Here is a wild story, the only two times i walked into a rolex AD and got asked about what i was wearing was with my royal oak and the best one yet, my big bang unico, they couldn't care less when i was wearing other rolex
Great conversation guys. I think Rolex can increase their prices 50% and people will still want to buy them. I personally have purchased all my Rolex from the grey market, so these new retail prices are still less than what I paid 😅
The markup you pay for gold when buying any new watch is (to me at least) pretty absurd, and surely the most obvious example of how we've been conditioned to believe it's worth paying for luxury as an abstract quality. Even at the current prices, you are paying an extra $16,000 for a yellow gold Daytona on an oysterflex over a steel model. The *only* difference between these watches (leaving aside the steel bracelet vs. oysterflex) is the case material, so you are basically paying $16,000 for the gold. But the actual value of this gold (in a watch without a gold bracelet) is probably less than $3000. Rolex and other brands are able to sell gold for more than 5 times its value simply by making it watch-shaped. Quite an achievment!
Without really knowing the books of their business it’s hard to get mad a company for price increases. They may be facing increasing costs as a business that they cannot absorb.
couple of points: 1. rolex have defined themselves as a 'luxury brand' rather than a 'watch company', ever since the 90's - as expressed by former top managers and as we can clearly see in the way they do business, since then. so you are 100% right, but it is also nothing new. 2. crucial to any analysis is including the infamous 'rolex game' we all know and hate, as part of the driving logic behind pricing. the stainless steel models need to represent exceptional (perceived) value but also be unattainable without purchasing history. they are, as we know, bait for getting people to buy the higher margin TT/gold models first. the TT/gold models need to increase in price now a) to improve the profitability of rolex retail partners who are currently struggling, and b) to adjust for gold price increases. daytonas represent 'grails' in the rolex catalog and need to have a super high price to signal this. also, the daytona customer is not price sensitive - having spent tons of money already to be considered for a daytona purchase. this is why gold daytonas are getting a higher percentage increase than other gold models, etc.
Omega sells a Seamaster on a rubber bracelet for £27,700. A YG Daytona on the Oysterflex is £27,900. Rolex simply cannot have this considering the premium image of the Daytona (and Rolex compared to Omega). The Daytona is to become the Birkin of Hermes. Hence why Rolex unveiled multiple Daytonas in the last 12 months that exceed £100,000. Many off catalogue.
Agree with all of this, and also think they want to use their precious metal line as the entrance into Rolex going forward. Much like PP, their new customers must buy certain pieces before they can purchase those oh-so-popular nautilus and aquanauts. I believe Rolex will do the same on the steel Subs, GMT's, and steel Daytona's. - Jason
@@TheWatchBros Interesting. That would be quite the change. Not sure they can pull it off with the numbers of watches they make, but you may be on to something.
I have been collecting watches for 20 years and have many brands including omega, AP, UN, Hublot. The only watch that has not given problems is Rolex. Simply put even as a collector who does not like to fix watch issues can never go wrong with Rolex. Last year I swore off the brand due to the poor AD service but cannot help it am back again trying to get more. Most people who don’t know watches will always say is that a Rolex they know the brand and first time buyers won’t care what price increase is as they will never know what they were 3 years ago. For gold pieces that high people will still buy as those are the ones who are not hurting for money so that increase is Not going to change. But buy grey market for gold now that it is cheaper. Most likely they will increase the prices as well
Yep you’re right… if people will pay, then they can get away with it. Side note, I’ve owned multiple watches and tons of different brands, and I’ve never had a problem with any of them… except my Rolex Explorer II. I’m not mad about it, because it can happen. But it’s not like Rolex doesn’t have problems with their watches tho. Thanks for checking out our channel and look forward to seeing you in the comments 👊 - Jason
Good Content! I don’t agree with the idea of Rolex moving up into luxury and “excluding” the entry level buyer. If that would have been the idea, Rolex wouldn’t raise prices of their steel-models by only 1%, which is significantly below inflation rate.
