With SS on the rise is it even worth not just biting the bullet for a PM?

[piratepress]

I was just thinking the same thing myself. There's no way I'd paid $22K for a SS Yachtmaster when I could pay $25K for a WG BLRO.

[tbonesteak]

This line of thinking is where the brand is trying to push consumers.

[sensui]

I think that's where it's pushed me.....lucky part is I've built up my stainless collection comfortably before all of the recent shortage. I cringe to think about dealing with new SS watches when Basel hits especially since a lot of my sales people I had relations with are out of the business now.

[Etschell]

Originally Posted by gwalker

Even if I’m talking new to slightly used with the SS market seemingly booming wouldn’t it be worth just going PM if cost isn’t a major obstacle or you just want a SS? I’ve been thinking about this and historically the PMs really seem to hold a large premium over what the cost difference was new. I know there are exceptions but I saw a LV for $12.5k USD and I’d think going for a solid gold Sub a better choice. But like everything this is speculation. I mean how far are we from a $15k Sub. 7-8 years?


Sent from my iPhone using Tapatalk

solid gold subc is 23k. id go for the gold.

[JacksonStone]

Originally Posted by ras47

I love stainless steel. It's so much harder and more scratch-resistant Plus I'm really not a "bling" kind of guy. SS suits me perfectly.

Someone else made the point that Rolex's 904L steel is virtually a quasi-PM in itself, given the exclusivity of it on the market. Whenever I wear my SS SubC, I'm struck by how lustrous the steel is compared to my 316L watches. I can understand the appeal of PM (I think the YG blue SubC is gorgeous), but I still think Rolex's steel is special in its own right.

But I suppose that's beside the point of the thread.

[piratepress]

Originally Posted by JacksonStone

Someone else made the point that Rolex's 904L steel is virtually a quasi-PM in itself, given the exclusivity of it on the market. Whenever I wear my SS SubC, I'm struck by how lustrous the steel is compared to my 316L watches. I can understand the appeal of PM (I think the YG blue SubC is gorgeous), but I still think Rolex's steel is special in its own right.

Agreed 100%!

[strettyend]

Go for Gold!

[ap1]

Makes sense to me

[MinMay]

Silly question. What does PM stands for? 😀

[strettyend]

Originally Posted by MinMay

Silly question. What does PM stands for? 😀

Precious Metals

[HL65]

SS will always be my go to watch metal choice regardless of price.

[locutus49]

I owned a WG Daytona and now a Platona. Loved both, the WG models are an excellent value proposition if you buy from a trusted seller.

Originally Posted by P1219

Yeah, I'm considering a WG Daytona instead of a DaytonaC.

[JacksonStone]

Originally Posted by MinMay

Silly question. What does PM stands for? ��

As noted, precious metal. Within the context of Rolex, that means yellow gold (YG), white gold (WG), rose gold (RG), or platinum.

[FTX I]

Originally Posted by JacksonStone

Someone else made the point that Rolex's 904L steel is virtually a quasi-PM in itself, given the exclusivity of it on the market. Whenever I wear my SS SubC, I'm struck by how lustrous the steel is compared to my 316L watches. I can understand the appeal of PM (I think the YG blue SubC is gorgeous), but I still think Rolex's steel is special in its own right.

.

This

[MinMay]

Originally Posted by JacksonStone

As noted, precious metal. Within the context of Rolex, that means yellow gold (YG), white gold (WG), rose gold (RG), or platinum.

Thanks. So much knowledge on this forum.

[lucevan le stelle]

Interesting post, but kind of assumes PM will not rise significantly as SS does, or that Rolex will not limit PM quantities dependent upon their assessment of market share and their competition at a higher price point. SS seems to be the focus of non-enthusiast and aspirational buyers so don't think Rolex will want to see prices rise too high.

[joli160]

Originally Posted by lucevan le stelle

Interesting post, but kind of assumes PM will not rise significantly as SS does, or that Rolex will not limit PM quantities dependent upon their assessment of market share and their competition at a higher price point. SS seems to be the focus of non-enthusiast and aspirational buyers so don't think Rolex will want to see prices rise too high.

