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Why are Rolex prices so inflated?

MarkMarky

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30/6/13
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I understand your frustration. But in fact the list price of a date sub 41mm is, for example, 8700 CHF.
Imagine that the Swiss have also made progress economically and no longer work for the same money as they did 50 years ago. You see, a computer game on CD, for example, also costs money, even if a CD costs 30 cents to produce. They pay wages, development time, even the free coffee in the branch with the 8700.
But if you don't want to, you should buy a rep like all of us. But shut up and don't cry if his boss doesn't give him the annual raise.
It's like in a restaurant: you pay the cook for the rent of the house, for the meat on the plate, for his work, etc.

But not everyone knows the rule of three.
your right that’s a very well put point !
To add further, Rolex sells at 60% of msrp to an AD and rest is AD profit.

Sub date MSRP is $9150 USD.
Sub date AD price is $5490 USD.

So Rolex is price gouging by selling Sub date for $5490? Lol.

If they sell online that'll be the price (think Chris ward etc). Also add to it that it's one of the premium work places and pays very well to its workers in every way possible. I think they are doing just great and pricing is just about right. Only folks who don't understand economics or simply unaware of watch world will talk about Rolex in that for way.

You don't want to buy gen Rolex, your choice and your loss. Rolex is not losing sleep over it. It sells every watch it makes. Rolex has faced reps all through and decades and most faked watch brand on planet.
 
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joeyc

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All publicity is good publicity.
I didn’t know about the split thank you makes sense
maybe the gouging comes more from authorized dealers, I have 3 gen rolexes which I bought off friends years ago for more then fair prices, the datejust I paid 3500 for 16234 , I enjoy it I enjoy my omegas more, and my Grand Seiko Snowflake much much more, the quality and fit and finish beyond Rolex, much closer to a Patek I would imagine, in the used car buisness rolex is the watch you buy. I mean yes 904 stainless super high quality but I mean what they just started using in house movements for some watches 25 years ago max. Hold a Grand Seiko Snowflake and datejust 41mm and that will tell you everything 10k plus for a submariner is beyond ridiculous to me personally but I’d rather have a fifty fathoms , investment wise Rolex is the better move. I would imagine watches like cars are not really good investments most of the time, the reason Rolex is easily and mostly replicated because their so known and common, but it’s achievable on most watches the fit and finishes can be replicated try to do that with a Patek and grand seiko, that’s why there is none no grand seiko reps and the pateks can be spotted from miles away not to mention Rolex lack of complications but then again I’m biased, I like odd watches I loved my Alain silberstein Krono bauhaus and my speedmaster reduced is one of my favorite daily’s, but to each is own.
 
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speedomega

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The AD’s are knowingly selling to grey dealers most likely for some financial gain. I think this is the main problem.

Rolex aren’t scarce, the grey markets are saturated and they control the price.

In London the only way to even see Rolex sports models is by visiting the grey dealers. They all have every desirable steel sports models and I dare say more that aren’t on display.

I used to think the issue was created by Rolex but now I’m not so sure.

I hope it’s a bubble as if the prices ever went back to under retail they would actually seem like rep prices.


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This is it, this is the main reason.
 

joeyc

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Not even $600, the good old TDs on this site are selling for around $300-500 tops. It must keep 'em up at night. Meanwhile, the only thing I think keeping you up at night is that wad of $10,500 under your mattress :biggrin-new:. I don't care how rich you' are, that's still a good chunk of change. I rather go on an excursion or buy a new motorcycle. :thrasher::stuvetjee:

personally I’m with you on that, you could buy a nice Ducati or triumph, or do timing belt service on a Ferrari f360 and still have 3k left over for a nice little vacation or you can 11k worth of 904 stainless with an r name. lol I really enjoy the not worth buying in genuine list.
 

derjenigewelcher

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On the other hand, the Ferrari loses value for every kilometer you drive. My dad's 1967 Omega Speedy is worth 25k today and $ 300 then. ;)
Sidefact.
But understand the approach well. But calculate, a Rolex service will cost you a few hundred, but afterwards you have it on your wrist like a new watch. So, REP it in man :)
 
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Wacht

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I believe a well serviced Ferrari would hold some value today, as well as a watch from 1967. If you look up what $300 back in '67 would be worth in purchasing power today it is $2340.