Too much hype? Rolex released its green glassed Milgauss 116400 GV at Baselworld 2007, rumors abound that it was a limited edition, and the watch with a manufacturers suggested retail price of US$6,575 shot up to US$15,000 to US$18,000. One was even reportedly sold at US$25,000. Many of the buyers at these prices, expecting to hold the watch until a few decades down the line, this "limited production" watch would command amazing prices. But Rolex never said the 116400 GV was a limited production watch, and many online debunked the claims that it was. Another story went around about how Rolex was having trouble manufacturing the green crystal glass, probably further fueling the inflated prices. We do not know how true this is.
What is true is that Rolex Milgauss watches, of any type have not been readily available at Authorized Distributors. Because of this, even the non-green glass versions, both the black and white dialed versions have been commanding a price of about US$8,000, which is about 30% higher than their US$6,200 MSRP.
Coming back down to earth. A check with online retailer Swiss Luxury shows that the prices of Rolex Milgauss watches is dropping.
Milguass 116400 GV
MSRP: US$6,575
SL Price: US$18,000
Sale Price: US$13,700
Milguass 116400 Black Dial
MSRP: US$6,200
SL Price: US$7,995
Sale Price: US$7,595
Milguass 116400 White Dial
MSRP: US$6,200
SL Price: US$7,995
Sale Price: US$6,795
Why are Milgauss' in short supply? After all the hype fueled mainly by Rolex enthusiasts, there really isn't all that big a demand for watches that can withstand 1000 gauss. IWC has had on for some time, and that really is not all that hot a seller. In fact IWC has one that could withstand 6,250 gauss, and that watch was dropped from their line-up two decades ago. The original Rolex Milgauss line-up itself, was dropped by Rolex from their line-up in 1988 for being one of the slowest sellers among the Rolex offerings.
Because of this Rolex's Milgauss production is probably at the level of the expected demand a few years down the road, and not geared to meet the initial high demand. If Rolex was to produce Milgauss watches to meet the initial expected demand, it would have to scale back production later, or watch Milgauss prices go through the floor.
Still too high. Historically, Rolex all stainless steel watches can be had at a neglible discount from MSRP or as high 10%-15% a few years after their release. Those made from precious metals, can be had at even more generous discounts. There is no reason to expect that pricing will be different for the Milgauss.
The only Rolex watch to buck this trend is the all stainless steel Daytona's which command a price premium of about 30% over MSRP. But Daytona's themselves are not scarce. Two-Tone Daytona's are readily available from authorized dealers, at prices below the premium price commanded by the all stainless steel models.
If the scarcity of stainless steel Daytona's was pushing prospective buyers to Omega, TAG, Panerai, IWC or some other manufacturer, than Rolex would have rectified this a long time ago. On the other hand, if the scarcity of all stainless Daytona's pushes buyers to two-tone versions, there really is not need to correct the supply issue.
Given historical pricing, the non-green glass Milgauss should be available at MSRP or less a few months or maybe even as long as a year down the line. Maybe the green glass version might always be in a bit of a short supply, keeping its price above MSRP. How high? At most, at around 8-9K, similar to the all stainless Daytona's premium. But I doubt it. The Daytona is a Rolex icon, and the Milgauss will simply never be one.
Rolex will eventually have to meet the market demand, otherwise people really needing anti-magnetic watches would head towards IWC. The only way that the Milgauss continue to remain scarce is if there is actually no demand from the general market, and Rolex will only produce them in sufficient number for enthusiast and collectors. Even than, the price will drop to MSRP.
Update. This articles has been updated here: Rolex Milgauss Pricing: Still dropping
About Rolex. Rolex SA is a Swiss manufacturer of wristwatches and accessories founded in 1905 by Hans Wilsdorf and Alfred Davis. Rolex is the largest single luxury watch brand by far, producing over 2000 watches per day. Rolex is the best known and most sought after watch brand in the world.
No comments:
Post a Comment