Rolex Price Jump Crazy

[dnnaudio]

Funny just a little over a year ago I almost pulled the trigger on an SS GMTIIc and at that time the price was less than $5T. A few days ago I visited my Jakarta Rolex dealer and was advised the price has gone up to $7T, a 40% increase in a year.

At this price I wonder whether it is better to just shell out a little more and get a fully hand-crafted timepiece (like AP, Vacheron) rather than to pay this much for a mass produced watch. Don't get me wrong I like the GMTIIc, fits my wrist nicely, I just don't see the value anymore. Maybe i'll switch brand and go for a Zenith, they have some real nice designs and offer a bit more name exclusivity.

[C. Davidson]

Originally Posted by dnnaudio

Funny just a little over a year ago I almost pulled the trigger on an SS GMTIIc and at that time the price was less than $5T. A few days ago I visited my Jakarta Rolex dealer and was advised the price has gone up to $7T, a 40% increase in a year.

At this price I wonder whether it is better to just shell out a little more and get a fully hand-crafted timepiece (like AP, Vacheron) rather than to pay this much for a mass produced watch. Don't get me wrong I like the GMTIIc, fits my wrist nicely, I just don't see the value anymore. Maybe i'll switch brand and go for a Zenith, they have some real nice designs and offer a bit more name exclusivity.

Zenith (LVMH) is a good brand. I believe they start at $8000. Many have the "El Primero" base chronograph caliber. At 36,000 vph the El Primero runs at greater accuracy when the chronograph is engaged, accurate to 1/10th of a second. On the other side of the coin, since it has a high vph, it needs to be serviced more frequently. LVMH current wait times for service is 10-14 weeks (if you are lucky). I have heard that Zenith's have poor resale value. You can also get them 20%-30% off without too much trouble (I don't know this from experience, just from what friends have told me).

The Daytona 4130 caliber runs at 28,000 vph and is accurate to 1/8th of a second. One reason Rolex runs it at a slower rate is because it makes it more durable in the long run. Resale value for the Daytona has been up to $15,000 in years past to over $10,000 today. A steel Daytona is universal currency. A high resale value is also a direct reflection of quality.

That's just one quick side by side comparison, my friend. In the long run a Rolex professional model, high production and all, continues to be a must have in any WIS collection. It might never win any cool or trendy competitions, but in the long run, Rolexes conservative designs, manufacture movements and service network, will make you enjoy that $7000 investment more than any other brand.

And I wouldn't be too worried about the price increase. Your GMT only went up $175 (1st of October), a little over 2%. Other Swiss companies have had similiar price increases. Take comfort in knowing that someone who bought the GMT over a year ago could sell it close to what they paid for it. Not many other Swiss brands can claim that. If you decide to buy the GMT, it will probably have a $7000 resale value in a few years. Any in todays economic climate, it might be the best investment out there. An investment that you can wear and enjoy every day!

[DSJ]

Originally Posted by dnnaudio

At this price I wonder whether it is better to just shell out a little more and get a fully hand-crafted timepiece (like AP, Vacheron) rather than to pay this much for a mass produced watch.

I'm starting to think the same thing...

[Trurolexer]

X2!!!

[GBJIV]

Chris, I thought that was a great post and very interesting reading. Thank you.

[richz1]

With the global economy going the way it is, I can't imagine that watch companies will be able to continue to raise prices. I know a few AD's have been offering discounts on certain models.

Originally Posted by DSJ

I'm starting to think the same thing...

[Spencer]

Originally Posted by dnnaudio

At this price I wonder whether it is better to just shell out a little more and get a fully hand-crafted timepiece (like AP, Vacheron)

Get an AP, I did and I love it

[dnnaudio]

Yep one thing for sure a Rolex does hold its value, probably better than any other watch. I generally do not resell my watches, so resale value is not a biggie for me, though it does matter of course.

Today I can probably find a discounted AP or Vacheron sports watch in the $10T range, maybe even a little less. If I compare side-by-side my AP (royal oak chrono) and Rolex (old GMT) my opinion is the AP's case/dial/bezel/bracelet craftmanship and attention to detail is a notch or two above the Rolex. I guess it's because of this that i'm starting to question the value of paying $7T for a SS Rolex timepiece.

[C. Davidson]

Originally Posted by GBJIV

Chris, I thought that was a great post and very interesting reading. Thank you.

Thanks.

Originally Posted by dnnaudio

Today I can probably find a discounted AP or Vacheron sports watch in the $10T range, maybe even a little less. If I compare side-by-side my AP (royal oak chrono) and Rolex (old GMT) my opinion is the AP's case/dial/bezel/bracelet craftmanship and attention to detail is a notch or two above the Rolex. I guess it's because of this that i'm starting to question the value of paying $7T for a SS Rolex timepiece.

What ultimately matters is which watch you like more. If you are going to enjoy it more than a Rolex, than get the AP/Vacheron. It's your money. If you are going to keep it the rest of your life, resale value never comes into the equation. Whichever watch "sings" to you the most is paramount to all other factors.

