Stunning Concepts
Whether you’re a watch enthusiast or not, most people will recognise an impressive Rolex watch and those same people can also tell you that they are not cheap. But what makes a Rolex watch so expensive compared to other cheaper watch brands? In this article we’ll explain three reasons why Rolex is able to charge such a hefty price tag and why despite the price, it is absolutely worth buying.
High Quality Watches
The foundation of Rolex’s success is producing exceptionally high quality products built with unbeatable meticulous craftsmanship. When you buy a Rolex watch you are guaranteed to receive a watch of the highest quality. These watches are very accurate, incredibly reliable and have outstanding durability. Rolex watches are successfully designed to withstand the test of time so respectful watch owners can enjoy their Rolex for many years and if kept right- a lifetime.
Every single component of a Rolex watch is made in house and to ensure consistent quality, Rolex go as far as producing the steel, gold and platinum in their very own refinery where they can personally oversee production quality. The platinum never goes below a 950, the gold is never under 18 carats and you definitely won’t find any other steel than the corrosion resistant 904L Oystersteel.
So why are Rolex watches so expensive? Rolex has simply mastered creating a beautifully designed watch and paired it with exceptionally high quality materials and superb craftsmanship. This is what makes Rolex watches stand out from the rest, and why Rolex are able to charge higher prices for their watches.
Limited Supply
If you’re looking to buy a Rolex- let’s say a Rolex Daytona- any watch enthusiast will tell you that you can’t just walk into a Rolex Authorised Dealer and ask for a Daytona…well you can but I wouldn’t expect one any time soon. Rolex has always been the master of playing the demand-supply game as they tightly control the numbers of specific popular watches available to authorised dealers.
Due to popular demand, Rolex authorised dealers have no problem finding buyers for their watches before they even make it to the shop window. These lucky buyers are usually select people who have a lengthy purchase history with the authorised dealers or people who have been in the ‘queue’ and as many people know, getting to the front of the queue can be a very lengthy and expensive process. Most people therefore turn to the secondary market and this is where the prices soar way beyond their recommended retail price as high demand meets limited supply.
So why are Rolex watches so expensive? Simply put, with Rolex there is always more buyers than there are watches and that it is why Rolex has produced not just an incredible watch but also a great asset and investment piece.
Marketing
Rolex marketing has always been second to none. For a company that was founded in 1905, this old timer business is still booming and many still regard them as the best luxury watch business in the game. Everybody either knows Rolex, has seen the logo or can recognise the watches and this impressive public reach is all down to impeccable marketing.
The founder Hans Wilsdorf was in our opinion a marketing genius. Rolex has always been a brand based on sophistication and simplicity. He chose a brand name that was easy to pronounce in all languages and made sure that the name was in the logo and on the watch itself lest people forget.
Rolex has always had a strong marketing presence in the sports world. Even the very first watch -the Oyster- was given to a swimmer who crossed the english channel and the story landed Hans Wilsdorf a full page advertisement in the Daily Mail. He quickly realised that sports sells, and sports therefore is what his watches will be associated with. Simple and brilliant.
Since that first Oyster watch, Rolex has clearly positioned themselves as a watch brand that represents the elite of sporting. In the late 70’s Rolex started to focus on emphasising its presence in prestigious sports events. They have been the official timekeeper for Wimbledon since 1978, The US Open since 1980 and also the Formula One Since 2013.
So why are Rolex watches so expensive? Rolex have successfully positioned themselves as an elite, sophisticated, high-end luxury brand. Producing watches that are instantly recognisable and desired by many for the ‘elite’ or ‘powerful’ feeling they bring when owning one. It’s hard not to feel impressive when wearing a Rolex and as many people say “you’ve always got to have a Rolex in your collection”.
