How much more can we take?

[Ck8]

I should guess the majority of members here buy Rolex not for the status symbol and are not loaded but most probably have to save to buy a Rolex.

I certainly at the point where Rolex is becoming out of my reach in terms of price. After the next price increase, don't know when, most sports models probably will be over £5k. I just cannot justify spending that much on a watch, unless I win the jackpot lotto. But then I probably would look at PP, IWC, VC, JLC.

I remember in 2005 when I purchase my second SS Daytona it was £3670 and now £6170 and after next increase it would be near £7k. In 5 years and a bit it virtually doubled in price. There is nothing that I buy which has doubled in price in the same time period. My current SS Daytona purchased in Jul 2007 was £4460, which is the current price of my GMT IIc.

How much more can the price go up? Anyone hazard a guess?

[sbux]

not much in the near future bc of the global economy...

[JJ Irani]

Originally Posted by Ck8

I should guess the majority of members here buy Rolex not for the status symbol and are not loaded but most probably have to save to buy a Rolex.

I certainly at the point where Rolex is becoming out of my reach in terms of price. After the next price increase, don't know when, most sports models probably will be over £5k. I just cannot justify spending that much on a watch, unless I win the jackpot lotto. But then I probably would look at PP, IWC, VC, JLC.

I remember in 2005 when I purchase my second SS Daytona it was £3670 and now £6170 and after next increase it would be near £7k. In 5 years and a bit it virtually doubled in price. There is nothing that I buy which has doubled in price in the same time period. My current SS Daytona purchased in Jul 2007 was £4460, which is the current price of my GMT IIc.

How much more can the price go up? Anyone hazard a guess?

Rolex is a luxury item. As long as there are buyers out there clamouring all over the place for a good brand, the manufacturer holds the reins.

If you compare today's Rolex prices with those that were available say 30 years ago, the differences are mind-boggling!! .

JJ

[newmedia]

find the one or two Rolex that you like and keep it for life., price increase is good for Rolex and its owners.

[esm]

apparently there will ad another increase after christmas in the uk..

[Salmosalar]

Originally Posted by Ck8

I should guess the majority of members here buy Rolex not for the status symbol and are not loaded but most probably have to save to buy a Rolex.

I certainly at the point where Rolex is becoming out of my reach in terms of price. After the next price increase, don't know when, most sports models probably will be over £5k. I just cannot justify spending that much on a watch, unless I win the jackpot lotto. But then I probably would look at PP, IWC, VC, JLC.

I remember in 2005 when I purchase my second SS Daytona it was £3670 and now £6170 and after next increase it would be near £7k. In 5 years and a bit it virtually doubled in price. There is nothing that I buy which has doubled in price in the same time period. My current SS Daytona purchased in Jul 2007 was £4460, which is the current price of my GMT IIc.

How much more can the price go up? Anyone hazard a guess?

I don't wish to be provocative but I feel given the weakness in the global economy that ROLEX may have hard time increasing prices much. I would hazard a guess that ROLEX sales are down. With all that extra inventory just setting in dealers vaults, the ADs will have to begin offering more discounts to move the stock. If the ADs don't discount then I hope they figure out a way to eat a ROLEX or heat their home with one.

Add in the fact that many firms which finance the aforesaid inventories are in trouble, CIT for example, may lead to some forced liquidations in Court ordered administrations. I recently wrote on the TRF that a WSJ article reported 1578 USA jewelry makers, wholesalers and retailers had closed shop so far this year. So this fact also weighs against making a price increase stick.

Then add in the OMEGA challenge being presented with the new 8500/8600 movement in the DeVille and Aqua Terra models. This new movement is aimed at ROLEX in my opinion. Full balance bridge, innovative new materials and every watch is COSC certified. The new AQ lists at a MSRP of $4500 which means a street price of $3150.

With all these deflationary pressures I predict that within 2 years ROLEX will cut the msrp on much of its line.

