Help me with the answer

[TheVTCGuy]

I am a member of a club here in San Diego, prospectors, we hunt old ghost towns in the desert looking for stuff; kind of an amatuer archeology-treasure hunting club. Anyway, during our monthly meetings, we often give presentations on other hobbies we have. This month is my turn, and (of course) I will be doing one on Rolex watches. I've done this a couple times, and (if I may say so myself!) the club members seem to be interested in the topic after I'm done.

Every year, I get the same question from at least one member. To us Wis'es, it's a kind of obvious sentiment, I mean we understand why, but can't really explain it to someone else. Here is the question:

What makes a stainless steel Rolex, worth $10,000?

I have handled this question many times and done the best I could, talked about the quality of materials, the tolerances of the manufacturing process, I will also admit the brand name adds to the cost... But what would you guys say? Keep in mind, these are 100% non-Wis's, many wear Casios or other cheap watches and don't understand spending that much on a functional item like a time-keeping device.

I welcome your suggestions.

[GerardoG]

My answer: the same that brings Porsche to over $30k and a Ferrari into 6 digits.

You (we) are buying quality, history, reliability and fashion/status. If you want a very precise watch, buy a Casio. If you want to drive from point A to point B, a VW Beetle (the original).

Ditto goes for jeans (7 or Zegna), suits (Canali, Brioni), etc.

[SS Oyster]

If you want the best, you have to pay for it. That simple. Lucky for Rolex, there are enough of us out there that put a premium on quality, reliability, fashion, and durability that they can continue to demand their ever growing asking prices.

Supply and Demand.

If you are willing to accept inferior quality, lessor movement, lower grade material that will corrode over time, that no one stands behind, then I would highly recommend a knock-off (prop piece). However, you would be throwing good money after bad as you would know you don't have the genuine article, it's only a matter of time before it stops working and then no one will work on it or it they do it will cost you a bunch to get something not genuine to work again ... more good money after bad. Further, there would be no resale value.

With a Rolex, you get to enjoy a commodity. Buy it right (pre-owned from a trusted TRF member), and you will almost always be able to get your money back later if you change your mind, want to upgrade or run on hard times (need the cash).

[smallcandle]

To be honest, I don't think a SS Rolex is worth anywhere close to $10K. That's why I'm sticking with my pre-owned 16610 that I got for less than 1/2 of that cost - and I still think IT was overpriced!

[ChristianN]

The feeling I get from it.

Thats the sum of the parts which are mostly what is mentioned here already; quality, heritage, brand etc.

Edit;

I find it fascinating how a lot of the people asking why I'd spend this kind of money on a watch have no problems at all spending $100k on a boat they use maybe 20 hours per yer, spend $20k on wheels on their cars, $5k on a snowblower that they'll use once before calling in some pro to plow their snow anyway and god knows what else people thinks makes sense.

I know people who add more equipment on a new car that they don't need, at all, then I've spent on watches. I can recoup most of my money, they most certanly cannot.

[FeelingTheBlues]

From my point of view, I'd say that it depends on a couple of points:

- The brand: of course, it's a Rolex and therefore carries a great reputation as a fine timepiece.
- The way they make it (probably the most important one): as mentioned, you will have to pay the big price for a watch in which every detail has been calculated and produced in-house, whether it's made of stainless steel or platinum.
- The stainless steel itself: from what I read the 904L stainless steel is only used for tools used during surgeries and in the world of chemistry (I can't give any details on the specific tools but I'm sure others will know better) when it's not used to make a Rolex. It is very resistant to scratches and a great quality metal that probably costs more than regular SS (a bit of a silly argument perhaps but in my mind one must take it in consideration anyway).

This is my personal opinion. Of course the amount of people who want them allows Rolex to increase their prices without having any problems to sell their watches but I think those other points may explain the whole thing a little bit.

[Jocke]

If you ask you will never understand.

[masterserg]

It's a lost battle my friend.

[Lion]

Tell them we all have different priorities and hobbies or areas we spend money on(eg. boats, cars, wine, cameras, clothes.....)and mine happens to be fine horological time pieces with Rolex being one of my favorites!!!

[general]

It is very difficult to justify the price to non-Wis's. I would try to explain that this is one of the very few luxury items that will hold most of its value after many many years of use.

[Casey VP-26]

Very Good Question, you are smart to prepare yourself. I Must say almost every thing I have purchased in life of Quality has cost more then I wanted to pay, but when I did pay the premium, most of the time it was worth it. please let us know what you did say this time to them. Good Luck.

