How much is too much??

[Ck8]

Originally Posted by MortgageGuy

I would disagree. The watch will bring whatever the market will bear, just like a house, boat... When the ecomony does come back (from this so called recession) the watch market wil again come back but perhaps this will take some time. I believe the prices will continue to increase for new Rolex. Call me crazy and perhaps I am in the minority but I dont think $10k is completely out of line for a SS Sub... Look at houses/cars...they continue to climb as well (or will again in the future). Rolex isnt going to just raise the price for the hell of it. To me 10k for a watch that will last a lifetime is not bad even if it is SS. Top that with the fact that should your taste change and you sell it you can practically get your money back out of it in 10 years??? Also get to wear and enjoy it all that time??? Again, does not sound too bad for me.

The economy is everyones excuse for everything...mostly trying to steal whatever it is your selling. Recession, what recession? If 10k is too much, you can always look at other brands. I in fact think it will be a good thing as there are way too many Rolex out and about today and hiking the price will be good for the exclusivity of the brand... Hope everyone doesnt hate me for saying this.

I think Rolex has priced themselves out of the market especially for alot of people who are genuine watch lovers. It would be ashame if, in the future, only affordable to the affluent few who wear Rolex as a status symbol. House prices have increased in the UK before the recesion and now alot of people have gone into negative equity. As for cars, white goods, computers, clothing and food these have not gone up at the same rate as Rolex. The prices we pay now we are getting so much more for our money. For example I bought a 26" LCD TV 3years ago for £600 but recently I bought a 40" HD LCD Sony for the same price. Whereas 4 years ago I bought a SS Daytona for £3670 and 2 years ago I another for £4420 and now it is at £6170.
The only good thing about Rolex putting up the prices are the secondhand watches have gone up as well. So those who bought already would benefit.

[Singslinger]

A great and lively discussion!

To me, the main messages from the discussion are that value is in the eye of the beholder, perceived scarcity/rarity is a component in determining that value but sometimes, emotions can supercede perceptions of value (or lack thereof).

In Rolex's case, there are some watch fans who are unhappy with the value they see the brand offering vis-a-vis price and so might be switching their allegiance to other luxury brands.

It's all good to me - everyone is entitled to their opinion and should be left to decide where they want to spend their money. I'm happy with the value, image, utility and after-sales service Rolex offers but I can appreciate that others may not share that view.

[greekbum]

The market dictates the price not the company's that make them.I don't think Rolex has ever had left overs or merchandise they couldn't sell.Sometime people get priced out of the market and a new bread of dummies show up.As long as the bigger dummy theory is working they can keep raising prices.This goes for any product or service.

[MortgageGuy]

Originally Posted by greekbum

The market dictates the price not the company's that make them.I don't think Rolex has ever had left overs or merchandise they couldn't sell.Sometime people get priced out of the market and a new bread of dummies show up.As long as the bigger dummy theory is working they can keep raising prices.This goes for any product or service.

I could not agree more, great post.

[Singslinger]

Originally Posted by greekbum

The market dictates the price not the company's that make them.I don't think Rolex has ever had left overs or merchandise they couldn't sell.Sometime people get priced out of the market and a new bread of dummies show up.As long as the bigger dummy theory is working they can keep raising prices.This goes for any product or service.

[Strut99GT]

Originally Posted by greekbum

The market dictates the price not the company's that make them.I don't think Rolex has ever had left overs or merchandise they couldn't sell.Sometime people get priced out of the market and a new bread of dummies show up.As long as the bigger dummy theory is working they can keep raising prices.This goes for any product or service.

Yep.

Was in a Bailey Banks and Biddle the other day buying watches at unbelievably huge discounts (some stores are going out of business, but not all). There was a dude looking at a Baume and Mercier. He didn't understand why it wasn't working. He had to be explained the concept of an automatic watch. And this dude was wearing a ROLEX (GMTII)! I later told the salesman "how can a guy drop $6K on a watch and not even know how it keeps time?"

So back to an original point - the purchase is emotional - Rolex's marketing scheme works perfectly - people buy them as an "achievement" or "because it's a Rolex". And as another person mentioned earlier, for their current prices I expect something that's a little rarer, a little more unique.