[Tony-GB]

I agree, the prices are getting out of hand. But Rolex is & always will be the watch most universally known & recognised as the watch that most people buy when they feel they've "made it". So when you have that mentality commanding huge sales on a global level...

At least we can console ourselves Rolex are a charitable company as executed by Mr Wilsdorf.

[Bullyterrier]

Isn't that exactly what Rolex did when the rest of the Swiss watch companies were struggling against the Eastern quartz low prices. They decided to go for the upper end market, put the prices up, and not down like most of the others were doing to try to compete with the cheap Japanese movements, and made them more exclusive.
If Rolex dropped the prices very low, sold them at your local sell everything stores and on the internet, do you think most of you would still want a Rolex?
I personally think that Rolex should keep the prices high, keep holding back on models to keep the brand a little more exclusive. I don't want anyone to think I am a snob, because I am far from that, but it is like a Rolls Royce, do people complain about the prices of them and say they should be dropped? If you can't afford a rolls Royce you get another marque.
And before any one gets all jumped up I am not getting at peoples backgrounds, wealth or what not. Just my view on keeping Rolex a little more exclusive in the higher end watch companies.

[thesharkfactor]

100% agree with the above..

brand should remain exclusive.. i cant afford a ferrari (probably would have an old one if i could choose any) .. so i dont have one. but i wouldnt want to see the price come down to say the price of a merc just so i could afford one... then everyone would have one and it'd no longer be exclusive..

if the price goes up and youve already got one.. thats great.. if you dont..you'll just need to work harder. lol.

having said that, rolex has been getting more exclusive as time goes on.. eg.. a sub costs 50% more that it did 5 years ago.. the man on the street isn't earing 50% more.. hence.. the exclusiveness of the sub has risen.. and all other models too at varying %'s..

to me.. a rolex is something to acheive, something to chase..a goal.. im just glad ive got a couple of them now.. i can stop chasing and just enjoy the occasional reletivley in-expensive upgrade now and again.. the race is over for me.. lol.

better get on the bus before the fares go up...

[Numismatist]

Originally Posted by thesharkfactor

100% agree with the above..

brand should remain exclusive.. i cant afford a ferrari (probably would have an old one if i could choose any) .. so i dont have one. but i wouldnt want to see the price come down to say the price of a merc just so i could afford one... then everyone would have one and it'd no longer be exclusive..

if the price goes up and youve already got one.. thats great.. if you dont..you'll just need to work harder. lol.

having said that, rolex has been getting more exclusive as time goes on.. eg.. a sub costs 50% more that it did 5 years ago.. nobody is earing 50% more.. hence.. the exclusiveness of the sub has risen..

to me.. a rolex is something to acheive, something to chase..a goal.. im just glad ive got a couple of them now.. i can stop chasing and just enjoy the occasional reletivley in-expensive upgrade now and again.. the race is over for me.. lol.

better get on the bus before the fares go up...

EXACTLY! Keep it just-barely-out-of-reach-but-maybe-I-could? kind of item.

[PorscheStan]

If one is just comparing the retail prices of an item in terms of dollars let's say same item sold in 1990 for $5000.00, and today it's $7000.00. Yes on paper it has gone way up. However we all need to be aware of the fact that the printing presses are operating 24hours a day, 7 days a week in Washington. The plain hard fact is INFLATION. The dollar is getting weaker by the moment, so the $7000 price today is really not a increase as one would immediately assume. That being said, if one were to purchase a Rolex, enjoy it, inflation will be your friend in the long run. Unfortunately overall income in the world has not kept up with inflation.

[mike]

Rolex has always been a bit expensive compared to some other brands. I bought my first 1675 in 1968 at a bit north of $200 USD....a lot of money back then for a watch.

As far as being exclusive, I'll take a bit of a different view nowadays. With around 800,000 examples a year there are several makers that boast far fewer numbers.

