(almost) All Rolex Gold watches are subsidized by SS buyers

[indi]

Do you think the title is correct ?
Well.. I do think so.

Almost all Rolex gold watches price are subsidized by Rolex SS buyers, (except for GMT gold watches )

When we check prices of Rolex gold watches, we can see prices are just below its MSRP. Maybe discounted at least 15% for some types.
I heard and watch somewhere, that reseller got their sport watches stocks from AD with commitment to combine buying the gold watches.

So this is what happened. Reseller mark up the SS watches by almost 100% for some SS types (GMT again, Daytona, Sub and SD) and the margin given to subsidize the gold watches.

Conclusion:
SS buyers subsidize Gold watches buyers. Or shall I mention average income buyers subsidize rich people to enjoy their luxury on gold watches..
ouch.. oo..oww..

[MILGAUSS88]

I think the gold watch buyers, just pay a less ridiculous premium.

[minhc88]

You may or may not be onto something. But I still refuse to pay premiums on SS pieces. Watch prices drop soon, 13% unemployment rate and counting fellas. Some scary numbers

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[Rado63]

Certainly clients who spend more at an AD may get more opportunities to buy steel pieces. Is that what you are referring to?

[indi]

Actually my point is on how to make the game fair to all buyers.
Me as average buyer want to buy Rolex at MSRP.
If I can only afford SS, why would I be pushed to accept prices that used to subsidize higher market segment.

[Jack T]

Originally Posted by indi

Actually my point is on how to make the game fair to all buyers.
Me as average buyer want to buy Rolex at MSRP.
If I can only afford SS, why would I be pushed to accept prices that used to subsidize higher market segment.

You may be an average buyer of a Rolex, but paying $6,000 to $8,000 for a watch is anything but average.

[WatchEater666]

It's pretty hard to pull off a gold watch though.

[Xenon]

A Rolex is not like a Porsche whereby Macan and Cayenne SUV owners actually do subsidize the development of higher performing 911 models. Without the Macan and Cayenne, Porsche would cease to exist in this day and age. If Rolex eliminated all stainless steel models, Rolex would still be in business selling PM models. The VW Group owns Porsche. Rolex owns Rolex. Not the same analogy. Porsche needs to develop the fastest race cars for competition in addition to selling cars at dealerships. Rolex simply needs to sell watches at certain price points.

[Calatrava r]

I do not agree. Buy what you want.

[horseShu]

I believe there was a thread long ago. Saying that, if you take all the gold in a two-tone or all-YG/WG/Plat Rolex, it still doesn't justify the big jump in price.

That is why the prevailing wisdom in the forums is to get steel; get PM only if there is a significant discount.

[DG123]

Originally Posted by indi

So this is what happened. Reseller mark up the SS watches by almost 100% for some SS types (GMT again, Daytona, Sub and SD) and the margin given to subsidize the gold watches.

I don't believe reseller (grey) dealers are selling any watches at a "100% mark up above MSRP".

[Setarip]

What’s the point of this post?

[nosignalbmwdriver]

Just went strait to the comments LOL

Originally Posted by Setarip

What’s the point of this post?

[indi]

Originally Posted by nosignalbmwdriver

Just went strait to the comments LOL

The point is I want to show that SS buyers become victim by this game and the mark-up price they have to pay because they desperately want a SS sport watch, being used by reseller of grey market to subsidise PM watches.

[beshannon]

Originally Posted by indi

The point is I want to show that SS buyers become victim by this game and the mark-up price they have to pay because they desperately want a SS sport watch, being used by reseller of grey market to subsidise PM watches.

No one HAS to pay anything

[Bigblu10]

Originally Posted by indi

The point is I want to show that SS buyers become victim by this game and the mark-up price they have to pay because they desperately want a SS sport watch, being used by reseller of grey market to subsidise PM watches.

"Victim"? OMG What drama! Tell me something. When does a man consider a luxury watch a "necessity"? Nobody is forcing you to buy anything. Don't like the game, don't be a participant.

[BaliBryan]

If you have the funds, yes the pm watch at 10-20% off is a relative bargain.

[Bigblu10]

Originally Posted by BaliBryan

If you have the funds, yes the pm watch at 10-20% off is a relative bargain.

