The BIG question: WHY is Rolex increasing their prices?

[icnbne]

i didnt say it wasnt better, its just not 2.5x better..
(why did i have to say this on a rolex forum...)

[four-thirteen]

I will say that the business model and policies that Rolex operates with have kept them just out of reach for me for the past few years. Right now I could afford to say the asking price on a sub or SD as it was when I first got interested, but not the current MSRP.

The regular price increases is an interesting business tactic and does seem to promote immediate purchasing versus saving then spending. It is, however, unsustainable. If continue to kick the prices at the current amount and rate, prices will be double what they are today in four years(10% twice annually, 1.1^8=2.14). I think paying 12 grand for a stainless sub with throughly alienate the customer base.

[DSJ]

The answer is #3. Charge as much as the market will bear.

[JIM-]

I cant imagine thier not about to hit the ceiling on their over the top prices. Look with the new DSSD being over $9200 and a 16610 being $6,000 its coming to a point where consumers become disintersted. Even if I liked the DDSD which I dont I perfer the 16600 (now priced at $6,400) I would never consider $9,200. Not only is it not practial in anyway its now become a ripoff.

[touchdowntodd]

ive said it before, and ill say it again

the GMTIIc will be $10k within 4 years...

subs will be $8k....

everything else will be SILLY..

it is true, people think of rolex as the most expensive, but they arent.. whos to say what is worth waht nowadays? my GMTIIc is probably honestly a $2-3k watch if it wasnt a rolex, and thats a stretch.. add the name, price more than doubles..

whne the GMTIIc hits $12k retail, im selling mine... atleast i think hahha.. it would be nice to profit on a watch after wearing it for 5-7 years!


by raising prices they can keep production numbers down... if you sell 2 watches for $5k each, or one for $10k, you make more on the single watch... it wouldnt hurt rolex to sell 4-500k watches per year instead of nearly a million, but at much higher prices..

[JIM-]

I was strongly considering a 16613 but at $9,300 forget about it. Listen at $7,000 its was way over priced. Not to even mention the price of the newest model with its lame blue dial. Rolex has gone mad in my opinion.

[Nicky G]

What I don't think any of us know is, are they giving more margin to the ADs, perhaps?

It seems very standard practice for ADs to offer 25-30% off the MSRP of many other luxury watch brands, incl. JLC among others (I got a pretty steep discount on my Baume and Mercier recently).

As MSRPs climb, Rolex still has the image of high-end going for them. SOme folks will even pay those prices.

But, if they are giving more margin to their ADs, higher discounts than what have been available traditionally may become available to savvy shoppers.

I walked into an AD and bought an Explorer for $4040 a week and a half ago or so, 20% off, and didn't pay sales tax as they shipped it to my state of residence. Granted it was an F-series model that the store may have been sitting on for a while, but I still got a great price on a great watch, at least in a relative sense.

It's tough to know what is driving this unless we know more about Rolex's wholesale pricing models, and how those might be changing along with MSRPs...

[housemad]

Originally Posted by tommypit

The prices are just ridiculous. I think the tremendous increase inprice has made other quality watches more desirable esp. breitling and Omega.

Sorry to desapoint you...Rolex is above those watches!

[housemad]

Rolex still almost in top 5

1. Patek philippe
2.F.P.Journe
3.Breget
4.Roger Dubuis
5.Audemars Piguet
6.Rolex

[housemad]

Of course not included Tourbillons,grand complications and all that top nutch stuff!

[stusrt]

I ran out to buy a deep sea when my ad got one in couple months ago.
it was the price that turned me off. $9,200 I believe.
I was wearing an omega planet ocean at the time, I paid about $2,500 for it last year. Another serious dive watch.

was the deep sea better? yes
was it 4x better? hell no

next price increase will push it into the 5 figures. that is just silly for a SS watch with no complications.

omega cancelled their last 2 planned price increases. and AP actually lowered theirs.

IMO - rolex sell most of their watches to people like us, in that $10,000 is a big bite to our bank account. They are going to price us out.