I understand that thought, and you could definitely be right. But from what I’ve now read and talked through with some other collectors, since recording this, is that Rolex is moving to using their less popular pieces (mainly solid gold and two-tone) as gate keepers to the steel models. Much like Patek has you buy multiple pieces before you can purchase an Aquanaut or Nautilus. If this is what they’re doing, then it makes complete sense that the steel models wouldn’t increase much at all. The demand needs to stay high for these models in order for this buying journey to work. Again, this is all conjecture but Patek does have a proven blueprint that Rolex can follow. - Jason
@ Dear Jason, this may actually be the perfect explanation for what is going on. However, there definitely is levels to this. E.g. the margin between msrp and market value of an aquanaut 5167R-001 is roughly €40k, so there is a lot more room to maneuver, compared to 12-15k on a steel Daytona. The margin on GMTs and Subs is significantly smaller, so there should (generally speaking) be less interest in spending €45k on a gold model (and losing €10-12k) just to get hands on a batgirl that trades €5k above retail. The equation has a lot of variables, it will be interesting so see how this evolve over time. Kind regards from Hamburg (Germany), Bastian
You make a good point and this tactic might not work for Rolex. But they do have such a strong brand identity with consumers, that they may just pull it off. Many more people want a steel sub, gmt, or Daytona over a Nautilus. That high demand for the piece could outweigh the the hit they may take having to step into a heavier priced watch first. Like you said, it will be interesting to see how the next 24-36 months plays out. Thanks for supporting over in Germany 🙏 - Jason
and that is why I always recommend Oris, Longines, Tissot, Tag Heuer, Grand Seiko, Seiko and Citizen... cause there the value to product ratio just makes sense... plus getting your hands on them on the grey market sets you up to get some 40-60% discounts!
I think you both are over thinking Rolex’s strategy. First, Rolex sales are off 3% per CEO Jean Federique DuFour. Second, Rolex watches are Veblen goods which means demand is inelastic and does not decrease due to price increases. Third, demand is well above Rolex supply, even though Rolex makes over 1.25 million watches per year. Lastly, there are NEW millionaires minted every day who want to buy a luxury watch. It clearly is a Rolex world and the other brands cannot take market share from Rolex no matter how hard they try!
I think, as your rightly mentioned, their sales are down, the market is cooling. So looking at the distribution, I have a feeling that they increase only slightly on steel models, which are popular, not to harm this part of their clients’ base which is more dependend on changes in the economy, manage their consumption. And they compensate it with higher increase of gold models which are usually bought by people ultra rich who care less where the economy is in a given moment.
Yeah, the more I've thought about it, the more I realize they want to become one of 'the' luxury brands. With that, they want to push their higher-end gold pieces as a gatekeeper for their steel pieces. With that in mind, they want to capture that additional revenue... mostly because they can. This increase won't hurt their sales in the slightest - Jason
Great conversation. Finally found time to watch this episode. I’ve also been thinking for a while that the “special” aspect of Rolex has been disappearing in recent years. I now know more people who own a Rolex than a Casio 😅. I’m also a bit concerned that it’s heading in the direction of LV just for the watch industry. As Mike said, LV makes good quality products that look good but come with an overpriced tag. In my opinion, with Rolex’s new pricing, it’s only slightly overpriced compared to the competition. But if things keep heading in that direction with the price increases, we might eventually end up there🫣 I’m also very curious to see how prices on the secondary market will develop. It remains exciting!
I think Rolex is taking plays from different luxury brands playbooks. LV def is one of those. It will be up to us as consumers at the end of the day. If we start buying other watch brands and their sales decrease, then it will force them to change their strategies. Like you said... time will tell. It'll be interesting in the meantime - Jason
Jason, the Vacheron on your wrist today reminded me that you have mentioned in the past that you appreciate watches/vintage watches with proper proportions. As a newbie to collecting, would you consider a video walking through your thought process on how you determine what proper proportions are for you? I know everyone has differing preferences…just curious about your process! Thanks for the insight you and the team bring to the community!
The price of gold has gone up 34% in the last 12 months. No way Rolex is just going to absorb that. A 14% increase on gold models is a direct reflection of the rise in gold prices.
Except no one else is increasing their gold pieces like this. Gold commonly fluctuates and watch manufacturers account for this change in pricing. Watch prices don't come down when gold does. Rolex just wants to make more on their gold pieces... it's really that simple. - Jason
@@TheWatchBros Other brands don't have the dominant market position like Rolex. Rolex could easily raise the price of certain watches another 10% and there would still be more demand than supply. Porsche is doing the same thing right now with price increases simply because the demand is still so high
Rolex always raises its prices annually, yet demand and sales remain unaffected. This year will be no different. The secondary market will simply adjust its buying and selling prices accordingly, as it always does.
Interesting discussion and perspective. Im surprised they havent bumped the gmt price up personally. If the SS daytona is currently 15k I can see the SS gmt models sell for 12-13k rather easily. It is interesting they leave that much money on the table. Especially if you are correct and they are attempting to elevate their status as a prestige brand.
