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Old 23 January 2012, 05:55 PM   #1
Paladin
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Rolex AD pricing policy....

Does Rolex pricing on its new watches, ie....no discounting, help support higher prices in the secondary market? If so, for those of us who own rolexes and will buy them in the future, is this not a benefit to us as well?

Total cost of ownership = acquisition cost + maintanence/operating costs - residual/resale value
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Old 23 January 2012, 06:00 PM   #2
T.S.Eliot
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Old 23 January 2012, 06:01 PM   #3
hbu
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about the no discount, i think it depends on local. In San Francisco, no AD will give discount at all. So I bought a sub c from a out of state AD. They give 5% discount, 1% cash back and no tax. reasonable deal.
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Old 23 January 2012, 06:08 PM   #4
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I'm not sure that is still the case today . I like to compare Rolex to Mercedes . Both enjoy a solid reputation based on their quality build , reliability and durability and in the long run cheap to maintain . Up till the 80's both were harder to come by , I mean if you wanted to buy a new mercedes you were put on a waiting list . Not sure if that was ever the case with Rolex but for the other reasons they kept a high resale value .
Today both have given in to market pressure and change their models far more often , from yearly facelifts to complete different models every 3 years . Since then fairly similar to equal quality products and more affordable have come on the market .
Rolex and Mercedes nowadays must rely more on their heritage and the status symbol they have become .
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Old 23 January 2012, 06:26 PM   #5
hbu
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I believe Rolex keeps good resale value and they can last for very long time. For Mercedes, they definitely built for quality. but their reliability and resale value is very questionable. Few of my friends are auto mechanic, they suggest me to stay away from it.
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Old 23 January 2012, 06:44 PM   #6
DolphinV8
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I would have to disagree on that idea since the secondary market pricing is also affected by supply & demand and don't forget for the grey market.
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