"Inside Rolex", Overpriced?

[notaclctr]

Originally Posted by chris russell

at the end of the year. What do you suppose Rolex would do with that money?

Anonymous swiss bank account, been collecting interest for 100 years, soon they will have enough money to buy the whole world, well at least the US ...

[Chipmunk]

Rolex isn't a cheap watch and everybody knows that.......but when I have the money, I'll buy
some more without any hesitation.

[GradyPhilpott]

Originally Posted by falko

http://www.watchtime.at/archive/wt_2...006_04_102.pdf

Am I the only one having second thoughts paying 7k USD for a new sub made in simply steel blocks, by a robot in a couple of minutes??

I'm not sure how you can ask that question after having read the article. Every step in the production process, whether automated or done by hand is done to insure the quality of every component and the final product.

I'm not very well to do and the $5200, including tax, I paid for my Explorer was no mere drop in the bucket, but I have not had even one second of buyer's remorse.

In fact, the more I wear my Explorer, which is everyday now, my appreciation for the Rolex brand only increases.

I say whatever it takes to produce such quality is good by me. I wish they were cheaper, but then they would be Rolex, would they?

[rolexsubdate]

I say why stop at hyundai, why not buy a skateboard instead?
Instead of buying a house, why not live in a tent?
Instead of sandwiches & seafood, why not just have bread and water?

Life is about experiencing good things ... rolex is one of them....and good things cost more than mediocre things .... that's all

[Dan2010]

With Rolex, you get what you pay for. I timeless, rugged, high quality, piece of horological art.

I'm fascinated by the people who don't seem to think that they are getting something worth what they are paying. I just don't get it. Don't freaking buy a Rolex then.

[Jim232118]

At the end of the day all that matters is that you happy with your watch. Price, to me, is secondary. I have purchased inexpensive items, only to have them break and fall apart, and have been pissed, regardless of the fact it only cost a few dollars. My Rolex however continues to give me constant satifcaction every time I look at it, and it certainly cost more than a few dollars.

[RebreatherDiver]

It was a nice read, but for all those PhD's checking quality control there sure seems to be a lot of little things that are being missed lately, to include my recent purchase for my wife. Makes you wonder if this final stage has been 'outsourced' to a computer that uses something along the lines of facial recognition software? Regardless, I will still be coming back for more :)

[RRGHOST1]

Rolex are probably overpriced, but so are lots of things like cars and houses.

[soliman15]

"The value or price of a thing in any given time and place", according to Henry George, "is the largest amount of exertion that anyone will render in exchange for it. But as men always seek to gratify their desires with the least exertion this is the lowest amount for which a similar thing can otherwise be obtained."
..If something is over priced we the buyers are causing it to be that way..

[darthmouse]

Originally Posted by soliman15

..If something is over priced we the buyers are causing it to be that way..

Supply and demand. They certainly are making a large profit, but buyers don't mind and will keep buying (including me)!

[imono]

The Rolex name alone means big bucks.
There is no reason to go near there if you don't want to.

By the way, has any one any idea what the production COST is for a regular Timex or Casio?

[CrestCruiser]

1. R&D and engineering is expensive.
2. Working in manufacturing myself, I can say without hesitation that all that automated production machinery is VERY expensive to purchase, design, install, and launch into production. It takes years to amortize the cost of those things over the number of watches produced.
3. Automated CNC machinery in most applications actually make better products than can be made by hand. They are precise beyond imagination and that precision limits scrap. Would I want a master watchmaker assembling and regulating my movement by hand (as Rolex does)? Yes. But I would rather have a precision CNC machine cut out my stainless steel case.
4. As others have said, brand recognition and ever increasing residual value is incredible for Rolex. That is worth a lot.
5. And ultimately, if Rolex can charge it and people will pay it then more power to them. That's called capitalism, and I dig it!

[ersnyder]

Of course it's too much to pay. But no one's holding a gun to your head to buy one either. Like many "luxury" items, the hype and popularity of the item play as much into the "cost" as any other factor and more than most other factors.