[stusrt]

Originally Posted by housemad

Rolex still almost in top 5

1. Patek philippe
2.F.P.Journe
3.Breget
4.Roger Dubuis
5.Audemars Piguet
6.Rolex

6. a lange sohne
7. vacheron constantin
8. ulysse nardin
9 harry winston
10 franck muller
11 richard mile
12 JLC
13 blancpain
14 iwc
15 rolex
16 panerai
17 brietling
118 omega

probably some others should be in the top 10 if I think about it

[txbikerdude]

this is one of the best threads I have read in a while

[arkwhaler]

Originally Posted by Nicky G

What I don't think any of us know is, are they giving more margin to the ADs, perhaps?

It seems very standard practice for ADs to offer 25-30% off the MSRP of many other luxury watch brands, incl. JLC among others (I got a pretty steep discount on my Baume and Mercier recently).

As MSRPs climb, Rolex still has the image of high-end going for them. SOme folks will even pay those prices.

But, if they are giving more margin to their ADs, higher discounts than what have been available traditionally may become available to savvy shoppers.

I walked into an AD and bought an Explorer for $4040 a week and a half ago or so, 20% off, and didn't pay sales tax as they shipped it to my state of residence. Granted it was an F-series model that the store may have been sitting on for a while, but I still got a great price on a great watch, at least in a relative sense.

It's tough to know what is driving this unless we know more about Rolex's wholesale pricing models, and how those might be changing along with MSRPs...

It's going to get completely ridiculous soon. I again would advocate 5% or so q year, but 10 plus % will make it silly. But whatever, for existing owners it just makes your piece gain value and prestige. And I'm in for the long haul with my watch

[Blown Wide Open]

I think Rolex is utilizing their leadership role. Rolex is holding firm in their price increase, hoping their market leadership will lead thier competition to do the same.

If everyone raises their prices, Blancpain, Breitling, and yes...even Omega, then all consumers will accept this as the norm.

This is what happens when marketing MBAs run a company, and not enthusiasts.

BTW, my last two purchases were a Sinn 103 SA and Malle Glashutte 29er.

You should see the quality $2,700 a peice will buy you when you travel outside planet Rolex.

PAtrick

[Tombstone]

Greed and this false idea Rolex can do what they want because Rolex views us a fools who will pay anything for their product.

[buckscat]

Andy you sound like an economist. I completely agree with your response. I think that they have yet to reach a point of diminishing returns.

Just look at all of us. It wasn't too long ago when most people owned only one watch and wore it till it died before purchasing another. Look at how many of us own multiple luxury watches and we are a small percentage of people who do. Consumer spending (this year aside) has risen exponentially for a long time so the demand is obviously there. With Rolex wanting to maintain an image as THE luxury watch, it makes sense that their prices go up the way they do given that people associate luxury/quality with price. As long as demand goes up, price will follow it up.

Thats my .04 cents.

[chenx15]

Because they can

[Fred_Tan]

Originally Posted by BigHat

Keep thinking

[JJ Irani]

Thanks for all the excellent responses, guys.

I think it's also about the all important Status Symbol that Rolex wishes to maintain.

Rolex sends out a pretty straight forward message:

These are OUR watches and these are OUR prices!! If you have the kind of money that will buy you OUR kind of quality, please step into any one of our AD's and knock yourself out!!

And, says Rolex, you can take that to any damn bank in the world!!

[stusrt]

I just sold my gmt-ii
going to buy the new gmt-iic

I still can't get over it is $7,000 for a SS watch, over $10k for 2tone
even used they are about $5,500 and $8k

if you asked me just 2 years ago if I would ever pay over $5k for a SS watch, I would say you're nuts...
but you know what? - I'm still getting one!

[umster]

Hi, are there any planned price increases in the U.K soon?

Thanks

[JJ Irani]

Originally Posted by umster

Hi, are there any planned price increases in the U.K soon?

Thanks

The price increases are hardly ever planned - they just happen!!

[GMTII Owner]

Rolex is increasing their prices...because they can.


John

[Bisquitlips]

Originally Posted by JJ Irani

Okay, guys.....

Obvious question: WHY? WHY? WHY???

WHY is Rolex going on increasing their prices?

1. Is it due to the genuine increase in raw material prices?

2. Have their overheads shot through the roof?

3. Or is it just plain ole' greed?

Makes me wonder......then fret and fume!!

JJ

It's just because they are Rolex!!

When you can sell ever single watch you make, it only makes sense that you can do whatever you want with your pricing.

Here is to the finest and most beautiful sport watches ever created!!