Posted by Lt Virgil Hilts

You're THAT KID in school, ain'tcha!

[beshannon]

Originally Posted by Chiboy

Obviously, I am speaking from a U.S. perspective, because I believe they have increased at least U.K. prices to adjust for Brexit currency fluctuations/devaluations. But this is a heck of a long time to keep prices static. It's not like they are selling computers where prices staying level is almost like prices increasing. They obviously are leaving a lot of money on the table as secondary prices for more and more watches are now higher than MSRP. This is like the Rolling Stones pricing their tickets at $50, knowing scalpers are selling them for far more. While Rolex may be owned by a charitable trust, it isn't like they are a charity trying to promote mechanical watch ownership around the globe. Explain!

I much prefer this situation rather than having Rolex increase prices and then have AD's go back to discounting and devaluing the brand to move inventory.

Rolex profits are secondary to their promotion of their luxury brand status and the scarcity of models is accomplishing just this.

[S-F]

I'm fairly new to the watch world, but as someone who has only been really into it for a year and a half, I'm just speechless at how people act over these luxury items. It's borderline ridiculous.

[slide13]

Originally Posted by 037

Come to think of it, prices in the US have gone up for many. Discounts are gone on stainless models and in many cases it's MSRP only.

^this!

I think if you could look at the actual selling price of models you would see a 5-10% increase as discounts have dried up for many models. I think it's a very calculated strategy to make discounts a thing of the past first. Then we'll eventually see an actual price increase as well.

I'm glad I bought my sub when I did. Tried a couple dealers and they wouldn't budge on price but eventually found one that was willing to do 15% off without hassle. I don't think I would have any chance of a similar deal today.

[tyler1980]

Originally Posted by beshannon

I much prefer this situation rather than having Rolex increase prices and then have AD's go back to discounting and devaluing the brand to move inventory.

Rolex profits are secondary to their promotion of their luxury brand status and the scarcity of models is accomplishing just this.

yes i do agree. As stated above with discounts going away the prices have gone up, to retail, so i agree on that point. Patek and AP have decreased prices when they have gotten too aggressive in the past decade and IMO that is an awful thing to do to current owners. Your watch is now 10 or sometimes 20 percent less a retail ...overnight.

[henry333]

Because US is pretty much the most expensive country to buy from. If they need to raise prices they need to balance the world market first. Even U.K. Had a price rise it was still cheaper to buy in UK then US. As long as the money is strong compare to other they will not.

[opaline460]

Originally Posted by Chiboy

Obviously, I am speaking from a U.S. perspective, because I believe they have increased at least U.K. prices to adjust for Brexit currency fluctuations/devaluations. But this is a heck of a long time to keep prices static. It's not like they are selling computers where prices staying level is almost like prices increasing. They obviously are leaving a lot of money on the table as secondary prices for more and more watches are now higher than MSRP. This is like the Rolling Stones pricing their tickets at $50, knowing scalpers are selling them for far more. While Rolex may be owned by a charitable trust, it isn't like they are a charity trying to promote mechanical watch ownership around the globe. Explain!

You write to Rolex HQ

[lecorsaire]

Originally Posted by henry333

Because US is pretty much the most expensive country to buy from. If they need to raise prices they need to balance the world market first. Even U.K. Had a price rise it was still cheaper to buy in UK then US. As long as the money is strong compare to other they will not.

They are certainly cheaper in Europe than over here especially with the current EUR/USD exchange rate. Unfortunately only Datejusts and PM is available over there. Getting SS watches is much more difficult than in America imo.

[tyler1980]

Originally Posted by henry333

Because US is pretty much the most expensive country to buy from. If they need to raise prices they need to balance the world market first. Even U.K. Had a price rise it was still cheaper to buy in UK then US. As long as the money is strong compare to other they will not.

not really. The US has historically been the discounting capital of the world. Plus if you travel anywhere abroad and you get giant tax refunds. So in a sense, US buyers have been pretty spoiled for a long time.

[Verdi]

I am so rich I wanna pay more for my Rolex

[crazymcmichael]

Originally Posted by lt virgil hilts

you're that kid in school, ain'tcha!

hahahahahahahahaha!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!

[Chadridv]

Originally Posted by piratepress

Last Year, my BLNR was $8950. Now, I'm looking at $9250 for a Pepsi. I'm just thrilled it isn't more!

I just bought a BLNR this week for $8950. So actually the price has not increased.