[antivenin]

There is nothing in this world that is worth the price you are paying. Every product that is created on this planet was produced at a significantly lower cost than the selling price. If businesses were to sell their products at wholesale cost, they would go bankrupt. But hey, if you buy one, you have an instant heirloom. As long as people continue to buy, prices will go up. I’m not complaining, I’m saving for a Rolex. I chose to buy, but you better believe that I will try to get a discount when I’m ready.

[scrog10]

Originally Posted by Jim K

Scrog,
Not to highjack the thread, but what kind of strap is that on your sub?

It looks great!

Thanks Jim. I like it alot. Its just a generic rally strap I bought on the bay. Very cheap at around £12 I think. I wear it with a butterfly clasp that fits really well.

[Gagebuilder]

After reading about the Rolex Factory in "WatchTime" mag. a month or so ago, I was quite surprised to read that Rolex designs and builds many of it's own high tech. machinery.

This will involve great cost for R & D. But, it also keeps ALL of their trade secrets extremely secret. Some of their machines also hold 2 micron tolerances. That's less than 0.0001 inches, a human hair is generally 0.003 inches, so a tolerance of approximately 1/35th the thickness of a human hair.

These tolerances don't come cheap!

Brand recognition, what can ya say, my co-worker thinks my ss GMIIIc is a $10,000 watch. When many people see or think Rolex they think "Top Tier" even if that is not necessarily the truth, it is what Rolex has always advertised.

I'll never understand how Louis Vuitton commands $1,000 for a canvas bag when I bought a half dozen canvas bags at Walgreens for 69 cents apiece. But, there are plenty of people who will say "He just doesn't get it."

[scrog10]

Originally Posted by Frogman4me

Why would you buy a 14060 if you wanted the watch to look expensive? You chose the cleanest and to me the most pure Rolex ever made. I love Rolex when it does not stand out and scream hey I just spent 7 thousand dollars please look at me. This is main reason why I love my 14060 and Speedmaster Pro more than any watch I have ever known. Only the true WIS recognize it in the wild and respect it for its long standing history.

I like the clean look. I'm not a fan of the cyclops as I feel it distorts the chrystal.
I was reffering the cheap LOOKING bracelet and also the fact the watch case is not finished between the lugs. Its like Rolex thought, Well no one is gonna see that so we wont bother. Otherwise I love the watch. You can see I wear mine on a leather strap so both these are obvious to me.

[Strut99GT]

Price is merely a reflection of the consumer pool's willingness to pay for goods or services. I think Rolex's Stainless lines are overpriced, hence I don't own one. Others don't, and they do. I think when Rolex adds gold to their watches, the pricing curve converges with other brands, making Rolex a better deal, relatively speaking. All of this varies by user, of course. If you don't want to pay $7K for a sub, don't!

[Route 66]

Great article, thanks for posting it.

One thing that I found both surprising and confusing can be found on page 113 where it states that "all Rolex watches have gold hands."

I don't understand how that can be...

Mine don't appear to be gold.

[scrog10]

Originally Posted by Stevarn

Great article, thanks for posting it.

One thing that I found both surprising and confusing can be found on page 113 where it states that "all Rolex watches have gold hands."

I don't understand how that can be...

Mine don't appear to be gold.

I believe the hands are yellow gold, white gold or white gold painted black (Explorer 2) Some of the older models had gilt hands.

[cht]

Originally Posted by handyhsl

Thanks for the info.
i believe R&D is the most expensive part of the watch, not the parts.
that is the case in most quality products.

R&D for what?
How to increase profit margins?

Sadly, Rolex's most complex horological accomplishment is the Daytona...
:(


I don't understand how if the assembly goes through the hands of all these people, why we are still seeing lots of members here posting their Rolexs on here with QC issues?

[calibre1]

Originally Posted by scrog10

I believe the hands are yellow gold, white gold or white gold painted black (Explorer 2) Some of the older models had gilt hands.

