How much does a S/S Rolex really cost

[Baptistman]

I thought this might be an intersting topic. As some of you will be aware this time last year I owned a S/S Sub date, and S/S Seadweller both D serial. Now I adore the style of both these watches and its heritage. However due to financial restraints I have had to look at slightly lower cost watches, and have found some marvelous examples.

So my question for debate is how much do you think lets say a S/S Sub date actually costs without the frills. These items I imagine are built into the final retail price in no particular order.
You have
1) the actual cost of manufacture and materials
2) the companys mark up/profit
3) Advertising costs
4) Box and paperwork
5) Shipping & Distribution
6) Retailers mark up/profit
7) Payment to Rolex Ambasadors
8) Staff/managment costs
9) Cost of infrastructure
10) Cost of Rolex sponsered events
11) Sales Tax for country concerned in the UK 17.5%
all = the final price you and I pay.

I am currently wearing a watch that in all honesty is not far of the quality of the Sub I was wearing last year, give or take one or two points at a cost of £275.

What are your thoughts

[padi56]

Well its not really down to material costs alone,to design a completely in-house movement today.And to design the tooling to make and manufacture that movement to a complete watch cost many many millions.But after said the cost to manufacture a Rolex watch IMO would cost little more than any other low to medium priced Swiss watch,£250 -£500.This is why today around 75% of the swiss watch industry is powered by a ETA movement straight or modified by what ever company that uses them,to reduce design and tooling costs.The same goes for the watch cases,there are two main suppliers,for the whole swiss industry,a few like Rolex make there own.

I'd guess a SS Sub costs Rolex about $100 to manufacture, all in.

The fact they don't introduce new models means dies designed years ago are still in use. Their glacial pace on innovation means they can do minimal R&D and still turn a high profit.

I'm guessing though, but based on markup of non-essential mechanical goods, that is my educated guess.

[eltonbalch]

I'm certainly no expert in watch industry sales at the manufacturer/reseller level, but my best guess is $1000-1500 factoring in all the factors you've stated. Now, I know it's an "old" design, minimal R&D etc. However, cost per product is a function of a company's overall manufacturing picture so even "old" designs have to contribute to R&D, salaries, advertising, distribution, etc, etc. It all depends on perspective. If you ONLY look at the ACTUAL cost of manufacture (simple cost of materials, time to make times salary of the assembly person) it is much less.

[C.J.]

I have no idea of the actual cost to manufacture, but a rather reliable source has told me, and explained to me in great detail, that an AD buys a Rolex for about 55% of what the suggested retail price is

Originally Posted by C.J.

I have no idea of the actual cost to manufacture, but a rather reliable source has told me, and explained to me in great detail, that an AD buys a Rolex for about 55% of what the suggested retail price is

Right, and RUSA gets them at about 55% of that, and Rolex Geneva sells it to them for about 55% of that. Trickle-down effect.

Here's an example I know for a fact. High end bicycle component manufacturer Campagnolo sells the full parts gruppo for CDN$3,000 (last time I did this check). The importer I buy from buys his parts direct from the bicycle manufacturer he imports and pays them CDN$1800 per gruppo. The bicycle manufacturer buys them from Campagnolo for CDN$800 and you can be sure Campagnolo is making a 50% profit ($400 per) on each gruppo.

So the end-user pays $3000 for something that cost the manufacturer $400 to produce.

I can't see Rolex being much different considering they deal in such large volume.

[C.J.]

Originally Posted by Atomic

Right, and RUSA gets them at about 55% of that, and Rolex Geneva sells it to them for about 55% of that. Trickle-down effect.

Here's an example I know for a fact. High end bicycle component manufacturer Campagnolo sells the full parts gruppo for CDN$3,000 (last time I did this check). The importer I buy from buys his parts direct from the bicycle manufacturer he imports and pays them CDN$1800 per gruppo. The bicycle manufacturer buys them from Campagnolo for CDN$800 and you can be sure Campagnolo is making a 50% profit ($400 per) on each gruppo.

So the end-user pays $3000 for something that cost the manufacturer $400 to produce.

I can't see Rolex being much different considering they deal in such large volume.

It's the same with Stu, the friend I told you about on the phone. His main business is diamonds. He and his partner buy them and cut and set them themselves. A stone that sells for $7000 US actually costs him just over $2000 to produce.

[Ravens35]

I don't think we really want to know.

[Baptistman]

Interesting topic really, I mean it goes for any product really. I estimated that it might cost around £400 - £500 pounds not sure really how I arrived at that. Would people on this forum still have the same fondness for the brand if the pricepoint for a Sub date was say £1000. I know I would because I like the style of the Sub. But as once I was a die hard fan of Rolex, the current prices i'm finding a bit hard to swallow.

Heres some pictures of the Rolex I owned up until Oct 2005

[JJ Irani]

Beautiful pics, Jon!!

[Baptistman]

Originally Posted by JJ Irani

Beautiful pics, Jon!!

Thanks JJ, I do feel a pang of bereavement when I look at those pictures, are well.

[JJ Irani]

Originally Posted by Baptistman

Thanks JJ, I do feel a pang of bereavement when I look at those pictures, are well.

I can understand that, Jon...but what do you own at present?

[Baptistman]

A Grovana Coral Reef

[JJ Irani]

I've read your review on this watch and it was very good. However, I do feel a little sad that you had to dispose off two Rolex watches for your personal reasons, of course.

Hopefully, some day you can get them back.

Good luck, pal.

Cheers - JJ