You're technically referring two different watches. I'm sure if they redo the BLNR with the new movement and Jubilee option the price will be within $50-150 of the Pepsi, if not exactly the same. But again, historically the Jubilee option costs more.

[Chillychow]

Originally Posted by lecorsaire

With this bull market the only thing increasing retail would accomplish is raising the market prices even further. These are luxury goods and there are always people with more than enough cash to burn no matter how ridiculous prices are. I don’t think most of us would be very happy with new SS GMTs and Daytonas going for $30k.

The only thing that would curb resellers is if people stopped paying these premiums and that simply is not going to happen with Veblen goods. Some people will pay any price for status. In fact higher prices make them more desirable if anything.

Perhaps if Rolex had never introduced the ceramic Daytona which was the catalyst for this craze, prices would still be normal today.

However, having MSRP Daytona's and GMT's at $20k WOULD pretty much eliminate waiting lists and Grey markets...

[Speed]

Originally Posted by piratepress

Last Year, my BLNR was $8950. Now, I'm looking at $9250 for a Pepsi. I'm just thrilled it isn't more!

First world 2% problem?

[Chiboy]

Originally Posted by RHIII

So you think a Stainless Daytona should sell for $20k?

Rolex is a (nearly) $10b company...I would submit they know exactly what they are doing. All of the supply ‘issues’ are truly creating a hyped up frenzy - which in turn could be increasing exclusivity - without badly injuring ‘their’ retail market. Pointing potential customers to boutiques and ADs vs. secondary markets...

Chalk up the ‘leaving $$ on the table’ to FREE advertising (from all the hype). Sounds like a GREAT deal to me — for what — MAYBE 10-15% (if that) increased profit from increasing the retail on the models that would truly sell for increased costs....

That’s my .02 worth


Sent from my iPhone using Tapatalk

I never said Daytonas should sell for $20k. Free advertising -- good point!

Originally Posted by 037

Come to think of it, prices in the US have gone up for many. Discounts are gone on stainless models and in many cases it's MSRP only.

I still don't understand the overall complaint, however.

Good point. And it wasn't a complaint. It was an observation/question given that supply and demand at current pricing levels is pretty far out of whack on many models.

Originally Posted by lecorsaire

With this bull market the only thing increasing retail would accomplish is raising the market prices even further. These are luxury goods and there are always people with more than enough cash to burn no matter how ridiculous prices are. I don’t think most of us would be very happy with new SS GMTs and Daytonas going for $30k.

The only thing that would curb resellers is if people stopped paying these premiums and that simply is not going to happen with Veblen goods. Some people will pay any price for status. In fact higher prices make them more desirable if anything.

Perhaps if Rolex had never introduced the ceramic Daytona which was the catalyst for this craze, prices would still be normal today.

Re - ceramic Daytona release:

Originally Posted by beshannon

I much prefer this situation rather than having Rolex increase prices and then have AD's go back to discounting and devaluing the brand to move inventory.

Rolex profits are secondary to their promotion of their luxury brand status and the scarcity of models is accomplishing just this.

Agreed. Although I would think they could charge 15-20% more for some models and still have the hype/shortage situation. The main difference would be that they would make more money and close, but not eliminate, the MSRP/secondary pricing gap.

[lecorsaire]

Originally Posted by Chillychow

However, having MSRP Daytona's and GMT's at $20k WOULD pretty much eliminate waiting lists and Grey markets...

if you actually think that would change anything. It would only make both more desirable! We would be looking at $30k grey prices for both.

[tyler1980]

Originally Posted by lecorsaire

if you actually think that would change anything. It would only make both more desirable! We would be looking at $30k grey prices for both.

your are right... fixed prices are inherently inefficient. Dynamic pricing so the price constantly changes until it reaches the point that they sit on display for an average of 5 days is really the only way to truly eliminate the secondary market. There is a price where that would happen, but its not a set price.

we are in a modern world and if anything needs to change its pricing structures.

[037]

Originally Posted by Chiboy

Good point. And it wasn't a complaint. It was an observation/question given that supply and demand at current pricing levels is pretty far out of whack on many models.

I get what you're saying. My take is that for a mass-produced watch at current levels of finish and quality, Rolex is already priced accordingly for what's delivered. The drought is throwing off our perception but hasn't changed the actual product. If we set supply aside from consideration, the price for the product delivered is accurate if not a bit high.