Wow is that true? White gold painted black? And the hands too?

I always thought it was just some plastic painted black and the price difference between white and black dialed Exp ii was due to the white gold in the black dialed one. Can this me clarified? Thanks!

[Evan614]

My father always said that something is only worth what someone is willing to pay.

so are they over priced??? is the question... the answer is... apparently not. I bought a SS Daytona and thought the MSRP price would increase in the near future.

[dligg72]

Originally Posted by falko

Norma Buchanan's "Inside Rolex" article in Watchtime....

http://www.watchtime.at/archive/wt_2...006_04_102.pdf

Am I the only one having second thoughts paying 7k USD for a new sub made in simply steel blocks, by a robot in a couple of minutes??

I love my rolex collection but are we paying 6700 for brand-hype and 300usd for production cost?

I did not read anything about Robots in the article however I am sure there are a lot of automated parts of the production process. I have no problem with that because anything mass produced today from ipods to cars have the help of automated machines to design and build them. This does not mean it is better or worse quality than if it were all done by hand. Have you considered the cost of the so called robots you are talking about?

[cht]

^^^Read the article again, they are mentioned is several places.

[dligg72]

Originally Posted by cht

^^^Read the article again, they are mentioned is several places.

Robots or human hand. What is the difference. It does not take away that Rolexes have indisputable track record of being quality watches. Ferrari's, Nikons D3s's, MacBook Pro's, ect. are made by Robots and they are still expensive quality products. I just don't see why Robots are used with a negative connotation.

[GradyPhilpott]

Originally Posted by dligg72

I did not read anything about Robots in the article....

Pages 7 and 8 cover the robotics in the production and the R&D processes.

http://www.watchtime.at/archive/wt_2...006_04_102.pdf

At this link you can see part of the automated process:

http://www.rolex.com/en#/rolex-watch...ii/904l-steel/

Also here:

http://www.youtube.com/watch?v=9UuDJl93Z1g

[ingoodtime]

Everything goes full circle from the real estate boom to
the bust. I am not sure that the world economy will
continue to support yearly Rolex price increases of 10 - 15 percent.
Someone mentioned not being well to do and buying
a Rolex was a financial hardship. I hear ya.

[PJS500]

There is certainly not a Rolex price bubble. Prices are pretty stable. I am sure that they are bought and sold for profit but the price is set by the market. I got a nice discount 30 years ago in a soft market. A few years later Rolex purged dealers who were selling at a discount, or so I was told. I was also told that they went from 14K to 18K to maintain the high price. Now that the economy is soft discounts are back except for in demand pieces. I could not justify my first Rolex 30 years ago other than that it was a beautiful piece and an engineering marvel. I could sell it today for what I paid so my only cost has been maintenance which has not been bad. I bought a second about a year ago and I am hoping that the value for a used watch holds over time.

Some people just don't understand why any one would pay so much for a watch when you can get the time from your cell phone. I am sure the writer was one of them. So be it. But I love my Rolex.

[Shade]

Overpriced or not is something you should consider yourself with. People have different standards in the way they see things in life, and "overpriced" is a term that is not for general use.

For example: I wouldn't mind paying for 15k or 20k for watches that I LOVE. However, I tend not to spend much on cars, or audios, or rims, or branded designer shirts or clothings. Why? Simply because I endear the value of the watches opposed to designer clothings for example. I feel a simple tailored shirt that my tailor does for a fraction of the price suits me much better and I'm getting more compliments with it.

Same goes for my wife, she spends hard on handbags... literally, her Hermes and Chanels and whatnot costs more than a luxurious car... but she'd never spend a dime on a watch. Why? She feels watches are a waste of money for something that small and doesn't get worn...

For me? Hand bags are just cured leather being cut and sewn into place... I don't understand why it costs a fortune, but I guess it works both ways?

So overpricing is *not* general term, it's a point of view. :)