Rolex Profits

[jane webb]

Sat in bed drinking my first cup of tea of the day. My wife is not talking to me.

Thoughts in my head, I wonder how much annual profit Rolex make?

Some of you guys most likely have a good idea.

Lets assume they sell 1 million watches a year, can we say at an average price of £12,000 or is that way off? Then another assumption the overall profit margin, may be 33% so £4000 per watch. Again may be I am way off.

Multiply the two figures together 1,000,000 x 4,000 = £4,000,000,000 a crazy amount. I know they spend a lot on marketing along with many sponsorships etc so I could be many zero's adrift.

It would be interesting to hear the thoughts of others on this.

[jane webb]

Oh I am a male honest! Just had to use my wife's name on my newish account!!

[padi56]

Originally Posted by jane webb

Sat in bed drinking my first cup of tea of the day. My wife is not talking to me.

Thoughts in my head, I wonder how much annual profit Rolex make?

Some of you guys most likely have a good idea.

Lets assume they sell 1 million watches a year, can we say at an average price of £12,000 or is that way off? Then another assumption the overall profit margin, may be 33% so £4000 per watch. Again may be I am way off.

Multiply the two figures together 1,000,000 x 4,000 = £4,000,000,000 a crazy amount. I know they spend a lot on marketing along with many sponsorships etc so I could be many zero's adrift.

It would be interesting to hear the thoughts of others on this.

Only Rolex would know its true profits but the name Rolex came from the phrase “Horologies D Excellence” meaning “watch making of excellence.” The name Rolex was easy to pronounce in any European language and was short enough to fit on the dial of the watches.

Rolex is a foundation and cannot be owned, bought or sold to anyone for any price. The company is set up in such a way that it continuously perpetuates its existence through properly allocated funds into research and development but they do still make a large profit just like any other business to survive.

Hans Wilsdorf, the founder of Rolex, was orphaned at age 12,he spent the rest of his teenager years in an orphanage. He later began to work for a watch exporter in Switzerland, then went on to found RWC now just Rolex as we know it today.

Hans Wilsdorf and his wife owned orphanages in Switzerland and donated profits of the company to various charities and orphanages. To this day a large share of the profits go to charities and the Rolex Awards for Enterprise but they still make a large profit that only Rolex knows .

All information supplied from my own brain power, without the aid of timegraphers, phone apps, loupes, and the rest of todays Rolex watch toys.

[168000]

Here are the numbers for France where companies have to publish their metrics. Maybe it is possible to extrapolate based on % of TO France vs global

https://infonet.fr/entreprises/54207...-rolex-france/

[EEpro]

Originally Posted by jane webb

Oh I am a male honest! Just had to use my wife's name on my newish account!!

Ah, suddenly I lost interest.

Good luck in your calculations.

[Toproll85]

Somewhat silly thoughts. Really don't worry about them !

Don't you know that Rolex is a foundation with colossal real estate assets? Watches are the tip of the iceberg and they could close the factories...

[Robf52]

Originally Posted by Toproll85

Somewhat silly thoughts. Really don't worry about them !

Don't you know that Rolex is a foundation with colossal real estate assets? Watches are the tip of the iceberg and they could close the factories...

Real estate or not, the watches are the golden goose.

[Subshark1861]

Don't forget that mostly Rolex is a wholesaler to a retailer. Its profits will be a proportion of the wholesale price.

[HHIslander]

Originally Posted by 168000

Here are the numbers for France where companies have to publish their metrics. Maybe it is possible to extrapolate based on % of TO France vs global

https://infonet.fr/entreprises/54207...-rolex-france/

Interesting and thanks for posting. I had no idea they were required to do this in France or anywhere else. It does provide some pretty good insight into margins etc.

[Calatrava r]

Originally Posted by Subshark1861

Don't forget that mostly Rolex is a wholesaler to a retailer. Its profits will be a proportion of the wholesale price.

Exactly, a watch which retails for say 10K is sold to the AD for about 6K from Rolex. Their actual cost of production per watch, excluding promotional costs which are huge for this brand, is estimated, by folks who have no real idea but have opined over the years, to be somewhere between 800USD up to 2,000USD in SS models. As with any business, once production ramps up to the extent Rolex's has with 1 million units a year, the fixed costs of production are spread over so many units, the per unit costs drops substantially. It actually costs a start-up company a lot more to make each watch as the total cost of operation is spread over so few units.

[zengineer]

Originally Posted by padi56

..

All information supplied from my own brain power, without the aid of timegraphers, phone apps, loupes, and the rest of todays Rolex watch toys.

Except of course copy and paste...

I don't doubt your experience but your posts lately have been written before electricity.