I think after talking with some other viewers and people, Rolex is going to start their journey with new customers in much the same way as Patek. Meaning they’re gonna want you to buy some of the more undesirable watches first before you can buy their steel sports models and highly sought after Daytona’s. So this makes sense now, because the steel needs to stay reasonable for desirability and potential resell value. That carrot will convince many to buy crap they don’t want to finally buy a SS piece. Just my current working theory rn - Jason
For me the main effect is price rises drive real watch collectors to the vintage watch market which is way more interesting and varied than the AD market. But secondly it drives people to smaller independents and micro brands that seem to have had a bumper year.
Price increase is acceptable if the production number is not over millions watch per year. Wearing Rolex is not exclusive as millions of Rolex watches have flooded the market.
Demand exceeds supply. That's why they had 30% of sales overall. Their revenue was more than Omega, Cartier, and Patel combined. They would never allow their watches to flood the market, never. Despite what anyone believes or wants to happen
For what it’s worth, I’m in the market for a Rolex GMT and these price increases don’t offend me. When spending this kind of money on a watch, what’s a couple extra hundred dollars. I’m not in the market for an all gold Rolex yet.
Honestly rolex limiting releases more and more, and making them harder to get, and now a price spike, which then trickles down to the after market pricing Is only for the benefit for the big collectors who want to offload some, attain limit releases as an investment and re-sell, and for the jewelers Sadly greed only feeds the sharks they feed I am sad to see this direction. Its not about the small percentage increase, its about the remimifications
Raising the price on the Daytona line is just like Hermès raising its price on the iconic Birkin. When you have a winner, everyone is buying the other stuff, in hope that they ultimately get that Daytona 'offer' 🙏😅 Its scarcity wrapped in the emotional currency of desire and it's almost impossible to not be lured in 😅😅
Conventional wisdom would say to increase the price point of stainless steel models by the highest percentage. Per the fact these models typically sell on the secondary market higher than retail. For Example. Rolex knows a SS panda and Pepsi sell for 70% above retail. Very puzzling business model.
Hi gents. Gold is up strongly this year. 52 week low $1980, high $2750. Closing $2620. Thats up between 30-40%. Offsetting that the US$ has strengthened against Swiss franc by 4%. The main demand and sales for Rolex are, however, stainless steel watches so 1% seems ok for their sweet spot. Keep up the great content and best for 2025.
I can't help but think this is Rolex adjusting its placement in the market. There will always be a proportion of watch buyers who instantly want yellow gold on a big spend watch. The ultimate flex. Rolex still wants to capture this kind of buyer. God forbid anyone to opt for a yellow gold Vacheron instead. (even though it is a far better watch).
Yep. I think it's Rolex cementing their position as a luxury brand. I'd take a solid gold VC all day, especially now that it's not that much more of a stretch after this price increase by Rolex - Jason
There are AD’s that have pieces for sale. So your scenario is becoming a possibility. Now… whether it’s the piece you want is a different story - Jason
@@TheWatchBros yep. My requirements are steel sports watch, at retail, and zero games to get it. Just walk in, buy, walk out. I might be waiting for decades haha.
The Rolex business department is great at what they do. Rolex makes 1 million watches a year and yet the perception amongst the masses is, "exclusivity." Rolex watches are as common as grains of sand and yet people keep clamoring for them. For Rolex to raise prices, I think it's because they are suffering. Rolex would plummet the market even further if they decreased prices. It would piss every collector off. By increasing prices, the people who've bought in will feel happy that they bought low and the prices on the resale market will stabilize or increase. This will work in the short term but Rolex could be playing with fire and alienate buyers in the long term. I've never liked Rolex... except the original 1926 pre-production Oyster watch. I mean, my arm can be twisted. I live in NYC and Rolex is for Wall Street douchebags who drive Range Rovers. I'm hoping the rise of independents will eventually bury Rolex. Wishful thinking, I know, but crazier things have happened. Donald Trump became President... twice.
Agree that Rolex Watches are very common. I like the Submariner / SeaDweller and Explorer but no interest in the rest of their collection. In Toronto Rolex watches are pretty common ( a lot of fakes too) but also agree these price increases can’t continue for this mass market, mass produced brand. I would Like an Explorer but at some of these prices, would rather go to something like Vacheron or Laurent Ferrier.
