New UK prices

[Baptistman]

Hi
Just observed on another forum that UK prices are due to go up in Nov. Anyone confirm this. Makes me glad I did not hold out for my SD. Do you think the market will bear such prices, I have to say I would have to seriously consider whether I could justify £2700 for my SD as has been suggested
any coments

[JJ Irani]

Rolex certainly seem to be in the proverbial driver's seat for the moment. They can do whatever the hell they like with their prices....and as long as there are Rolex enthusiasts out there like you and I, there will always be sales of their product.

JJ

[Baptistman]

Originally Posted by JJ Irani

Rolex certainly seem to be in the proverbial driver's seat for the moment. They can do whatever the hell they like with their prices....and as long as there are Rolex enthusiasts out there like you and I, there will always be sales of their product.

JJ

True, but surely their has to be a limit, where pricing becomes totally unreasonable, for exsisitng owners it's good news, coz I imagine prices for s/h watches will go up as well

[dman]

We had two last year, one this year and at least one two years ago. When was the last price hike overseas?

[Baptistman]

If memory serves, in the UK I believe it was 2000

[BruceS]

Like Daren said, the priced go up in the US every year. People don't stop buying Rolex, so I really don't think there will become a price point where people stop buying them. At the same time, prices go up for every Swiss manufacturer yearly. Keeps it all on the same keel.

[JJ Irani]

Here in Australia and NZ, we had a 7% hike just last month; but Mansor's were good enough to still let go of my new black Exp-II at the old price!!

[padi56]

Yes can confirm prices rises of 10% on Sports SS models from Nov 1st
in the UK about £2200 Sub £2600 Sub date SD £2700
IMO Rolex is just making itself more and more uninteresting. By overpricing themselves, thus it makes it easier for some of us (WIS) to just ignore them. And they can continue to chase the altogether different market they now have their eyes on. To their credit, I doubt their bubble will ever burst, and all kudos to their marketing and brand image management.

A group of watch experts got together and did some maths based on some publicly available information in order to either validate or invalidate Rolex's claim that it takes a year to make a Rolex that Rolex uses in their advertising.

This group determined that Rolex produces nearly 1,000,000 watches per year. 800,000 of those watches are recorded by the COSC. Rolex also produces pieces that are not certified by the COSC.

Rolex publicly claims to have approximately 5,000 employees.

Watch experts know from figures released by other mass producers of watches that approximately 2/3 of employees of watch companies work in the production of the watches.

This means that approximately 3,000 employees are producing nearly 1,000,000 Rolex watches per year.

Each of these employees is not a watchmaker. Many are involved in running machines that produce massive quantities of components and watch cases, etc. Take into account that people typically only work 5 days a week and also have a couple of weeks of vacation time and also have sick time and holidays off of work and you come up with 1,000,000 watches per approximately 240 days. So that means that Rolex is churning out something like 4100 watches per day. Every day of the working week.

Rolex watches are not rare. They are mass produced and IMO now overpriced for what they are, and here is a news flash. The stainless steel that they use is no better than the steel that anybody else uses in real terms. And the brass that is used in making the movements is very inexpensive. Rolex mass produces probably more watches, than those who make the replicas of the Submariners that sell for £50.00. And the materials cost probably very, very similar amounts. What do you think the markup is on a £2750 Rolex with a stainless steel case from pure manufacturing cost? It must is bloody enormous!,but we will still be buying them,and still moan about the price.

[JJ Irani]

Good reasoning, Padi, and an excellent post.

As long as the brand image stands out bold and up front, there will always be buyers for the product....irrespective of the price hike. People who can afford it, will continue to do so, and those who are in it for the first time.....well, they just want to have a Rolex to start with!!

JJ

Well said, Peter. I'd guesstimate an average production price, including overhead, R & D, etc., factored in at about $150 per watch.

As an example of crazy price increases, last year a Panerai 111 was listed in Canada at $4,900 plus tax. This year that same watch is listed at $5,800!!! Granted you can still get a decent discount, but just the same... that's a load of do, re, me for a simple SS case, a leather strap and a basic $100 pocketwatch movement.

