Thursday, June 16, 2011

Rolex's policy of steady price increases


If you had bough a stainless steel Rolex Submariner Ref. 1680 back in 1973, it would have cost you all of US$385, based on Rolex suggested retail price. This would be the equivalent of US1,985 today. By 1988, a Submariner Date would cost you US$1,975, or the equivalent of US$3,751 today. By 2004, the Submariner Date would cost you US$4,250, or the equivalent of US$5,054 today. Today, the current incarnation of the stainless steel Rolex Submariner Date, is listed at US$8,000.


Since 2004, the price increases which used to be intermittently made every few years is now a yearly affair. Cost of entry into the Rolex world is made more difficult every year as it climbs higher and higher in in the luxury watch food chain. But for the owner of a Rolex watch, the value of what you purchased is maintained by the policy of steady price increased. I am not saying buying a Rolex is a good investment. But should you decide to dispose of your Rolex watch for a newer model, or out of necessity, you should pretty much manage to get in dollars what you paid for it a few years back. If you wait a decade of more, the resale value should catch us with inflation.

How do you feel about the steady increase in Rolex prices?

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