"Inside Rolex", Overpriced?

[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?

[Andad]

Buy one - don't buy one - your call mate.

I would charge more for a Rolex if I capitalized to their extent....:

Could you turn a block of stainless steel into a Subc for $7000?

No, ok, didn't think so.

[mitchy]

I read that too, I agree the prices are steep( mainly in aus) but you are paying for a proud heritage and brand that is synonymous with quality! Plus the price keep them exclusive which is also why I love them. The cases may be popped out in 10 minutes but the movements are assembled by hand and are tested well above the COSC standard! That's why you pay more!
My belief is if you don't like the price-tag choose a cheaper brand :)
(or save harder :p)


Sent from my iPhone using Tapatalk

[calibre1]

I supposed it is the satisfaction and pride in wearing a Rolex which makes the experience priceless!!....

[tudorwatches]

when you question yourself if the brand rolex gives you value for the money when a cheap 10 $ watch also tells you the exact time.. you better not buy a rolex..

[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.

[finchina]

That's a great article. It still shows that lots of effort is put into making the watches, despite the fact that some parts of the process are now done by robots.

And we all know, that with a good brand it would be foolish to base the pricing on the production cost... ;)

[TempoKing]

Rolex is the epitome of a watch
so you can show others that you have money to burn.
As this is achieved in the best way possible
I believe that $7,250 plus tax is a small amount to pay
for the "aura" that surrounds your entire body.

Think about it ...

[falko]

Originally Posted by x06verdm

I read that too,....

My belief is if you don't like the price-tag choose a cheaper brand :)
(or save harder :p)


Sent from my iPhone using Tapatalk

Thanks! as a 12+ rolex collector for 10 years, financially independent, and as a member on this forum for 3 years I will now "start saving" for the new sub

The friendly question was, are we going to see lower quality in Rolex compared to 10-20 years ago due to robots and price increases to due need for more profit for the swiss family Rolex?

Are IWC, AP or Patek more "bang for the buck" as the say?

[dysondiver]

some of you may know , and the avitar is a clue , i dive ,,,
recently , a well respected dive computer company halved the price of its computer ,
the following turmoil has been hectic , new stuff isnt worth the price it was a month ago , second hand kit which was cheap a month ago is dear now ,, people are wary of buying new , is the company about to roll over , is there a new something in the offing , do wee wait andsee , take advantage of the outstanding offer ,,, etc etc etc ,
long and the short of this post
just be glad they are expensive.

[falko]

Originally Posted by dysondiver

some of you may know , and the avitar is a clue , i dive ,,,
recently , a well respected dive computer company halved the price of its computer ,
the following turmoil has been hectic , new stuff isnt worth the price it was a month ago , second hand kit which was cheap a month ago is dear now ,, people are wary of buying new , is the company about to roll over , is there a new something in the offing , do wee wait andsee , take advantage of the outstanding offer ,,, etc etc etc ,
long and the short of this post
just be glad they are expensive.

probably could happen if sub was launched with same retail price as planet ocean .... second-hand market would collapse, and initially people would buy the sub but a year later ??

[falko]

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.

Well said!!!

Originally Posted by cmkooi

when you question yourself if the brand rolex gives you value for the money when a cheap 10 $ watch also tells you the exact time.. you better not buy a rolex..

Which ignorant hole did you crawl out from?

[skalis]

Yes, the prices are not very low and maybe quite a big part of it is "just" for the brand. But keep in mind, that Rolex is not a marketing-quick-grown bubble like we can see in many kinds of bussineses today, it has been built in many decades by bringing customers the top quality, robustness, durability and precision (it is simple, but it is the real key to success -- they just did their job well). And last bud not least, you know, that Rolex is the inventor of many patents and inovations in watchmaking and the continuous R&D also costs lots of money. The manufactory had to go through many dead-ends to reach finally the right way. That is nice, not to wait for others but explore the way forward.

[padi56]

Originally Posted by x06verdm

I read that too, I agree the prices are steep( mainly in aus) but you are paying for a proud heritage and brand that is synonymous with quality! Plus the price keep them exclusive which is also why I love them. The cases may be popped out in 10 minutes but the movements are assembled by hand and are tested well above the COSC standard! That's why you pay more!
My belief is if you don't like the price-tag choose a cheaper brand :)
(or save harder :p)


Sent from my iPhone using Tapatalk

Would very much doubt if all assembled by hand unless they have a huge workforce of watchmaker elves.Rolex was making around 900000 units a year
and Switzerland has one of the lowest working years in Europe.And all Swiss chronometers are tested to the same standard for movement size as all the Swiss other brands tested at COSC.Plus the fact only the bare uncased movement is tested not even the winding rotor is there.Today Rolex tests so many they have a special machine there.The bare movements are loading into a magazine and all wound by a machine.If they pass they get certified but the COSC is just a marketing tool today.As most modern day movements today with a bit of patience and some regulation could pass the now quite antiquated COSC test.