Well care and trying to capture more profit because of secondary are two different discussions. I agree… they don’t care what secondary prices are - Jason
It’s interesting to see how they set the price hike for their stainless steel sports models and the Daytonas which are their highest in demand ones. I think this could be a confirmation that Rolex really wants to maximize their profits as they force people to buy the non SS models to build up their purchase history and work their way to finally get allocated an SS model.
@@TheWatchBros like you said, what they did runs contrary to whatever companies normally do. The logical thing to do is to reduce prices on the less in demand models but they did exactly the opposite of that.
@@TheWatchBros would be interesting to see if the likes of Porsche and Ferrari are doing the same thing for 2025 i.e. jacking up the price of their SUVs to force onto people who wants to get 911 allocations. Where I live, the grey market dealers get their Steel Sports Rolex units through buying them from the AD in ‘bundles’ with other less sought after models. Buy XX gold and rolesor models to get Y stainless steel model.
Most of the price increases seem to be normal inflation. However the gold daytonas I'm just as perplexed as you guys. As far as rolex positioning I think that they're right at the sweet spot for them, just beyond Omega but not encroaching into hawt horology brands. They are still obtainable for middle class collectors, the collectors will need to save and wait, but you can get your watch. I actually think rolex doesn't want to increase their prices aggressively as the grey prices. Trends come and go and rolex does not want to put their watches on sale again!
Hi completely get what Rolex are doing firstly Rolex being a Foundation looks at business in a different way the price of gold has had a big affect on how the new prices. This is why you seen such a big spread in increasing gold prices since Rolex s last price increase have gone up 18 percent. so to react to this they have spread the increase across the model range wear Rolex think it will have the least impact on the customer buying that particular model. gold prices can go down as well so this is why they haven't been doing 18 percent increase s and the market won't take it but I do think it will go up again on gold model's in June. because with the world economy being hard at the moment gold prices are going to carry on going up.rolex have recognised that the world watch market has had a big slowdown and that's why it steel models have only gone up by one percent less than inflation as the Rolex market goes back to normal prior to pandemic thanks John.
I agree that I think we’re going to see demand settle in to near pre pandemic unit numbers sold. Maybe slightly more… but definitely less than the past few years - Jason
Covid showed them the value of their product and they're smart business decisions. Reducing unnecessary marketing costs, controlling the used market and increasing prices.
Here is a wild story, the only two times i walked into a rolex AD and got asked about what i was wearing was with my royal oak and the best one yet, my big bang unico, they couldn't care less when i was wearing other rolex
Oh, I believe that! Rolex is everywhere on almost every wrist. You had on something unique so it stood out... in a good way 🙌 - Jason
Great conversation guys. I think Rolex can increase their prices 50% and people will still want to buy them. I personally have purchased all my Rolex from the grey market, so these new retail prices are still less than what I paid 😅
I think if you only want one or two very specific pieces… then the secondary is the most logical place to go - Jason
@ 💯
The markup you pay for gold when buying any new watch is (to me at least) pretty absurd, and surely the most obvious example of how we've been conditioned to believe it's worth paying for luxury as an abstract quality. Even at the current prices, you are paying an extra $16,000 for a yellow gold Daytona on an oysterflex over a steel model. The *only* difference between these watches (leaving aside the steel bracelet vs. oysterflex) is the case material, so you are basically paying $16,000 for the gold. But the actual value of this gold (in a watch without a gold bracelet) is probably less than $3000. Rolex and other brands are able to sell gold for more than 5 times its value simply by making it watch-shaped. Quite an achievment!
Your point is well stated and absolutely correct. It’s insane really - Jason
Without really knowing the books of their business it’s hard to get mad a company for price increases. They may be facing increasing costs as a business that they cannot absorb.
As an entrepreneur and business owner/operator… I can’t disagree with that - Jason
couple of points:
1. rolex have defined themselves as a 'luxury brand' rather than a 'watch company', ever since the 90's - as expressed by former top managers and as we can clearly see in the way they do business, since then. so you are 100% right, but it is also nothing new.
2. crucial to any analysis is including the infamous 'rolex game' we all know and hate, as part of the driving logic behind pricing. the stainless steel models need to represent exceptional (perceived) value but also be unattainable without purchasing history. they are, as we know, bait for getting people to buy the higher margin TT/gold models first. the TT/gold models need to increase in price now a) to improve the profitability of rolex retail partners who are currently struggling, and b) to adjust for gold price increases. daytonas represent 'grails' in the rolex catalog and need to have a super high price to signal this. also, the daytona customer is not price sensitive - having spent tons of money already to be considered for a daytona purchase. this is why gold daytonas are getting a higher percentage increase than other gold models, etc.
