Are Today's Rolexes Overpriced?

[gav329]

Yes


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[CPRWATCH]

Are Rolex overpriced ? .Only when I'm thinking of a way to explain to the better half a good enough reason for paying out a kings ransom on a watch (Her words not mine ).

[BLNR Nairobi]

Originally Posted by Eva123

Rolex became fully luxury brand and accordingly prices went up very significantly. They are not related to the cost of production, advertising but are based on maximum amount that willing customer is going to pay.

Rolex was a tool watch company which produced good quality and reliable watches which were actually used for diving, racing. However, today nobody uses Sub or SD for dives (you can use cheap dive computer and forget about dive tables and manual calculations). Nobody uses Daytona Chronograph for measuring racing time, etc.

Recently there was a very good article in The Economist which analysed why Birkin bags are sold for more that USD 10,000 when actual maximum costs to produced it are less than USD 1,000. The same analogy could be applied in watch industry.

Watches, handbags, sun glasses are the most overpriced items where customers are mainly paying for brand name only. Also, there is a very uneven distribution of income between people around the world when some people get extraordinary amounts of money (e.g. sport stars, famous actors and etc.) and these branded products are used by them in order to distinguish from general society and show their status.

Nobody buys Rolex, PP, AP or other watches for their accuracy, functions - these items became status, achievement symbols. That's why their prices and costs do not correlate.

Thanks for mentioning that article. I found it, and it is both enlightening and entertaining.

Thank you.

[jimcameron]

If you want a watch to tell you what time it is, they are hideously overpriced.

[JR16]

It’s a totally subjective question. “Value” is a very personal concept that differs person to person. In aggregate, clearly Rolex are not overpriced - just look at the wait lists and premiums people are willing to pay, minimal discounting at ADs, etc. With regard to minimum wage , it’s not fair to compare prices of luxury goods over time to inflation or changes in minimum wage which has stagnated. Compare minimum wage to a dozen eggs or carton of milk- that’s fair.


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[mountainjogger]

If Rolex lowers its prices this year I would say yes.

[brandrea]

I always thought they are good value for the money.

[harvey]

20% underpriced.

[abozz]

Some people charge a million dollars for a performance in a TV chapter of 30m (Jerry S.) or record a disc, that is, can only be overpriced what the public considers expensive and is not willing to pay, if the public pays and the demand exceeds supply, then the price will continue to rise. Rolex has its correct price and if you want a GOOD watch at a better price there are many options like Grand Seiko.

[jrs146]

I view the pricing of watches the same way I view any other luxury good. They are just that, a luxury item. Meaning there is really no price justification except if you want it you pay for it. You could argue no watch is worth more than a few hundred bucks. You’re not paying for the accuracy. You’re paying for two things in my mind.

1 - the art and history of the brand
2 - the name on the dial

And there’s nothing wrong with that!

So ate Rolex watches overpriced? Only if you’re not willing to pay for it!


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[MylesFalkingham]

Originally Posted by Sub King

The drastic price increase occurred because the meaning of a Rolex shifted. It went from being a solid tool watch to being a luxury status symbol item. However, all things considered, I think Rolex remains a good value even to this day.

How many other luxury watch brands have as rich a history, designs that are as iconic, durability that is on par, and the innumerable other excellent attributes that Rolex watches have, for the same cost as a Rolex?

Let’s take Audemars Piguet for example: They charge for a stainless steel watch what Rolex, the most well-known and prestigious (in the eyes of common folk) watch brand in the world, charges for a solid 18k gold watch. If you wanna talk about overpricing, I think AP and PP are better brands to look at!

Could not agree more!

[16610v]

I dont think they are overpriced.

When an AP steel watch need over 20k, the list price of a ss sub or daytona is very good price

[adg31]

Originally Posted by 16610v

I dont think they are overpriced.



When an AP steel watch need over 20k, the list price of a ss sub or daytona is very good price

A good point if the aforementioned SS Submariner or Daytona were available.
However there is only one true SUB



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[arizonapaul]

Oh boy, let's put it this way, if Rolex was underwear, would you wear it on the outside. I for one, would not as I buy these watches for my personal satisfaction and not to be admired on the outside world.
Matter of fact, NONE of my friends have a Rolex, and have never commented on mine, except one guy.