[dddrees]

Its not something you have to buy,its something I have choosen to buy.

So for me no question it was worth it. For others it may not be, and that is their choice.

[falko]

Originally Posted by padi56

Would very much doubt if all assembled by hand unless they have a huge workforce of watchmaker elves.Rolex was making around 900000 units a year...

exactly, and we have to bear in mind that the population of Geneva (city center as of 31 December 2009) is only 185,958

[Jim K]

For me it is worth it. I have wanted a Rolex Submariner for almost my entire life. Seriously, ever since I was a young boy in elementary school flipping through National Geographics and seeing the Rolex ads for Explorers, Submariners etc, I've wanted a Sub.

I got a Datejust for my 30th b-day and finally got my 14060M for my 40th birthday. Everytime I look at my watch I enjoy it and marvel at what a great watch it is. Is that worth the money? To me it is.

Now I'm saving up for the next one.

Cheers.

[scrog10]

Theres no way Rolex are worth their money but will all have or want one.
It took me years to take the plunge. They just keep going up in value every year. Which I find very annoying when buying. But as an owner I love the fact that they are ever increasing in value.
I just wish they actually looked like they cost thousands of pounds. (mine being a 14060M)

[novae500]

why buy a benz when a hyundai can get you to from point A to B?

[Frogman4me]

Originally Posted by scrog10

I just wish they actually looked like they cost thousands of pounds. (mine being a 14060M)

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.

[dysondiver]

Originally Posted by novae500

why buy a benz when a hyundai can get you to from point A to B?

because you want to , and can.
60,000 lemmings cant be wrong.

[notaclctr]

I suspect Rolex aren't worth the price they're asking and the quality hands-on control might not be as good compared to other premium watch brands manufactured in smaller numbers, but the brand name is strong (if not THE strongest) and well established now and people are willing to pay for that, especially possibly people that buy Rolex to impress other, or have been indoctrinated with Rolex ads for decades. Having said that my next watch will probably be from Schaffhausen and not Geneva.

[notaclctr]

Originally Posted by dysondiver

because you want to , and can.
60,000 lemmings cant be wrong.

[paverman]

The simple answer is that there is no way to simply quantitfy the value of a Rolex. You certainly cannot add up the sum of it's parts and the labor, R&D, etc. to equate to the sale price. There is simply not enough intrinsic value in the case, braclet and movement to approach the lofty sales price. Rolex has been able to maintain a brand prestege, mainly through good marketing, that simply makes their product highly desireable and a symbol of success.

Having said that, Rolex does make an exceptionable durable and good looking stable of fine watches that we all crave. The re-sale market strongly supports the brand which helps with our initial "investment" and most importantly, a Rolex on the wrist makes us all better looking.

Everyone should enjoy what makes them feel good and don't sweat the details, IMO.

[Jim K]

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

It looks great!

[Dr. Robert]

The robots Rolex have are Oxford, Harvard, Cambridge, MIT & Cal Tech graduates.
That commands a bigger salary, thus higher pricing in their products.

[chris russell]

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

[Givmeabrek]

Funding their non profit organization???

It's a private company and they aren't saying.

[Watch Professor]

Prices are all relative. In reviewing the 2010 edition of "Wristwatch Annual", a watch encyclopedia showing pictures and listing prices of most mechanical (and a few quartz) watches currently in production, you will appreciate the relative pricing of Rolexes compared with other brands, many of which are priced higher and use ETA movements. Yes, a Rolex is expensive, but I believe that in this case, you get what you pay for.

[springbar]

Originally Posted by notaclctr

I suspect Rolex aren't worth the price they're asking and the quality hands-on control might not be as good compared to other premium watch brands manufactured in smaller numbers, but the brand name is strong (if not THE strongest) and well established now and people are willing to pay for that, especially possibly people that buy Rolex to impress other, or have been indoctrinated with Rolex ads for decades. Having said that my next watch will probably be from Schaffhausen and not Geneva.

When you build a zillion of something, you can't help but get better at it. With the number of watches Rolex has made over many decades, they have a huge amount of data (over the entire watch life-cycle) with which to refine their process.

High margins and high volumes is basically a formula for high quality (if the customer expects it).