Emperor with no clothes on

[real deal]

Let us face the facts here, RoleX USA is hoodwinking us all. We,including me are paying thousands of dollars for a wristwatch that is being mass produced. Then we have to pay hundreds to get it serviced. WHY WHY WHY WOULD WE DO THIS? How much higher can their prices go up? Just my two cents worth,

1.SS SUBMARINER DATE
2.LADIES SS/GOLD OYSTER

ENOUGH SAID

[wandyprawira]

That's what "normal" people say: "You're buying prestige"

[watchloverdave]

My $39 fountain pen by Lamy writes just as well as my $600 pen from Pelikan. But the Pelikan is a work of art and is beautifully finished and executed with a lovely 18kt and iridium engraved nib. I get great satisfaction out of writing personal notes using the Pelikan just as I derive similar satisfaction from wearing my TT blue sub.

Rolex spends a huge amount of money each year in advertising and in high end sports promotions (auto racing, polo, etc.). This advertising has given Rolex world wide recognition, and the cost of these promotions is, of course, factored into the cost of the watch.

I guess the short answer to your question is that Rolex charges what it does because it can, and each year there are hundreds of thousands of buyers worldwide who don't object to paying for the priviledge of wearing a watch that is universally recognized as a luxury product which, not incidentally, is also tough as nails and very accurate. As evidenced by the waiting lists in many ADs, Rolex demand meets or exceeds it's production; so there is not economic reason for them to lower their price.

We are actually hoodwinked all the time. That medication your doc prescribed the last time you were in cost about a nickel to make yet cost you or your insurance company $100 or more. Your wife or girl friend's diamond is actually not rare at all, but the supply (and the price) is tightly controlled by a world wide diamond consortium.

And talk of being hoodwinked....................let's not even talk about our politicians. LOL

[Chris B]

The best I've heard it explained is....."we got the disease, they got the cure"

[timebroker]

They spend a lot of money on charity, maybe Rolex watches should be deductable just the same as you would send money to one yourself ...

[real deal]

Do you really think medication cost about a nickel to make? Come on now. What about research, testing, trials etc. The real question is does a Rolex watch really need to cost what is does. Is it the materials. mass produced or just the prestige. If so in fact we are being hoodwinked. PS I DO LUV THEM THOUGH

[HoustonRider]

Perspective: My firt Rolex was a used datejust, I bought in 1987 or so, for about $600 used. At that time, I think new was $1100. At the same time, a sub or GMT ran about the same price $1150 or so. I bought a used Sub for $700, wore it for 17 years, and recently sold it for $2300.

I look at it 2 ways:

1) the price you paid you can always get back (unless you wreck it), so its $$$ in the bank that you wear on your wrist.

2) Rolex has been punching out these watches and created an artificial demand to keep us paying $5300 for a watch that the were selling for $1100 20 years ago. Normally tooling costs and design keep a price inflated for a while, but this watch hasn't changed (significantly) in a loooong time.

So which is the better deal?

[LouCan]

The prices will go up as much as we will pay. If you could charge it you would. There are people that pay $10.00 tops and there are people that will pay $100k for a watch. There is someone out there that will pay and keep that demand going.When people stop buying Rolex, the price will drop. NOT GOING TO HAPPEN. my 2 cents worth

[John685]

Originally Posted by real deal

Do you really think medication cost about a nickel to make? Come on now. What about research, testing, trials etc. The real question is does a Rolex watch really need to cost what is does. Is it the materials. mass produced or just the prestige. If so in fact we are being hoodwinked. PS I DO LUV THEM THOUGH

Medication is also mass produced. Costing a nickel? No, not when you factor in the intangibles like advertising in all the major markets, free samples to doctors, free vacations for doctors and related groups (or as they call it seminars) attorney fees and retainers to retain their copyrights versus the generic branding, maintaining political lobbyists, research, employee wages and benefits, etc., etc., etc.