25% off three years ago. Could care less about steel watches anymore.

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[Golfpaul66]

Originally Posted by Bigblu10

25% off three years ago. Could care less about steel watches anymore.

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This! Like a boss!

[AK797]

Even at a 20% plus discount the AD is still making a nice profit on a PM piece so there is no subsidising going on, it is just that there are different retail price points for SS and PM to reflect their perceived luxuriousness, and the demand for them creates the prices they sell at, SS Subs were selling for 15% discounts as well 4 years ago.

[Stu3]

Originally Posted by AK797

Even at a 20% plus discount the AD is still making a nice profit on a PM piece so there is no subsidising going on, it is just that there are different retail price points for SS and PM to reflect their perceived luxuriousness, and the demand for them creates the prices they sell at, SS Subs were selling for 15% discounts as well 4 years ago.

I'd sure love to see 15% to 20% discounts on a YM 37 Rhodium.

[beshannon]

Originally Posted by indi

Do you think the title is correct ?

When we check prices of Rolex gold watches, we can see prices are just below its MSRP. Maybe discounted at least 15% for some types.

And precious metal watches are still very over priced, which is why they are discounted.

At MSRP it is the precious metal buyers that subsidize stainless steel.

[indi]

Originally Posted by beshannon

And precious metal watches are still very over priced, which is why they are discounted.

At MSRP it is the precious metal buyers that subsidize stainless steel.

From reseller perspective it is SS that subsidize PM.

Demand for PM is less than SS, so they must mark up SS price to cover discounted price of PM.

Background of this is:
Reseller must take the PM watches together with SS watches from AD, otherwise they will be replaced with other reseller who is willing to do that with AD and they will never can get that sport watches.
This is the common AD games which create unfairness to the SS buyers where their money used to subsidize PM buyers.

[beshannon]

Originally Posted by indi

From reseller perspective it is SS that subsidize PM.

Demand for PM is less than SS, so they must mark up SS price to cover discounted price of PM.

Background of this is:
Reseller must take the PM watches together with SS watches from AD, otherwise they will be replaced with other reseller who is willing to do that with AD and they will never can get that sport watches.
This is the common AD games which create unfairness to the SS buyers where their money used to subsidize PM buyers.

Resellers are irrelevant.

MSRP is what the manufacturer sells for. The cost of materials vs the MSRP is lower for stainless than for precious metals, hence the reason precious metals are discounted.

Precious metals subsidize lower cost goods. Period.

[Brny11]

Originally Posted by indi

Background of this is:
Reseller must take the PM watches together with SS watches from AD, otherwise they will be replaced with other reseller who is willing to do that with AD and they will never can get that sport watches.
This is the common AD games which create unfairness to the SS buyers where their money used to subsidize PM buyers.

This isn’t new. Difference is, Greys might be paying closer to MSRP in today’s market. Prior, they would by in bulk from AD. In the mix was SS and PM watches, all discounted enough to make it worth it for greys and the AD, who are getting rid of slow moving pieces.

[THC]

PM is always greater than SS /// MSRP or bust for all hot SS models

[101031-28]

Originally Posted by THC

PM is always greater than SS /// MSRP or bust for all hot SS models

+1

[Sandpit]

Is the material cost of gold over steel equivalent to the uplift in premium? I would think absolutely no chance.

[Maiden]

Don't believe this is true at all.

[Ravager135]

The premium or lack thereof comes down to demand. Precious metal Rolex watches have a far smaller audience than a stainless steel watch. Any discount is an incentive. It wasn't long ago that stainless steel watches commanded a similar discount. I think lines have been blurred since stainless steel Rolex watches now approach some two tone and precious metal watch costs on the secondary market, but realistically there's a big difference between a 10k watch and a 20-30k watch.

Most people will never own a Rolex. Those that are fortunate enough to have that luxury can envision saving up 10k to purchase one. Spending 20k+ is a whole different level. I've been collecting for 12 years. Ive owned about 20 different watches at one point or another, holding on to about 10-11 at a time. I still can't picture parting with the kind of money it costs to own a gold or platinum Rolex. For others, it's a drop in the bucket.