Rolex Prices

[nuts070]

Just occurred in my thought, do you think it is worth it, the price increases throughout the years vis a vis the development of new/advances in technical features of models plus inflation relatively speaking?

[harvey]

Yes...

[hongkongrr]

Not sure I understand your question

[Seibei]

No, the prices are artificially low, relatively speaking. They are likely to go up, especially in countries were the currency is weakening.

[locutus49]

Prices are too low given the demand and technical developments over the years.

[RXAPPP]

Like everything else it’s all relative is it not - what are you getting at?

[nuts070]

Originally Posted by RXAPPP

Like everything else it’s all relative is it not - what are you getting at?

I just think that at least in some way, the increases were justified by the intrinsic value of the watch, that Rolex did enough input in terms of say R&D, and that we are not paying solely for the name Rolex when the watches can be had for just a few bucks, just like handbags which depend on the name for much of its "worth".

[petay993]

The watches at RRP are priced towards the top end value wise for what they are, unfortunately demand is out of control therefore the market price is heavily distorted.

Even at 15k the BLRO for example offers some sense of value for a buyer as it is likely to retain at least 100% of that inflated figure going forward barring an unforeseen change in market conditions. Your 8k mainstream Omega compared will lose 30% the moment you strap it on and walk out of the AD door.

Obviously if you are buying with no intention of ever selling it doesn't matter about any of this and you buy what you want.

[jtarafa13]

To me in free market economy demand drives prices. In the case of almost all Rolex watches the demand is though the roof and the prices everywhere other than the AD have risen. I read all sorts of articles about the pice being too high for what it is. I say supply and demand


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[beshannon]

Originally Posted by locutus49

Prices are too low given the demand and technical developments over the years.

Agreed.

The current grey prices are what the market will bear and high end luxury jewelry should always be at the top of the range for a discretionary purchase

[James Nye 1982]

Prices are way too long for the demand. Rolex will close some AD's and increase prices again to become more exclusive.

[Mystro]

Originally Posted by beshannon

Agreed.

The current grey prices are what the market will bear and high end luxury jewelry should always be at the top of the range for a discretionary purchase

Yea. The grey market has fine tuned the real market value as only the free market can. These are a luxury purchase. A few grand more should not really matter if the watch is purchased in proper context. I mentioned in another thread, I would gladly pay $3000 more on every model if I could go into a AD and try on and purchased a new Rolex on the spot. Rolex is targeting and moving more upscale, it will never be like it was before regardless of what the economy does.

[Crazy Lugs]

Owning a 14060 and 114060, it’s an easy “definitely!”

[logo]

Originally Posted by Mystro

Yea. The grey market has fine tuned the real market value as only the free market can. These are a luxury purchase. A few grand more should not really matter if the watch is purchased in proper context. I mentioned in another thread, I would gladly pay $3000 more on every model if I could go into a AD and try on and purchased a new Rolex on the spot. Rolex is targeting and moving more upscale, it will never be like it was before regardless of what the economy does.

Yes the market can handle the grey market prices, but they are not really reflective of true market value. For every one person who buys grey, there are probably 10 waiting on a list at their AD who would never pay the grey price. So if all of a sudden ADs charged grey prices, while it would probably end the Rolex shortage situation, Rolex sales would probably drop which is not ideal for Rolex. Increasing the price to a happy medium might be more balanced - your $3000 number seems reasonable in general, but probably is dependent on the specific model in question as to how much of an effect it would have (eg 3000 on a Daytona still means a 4 year wait for one and insane grey prices).