Rolex costing so much? How about their research, advertising budget, sponsoring major sporting events, attorney fees and related costs pursuing fakes and defending their copyrights, maintaining several free watchmaker schools, numerous charities, wages and benefits for employees, etc., etc., etc.

Is it fair to compare the two above? I don't know. No matter what the product, there are numerous costs involved and the manufacturer prices his product in such a matter to maintain his business and hopefully generate repeat customers.

In a free market we can pay the price or not. Our choice!

[haakon59]

I see that the original poster lives in America. Much of the price rise in the US is attributable to Mr. Bushes policy of forcing the dollar to be devalued against virtually all world currencies, including that of Switzerland. Sure, Rolex adjusts prices for inflation as well. But in recent years, most of the price rise you are noticing is an adjustment Rolex is making so that their profit stays the same on a currency that has been devalued. I think you are wrongly pointing the finger at Rolex when (if you want to point fingers) you should be pointing it at Bush.

Further, prices ultimately respond to demand. Note that Rolex sells all of their inventory every year, meaning that their pricing is pretty much right on.

[JAD3703]

I buy and wear a Rolex because I enjoy the watch and the emotions that it engenders in me. And I am willing to pay a premium for what I consider to be mechanical and aesthetic works of art (mass produced or not).

In the end, it's only money, and if buying something with it gives you personal satisfaction, and you can afford, then do it.

And like Haakon 59 says - the prices point is obviously sustainable, because Rolex keeps selling. And we keep buying.

James

[watchnut]

Originally Posted by watchloverdave

My $39 fountain pen by Lamy writes just as well as my $600 pen from Pelikan. But the Pelikan is a work of art and is beautifully finished and executed with a lovely 18kt and iridium engraved nib. I get great satisfaction out of writing personal notes using the Pelikan just as I derive similar satisfaction from wearing my TT blue sub.

Rolex spends a huge amount of money each year in advertising and in high end sports promotions (auto racing, polo, etc.). This advertising has given Rolex world wide recognition, and the cost of these promotions is, of course, factored into the cost of the watch.

I guess the short answer to your question is that Rolex charges what it does because it can, and each year there are hundreds of thousands of buyers worldwide who don't object to paying for the priviledge of wearing a watch that is universally recognized as a luxury product which, not incidentally, is also tough as nails and very accurate. As evidenced by the waiting lists in many ADs, Rolex demand meets or exceeds it's production; so there is not economic reason for them to lower their price.

We are actually hoodwinked all the time. That medication your doc prescribed the last time you were in cost about a nickel to make yet cost you or your insurance company $100 or more. Your wife or girl friend's diamond is actually not rare at all, but the supply (and the price) is tightly controlled by a world wide diamond consortium.

And talk of being hoodwinked....................let's not even talk about our politicians. LOL

Pretty much spot on! Don't know about the drugs but no question about the diamonds and the politicians!

[watchnut]

Originally Posted by haakon59

I see that the original poster lives in America. Much of the price rise in the US is attributable to Mr. Bushes policy of forcing the dollar to be devalued against virtually all world currencies, including that of Switzerland. Sure, Rolex adjusts prices for inflation as well. But in recent years, most of the price rise you are noticing is an adjustment Rolex is making so that their profit stays the same on a currency that has been devalued. I think you are wrongly pointing the finger at Rolex when (if you want to point fingers) you should be pointing it at Bush.

Further, prices ultimately respond to demand. Note that Rolex sells all of their inventory every year, meaning that their pricing is pretty much right on.

That's one I haven't heard laid on Dubya! But I guess if I knew the Dow would go to 15,000 and the price of new Rollies would go down, I'd vote Democrat ! Fickle (and greedy) aren't we?

[vh_bu98]

If you think Rolex USA is hoodwinking us, than you should see the MSRPs of other countries.

And the reality is that no one is making us buy a Rolex. Everything is a choice.

