" What makes a Rolex watch cost $10,000? The name."
I would like to respond to these two as they are not entirely true.....
In regards to the First Quote....
Yes, part of the cost of a Rolex can be attributed to marketing and the brand name, however that can be said for any consumer procuct on the market....is the Material Value of a Rolex really worth the cost?..Not even Close, material value of a basic SS Rolex is about $300, where as the MSRP on that model is $2900, quite the markup....
However you must remember that the company has to pay to employee its technicians, support overhead costs, pay for marketing etc.....
In the High end Watch Market Rolex is seen as a very good buy for a few reasons....
1. the Company does not allow for Dealer Discounting via gustapo tactics...they keep their dealers on a tight leash so to speak
2. the appearence really does not change all that much, thus there is continuity and even old models look like the newer ones and vice versa...
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3. They are one of the Most inexpensive watches in the high end sector to use their own In house movements...which means they make the whole watch, not buy a movement from Swatch group like many other high end brands do (Tag, IWC, Omega...etc)
4. All of these points add up so that the watches retain their initial value quite well, thus you spend 3,000 on one now, and in 5 years you can sell it for almost the same price if not more....in one instance they had one that was just released that had a MSRP of 2800, however people were paying upwards of 3700 for it, quite like the PS2 phenomina of last year....
"Well, that and they are the best wrist watches made by man. Go look at one and ask to try it on. You will see what I mean."
In regards to the second, this couldn't be further from the truth, and this is coming from someone who owns one.....
There are much finer watches made, some at even lesser prices. Patek Phillipe, Vacheron and Constantatin, Blancpain, Breguet, and JLC just to name a few...but Rolex is Far from the being the "best" in the watch world in terms of the actual watch...however they are the Best when your talking about Brand Name Recognition, Resale value, and after sales service.....
I would most definatley buy one of the aformentioned brands could I afford it over a Rolex, however their cost just does not justify ownership in my mind (Cheapest Patek is like 10,000 dollars, Cheapest Rolex is just under 3 grand....pretty big difference, not to mention Service Costs are much more for Most other high end brands, Rolex is somewhat reasonable)....
Oh well just thought I would share
