Rolex Watches: Why are they so expensive and so popular?
Posted: Saturday, April 28, 2007
by James Greene
worldgems
The market sets the price on all merchandise including Rolex watches. As long as someone is willing to pay the asking price, there is no reason to reduce that price. The company sells every watch that they make and have a waiting list for some of their models of up to 2 years. The question might be: are they worth the price? Judging from the ones I have seen that are 50 to 60 years old and still running well, and are in good condition, my answer would be "yes".
Many consumers are turning to eBay to purchase their high end watches. Thousands of Rolex watches are sold on eBay every year, probably tens of thousands. However, if you're considering going this route you should take every precaution that you can and that is still no guarantee that you'll get what you pay for. eBay does a very poor job of policing the site for counterfeits. They say that it's not their job to verify every auction, and I think they could be right. The seller should provide you with the full serial number, model number, and any paper work that's available. You should see close-up pictures of the exact watch that is being sold, including close-ups of the serial number and model number that are engraved between the lugs at the 6:00 and the 12:00 position. Once you have all this information, take it to someone who is an expert in identifying the genuine product.
The only true way to determine if the watch is genuine is to take it to an authorized technician, and have him remove the case back and do a thorough examination of the movement and the bracelet. This can be time consuming and costly but is the only sure way.
Pricing is reasonably firm at all authorized dealers. The company puts a suggested retail price on every watch. This price is usually found on the tag along with the serial number of the watch. Most authorized dealers will give you a small discount on their watches although Rolex frowns on this practice also. Contrary to popular belief they do not put a 300% markup on their watches. Not even close. I won't reveal the exact markup, but suffice it to say that the actual markup does not allow for much discount at all and still leave a profit for the dealer.
After wearing your watch for a few years you might notice that it is gaining or losing time. This might indicate that it needs servicing. If it's only off a few seconds a day this should not be a major concern. However, if you notice that it is losing several minutes in a 24 hour period then it will need to be serviced. There are two schools of thought on when a Rolex should be serviced if it is running properly. Many collectors say every 2 to 3 years. Rolex says every 5 years. My personal thoughts are 6 to 7 years assuming that the watch has been running continuously since it was new. By that I mean that if over the years the watch was allowed to go un-worn for months at a time, without running, and then worn for a few months, and then un-worn once again. Wearing the watch in this manner can cause more problems than wearing it all the time.
Quoting From Rolex:
Quality, style, respect for a great watchmaking tradition… there is no shortage of reasons for wearing a Rolex; indeed, a Rolex watch would not be such a unique and coveted object of desire were it not the product of exceptional craftsmanship. What makes a Rolex so distinctive is the alliance of technology coupled with a unique philosophy. Pioneering spirit and the pursuit of perfection, qualities first embodied by the founder of Rolex, Hans Wilsdorf, continue to the present day, and those personalities who represent the Rolex name in advertising are testimony to this Watchmaking perfection and an abiding philosophy… these are the reasons why you wear more than just a watch when you wear a Rolex .
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Top-level comments on this article: (4 total)Hi James. Great article, very informative piece and well-written.Thank you for joining my fan club. I am truly delighted and honored.Best regards to you and yours,Nenita
Rolex aren't worth it. Society is so superficial. Anyone who buys a Rolex is telling the world they are a sucker for pricetag and has an insecurity problem.Hi klre,Rolex makes a very good watch for those that can afford them. It's certainly nothing to be ashamed of for those who can't afford them.Neither should one be ashamed of having the means to purchase anything that they want. Most Rolex owners aren't trying to show the world anything. They just like to have the finest things available and could care less if anyone else likes it or not.Yes, there are those who buy Rolex watches and flash them around and tell anyone that will listen just how much they paid for it. These are the ones that can't really afford them in the first place.Thanks for your comment,Jim
but you haven't answered your own question.. on why are they so expensive?the title was not about how to avoid scammers on eBay, was it.It's quite simple Mr. Anonymous: It's called Market Value. There are those that can afford the watches and they buy them. If consumers stopped buying them there would be no market. Hence, price decrease.Thanks for your comment,Jim Greenethe "market value" of your pointless and sugar coated materialistic rolex article is zero.Well, thanks for reading it anyway. Sorry it wasn't to your liking.
Regards,
Jim Greene
If you are ready to spend 10 grand or more on just a watch on ur wrist then you should consider donating this money to poor who are dying for food and shelter or health issues. you can save lives by having a cheap casio which you can buy a new one every year and will definitely tell u the same time as rolex.Hey there hope about if I do both - contribute money to charitable organizations that provide food, clothing and education to those in need. Run a free clinic for those that have no health insurance, or access to our very messed up health care system and buy a rolex - now do you have a problem? Do be mad, be happy - are you making contributions to those less fortunate than you?He, good point, I'm pretty sure he(she) doesn't donate to those less fortunate. There is nothing wrong with rewarding yourself, if you can afford a 10k watch and that is what you want then that's what you get. People will never be satisfied in this world, no matter how much you give the minute you don't give is all they remember.If I had some money to throw around I would consider getting a Rolex from a collectors standpoint, or better yet just convert that $7,000 or so into gold and call it even ;)
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