[Destroy]

you pay $$ for it because:

a) you love it THAT much
b) it's the equivalent of strapping that much cash on your wrist!!! Omegas are great watches but don't seem to hold their value as well, ditto IWC, Breitling etc with the exception of some Pateks *AJ ducks for cover*
c) Rolex will be able to fix/maintain it for the time period that you're alive + more
d) Rolex "mystique"
e) It's a Rolex
f) It's a Rolex
g) It's a Rolex
h) Did I mention it's a Rolex?

P.S.

Rolex's are relatively "cheaper" in the US - consider yourself lucky!

[haakon59]

Originally Posted by watchnut

That's one I haven't heard laid on Dubya! But I guess if I knew the Dow would go to 15,000 and the price of new Rollies would go down, I'd vote Democrat ! Fickle (and greedy) aren't we?

Hmmmm. . . .I didn't state anything about being for or against Bush, all I did was say he had a weak dollar policy and this explains the price increases in the US from Rolex. Essentially, the reason Rolex has raised their prices in the US is because they DON'T want to lose money. The dollar is down because of the policy decisions Bush has made. I didn't say whether I agreed or disagreed with them. But what I was pointing out is that the price increases are not a sign that Rolex is selfish and wants to gouge the customer. They are just doing what every prudent business does when selling internationally: adjusting their prices so they bring in the same profit in terms of their own currency.

[Transient]

Originally Posted by JAD3703

I buy and wear a Rolex because I enjoy the watch and the emotions that it engenders in me. And I am willing to pay a premium for what I consider to be mechanical and aesthetic works of art (mass produced or not).

In the end, it's only money, and if buying something with it gives you personal satisfaction, and you can afford, then do it.

And like Haakon 59 says - the prices point is obviously sustainable, because Rolex keeps selling. And we keep buying.

James

Great response James.
I've got nothing to add to that except ditto!!

[Destroy]

Originally Posted by Transient

Great response James.
I've got nothing to add to that except ditto!!

He could always sell his Rollie and buy a UJW!!

[Mrdi]

Yup
we all support the crown

[jasonbellevue]

Originally Posted by JAD3703

I buy and wear a Rolex because I enjoy the watch and the emotions that it engenders in me. And I am willing to pay a premium for what I consider to be mechanical and aesthetic works of art (mass produced or not).

In the end, it's only money, and if buying something with it gives you personal satisfaction, and you can afford, then do it.

And like Haakon 59 says - the prices point is obviously sustainable, because Rolex keeps selling. And we keep buying.

James

Well said, James. My exact sentiments.

[chris_nor_cal]

I completely agree with the original poster. It is a joke. The watches quality does not command the price. We are all suckers who have bought into the marketing agenda. Anyone that says they like watches for the "history" and don't like the prestige and don't get a secret thrill when someone notices there Rolex and says "Wow" is in denial and lying to themselves.

We pay because 5k is what it costs to feel special. If the thing cost 700 bucks, it would be a movado and no one would give a hoot. The funny thing though now is, so many people have Rolexes even though they're 5k and up that you barely have anything special anymore.

The above withstanding, i do love the way these watches look and thats why I shelled out the cash. Its easy to justify stuff over and over to each other when we obsess and continue to talk about it. why do you think this forum is here? we post pics of identical watches and laud compliments on each other. We discuss things to minutia and overanalyze to the nth degree. why do you think so many people have had the same watch so many times. its not being happy with what you have and always wanting the best. It's a self-fulfilling phenomenon. Rolex is genious.

im not saying this with mean spirits at all. I'm as much as of offender as anyone else. I just think its funny when people vehemently deny it with excuses like "rolex was in their family." Then your family is the same as anyone else who owns rolex lol. just think we should admit it

[JJ Irani]

Originally Posted by real deal

Let us face the facts here, RoleX USA is hoodwinking us all. We,including me are paying thousands of dollars for a wristwatch that is being mass produced. Then we have to pay hundreds to get it serviced. WHY WHY WHY WOULD WE DO THIS? How much higher can their prices go up? Just my two cents worth,

1.SS SUBMARINER DATE
2.LADIES SS/GOLD OYSTER

ENOUGH SAID

A 50-Dollar POS Lada is fitted with 4 wheels, a steering wheel and a motor under the hood.

