will rolex put up prices in UK due to current exchange rate ?

[what.watch]

Originally Posted by beshannon

The secondary market has been telling them for years that their prices are too low. They should raise them. Whether they will or not remains to be seen

It is my understanding that Rolex's pricing has actually been very consistent, and when the price in CHF is viewed over the long term the fluctuations are actually tied (mainly) to the fluctuations in the commodity market of the raw materials they purchase for foundry.

The business model is tried & true, and is a function of the (skilled) staff required, the raw materials required, and the investment on tooling, maintenance, marketing etc. There is obviously a very hefty markup built-in, but I do not believe there has been any evidence that Rolex price purely in response to market conditions - unlike (for example) Omega & Zenith have been doing over the last few years.

For example, ABlogToWatch have a great piece here about Rolex pricing:
https://www.ablogtowatch.com/rolex-p...ling-analysis/

If you look at the graph of the changing cost of a Submariner No-Date, you can see that the *adjusted for monetary inflation* price has actually only risen about $1200 between 1957 and 2014. That's amazing.

Importantly, that article points out how the cost of an 18k yellow gold Submariner rose from $32k in 2006 to $34k in 2012 - a period which saw the raw price of gold go from $630 per troy-ounce to $1600. If that change - at that time - isn't evidence that Rolex price to materials not demand, then I don't know what is.

I believe that the reason that Rolex are one of the very, very few brands that truly hold their value over the long term is due to the value proposition being consistent over the decades - and they know this.

Hence; don't expect Rolex to adjust pricing in relation to market conditions any time soon.

Many companies are compelled to maximise revenue/profitability by their shareholders (think: LVMH brands). Being owned by the Hans Wildorf Foundation means they are compelled to think about the company over the long term, and there is no pressure to outright maximise profits in the short term. Remember: Rolex is a not-for-profit organization.

Personally, I think the world would be a better place if more companies enjoyed this sort of setup - as with the welcome news about Patagonia a couple of weeks ago - but that is a topic for another post, for sure!