My main point on the resale values of Rolexes was not necessarily for flipping reasons. I pointed out the high resale values as a reflection of overall value. For example, owner satisfaction, quality movement, keeps good time, quality materials that stand the test of time, etc.

I've also noticed that many people become unsatisfied when their watch goes in for service. Some reasons for their displeasure would be long wait times, poor service and substandard quality control. No one can compete with Rolex on this. They have the best service network out there, period. I've heard of Patek's taking 9 months or longer to repair. I sent in an Omega for service and it took 5 months! The 6-8 weeks (on average) for a ROS is minor in comparison. Rolex has a service network already out there, in place, waiting to service all the watches they sell. Other manufactures have experienced 20% growth every year for the past 5 years. Their service network is close to what it was 5 years ago and they are struggling to meet demand. A big reason for long wait times and poor service that will only get worse with time.

Rolex's service network is another reason for long-term owner satisfaction. Although no one thinks of servicing their watch when they buy it, everyone has to do it one day.

[Z-Sub]

Thanks for the insight, Chris!

[dnnaudio]

Originally Posted by C. Davidson

I've also noticed that many people become unsatisfied when their watch goes in for service. Some reasons for their displeasure would be long wait times, poor service and substandard quality control. No one can compete with Rolex on this. They have the best service network out there, period. I've heard of Patek's taking 9 months or longer to repair. I sent in an Omega for service and it took 5 months! The 6-8 weeks (on average) for a ROS is minor in comparison. Rolex has a service network already out there, in place, waiting to service all the watches they sell. Other manufactures have experienced 20% growth every year for the past 5 years. Their service network is close to what it was 5 years ago and they are struggling to meet demand. A big reason for long wait times and poor service that will only get worse with time.

Rolex's service network is another reason for long-term owner satisfaction. Although no one thinks of servicing their watch when they buy it, everyone has to do it one day.

Good point on the service issue, thanks. When I had my AP SS chrono serviced 2 years ago (nothing wrong with it, just for the usual 3 year general checkup) I was shocked at the close to $1T bill for the job (one hand was replaced). The wait time was pretty good, less than 2 months, but I found the cost a bit scandalous. I don't know maybe i'm a cheapskate but $1T appeared a bit too much for the routine job.

[C. Davidson]

Originally Posted by dnnaudio

Good point on the service issue, thanks. When I had my AP SS chrono serviced 2 years ago (nothing wrong with it, just for the usual 3 year general checkup) I was shocked at the close to $1T bill for the job (one hand was replaced). The wait time was pretty good, less than 2 months, but I found the cost a bit scandalous. I don't know maybe i'm a cheapskate but $1T appeared a bit too much for the routine job.

I think an overhaul for the GMT runs around $450 today. Many parts are included in the price.

In any event, good luck with your decision making process. I think in fairness you should go to a Vacheron and AP forum to get their views on your choices. I, if you couldn't tell, am heavily Rolex biased.

[dro57]

Originally Posted by C. Davidson

I think an overhaul for the GMT runs around $450 today. Many parts are included in the price.

I just called the RSC in San Francicso yesterday and asked them what they charged for a routine servicing on a GMT II and he said anywhere from $680 to a little over $700....whoa.

[gmtobsessed]

Originally Posted by dnnaudio

Yep one thing for sure a Rolex does hold its value, probably better than any other watch. I generally do not resell my watches, so resale value is not a biggie for me, though it does matter of course.

Today I can probably find a discounted AP or Vacheron sports watch in the $10T range, maybe even a little less. If I compare side-by-side my AP (royal oak chrono) and Rolex (old GMT) my opinion is the AP's case/dial/bezel/bracelet craftmanship and attention to detail is a notch or two above the Rolex. I guess it's because of this that i'm starting to question the value of paying $7T for a SS Rolex timepiece.

The last time I rang the Time Place Jakarta the MSRP for GMT IIc is Rp 65 Mill.
What about after the price increase?

[dnnaudio]

Originally Posted by gmtobsessed

The last time I rang the Time Place Jakarta the MSRP for GMT IIc is Rp 65 Mill.
What about after the price increase?

That's where I got my price, just last week, and yes its about Rp65juta (or thereabouts $7T). I assume that price already reflected the price increase.

[walds11]

I did hear that the price of a routine service went up. Still relatively cheap compared to what some other brands charge. I plan on using my local Rolex watchmaker when I get my Sub serviced.

Originally Posted by dro57

I just called the RSC in San Francicso yesterday and asked them what they charged for a routine servicing on a GMT II and he said anywhere from $680 to a little over $700....whoa.

[gmtobsessed]

Originally Posted by dnnaudio

That's where I got my price, just last week, and yes its about Rp65juta (or thereabouts $7T). I assume that price already reflected the price increase.

No, I rang them last April/May and they quoted Rp. 65 Juta MSRP no discount,
so I think they give you the old price.