You nailed it 🤌 - Jason
Omega sells a Seamaster on a rubber bracelet for £27,700. A YG Daytona on the Oysterflex is £27,900. Rolex simply cannot have this considering the premium image of the Daytona (and Rolex compared to Omega).
The Daytona is to become the Birkin of Hermes. Hence why Rolex unveiled multiple Daytonas in the last 12 months that exceed £100,000. Many off catalogue.
Agree with all of this, and also think they want to use their precious metal line as the entrance into Rolex going forward. Much like PP, their new customers must buy certain pieces before they can purchase those oh-so-popular nautilus and aquanauts. I believe Rolex will do the same on the steel Subs, GMT's, and steel Daytona's. - Jason
@@TheWatchBros Interesting. That would be quite the change. Not sure they can pull it off with the numbers of watches they make, but you may be on to something.
Well… it’ll be interesting to watch over the next few years at least - Jason
@@TheWatchBros Keep up the great vids. You two work well together.
Thanks… appreciate that! Thanks for supporting 👊 - Jason
I have been collecting watches for 20 years and have many brands including omega, AP, UN, Hublot. The only watch that has not given problems is Rolex. Simply put even as a collector who does not like to fix watch issues can never go wrong with Rolex. Last year I swore off the brand due to the poor AD service but cannot help it am back again trying to get more. Most people who don’t know watches will always say is that a Rolex they know the brand and first time buyers won’t care what price increase is as they will never know what they were 3 years ago. For gold pieces that high people will still buy as those are the ones who are not hurting for money so that increase is Not going to change. But buy grey market for gold now that it is cheaper. Most likely they will increase the prices as well
Yep you’re right… if people will pay, then they can get away with it. Side note, I’ve owned multiple watches and tons of different brands, and I’ve never had a problem with any of them… except my Rolex Explorer II. I’m not mad about it, because it can happen. But it’s not like Rolex doesn’t have problems with their watches tho.
Thanks for checking out our channel and look forward to seeing you in the comments 👊 - Jason
Rolex is moving to a higher level market, they can do that cuz they also have Tudor and Tudor is the old Rolex.
That’s exactly their plan and agree 💯 about Tudor - Jason
Good Content! I don’t agree with the idea of Rolex moving up into luxury and “excluding” the entry level buyer. If that would have been the idea, Rolex wouldn’t raise prices of their steel-models by only 1%, which is significantly below inflation rate.
I understand that thought, and you could definitely be right. But from what I’ve now read and talked through with some other collectors, since recording this, is that Rolex is moving to using their less popular pieces (mainly solid gold and two-tone) as gate keepers to the steel models. Much like Patek has you buy multiple pieces before you can purchase an Aquanaut or Nautilus. If this is what they’re doing, then it makes complete sense that the steel models wouldn’t increase much at all. The demand needs to stay high for these models in order for this buying journey to work.
Again, this is all conjecture but Patek does have a proven blueprint that Rolex can follow. - Jason
@ Dear Jason, this may actually be the perfect explanation for what is going on.
However, there definitely is levels to this. E.g. the margin between msrp and market value of an aquanaut 5167R-001 is roughly €40k, so there is a lot more room to maneuver, compared to 12-15k on a steel Daytona. The margin on GMTs and Subs is significantly smaller, so there should (generally speaking) be less interest in spending €45k on a gold model (and losing €10-12k) just to get hands on a batgirl that trades €5k above retail.
The equation has a lot of variables, it will be interesting so see how this evolve over time.
Kind regards from Hamburg (Germany), Bastian
You make a good point and this tactic might not work for Rolex. But they do have such a strong brand identity with consumers, that they may just pull it off. Many more people want a steel sub, gmt, or Daytona over a Nautilus. That high demand for the piece could outweigh the the hit they may take having to step into a heavier priced watch first. Like you said, it will be interesting to see how the next 24-36 months plays out. Thanks for supporting over in Germany 🙏 - Jason
and that is why I always recommend Oris, Longines, Tissot, Tag Heuer, Grand Seiko, Seiko and Citizen... cause there the value to product ratio just makes sense... plus getting your hands on them on the grey market sets you up to get some 40-60% discounts!
