Rolex cost/sell

[madmax21]

I really like to know what the cost on a Rolex is? If the selling price on a watch is say 8550 msrp and they sell that wAtchison say 7500 all in. How much does the AD make on that? And for that matter how much does Rolex make? I know Rolex doesn't give this info to the public but I'm sure many of you have thought this over please do give your input on this by all means

[JLM3]

Multiple retail price times .62 and that is cost to retailer.

[Daytona88]

Originally Posted by JLM3

Multiple retail price times .62 and that is cost to retailer.

I have heard 62% as well.

[Robrob777]

8500 to you, 5200 to AD. 100-300 to Rolex.

[anothernewphone]

Originally Posted by Robrob777

8500 to you, 5200 to AD. 100-300 to Rolex.

You think the cost of producing a Rolex is as low as $100?

[madmax21]

Originally Posted by Robrob777

8500 to you, 5200 to AD. 100-300 to Rolex.

Wow that's all Rolex makes on a watch 300$

[fskywalker]

Originally Posted by Robrob777

8500 to you, 5200 to AD. 100-300 to Rolex.

I think it's the other way around ....... if sold at $8500 AD makes 38% so about $3.4k on the sale, $5.1k for Rolex ?

[ref1655]

Originally Posted by Robrob777

8500 to you, 5200 to AD. 100-300 to Rolex.

unbelievable.

Originally Posted by anothernewphone

You think the cost of producing a Rolex is as low as $100?

only if robotics & off-site sub-assemblies are involved...not likely.

Originally Posted by madmax21

Wow that's all Rolex makes on a watch 300$

on an $8K retail, the AD & Rolex coffers probably absorb at least 2/3rds of the asking price.

[wireking1]

$100-$300 has to be a too low of an estimate.

[mannyv11]

Ad pays 62% of msrp to purchase the watch from Rolex

[CashGap]

Originally Posted by wireking1

$100-$300 has to be a too low of an estimate.

I'm in manufacturing, that number is on the silly side of low and probably was intended as

Ignoring my present employer and referring to my time at Gibson Guitar, I'd guess:

$8,500 to you at retail

$5,200 to the retailer

$2,400 standard cost at Rolex

[peterskinner]

Do bear in mind that a retailer doesn't 'make' 37%, that's money used to pay for his services. By the time you take out all the costs, the profit might be rather small.
I think there is a tendency, especially on the internet, to assume that no-one in business should make a profit, only the consumer should get an even break. Real life can never be like that. Everybody has to get something from the deal or it doesn't work in the long run.
As for basic production costs....you can't use 'marginal costing' where the expense of the business is not included in the cost. A machine might produce parts for a few dollars...but only once you have spent millions on the machines, and then housed them in expensive factories.

[madmax21]

Originally Posted by peterskinner

Do bear in mind that a retailer doesn't 'make' 37%, that's money used to pay for his services. By the time you take out all the costs, the profit might be rather small.
I think there is a tendency, especially on the internet, to assume that no-one in business should make a profit, only the consumer should get an even break. Real life can never be like that. Everybody has to get something from the deal or it doesn't work in the long run.
As for basic production costs....you can't use 'marginal costing' where the expense of the business is not included in the cost. A machine might produce parts for a few dollars...but only once you have spent millions on the machines, and then housed them in expensive factories.

I'm in business myself and I totally understand my question is just simply how much they make on one, The Final profit is always before paying to keep the lights on shipping costs employee cost and so on. I would say at the end they make it least about $1000 on a SS watch, I would say that's a healthy profit