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[landroverking]

You think.

[Panerai311]

The discussion about “overpriced” Rolex is ongoing since more than 30 years already.....and will continue for the next 300 years.
Rolex is asking what the market is willing to give. So all good.

Cheers,
Alexander

[ferrissteve11]

At this point in time they are a luxury item first, followed by tool watch a somewhat distant second. That's not to say they aren't wearable as a tool but at their price point I think many take an active consideration when choosing certain activities while wearing one.
Pricing & value....well that's a hard one. I've got a pair of bikes with a LOT of custom work in each....will I ever recover the costs ? Not likely but to me the price was worth it as they make me very happy. And at the end of the day if an expensive watch is what makes you 'tick' and puts a smile on your face, well so be it.

[Mainewatchman]

Originally Posted by Investr

Oh brother......

[Vanmarsenille]

Originally Posted by SpyShopsNYC

If you was in the Amazon forest and had a Rolex on they would know it. I went to my high school reunion and I wanted to show my status so I wore the Rolex not my IWC. I wore my YM2 116688


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Oh dear.

[Zakalwe]

Many people are saying "they're worth what people are prepared to pay" and variations on that theme. Others have pointed out that "value" is a term that differs according to the individuals perspective - you can't put an objective value onto a luxury purchase. All this is entirely correct.

So take the subjective out of it and look at the secondary market. In this context, most of the SS sports range are underpriced - if a grey dealer can successfully sell a lightly used LVc for 30% above retail - which they absolutely can in the UK market - then MRSP is, relatively speaking, a steal.

By contrast, as is well known, most PM pieces take a 30%+ hit immediately on leaving the AD's front door, so those watches are relatively overpriced.

[m j b]

Yes, they are overpriced.

Yes, there is a difference in the quality of the movement, bracelet, bezel, etc. between (for example) a Rolex and an Omega.

The question is, is the difference worth the cost?

And then there is resale. The Rolex will hold its value better than the Omega, especially if bought at retail. Of course, you can get a hefty discount on most Omegas, which are also less expensive to start with, so there's that too.

$9K for a stainless steel watch is ridiculous. But for those of us who can afford it, why not indulge ourselves? You only live once, can't take it with you, yada, yada, yada....

[ALF61]

Originally Posted by Sub King

The drastic price increase occurred because the meaning of a Rolex shifted. It went from being a solid tool watch to being a luxury status symbol item. However, all things considered, I think Rolex remains a good value even to this day.

How many other luxury watch brands have as rich a history, designs that are as iconic, durability that is on par, and the innumerable other excellent attributes that Rolex watches have, for the same cost as a Rolex?

Let’s take Audemars Piguet for example: They charge for a stainless steel watch what Rolex, the most well-known and prestigious (in the eyes of common folk) watch brand in the world, charges for a solid 18k gold watch. If you wanna talk about overpricing, I think AP and PP are better brands to look at!

THIS !!

Rolex of the 60's and 70's and maybe 80's motto was building a tool watch affordable for many.

Now Rolex thinks folks who buy one are so rich that they will buy a whole collection. That is what their marketing targets and that is what their AD's treat you like. When I bought my first Rolex back in the 90's I was a newcomer to Mayors, got excellent attention. Today and AD would probably look funny at me from the moment I walked in the store. Look at their displays--they are not inviting to just anyone, the hot watches are stashed away in the vault awaiting their great clients.

[Bigblu10]

I think it is fair to say all luxury items are overpriced with Rolex being no exception. It is a want, not a need. Look at prices of Hermes handbags; 50 to 100k for a leather handbag? Boom!

[AK797]

Originally Posted by Art 1

IMO Rolex steel sports watches are 10% underpriced.

That is not opinion, on many models the market is stating this is precisely the case, and in some cases even more.