[padi56]

Originally Posted by Atomic

Well said, Peter. I'd guesstimate an average production price, including overhead, R & D, etc., factored in at about $150 per watch.

As an example of crazy price increases, last year a Panerai 111 was listed in Canada at $4,900 plus tax. This year that same watch is listed at $5,800!!! Granted you can still get a decent discount, but just the same... that's a load of do, re, me for a simple SS case, a leather strap and a basic $100 pocketwatch movement.

Would agree with you John and JJ,to some the most important thing is what written on the dial.Myself now material things don't mean as much now,but don't get me wrong,I still love
Rolex and always will.But there are now a lot of other manufacturers,including the Japanese making just as good.

[BruceS]

Excellent post Padi! I think we all know they are overpriced. Hell, all the big name swiss watches are. I love Panerai, but I REALLY think they are overpriced!! John that's a shocking number!

Despite the fact that they are overpriced, the unknowledgable will keep buying them for the "prestige factor", and some of us WIS will buy them because, IMO, they are still the best bang for the buck for a lifetime, tough watch among the luxury brands.

That was my decision, anyway, when looking for ONE really good lifetime luxury brand watch. I've had enough experience with other brands now that I turned back to Rolex, despite the exorbitant price.

[dman]

Bruce is right, if anyone says they aren't "overpriced" they are fooling themselves. That being said I have no problem for what I have paid for these things. They make me smile and helped bring me here to this place.

Originally Posted by BruceS

Excellent post Padi! I think we all know they are overpriced. Hell, all the big name swiss watches are. I love Panerai, but I REALLY think they are overpriced!! John that's a shocking number!

Despite the fact that they are overpriced, the unknowledgable will keep buying them for the "prestige factor", and some of us WIS will buy them because, IMO, they are still the best bang for the buck for a lifetime, tough watch among the luxury brands.

That was my decision, anyway, when looking for ONE really good lifetime luxury brand watch. I've had enough experience with other brands now that I turned back to Rolex, despite the exorbitant price.

Yeah I thought a $900 price increase was pretty unreasonable as well, for a watch with a very basic movement and not on a bracelet. I'm sure they attribute the increase to the sandwich dial (new on this year's model) but that's as well. As long as people buy 'em, the prices will continue to climb.

[Baptistman]

Well said Paddy, excellent post. THe air of mystery that surrounds the ccompany helps but I have heard that a lot of the profits made are donated to charity.

[padi56]

Originally Posted by Baptistman

Well said Paddy, excellent post. THe air of mystery that surrounds the ccompany helps but I have heard that a lot of the profits made are donated to charity.

Would agree up to a point Jon, so do many other firms, and manufacturers, but its all good publicity,tax deductible and brand marketing deep down. Rolex is not a charity, and there
for profit, like every other company or business.

[Baptistman]

As I said in another post, Rolex do not make us buy their products, maybe we are the fools for being taken in buy excellent marketing. (Not that I believe that)

[dman]

Originally Posted by Baptistman

As I said in another post, Rolex do not make us buy their products, maybe we are the fools for being taken in buy excellent marketing. (Not that I believe that)

The difference between us and most buyers is that we know more of what we are buying. Some people buy a Benz cause of the name, others because it is safe, reliable etc... That is just an example, I drive a Chevy Tahoe, LOL!!

[BruceS]

I don't feel foolish at all for buying Rolex! I made a knowledgable and measured decision to come back to the brand. Rolex is expensive, but they make a tough product. Not the finest in terms of movement finish or jewelry finsh of the case and bracelet, but just tough and reliable. From what I've seen, I would say about the toughest and most reliable.

If one wants all that other stuff, buy GO, Lange, Patek, etc, but then try abusing them like you can a Rolex. My guess is they would be in the shop a lot more often. You don't go off roading in a Ferrari!

[dman]

Originally Posted by BruceS

You don't go off roading in a Ferrari!

Oh great, now you tell me Bruce.