So many great watch houses! I say the same thing a lot…. there’s so much to explore and enjoy outside of Rolex - Jason
I think you both are over thinking Rolex’s strategy. First, Rolex sales are off 3% per CEO Jean Federique DuFour. Second, Rolex watches are Veblen goods which means demand is inelastic and does not decrease due to price increases. Third, demand is well above Rolex supply, even though Rolex makes over 1.25 million watches per year. Lastly, there are NEW millionaires minted every day who want to buy a luxury watch. It clearly is a Rolex world and the other brands cannot take market share from Rolex no matter how hard they try!
You're not wrong 😉 - Jason
I think, as your rightly mentioned, their sales are down, the market is cooling. So looking at the distribution, I have a feeling that they increase only slightly on steel models, which are popular, not to harm this part of their clients’ base which is more dependend on changes in the economy, manage their consumption. And they compensate it with higher increase of gold models which are usually bought by people ultra rich who care less where the economy is in a given moment.
Yeah, the more I've thought about it, the more I realize they want to become one of 'the' luxury brands. With that, they want to push their higher-end gold pieces as a gatekeeper for their steel pieces. With that in mind, they want to capture that additional revenue... mostly because they can. This increase won't hurt their sales in the slightest - Jason
Great conversation. Finally found time to watch this episode.
I’ve also been thinking for a while that the “special” aspect of Rolex has been disappearing in recent years. I now know more people who own a Rolex than a Casio 😅.
I’m also a bit concerned that it’s heading in the direction of LV just for the watch industry. As Mike said, LV makes good quality products that look good but come with an overpriced tag. In my opinion, with Rolex’s new pricing, it’s only slightly overpriced compared to the competition. But if things keep heading in that direction with the price increases, we might eventually end up there🫣
I’m also very curious to see how prices on the secondary market will develop.
It remains exciting!
I think Rolex is taking plays from different luxury brands playbooks. LV def is one of those. It will be up to us as consumers at the end of the day. If we start buying other watch brands and their sales decrease, then it will force them to change their strategies. Like you said... time will tell. It'll be interesting in the meantime - Jason
Genuine watch enthusiasts moved away from Rolex along time ago so no biggy for me. I hope this increase destroys the already ruined brand…
Unfortunately, if it hasn’t happened already… then it ain’t happening 🤷♂️ - Jason
Jason, the Vacheron on your wrist today reminded me that you have mentioned in the past that you appreciate watches/vintage watches with proper proportions. As a newbie to collecting, would you consider a video walking through your thought process on how you determine what proper proportions are for you? I know everyone has differing preferences…just curious about your process! Thanks for the insight you and the team bring to the community!
Thanks for watching and commenting! Shoot me a message on IG. I’d be happy to discuss there 👊 - Jason
The price of gold has gone up 34% in the last 12 months. No way Rolex is just going to absorb that. A 14% increase on gold models is a direct reflection of the rise in gold prices.
Except no one else is increasing their gold pieces like this. Gold commonly fluctuates and watch manufacturers account for this change in pricing. Watch prices don't come down when gold does. Rolex just wants to make more on their gold pieces... it's really that simple. - Jason
@@TheWatchBros Other brands don't have the dominant market position like Rolex. Rolex could easily raise the price of certain watches another 10% and there would still be more demand than supply. Porsche is doing the same thing right now with price increases simply because the demand is still so high
Rolex always raises its prices annually, yet demand and sales remain unaffected. This year will be no different. The secondary market will simply adjust its buying and selling prices accordingly, as it always does.
Unfortunately you are correct - Jason
Interesting discussion and perspective. Im surprised they havent bumped the gmt price up personally. If the SS daytona is currently 15k I can see the SS gmt models sell for 12-13k rather easily. It is interesting they leave that much money on the table. Especially if you are correct and they are attempting to elevate their status as a prestige brand.
I think after talking with some other viewers and people, Rolex is going to start their journey with new customers in much the same way as Patek. Meaning they’re gonna want you to buy some of the more undesirable watches first before you can buy their steel sports models and highly sought after Daytona’s. So this makes sense now, because the steel needs to stay reasonable for desirability and potential resell value. That carrot will convince many to buy crap they don’t want to finally buy a SS piece. Just my current working theory rn - Jason
16% up on the gold daytona
It hurts... it def hurts - Jason
For me the main effect is price rises drive real watch collectors to the vintage watch market which is way more interesting and varied than the AD market. But secondly it drives people to smaller independents and micro brands that seem to have had a bumper year.
Yes it does. I’m doing a video in watch trends in 2025… and micro brands is on that list 😉 - Jason
Good news. Will look out for it. Really like your vintage Vacheron !
