ROLEX Prices: Where is it heading?

[Oceanklassik]

This discussion I'm bringing about stems from a chat I have had with an AD recently and over a new thread started by member "fabian yeo".

I have noticed some minor price adjustments to the retail prices (RP) of ROLEX watches lately, and I am NOT talking about the regular price increase. The Explorer I (114270) saw a drop in RP from $7,127 to $7,049; Explorer II raised from $8,632 to $8,645; and discounts given across all models have been decreasing over time.

According to the AD, ROLEX is trying to moderate the RP of their watches to be similar across all countries. It means that if an Explorer II sells here in Singapore at $8,645, it should sell the same price (in whatever currency) in Hong Kong, Dubai, Australia, the US, etc-etc. And this is only the first "blow" (to us ).

The second "blow" - Why the decreasing discounts? Well I was told that ROLEX is gradually decreasing their discounts so that eventually, they are going to give "ZERO" discount totally for all their watches. And this ties in with the little drop in RP, meaning, a ROLEX watch will eventually sell ONLY at their RP with no discount AT ALL, and they will not "higher-priced" their watches in short, regular periods, like how they are doing now

I do not know how true this can be but the recent fluctuations of their RPs have been confusing me:confusing:

Can more experts share here?

[P88]

Noticed the minor price adjustment too. GMT2C 116710 RP was adjusted from 9960 to 9975.

If wat your AD say is true, I do not think such minor changed will bring about the standardization of a global price structure. It is not possible for any one company to accurately forecast exchange rate movements. Further to this, the tax rebate for each country is different. Remember many many years ago in Singapore, Rolex was well known for giving no discount. Maybe due to competition, discounts were secretly given until it became a norm. Such a move also help in moving aging inventory for slower moving models. Looks like it is coming full circle again.

Hm....in the future, will there be such thing as premium for new or popular models? :-/

No matter wat, grey market will still be able to find a way. Ready buyer, ready sellet.

No expert, just 2c worth.

[Watcha]

For rolex it's hard to turn back discounts.
If no discount turn away sales. Ad have problem.

They are going the route of Louie vuitton.
Zero discount. Never on sale.

But LV is different. They started without discount. At least I never heard of.
But their customers are queuing machiam pasar malam.

[Oceanklassik]

Noticed the minor price adjustment too. GMT2C 116710 RP was adjusted from 9960 to 9975.

If wat your AD say is true, I do not think such minor changed will bring about the standardization of a global price structure. It is not possible for any one company to accurately forecast exchange rate movements. Further to this, the tax rebate for each country is different. Remember many many years ago in Singapore, Rolex was well known for giving no discount. Maybe due to competition, discounts were secretly given until it became a norm. Such a move also help in moving aging inventory for slower moving models. Looks like it is coming full circle again.

Hm....in the future, will there be such thing as premium for new or popular models? :-/

No matter wat, grey market will still be able to find a way. Ready buyer, ready sellet.

No expert, just 2c worth.

Maybe they'll just have to cluster it by regions like southeast region countries, etc.

For rolex it's hard to turn back discounts.
If no discount turn away sales. Ad have problem.

They are going the route of Louie vuitton.
Zero discount. Never on sale.

But LV is different. They started without discount. At least I never heard of.
But their customers are queuing machiam pasar malam.

You answered your own question, right? If LV gives no discount and people are still queuing to buy, why not ROLEX (one day)?

[Watcha]

\
You answered your own question, right? If LV gives no discount and people are still queuing to buy, why not ROLEX (one day)?

Well the thing is LV is in fashion business. Women can have numerous handbags, shoes, jewelery but only 1-2 watch.

Rolex is not "fashionable" to most people.

[Oceanklassik]

I beg to differ dude. ROLEX is "fashionable" to more people than you can imagine. At least to me. The only thing that is not "fasionable" is the ever increasing prices..

[pegasi]

Actually I think it's not a bad thing if Rolex or any other brands of watches sell at no discount across all shops like LV does. Prices will be very transparent and fair (same price regardless if you are first-time or regular or VIP customers). It will also save one the time to go hunting for the "best deal" (well you can still do that for preowned watches if you feel that's part of the fun).

But I have my doubt if Rolex can strictly enforce such policy if they continue to distribute their watches to so many ADs...

[Watcha]

I beg to differ dude. ROLEX is "fashionable" to more people than you can imagine. At least to me. The only thing that is not "fasionable" is the ever increasing prices..

Yup it is fashionable to me and a lot of people.

It is "fashionable" to ask for the sky. Think birkin bags.
Not "fashionable" to me if they do zero discount.

Just that most watch people are male. And now the trend is to focus on "value"
Gone are the days where make some clever marketing, make some case, stick a ETA
inside and sell you for thousands, even 5 digits.

Much harder to sell those now.

[zidaneong]

I beg to differ dude. ROLEX is "fashionable" to more people than you can imagine. At least to me. The only thing that is not "fasionable" is the ever increasing prices..

x2.

[leslie]

This discussion I'm bringing about stems from a chat I have had with an AD recently and over a new thread started by member "fabian yeo".

I have noticed some minor price adjustments to the retail prices (RP) of ROLEX watches lately, and I am NOT talking about the regular price increase. The Explorer I (114270) saw a drop in RP from $7,127 to $7,049; Explorer II raised from $8,632 to $8,645; and discounts given across all models have been decreasing over time.

According to the AD, ROLEX is trying to moderate the RP of their watches to be similar across all countries. It means that if an Explorer II sells here in Singapore at $8,645, it should sell the same price (in whatever currency) in Hong Kong, Dubai, Australia, the US, etc-etc. And this is only the first "blow" (to us ).

The second "blow" - Why the decreasing discounts? Well I was told that ROLEX is gradually decreasing their discounts so that eventually, they are going to give "ZERO" discount totally for all their watches. And this ties in with the little drop in RP, meaning, a ROLEX watch will eventually sell ONLY at their RP with no discount AT ALL, and they will not "higher-priced" their watches in short, regular periods, like how they are doing now

I do not know how true this can be but the recent fluctuations of their RPs have been confusing me:confusing:

Can more experts share here?

Nowadays if you wanna buy a new rolex..you must have at least $10k inside ur pocket..

[Ivanloh]

If this news is truth then it going to be a big blow for those rolex lover.

[desfrie]

For rolex I do have a comfort zone. Beyond 10k there are so many other options. But then it is a moving target. I understand that the next Pam price increase will be a big one as they have not increased prices for 2 years. Let's call this inflation.

[Oceanklassik]

If this news is truth then it going to be a big blow for those rolex lover.

Sexual connotation again, Mr Ivanloh ?

This information may/not be true, at least not for now. It may be a long term strategy for the company, or call it foundation if you like. But how long is anybody's guess.

[P88]

Rolex is constantly evaluating itself to maintain market position in the luxury sector (not super luxury). It wants to be in that almost reachable range to the middle income group, the fastest growing group in high populated countries like China, India, etc.

One way is through price adjustments in accordance to inflation. Be it global, major economies, emerging economies inflation.

Another is through areas such as corporate culture, corporate image, technology, IP, innovation, etc. This could be why this brand remains fashionable despite minute changes in design and model range.

Dun think this minor price adjustment is meant as a countermeasure towards grey market. Sales in this area is just too small to invoke micro mgt. Grey market is very flexible to changes, loopholes will always be present and exploited. Such is human nature.

2c with change.

[qwerty]

The hypothesis that there will be zero per cent discount cannot be true if watches are still sold through private ADs.