SS Rolex Pricing

[wytrader]

Today I have come across multiple threads which have gotten me thinking about what would be realistic AD SS Rolex pricing were they allowed to sell at any price ie Rolex would remove all forms of suggested retail pricing.

I'd like to get your opinions on where you believe prices would level at for the watches below.

1) 116610 Black Sub Date ($8550) FS threads asking ($9595)
2) 116610LV Green Sub ($9050) FS threads asking ($13395)
3) 116710BLNR Blue Black GMT II ($8950) FS threads asking ($14490)
4) 116500LN Black Daytona ($12400) FS threads asking ($21400)

[tyler1980]

IMO it needs to be priced similar to tech products. Early adopters pay more when its new and demand is the highest. Over time the price goes down. I think "retail" is probably fair for a watch 5 years after its released. TS kind of do this now.


Daytona is too cheap, period.


It has nothing to do with how much a watch is or isn't worth, its about acquiring it and for what price when demand is the highest. The premium has nothing to do with the value increasing of a watch but is a function of the convenience of getting it when you want... A disneyland skip the line pass.
I would consider paying market price from an AD... i would not pay market price from a secondary dealer for a used watch

[wytrader]

Originally Posted by tyler1980

i would not pay market price from a secondary dealer for a used watch

I read most of your posts and agree completely.
Its easy to say this stuff in a hypothetical world but I believe AD pricing would go above current grey prices for that reason.

[tyler1980]

Originally Posted by wytrader

I read most of your posts and agree completely.
Its easy to say this stuff in a hypothetical world but I believe AD pricing would go above current grey prices for that reason.

i guess what i am saying is if an AD had a watch i wanted i would consider it for whatever the price was taking into account the price is both the watch and actually having it available to buy when i want it. Im not doing a bundle etc so just let the chips fall where they may. I could do that currently from a secondary dealer but for me its just too much money to spend outside the authorized network.

Take Patek for example. There is no way i want a certificate of origin with someone else name and address on it. If i had no other choice for a vintage or discontinued watch, thats one thing but for a current production watch no.

[padi56]

Originally Posted by wytrader

Today I have come across multiple threads which have gotten me thinking about what would be realistic AD SS Rolex pricing were they allowed to sell at any price ie Rolex would remove all forms of suggested retail pricing.

I'd like to get your opinions on where you believe prices would level at for the watches below.

1) 116610 Black Sub Date ($8550) FS threads asking ($9595)
2) 116610LV Green Sub ($9050) FS threads asking ($13395)
3) 116710BLNR Blue Black GMT II ($8950) FS threads asking ($14490)
4) 116500LN Black Daytona ($12400) FS threads asking ($21400)

Trouble today Rolex are no longer watches just thought of as little more than ££££££$$$$$>.And by advertising these facts on the various internet forums Rolex watches will continue to be thought of as £££$$$$ and not watches to be bought and enjoy wearing..

[tyler1980]

Originally Posted by padi56

Trouble today Rolex are no longer watches just thought of as little more than ££££££$$$$$>.And by advertising these facts on the various internet forums Rolex watches will continue to be thought of as £££$$$$ and not watches to be bought and enjoy wearing..

i agree somewhat. However looking at price as a way to actually get the product you want to enjoy vs looking at the gap between retail and secondary as a way to make money is a different motivation. There are a lot of people who just want the watch and the price being low is why they can't. Then you get forced into the secondary market.

Market price at the AD level eliminates the profit motivation of acquisition IMO. Whatever the price is, if its the maximum the market will bear you better like it a lot if you are going to buy it. This automatic reaction to buy any watch you can get from an AD at retail no matter if you really want it or not is a problem and it happens all the time.

[1William]

It is not the pricing that is driving the market today, it is availability. Rolex is artificially manipulating the market by not bringing enough watches to market and not dealing with the Grey Market capitalization on the watches. Anyone that believes Rolex could not satisfy demand in a reasonable amount of time based on the manufacturing capacities of the factories has not done any research into the facilities. In the market of competitive commerce if an item is readily available the market will determine the value based on consumer demand and perceived value. I think that Rolex watches are overpriced for what they are and I believe the company has lost its way in taking care of its customers. But that is a very American way of looking at business and definitely not Swiss. The seeds are being sown for a major bust in the Swiss watch industry. It is not the Apple Watch that the Swiss Watch Industry has to worry about, it the arrogance of it's own companies and the manner they treat customers and supply demand.

[brandrea]

I think Rolex could easily raise prices 10% without getting too carried away. No more discounts at ADs and everyone’s happier

[wytrader]

Originally Posted by 1William

It is not the pricing that is driving the market today, it is availability. Rolex is artificially manipulating the market by not bringing enough watches to market and not dealing with the Grey Market capitalization on the watches. Anyone that believes Rolex could not satisfy demand in a reasonable amount of time based on the manufacturing capacities of the factories has not done any research into the facilities. In the market of competitive commerce if an item is readily available the market will determine the value based on consumer demand and perceived value. I think that Rolex watches are overpriced for what they are and I believe the company has lost its way in taking care of its customers. But that is a very American way of looking at business and definitely not Swiss. The seeds are being sown for a major bust in the Swiss watch industry. It is not the Apple Watch that the Swiss Watch Industry has to worry about, it the arrogance of it's own companies and the manner they treat customers and supply demand.

Sorry but I don't agree with most of this post. Rolex have always made a certain number of watches and will continue to do so. Whether that is arrogance or amazing business logicwill be determined in the future.
Your idea that the Rolex watches are overpriced is fair for simply the cost of owning the raw item (a way of telling time) but compared to many branded products I think it is quite cheap.
I do not think you can compare Rolex to the whole Swiss watch industry. I think Rolex's market share is doing fine and this demand spike has only made consumers even more greedy to get their hands on models they cannot simply walk into the AD for.

[beshannon]

Originally Posted by wytrader

I'd like to get your opinions on where you believe prices would level at for the watches below.

Something is worth whatever someone will pay for it.

[wytrader]

Originally Posted by brandrea

I think Rolex could easily raise prices 10% without getting too carried away. No more discounts at ADs and everyone’s happier

I think it is going to take a lot more than 10%.

If you could buy a black Sub in 2 models steel and white gold. Same price, and no optical difference whatsoever. Which would you buy? One has more value melted (maybe 300-400$), the other gets scratched less.

[wytrader]

Originally Posted by beshannon

Something is worth whatever someone will pay for it.

Would that be more from an AD or secondary market?

[brandrea]

Originally Posted by wytrader

I think it is going to take a lot more than 10%.

If you could buy a black Sub in 2 models steel and white gold. Same price, and no optical difference whatsoever. Which would you buy? One has more value melted (maybe 300-400$), the other gets scratched less.

10% was meant to be illustrative It could be more, but at some point you there would be buyer fatigue.

I'm not sure I understand your example above but if I had the choice I'd buy the one that sings to me most. Numerous threads here on the "value" of PM vs SS.

[wytrader]

My illustration above was to start to question whether SS prices could approach or surpass WG prices as it is a harder metal and makes the watch harder to damage/scratch.
So if Rolex made the exact same watch in SS and WG which would people demand at the same price point. Some would go for the WG stating that its components are more valuable and others would choose the SS version as it might keep better.