Ahhh… thank you 🙏. “She’s a beaut Clark!” - Jason
PMs are way up so I get the desire to maintain the (of course very high) profit margins.
Insane profits… I suspect the highest in the industry - Jason
Price increase is acceptable if the production number is not over millions watch per year. Wearing Rolex is not exclusive as millions of Rolex watches have flooded the market.
I think production is ramping up to 1.5 million by the end of this 2025 year! - Jason
Demand exceeds supply. That's why they had 30% of sales overall. Their revenue was more than Omega, Cartier, and Patel combined. They would never allow their watches to flood the market, never. Despite what anyone believes or wants to happen
@samuelburton5576 Actually demand doesn't exceed supply. That's why sales are down in 2024. They simply have more supply than current demand - Jason
You guys have great on screen chemistry and I hope become a permanent fixture on the show.
Thanks bro!… appreciate you saying that. Mike will be making a more consistent appearance on the channel 👊 - Jason
For what it’s worth, I’m in the market for a Rolex GMT and these price increases don’t offend me. When spending this kind of money on a watch, what’s a couple extra hundred dollars. I’m not in the market for an all gold Rolex yet.
I don't think the steel price increase is offensive at all - Jason
I left Rolex long ago, they make a nice watch, but they aren't "that" nice! I love the look of my Panerai 005and IWC Portuguese.
Both of those watches are very nice 🤌 - Jason
Honestly rolex limiting releases more and more, and making them harder to get, and now a price spike, which then trickles down to the after market pricing
Is only for the benefit for the big collectors who want to offload some, attain limit releases as an investment and re-sell, and for the jewelers
Sadly greed only feeds the sharks they feed
I am sad to see this direction. Its not about the small percentage increase, its about the remimifications
You and I both think Rolex is headed in the same direction - Jason
Raising the price on the Daytona line is just like Hermès raising its price on the iconic Birkin. When you have a winner, everyone is buying the other stuff, in hope that they ultimately get that Daytona 'offer' 🙏😅 Its scarcity wrapped in the emotional currency of desire and it's almost impossible to not be lured in 😅😅
Agree 💯… desire overrides everything - Jason
Conventional wisdom would say to increase the price point of stainless steel models by the highest percentage. Per the fact these models typically sell on the secondary market higher than retail. For Example. Rolex knows a SS panda and Pepsi sell for 70% above retail. Very puzzling business model.
Exactly... but we're not dealing with conventional wisdom... we're dealing with Rolex lol - Jason
Hi gents. Gold is up strongly this year. 52 week low $1980, high $2750. Closing $2620. Thats up between 30-40%. Offsetting that the US$ has strengthened against Swiss franc by 4%. The main demand and sales for Rolex are, however, stainless steel watches so 1% seems ok for their sweet spot. Keep up the great content and best for 2025.
Thanks for adding to the conversation! - Jason
I can't help but think this is Rolex adjusting its placement in the market. There will always be a proportion of watch buyers who instantly want yellow gold on a big spend watch. The ultimate flex. Rolex still wants to capture this kind of buyer. God forbid anyone to opt for a yellow gold Vacheron instead. (even though it is a far better watch).
Yep. I think it's Rolex cementing their position as a luxury brand. I'd take a solid gold VC all day, especially now that it's not that much more of a stretch after this price increase by Rolex - Jason
Rolex can do this as people will pay it anyway.
They certainly will... at this point anyways - Jason
Will never get a Rolex until I can walk into an AD and buy it. If that's never, that's fine.
There are AD’s that have pieces for sale. So your scenario is becoming a possibility. Now… whether it’s the piece you want is a different story - Jason
@@TheWatchBros yep. My requirements are steel sports watch, at retail, and zero games to get it. Just walk in, buy, walk out. I might be waiting for decades haha.
Unfortunately probably so - Jason
Is this the first increase where the daytona has its separate increase?
That’s a great question. Idk actually, but it’s the first one that I can recall in my recent memory - Jason
The Rolex business department is great at what they do. Rolex makes 1 million watches a year and yet the perception amongst the masses is, "exclusivity." Rolex watches are as common as grains of sand and yet people keep clamoring for them. For Rolex to raise prices, I think it's because they are suffering. Rolex would plummet the market even further if they decreased prices. It would piss every collector off. By increasing prices, the people who've bought in will feel happy that they bought low and the prices on the resale market will stabilize or increase. This will work in the short term but Rolex could be playing with fire and alienate buyers in the long term. I've never liked Rolex... except the original 1926 pre-production Oyster watch. I mean, my arm can be twisted. I live in NYC and Rolex is for Wall Street douchebags who drive Range Rovers. I'm hoping the rise of independents will eventually bury Rolex. Wishful thinking, I know, but crazier things have happened. Donald Trump became President... twice.
