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ROLEXROLEXROLEXROLEXROLEXROLEX
ROLEXROLEXROLEXROLEXROLEXROLEX
19 March 2021, 12:02 PM
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#1 |
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"TRF" Member
Join Date: Jun 2019
Location: New England
Watch: BLRO;PP5230G
Posts: 544
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Why Rolex can keep raising prices
There was a fascinating video made by the Wall Street Journal, titled Behind the Price Tage of the Most Expenses Watches in the World. Focusing on Rolex and P.P. the reasons they gave were:
(1) Quality of materials (fairly obvious) (2) Craftsmanship-Swiss labor is the most expensive in the world (3) Perceived Value-Most showed through marketing, sponsorships (Rolex with Formula one, Wimbledon, Omega with Bond) and as a status symbol, people see it as an investment as well as possibly passing it on to later generations (4) Veblen Good (turning the law of demand on its head)-Interesting aspect to learn about. Under the normal law of demand, when the price decreases on an item, the demand goes up, this doesn't apply to the luxury watch market. In essence with a Veblen good (or good to show your status) if it is discounted less people will want it) I definitely am not doing this justice: https://www.wsj.com/video/behind-the...2158BFBB5.html |
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19 March 2021, 12:13 PM
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#2 |
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2024 Pledge Member
Join Date: Oct 2019
Location: USA
Posts: 1,230
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Just gave me PTSD from grad school.... But yes and very true.
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19 March 2021, 12:17 PM
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#3 | |
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"TRF" Member
Join Date: Jun 2019
Location: New England
Watch: BLRO;PP5230G
Posts: 544
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Quote:
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19 March 2021, 12:21 PM
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#4 |
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"TRF" Member
Join Date: Jun 2016
Location: Uranus
Watch: 116500LN
Posts: 4,622
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Thanks for sharing
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19 March 2021, 12:27 PM
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#5 |
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"TRF" Member
Join Date: Jan 2015
Real Name: Berty
Location: NI/Aust/USA
Watch: and wait
Posts: 3,051
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My head hurts.
__________________
Permanent social programs that finance and enable poor life choices usually keep the “intentions matter more than results” crowd in control. Never argue with a fool, as eventually it will be difficult to tell the difference. |
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19 March 2021, 12:48 PM
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#6 |
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"TRF" Member
Join Date: Oct 2019
Location: DC
Posts: 11
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Definitely true and also implemented by other "luxury goods" brands.
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19 March 2021, 06:56 PM
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#7 |
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2024 Pledge Member
Join Date: Nov 2012
Real Name: Steven
Location: Glocal
Posts: 19,450
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Sure, there's supply and demand, yet also remember central banks continue to highly devalue their currency (an unstable 50% devaluation every 20 years). We're doing a massive 6% inflation right now, perhaps 8% by the time 2021 is over. Even food prices are getting out of hand, let alone home prices(!).
__________________
__________________ “Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming 'Wow! What a Ride!'” -- Hunter S. Thompson Sent from my Etch A Sketch using String Theory. |
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19 March 2021, 07:44 PM
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#8 |
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"TRF" Member
Join Date: Nov 2012
Location: United Kingdom
Posts: 2,347
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Ive got a headache now
__________________
Exp2 | Exp1 | BLNR | SD43 | DSSD | 16710 | Ak | 116505 | 116610 | 16610 | 16700 | Yacht-Master | 116710 LN | 126710 BLRO mk1 & mk2 | 116500LN | 126610LN | |
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19 March 2021, 08:36 PM
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#9 | |
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2024 Pledge Member
Join Date: Nov 2012
Real Name: Steven
Location: Glocal
Posts: 19,450
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Quote:
__________________
__________________ “Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming 'Wow! What a Ride!'” -- Hunter S. Thompson Sent from my Etch A Sketch using String Theory. |
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