Is a Rolex worth the high price?

There are two possible answers to this question, and Men’s Wristwach still hasn’t figured out which one is right. Why do some people automatically say “no”? Because the Rolex corporation artificially inflates the price of its watches by limiting the yearly supply of some of its collections (the Daytona is notorious for being near impossible to find), leading to scarcity in the market. It is a strategy similar to the one employed by De Beers, the world’s largest diamond retailer, which limits the supply of diamonds on the market to keep prices high (even if De Beers has plenty stored in its safes).

Rolex also meticulously (and some say dictatorially) controls its authorized dealer system to make sure that all watches are sold at its suggested retail price. Any dealer that sells a Rolex at a discount is subject to having his dealer status revoked. So since it is nearly impossible to get a new real Rolex at a discount, you will always pay a premium for the name (thanks to smart marketing by Rolex execs) and not necessarily for the craftsmanship (though it is still very high). That is why many watch experts say that, for the cost of a Rolex, you can get a higher caliber mechanical watch from a different company.

On the other hand, some firmly believe that a Rolex is worth the price because it is still a premium watch made with the highest level of craftsmanship. The artificially inflated prices also help Rolexes maintain their extremely high resale value. And, of course, you can’t underestimate the cachet value of a Rolex. The status and prestige it projects can, in certain people’s eyes, justify its exorbitant price. More than any other regularly produced watch, owning a Rolex is an investment and a status symbol, more than it is a teller of time. If you want to buy a watch purely on its mechanical merits, nothing beats a Piaget or a Jaeger.

Source: askmen.com      men’s wristwatch

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