[jameshe]

now i have finally managed to get one, as much as I would love to be in the market for a second, i wouldnt mind if prices continued at the same rate in order to protect the exclusivity/prestige of being able to own a rolex... A 21 year old college kid managed to get one after all - not a 50 year old CEO...

Either way, it seems win win in my situation - another rolex, or a rolex I wouldnt otherwise have been able to afford in a couple of years time!

[ersnyder]

In spite of economic downturn in specific areas (construction, auto, real estate, etc.) I am amazed at the amount of people who seem to be having no problem making lease payments on $70-120K BMW's, Jags, MBZ's in the SoCal area. At the Rolex AD in South Coast Plaza last week, there were 7 sales people on the floor and they were all busy showing watches to potential clients. IMHO, I honestly thing the price can go up more and sales won't be impacted much.

[Jocke]

I will never buy a Rolex for status, I don't care if someone notice if I have a Rolex watch.

[Bullyterrier]

I do like the contrasting piping on that Jacket Jocke...Oh by the way would you happen to have the time on you?












Oh I didn't see that watch there!

[JJ Irani]

As long as there are buyers out there like us, I guess Rolex can rule!!

[Deep Sea]

Originally Posted by Bullyterrier

Isn't that exactly what Rolex did when the rest of the Swiss watch companies were struggling against the Eastern quartz low prices. They decided to go for the upper end market, put the prices up, and not down like most of the others were doing to try to compete with the cheap Japanese movements, and made them more exclusive.
If Rolex dropped the prices very low, sold them at your local sell everything stores and on the internet, do you think most of you would still want a Rolex?
I personally think that Rolex should keep the prices high, keep holding back on models to keep the brand a little more exclusive. I don't want anyone to think I am a snob, because I am far from that, but it is like a Rolls Royce, do people complain about the prices of them and say they should be dropped? If you can't afford a rolls Royce you get another marque.
And before any one gets all jumped up I am not getting at peoples backgrounds, wealth or what not. Just my view on keeping Rolex a little more exclusive in the higher end watch companies.

Figure it this way...they make about 1,000,000 watches per year. Seems as though there's already at least a million or so of them out there, maybe more (ya think???)!

So, if Rolex dropped the price and sold them at Walmart, but kept everything else the same...hell yes, sign me up!!!! I could care less if the millionaire next door has the same watch, or the bum pushing the shopping cart past said millionaire's house.

Figure it this way...I bought the watch because of the company, in-house movement, and it having a high resale value (I'm part of the catch-n-release program). You may have purchased for other reasons...to each their own.

[Bullyterrier]

Originally Posted by Deep Sea

I bought the watch because of the company, in-house movement, and it having a high resale value (I'm part of the catch-n-release program). You may have purchased for other reasons...to each their own.

Well that would be one less reason you would have to buy them if they dropped the prices and started giving them away in cereal packets. Because the resale price would drop through the floor

[jdc]

Rolex is not an exclusive brand as they are mass produced so to compare with Ferrari or Rolls Royce is taking things a bit far. Rolex is a well marketed brand that produces reliable solid & well made watches that will last several lifetimes.

History will tell wether doubling the pricing over the past five years in a time of global recession has been the right move, even Rolex cannot buck economics.

[gmtobsessed]

I agree.

Well at least it drive up the price of our watches,
should we want to flip it in the future.

[Alsey]

Many Rolex owners are just ordinary folks that put money aside to buy something they appreciate and desire alot. Unfortunately Rolex prices may be be in-line with inflation(i haven't checked the exact numbers) but certainly not in-line with average wage inflation. As many have been priced out in the past, many will be in the future. Some may never be bothered about price increases but that's a discussion of 'The have and have nots'.....

'An item is only worth what someone is willing to pay for it' so we the buyers fuel it ourselves.

I personally have reached a point in my life where I buy a watch like a Rolex for it's reliability and longevity. If they were alot less expensive and everybody could afford one, that would be totally fine with me.

[TABACCO]

hope my yachty will increase its value 10yrs from now