I love the idea that the price increase is a masterful reverse psychology move by Rolex! It’s a plausible as anything 👏 - Jason
Agree that Rolex Watches are very common. I like the Submariner / SeaDweller and Explorer but no interest in the rest of their collection. In Toronto Rolex watches are pretty common ( a lot of fakes too) but also agree these price increases can’t continue for this mass market, mass produced brand. I would Like an Explorer but at some of these prices, would rather go to something like Vacheron or Laurent Ferrier.
@wristfulthings9676 Unfortunately, Rolex seems to think differently about what the masses can afford - Jason
As LVMH have mastered - ubiquitous luxury! The illusion of rarity and value.
They have... and Rolex is now following their blueprint - Jason
Do you guys really think Rolex cares about secondary prices when considering price increases? No they don't.
Well care and trying to capture more profit because of secondary are two different discussions. I agree… they don’t care what secondary prices are - Jason
It’s interesting to see how they set the price hike for their stainless steel sports models and the Daytonas which are their highest in demand ones. I think this could be a confirmation that Rolex really wants to maximize their profits as they force people to buy the non SS models to build up their purchase history and work their way to finally get allocated an SS model.
Ahhh... I think you may be onto something 🤔 - Jason
@@TheWatchBros like you said, what they did runs contrary to whatever companies normally do. The logical thing to do is to reduce prices on the less in demand models but they did exactly the opposite of that.
It doesn't make much sense until you consider your theory. Just saying 🤷 - Jason
@@TheWatchBros would be interesting to see if the likes of Porsche and Ferrari are doing the same thing for 2025 i.e. jacking up the price of their SUVs to force onto people who wants to get 911 allocations.
Where I live, the grey market dealers get their Steel Sports Rolex units through buying them from the AD in ‘bundles’ with other less sought after models. Buy XX gold and rolesor models to get Y stainless steel model.
Most of the price increases seem to be normal inflation. However the gold daytonas I'm just as perplexed as you guys. As far as rolex positioning I think that they're right at the sweet spot for them, just beyond Omega but not encroaching into hawt horology brands. They are still obtainable for middle class collectors, the collectors will need to save and wait, but you can get your watch. I actually think rolex doesn't want to increase their prices aggressively as the grey prices. Trends come and go and rolex does not want to put their watches on sale again!
I agree that Rolex doesn’t ever want to discount again. But regardless, I’m legitimately confused by this one - Jason
Finally- a good chem video. I hope he returns
He's part of the team and will def be back 😉 - Jason
Hi completely get what Rolex are doing firstly Rolex being a Foundation looks at business in a different way the price of gold has had a big affect on how the new prices. This is why you seen such a big spread in increasing gold prices since Rolex s last price increase have gone up 18 percent. so to react to this they have spread the increase across the model range wear Rolex think it will have the least impact on the customer buying that particular model. gold prices can go down as well so this is why they haven't been doing 18 percent increase s and the market won't take it but I do think it will go up again on gold model's in June. because with the world economy being hard at the moment gold prices are going to carry on going up.rolex have recognised that the world watch market has had a big slowdown and that's why it steel models have only gone up by one percent less than inflation as the Rolex market goes back to normal prior to pandemic thanks John.
I agree that I think we’re going to see demand settle in to near pre pandemic unit numbers sold. Maybe slightly more… but definitely less than the past few years - Jason
Covid showed them the value of their product and they're smart business decisions. Reducing unnecessary marketing costs, controlling the used market and increasing prices.
Until proven otherwise… you may be right sir - Jason
they rather, not increase production and increase price. good strategy for them. Another reason not to buy a Rolex.
They’re doing both… increasing production and prices! 😳 - Jason
Reason for price increase: Need $$$ to make up for the development of 33xx movement, because 32xx movement is a failure.
Boss statement- Jason
That’s a ugly watch sorry
That vash.
I have to question your taste sir 😜 - Jason
ROLEX BEST OF THE BEST PAUL NEWMAN DAYTONA
The Paul Newman is a beautiful piece… undisputed - Jason
@ thanks God I have it
@ whatsoever the price the people was buying buy it and will buy because like you say it is Rolex
Even if it’s 1 million I think people will buy me too