But their margins on PM are much higher, so the more expensive the SS becomes more people will go for a PM. Rolex would welcome this I suppose

[HL65]

Originally Posted by joli160

But their margins on PM are much higher, so the more expensive the SS becomes more people will go for a PM. Rolex would welcome this I suppose

Their margins are identical on SS as PM. All Rolex are bought by AD for 62% of retail price. Now of course the higher the price the more money they make but margins are the same.

[tyler1980]

Originally Posted by HL65

Their margins are identical on SS as PM. All Rolex are bought by AD for 62% of retail price. Now of course the higher the price the more money they make but margins are the same.

this is true.

I doubt anyone knows solid numbers, but what about the manufacturing margins? Rolex is selling both at 62% of retail price to an AD, but the Rolex margin of manufacturing cost vs AD selling price has got to be higher for PM.

So wouldn't Rolex themselves make more money on PM, while the AD's make the same either way SS or PM?

[joli160]

Originally Posted by tyler1980

this is true.

I doubt anyone knows solid numbers, but what about the manufacturing margins? Rolex is selling both at 62% of retail price to an AD, but the Rolex margin of manufacturing cost vs AD selling price has got to be higher for PM.

So wouldn't Rolex themselves make more money on PM, while the AD's make the same either way SS or PM?

This is what I meant, the inflated price of PM works out very good for Rolex corporate.

[Roger Lococco]

For tool watches, it's only stainless steel for me...

[1William]

My thought is that we are in a bubble with the SS Sport models and at some point the bubble will break. Rolex will start supplying the watches in greater numbers and the consumer, at some point, will balk at paying the way we are now. If not, many customers, myself included, will move into other brands in a major way. Just speculation on my part.

[HL65]

Originally Posted by 1William

My thought is that we are in a bubble with the SS Sport models and at some point the bubble will break. Rolex will start supplying the watches in greater numbers and the consumer, at some point, will balk at paying the way we are now. If not, many customers, myself included, will move into other brands in a major way. Just speculation on my part.

And you look at other brands like Patek and AP and try to get their SS sportier watches and realize they are selling at massive premiums on secondary market with multi year wait to get from AD’s so it is what it is. At the end of the day when you cut allocations and make rules tighter for watches with big demand prices rise. That’s the market and it works both ways for and against us.

[lucevan le stelle]

Originally Posted by HL65

And you look at other brands like Patek and AP and try to get their SS sportier watches and realize they are selling at massive premiums on secondary market with multi year wait to get from AD’s so it is what it is. At the end of the day when you cut allocations and make rules tighter for watches with big demand prices rise. That’s the market and it works both ways for and against us.

So at the end of the day Rolex wins any way they decide to go. Which competitors can you seriously see WIS flocking to because of Rolex sticker shock?

[JacksonStone]

Originally Posted by lucevan le stelle

So at the end of the day Rolex wins any way they decide to go. Which competitors can you seriously see WIS flocking to because of Rolex sticker shock?

Is Omega too lowbrow?

[Peter11]

Originally Posted by JacksonStone

Is Omega too lowbrow?

Too many models, variants and editions to be "highbrow"

[AK797]

Originally Posted by lucevan le stelle

So at the end of the day Rolex wins any way they decide to go. Which competitors can you seriously see WIS flocking to because of Rolex sticker shock?

Things are in flux at the moment with unprecedented demand due to certain global factors, China, QE, stock and crypto markets and hype feeding on hype, but once the settles down and a new normal is established, then Rolex can make price and supply decisions to get the market back to normal if they so wish, or move the brand more upscale as market demand is clearly showing it is clearly a notch or two above the Omegas and Breitlings now.

[richard371]

I gave up on Omega. Too many models. darkside whiteside greyside pinkside. Great quality but too many variations.

Originally Posted by Peter11

Too many models, variants and editions to be "highbrow"

[superstarmar]

I honestly don’t think I would ever pay msrp for an Omega or
Breitling... Fact is , I’ve only paid msrp on one Rolex to boot .
In the end, how bad do you want it ? Meh , save your peanuts...
The right sale at the right price will come along soon enough if
we are only patient enough to wait ... that’s if folks !!!!
Playing the waiting game ...