Rolex is undoubtedly the most renowned watch brand globally. The watches produced by this company account for the largest share of Swiss watches reported by the World of Statistics. As of 2023, the 30.3% market share of Rolex is more than the next 5 top Swiss watch sellers combined.
A main contributing factor to the large share of Rolex on the market is the high price of their watches. Despite the high Rolex prices, people are still willing to spend thousands of Dollars on a men’s Rolex watch. For instance, the Rolex Submariner is the most popular watch on the market. The iconic dive watch cost about $27,000.
However, Paul Newman’s Rolex Daytona is one of the most expensive watches in the world. The Rolex watch cost about $18 million. To justify its high price, the Rolex brand has been around long enough to prove itself to its customers. In this write-up, we consider why Rolex watches cost so much and how you can benefit from its market stability.
Brand History of Rolex Watch
Hans Wilsdorf founded the timepiece distribution company in 1905. By 1910, the company became the first wristwatch establishment to receive a Swiss Certificate of Precision. The branding inclination of the watch company at the time was only towards reliable and useful timepieces. Although the watches were not entirely cheap at the time, they were not as expensive as they are today.
When Andr Heiniger succeeded Wilsdorf after he died in 1960, he rebranded the company to a luxury establishment. The former marketing director of Rolex once said, “Rolex is not in the watch business. We are in the luxury business.” The brand began transitioning into a luxury brand that symbolizes classic pieces. From there, the Rolex timepiece price began increasing.
Rolex Prices and Its Position in the Luxury Market
Rolex watches stand heads and shoulders above every other Luxury brand when considering the watch section. They are famously referred to as the crown of celebrities because of their global recognition. These celebrities have featured their handpiece in movies, red carpets, or pictures. One of the most referenced examples is that of the Rolex Submariner Date spotted in the 1989 James Bond series, License to Kill.
Being conferred the #1 luxury brand watch is because a Rolex watch possesses alluring elegance. In fact, owners of certain Rolex pieces are considered members of elite classes. Owning a Rolex watch in modern culture is used as a mark of high achievers and successful people. This belief sets a hike in price even for the secondary market of a Rolex watch.
Craftmanship and Engineering of the Watches
Each Rolex watch undergoes a painstaking assembling process carried out by skilled craftsmen. The watches are made with inch-perfect attention to detail. After meticulous coupling, they are subject to in-house testing to guarantee that the production is quality and excellent. In addition, an independent Swiss chronometer testing institute tests each handpiece before it leaves the Rolex factory.
The high price range of a Rolex watch is also based on the thorough research and engineering prowess put into each creation. That way, Rolex remains a front-runner in the Luxury watch industry because of its engineering innovations. A Rolex watch displays its state-of-the-art innovation through its in-house movement. This exquisite craftsmanship is depicted in the company slogan, which says, “Rolex: A Crown for every Achievement.”
The Watches are Unique
Every Rolex watch owner can relate to the finesse of each model. To achieve this uniqueness, high-quality materials were carefully selected for each piece. For instance, a Rolex watch is made of proprietary metal mixtures. The Everose Gold is a typical example which is the combination of Gold with Copper and Platinum.
All the materials found in a Rolex watch are premium materials that make the overall Rolex watch cost expensive. These alloys offer Rolex collectors resistance to fading and corrosion. Taking into consideration the durability of these high-quality materials, the value and high cost of a Rolex watch are not far-fetched. Furthermore, the aesthetically pleasing appeal of the handpiece is another essential consideration.
Why Are Preowned Rolex Watches More Expensive?
The investment value of Rolex watches is irrefutable. Its market stability is proven by the 49.28% increase over five years. Even when you request used Rolex watches or want to sell them, you will find them more expensive than the latest releases in the same category.
The primary factor for continued price increases after the initial sale is the product rarity. Once a model is sold out or discontinued, its price skyrockets astronomically. Resellers also capitalize on the strong desire of Rolex watch enthusiasts and collectors for some models. More notably, the watch is probably as crisp as a new piece.
Rolex Watch Cost vs. Value
Thinking the watch is expensive is not a belief consistent with Rolex watch owners. The perceived value of owning a piece is inestimable. Hence, this article has identified some reasons justifying the expensive Rolex prices. Undoubtedly, owning a piece, several collections, or Rolex stock is equally rewarding.
To ensure the seal of your luxury Rolex watch stays on, you need luxury watch winders from Mozsly. We are a reputable watch winder establishment with different options that match the aesthetic look of your Rolex piece. That way, you can combine luxury storage with effective winding in your choice of material, like paint, leather, or metal. You can even customize the winders you get from Mozsly to your needs.
FAQs on Why Rolex Watches Are So Expensive
1. What’s So Special About a Rolex?
Submariner Rolex is unique because of the detailed craftsmanship that goes into its manufacturing. They have eight fundamental qualities that set them apart from other handpieces. These qualities include durability, waterproofness, comfort, robustness, autonomy, precision, simplicity, and craftsmanship.
2. Is a Rolex More Expensive Than Gold?
According to the Financial Times, the Rolex watch trades for about $1,860. Gold is priced at around $2,100. Hence, Gold is more expensive than Rolex watches. However, Rolex has consistently outperformed Gold and the stock market because it is not subject to as much market fluctuation as other stocks.
3. Are Rolexes Worth It?
Yes, investing in Rolex is worth every penny you put into it. Only a controlled number of timepieces belonging to Rolex are available on the market annually. This marketing tactic ensures that the watches are always valuable. Hence, investing in it guarantees a constantly increasing return on investment.
4. What’s the Point of Owning a Rolex?
One of the points of owning a Rolex watch is that it lasts a lifetime. Hence, even when you resell a Rolex watch you can still get good value for the used handpieces. Rolex makes it so durable that you can use it for several years without service. That way, one of the points of owning a Rolex is not having to bother much about maintaining the watch.