[azguy]

Because people are lining up to purchase one at that price

[liuk3]

Supply and demand as posted above. The value or price is determined by what an acceptably large group of people are willing to pay for an item...

[Speed]

Well Paul...

Since you only spent ~ $8k on your new Expy II...maybe you won't get any questions.

Maybe they have forgotten about your Daytona.

Say, are there a lot of single ladies who belong to this group? ;-)

[Chipmunk]

I would be very uncomfortable explaining it to a group of Non-Wis. Good luck, Paul.

[Grissom]

Originally Posted by Speed

Well Paul...

Since you only spent ~ $8k on your new Expy II...maybe you won't get any questions.

Maybe they have forgotten about your Daytona.

Say, are there a lot of single ladies who belong to this group? ;-)

Bill, I found a pic of one of their meetings, and doesn't look like any girls belong.......
(I think Paul was out of town for this one, as I didn't spot him in the group pic, although I seem to recall Jocke having one of him, so maybe he will post it....)

[general]

[snowbird]

As noted above, the only answer really is supply and demand (there are enough buyers at the prices Rolex charges). Like other luxury goods, the prices will look absurd to people who don't care about watches. And unlike a luxury car for example - better than a regular car in many tangible ways, so it's just a question of whether people have the money and think the car is worth it - it's hard to argue the premium prices for luxury watches are justified based on performance. It's just that people value the history, look, feel, etc. enough to pay the prices.

[Grissom]

How about comparing it to something they may use, in their (your other) hobby.....like a high end metal detector.....Both do basically the same thing, however, some folks like to get the what they consider to be the very best that they can afford.....

The Minelab GPX-5000 (on the left) which retails for close to $6000.00 versus a White's MXT (on the right) for $700.00

[Brenngun]

It's PPV (Personal Perceived Value).
definition: A individual's opinion of a product's value to him or her. It may have little or nothing to do with the product's market price, and depends on the product's ability to satisfy his or her needs or requirements.

This definition covers everyone's reasons for buying anything at any price. Every transaction we consider as individuals has a "go / no go" point. Only the individual knows and is accountable to this point. When the price exceeds it our PPV stops us (assuming you have a modicum of control).

[Welshwatchman]

It's all a bit subjective.

I'd go this way, a double prong attack.

State the fact that a $10,000 SS Daytona purchased in 2007 has given you 150 smiles, 200 warm feelings, 100 admiring glances and a second career on TRF.

For me, a smile is worth $100 easily since I'm not cheap and I take my personal happiness seriously, similarly a warm feeling is worth $200 and admiring glances $25 a pop. Let's not value the TRF career.

That's more than $50,000+ worth of pleasure.

A pretty damn good return on a $10,000 investment.

Oh .... and the watch is still worth $11,000.

Tell them only a dorklehead could disagree.

[Dr. Robert]

I am not happy with your description of Casio as a cheap watch....it's an excellent watch, with an in-house movt. & as good a pedigree as Rolex in its own right.
I think an apology is due to all the Casio owners here on TRF & I think I am not the only Casio owner here.

[ROLEXster]

Buying a Rolex in Vancouver, BC is like buying real estate.
The price keeps going up year after year.
The resale value of Rolex is generally pretty good.

[Oyster Junkie]

For me wearing a Rolex is the equivalent of wearing art 24/7. It symbolizes the sophistication of the human imagination and mind, to engineer such a marvel that can calculate time from a bunch of metal parts. It is also symbiotic to me; I rely on it for time and it relies on me to function, hence the symbiosis.

Plus, I tell the not so savvy that it is one major possession that is with me constantly which I use daily.

[cornerstore]

What should be relevant is not the price you pay for a Rolex but rather the costs to own one. My experience with Rolex is, if you buy right and sell right its not very expensive to own one.

[Jocke]

Originally Posted by Grissom

Bill, I found a pic of one of their meetings, and doesn't look like any girls belong.......
(I think Paul was out of town for this one, as I didn't spot him in the group pic, although I seem to recall Jocke having one of him, so maybe he will post it....)

You talking about this pic Nathan?

[Dr. Robert]

Good one Jocke!

[nauticajoe]

I just don't see the need why I need to explain to anyone why I own a 10K watch. Then again, I never talk about price when/if someone wants to see my watch.

Good luck fielding the question Paul.


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[sparky]

A $10k SS Rolex is like a $30k Rolex, but without $5k of gold.

[z32turbo]

Tough question to those who don't care about watches. I'd say people spend their money on the things they love no matter what they cost.