The reason Rolex watches are expensive is because of the quality and value of their product. Both the quality and value of Rolex have created an environment where demand far exceeds supply, and their watches are now considered investments, often sold for 2-3 times the used price.
Expensive is a relative term. What is costly for some may be affordable for others. Expensive means to many asking this question is why they cost more than they should. Sometimes, a used product sells more than a new one. We wondered why and came up with why Rolex is so expensive.
Rolex Demand Far Exceeds Supply
The demand for Rolex watches is incredibly high. It is so high that all authorized Rolex retailers usually have empty cases. They sell their entire stock, such as the Rolex Submariner, before the watches get to the store via Rolex’s waiting lists. This shortage has caused a stir among collectors and brand enthusiasts, but it is a significant concern if you are Rolex.
Discover our guide to the Rolex Waitlist & How Long You’ll Wait.
Proof of this is the Rolex used market. Before writing this article that answers why Rolex is so expensive, we extensively researched used Rolex prices. All Rolex collections are sold above MSRP on the used market. It is incredible, and the prices keep going up.
Rolex Watches Have Become Investments
Rolex watches have always done well to maintain their value. In the past, it was typical for a 20-year-old Submariner to sell for more than the owner bought it years ago. In today’s market, a 20-year-old Submariner not only sells for the price the owner originally bought it, but it also sells for more than a new one at MSRP today.
The increased demand for Rolex watches caused an initial rise in used values, and as it began to rise steadily, it caught the attention of some savvy investors. Rolex buyers must now compete with these Rolex investment deals by buying new from authorized dealers and trying to acquire one for a higher premium on the used market.
Introducing professional corporations and investors into watchmaking has caused shock waves in the industry. Not only does Rolex experience these premiums in the used market, but also other brands. Of course, whenever outside forces begin to manipulate the market and use it as a vehicle for profit, prices are drained from collectors and enthusiasts. This is why Rolex is hard to find at authorized dealers and why Rolex is so expensive on the used market.
Periodic Price Increases
As a brand, Rolex does a fantastic job of increasing the value of its products. A lot of this has to do with brand perception, but it also has to do with price. From time to time, Rolex does a scheduled price increase on its watches, which results in two things. The price increases increase retail costs, but they also increase the prices of used Rolex.
If you are lucky enough to buy a new Rolex, you rarely lose money during your ownership experience. This is because used prices tend to follow retail prices. The retention of value makes buying a Rolex safer. Therefore, purchasing a Rolex for $9,000 is much better than another brand of lesser value for $4,000.
At the other end of the spectrum, things are different if you are trying to buy a used Rolex from 10 years ago. You are paying double what was originally purchased for, as it has gone through many different price increases. In that scenario, it’s worth asking why the Rolex is so expensive.
Rolex Produces Quality Watches
The main reason why Rolex is so expensive maybe because they make quality watches; after all, who would pay 2-3 times the retail price for a poorly made look that doesn’t last 30-40 years?
Rolex produces excellent watches, timeless designs, and impeccable quality control. If you get all three things right, as Rolex has, it is easy to see why they are having the success they have today.