When I was growing up, in a normal non-WIS middle class family, the name Rolex was synonymous with ultra luxury and extravagance, much like Ferrari and Porsche, and I know now it was actually equated more like Patek in that perception, so in many ways the price, considering the high Veblen status of the good, is quite under-priced and is quite affordable to many with a dedicated savings plan, unlike a Nautilus or Ferrari, and the recent market flights to some of their models is bearing this out.

[watchwatcher]

Originally Posted by brandrea

I always thought they are good value for the money.

Originally Posted by AK797

When I was growing up, in a normal non-WIS middle class family, the name Rolex was synonymous with ultra luxury and extravagance, much like Ferrari and Porsche, and I know now it was actually equated more like Patek in that perception, so in many ways the price, considering the high Veblen status of the good, is quite under-priced and is quite affordable to many with a dedicated savings plan, unlike a Nautilus or Ferrari, and the recent market flights to some of their models is bearing this out.

Agreed.

[amh]

Depends on the perspective.

- Someone making minimum wage shouldn't even be thinking of anything beyong a G-shock. They have basic needs to address (food, shelter.) And of course education.
- The current SS range is clearly not overpriced for the market. Rolex is selling every piece it produces.
- From a functional point of view Rolex is overpriced as long as you can get something else that does the job just as well (eg. Tudor.) And with Tudor you could say the same thing, just buy a Seiko. Everyone must find their sweet spot.

People must realize that minimum wage isn't expected to keep up with the cost of living nor should it lead to a viable career path. The government can set minimum wage to whatever it likes but the labor market sets the true wage. Automation is reducing the need for raw labor, someone with zero skills cannot demand high wages.

[enjoythemusic]

Originally Posted by BristolCavendish

At one time, a Rolex was affordable (for those who really wanted one) by either being frugal or eliminating other miscellaneous/unnecessary expenditures. It's a seemingly different story today as $8-10K+ represents a bigger chunk of change even when accounting for current inflation and higher salaries/wages.

In the 1970s houses could be purchased for what today seems like a song. For instance, the average price in 1971 for a house was just $30,426 — or a mere $190,388 in 2014 dollars. Ferrari 250GTO went for around $21,000...

[minute_man]

I don't think they're overpiced. Especially at sub-10K most of the SS sports models and SS/TT DJ are priced just right and attainable by many if not by most who decide to save towards one. Given the resale value and pre-owned market of popular SS sports models I'd go as far as saying they're quite affordable purchased BNIB.

Originally Posted by ALF61

Now Rolex thinks folks who buy one are so rich that they will buy a whole collection. That is what their marketing targets and that is what their AD's treat you like. When I bought my first Rolex back in the 90's I was a newcomer to Mayors, got excellent attention. Today and AD would probably look funny at me from the moment I walked in the store. Look at their displays--they are not inviting to just anyone, the hot watches are stashed away in the vault awaiting their great clients.

I respectfully disagree.There are AD's who value and treat every client as a VIP. I personally have only good experiences from Singapore to Spain and Greece; the latter being not just any AD but Rolex Greece. And it wasn't even a Rolex I bought from them but a Tudor.

[Henry F.]

I wonder how much benefit Rolex makes on the sale of, let's say a ss subc date ?
About everything is overpriced anyways.
The goal of an enterprise is to make benefit.
If it doesn't then it'd go bankrupt.
Rolex definitely is a healthy enterprise.
As long as people are willing to pay for their products they have no reason to come down in price.
Aren't people here even speculating on price raising ?

Now, let's be honest.
Rolexes are fine watches and have had some prestige attached to it.
For many people it's important to be looked at as successful.
A Rolex says that and therefor many people are willing to pay for a Rolex, just because of its statement.
As long as this image is around, there's no way the prices will come down.
It's a natural sociological behavior as old as the times.
Some sort of who has the bigger......bankroll.
Bad for those who actually appreciate Rolex for their work and performance who now must pay extra because of the prestige image.

[Mystro]

Prestige and over priced seem to go hand in hand. Rolex could probably charge more and still have a waiting list for many of their models. Rolex is the master and thank goodness they don’t make the same mistakes as their competition like Omega. If anything, Rolex ever so slightly pushes even more upscale each year.