I appreciate Rolex for the build quality and future longevity, since I like the fact that they keep their designs "classic." I still want one and peruse the sales forum for pre-loved ones every day.

[fujisan]

"It's all relative, ie you can't look at prices in isolation. Yes, thousands of dollars is a lot of money, but in the world of luxury watches and relative to other brands that produce their own movements such as Patek Philippe, Lange & Sohne, Panerai, Blancpain, Breguet, Vacheron Constantin, AP and so forth, I think Rolex is very reasonably priced.

The MRSP on the Daytona for example, is almost the same as Panerai's Daylight but although both are chronographs, IMO the Daytona offers much better value for money with a highly-regarded inhouse movement compared to the Valjoux 7750 inside the Panerai.

Blancpain's 50 Fathoms and Patek's Aquanaut cost twice as much as the Rolex Sub and are more expensive than the Deepsea yet they perform the same functions - ie they are all dive watches.

You can buy an entry-level Rolex (eg the no-date Air-King) brand-new for around US$3,500; I don't believe any other Swiss manufacturer that makes its own movement can match that price on any of its models (the entry-level Panerai with its own movement is around US$6,500).

So yes, if viewed in isolation Rolex is expensive. But when compared to the rest of the segment it operates in - ie brands with genuine inhouse movements - it is competitively priced.

A final note: a lot of people fail to account for the excellent and cheap after-sales service Rolex provides. A routine Rolex servicing in Singapore costs about US$350 - which in my view, is very reasonable when you consider that it costs at least 3 times as much to tune-up a Patek or Lange."



Well Said on the mark.

[drtooth73]

The $10000 SS Daytona is both an emotional purchase and an investment.
It is a large amount of money, and so is a $500000 house, or $50000 car.
When I was looking for my first Rolex, my original ceiling was $3500, then $4000, then I ended up buying a $7000 Gmt IIc(salesman said it will go up in value) to have ONE NICE THING. Since then I bought a TT Sub and a Panerai, and I still want a Daytona, knowing its not as useful as a Sub.
I guess my only regret with watch collecting is that I havent started earlier, when prices were half of current MSRP.

[JBat]

One thing that seems to have been left out here is that we all make more money now. Rolex has always been expensive, relatively speaking, and I don't think they are anymore expensive now, relative to how much I earn now, then they were 25 years ago. It seems about the same to me.

Interesting discussion.

[dieseldragon]

Seems to me that Rolex is exclusivity for the masses, like a Mercedes-Benz, its a good car, exclusive and aspirational, but still mass produced. If you need a car for transport, buy a Hyundai. If you want ultra high class then get the Zonda..

Rolex is the Merc, Hyundai is a Seiko and the Zonda is the dream watch.. Just my 2 pennies..

[Nick1959]

Originally Posted by Atl

All,
As a Rolex lover since my first one at 18 y.o., I have loved and treasured each one I have had the pleasure to own. But putting aside the economy, I really am disheartened by the absurd prices Rolex is charging, and will naturally jack up further at the next chance they get. I envision $10,000.00 SS Sub Dates very soon, as well as GMT's, and Explorers. The SS Daytona is $250.00 away now. I feel I am drawing a line in the sand. There is no way I would pay $10,000.00 for any SS Rolex. Period. Am I the only one? I had no idea the SS Daytona was $9750.00 right now, and as I lusted for one for years, and was offered one recently (they seem to be easy to buy now) I declined. Just too much money. I had the money, but I could not do it.
I don't feel remorse, there was just no way I would pay that much for a watch (in all honesty) I felt was not worth it. It just is not, in my opnion.

What say you?????

when you buy a Rolex you are not buying a mere watch. If you are looking for a watch whick keeps correct time you can get a watch sync with atomic clock under $100.00. I rarely use my Rolexes to check time. it is a piece of history, a techonological achievement. Above all it holds its value. You enjoy it till you want to and most of the time when you want to sell or trade it retains most of its value if not more. I wish I had bought rolexes and some luxury watches intead of mutual funds. I would have been far ahead of where I am investmentwise.

[jvo300]

I never thought I'd own a Rolex and spend the money I did on it. Then again, I also never imagined that I'd own the home or car I currently own. Times change and so do prices. Value is in the eye of the beholder. I wouldn't consider a watch an investment, but they appear to perform just as well as many financial investments these days!