A 500,000-Dollar Ferrari is also fitted with 4 wheels, a steering wheel and a motor under the hood.

Wonder if there's at least some semblance of a difference between the two!!

Cheers - JJ

[mcubed]

I am not convinced it is as bad as all that. I have no idea what the actual cost to produce a Rolex is, but their costs are probably more because they really don't outsource anything, and they make their own movements (actually one of the LEAST expensive Swiss brands that does so).

Also the high price and their position in the Market is probably what has kept them alive and able to produce watches in much the same way they always have even through the quartz revolution. Since it is not a publicly traded company, it likely would not have survived the 1970s if not for its position in the market.

Also if the prices were lower, less of them would be worth saving, and the cottage industry of watchmakers that take care of them likely wouldn't exist. I would argue that one of the reasons why it is almost always "worth it" to repair and restore a Rolex is the high price. I mean how many old Bulova's rot in drawers because they are not worth fixing.....

Also we are talking about a product that most people only need one of if that. Its not like a TV or even a Car that someone is going to replace every 7 years. So if there are few repeat customers, then they have to be expensive......

Also people always complain because you pay more than the watch is worth in materials and labor. But it's not just cynical marketing you are paying for. Watches like the Sub are Icons, and perhaps you do pay to wear a watch in 2007 that looks just like the one that Steve McQueen or Roger Moore wore in the 1970s, or that intrepid explorers and Divers have worn since the 1950s, that has proved itself over and over again, but is that a bad thing?

Perhaps you are paying for symbolism...but in a good way.

Marketing can only take a company so far anyway. The product HAS to be good, in order for a company to survive and flourish. Rolex would not have flourished so long on marketing alone...

[chris_nor_cal]

I would guarantee that they do outsource some things and that production cost is pretty freaking low after 50 years.

[Blown Wide Open]

Economics 101:

Supply and Demand.

PAtrick

[Blown Wide Open]

Originally Posted by JJ Irani

A 50-Dollar POS Lada is fitted with 4 wheels, a steering wheel and a motor under the hood.

A 500,000-Dollar Ferrari is also fitted with 4 wheels, a steering wheel and a motor under the hood.

Wonder if there's at least some semblance of a difference between the two!!

Cheers - JJ

Lada is more reliable JJ.

PAtrick

[puffnmo]

The ultimate arbiter of price/value is the consumer. Us, in other words.

Every member on this board has guided Rolex in their pricing, simply by buying or not buying. That's just how luxury markets work in a free economy.

I'm not being gouged on the price of the DD platinum - because I'm not buying one. IMO none of us is being gouged, since it is entirely up to our discretion.

That being said, if I ever win the lottery I'm probably buying a DD platinum!!! Cheers, Larry.

[S2000 Driver]

Originally Posted by haakon59

...Much of the price rise in the US is attributable to Mr. Bush's policy...

That BASTID!

If you want affordable Rolexes in the US...

VOTE HILLARY!

[real deal]

The problem with your comparison is that a Timex and and Rolex do the EXACT SAME THING EXACTLY THE SAME. There is no performance difference at all!!

[unclesallie]

Originally Posted by real deal

Let us face the facts here, RoleX USA is hoodwinking us all. We,including me are paying thousands of dollars for a wristwatch that is being mass produced. Then we have to pay hundreds to get it serviced. WHY WHY WHY WOULD WE DO THIS? How much higher can their prices go up? Just my two cents worth,

1.SS SUBMARINER DATE
2.LADIES SS/GOLD OYSTER

ENOUGH SAID

Nah, a genuine rolex watch is a thing of beauty and most models hold their value. the intrinsic value is the way the sweep hand moves with such precision, and the beautiful dials they produce, along with the knowledge that it takes a year to (mass..so what?)manufacture one, and that the movement is precise and exceptional. I don't feel cheated. If you do, sell em! I'll bet you get very good value back for the investment you made.