Why Are Rolex Watches So Expensive? | Bob's Watches

Today, we attempt to answer the question that comes across many enthusiasts’ minds, why are Rolex watches so expensive? Shop pre-owned Rolex watches here: www.bobswatches.com/rolex/
Interested in learning more about the different factors that determine a Rolex’s value? Check out our buying guide here, where we discuss how much a Rolex costs, what you get for your money, and used prices versus retail. www.bobswatches.com/rolex-blo...
The short answer as to why Rolex watches are so expensive is simply because they are some of the finest wristwatches in the world from one of the most iconic luxury brands. Materials and quality aside, the Rolex brand itself carries with it a level of respect and exclusivity that many associate with power, success, and class. That, alone, is enough to command a premium on the market.
Of course, Rolex also boasts superior materials, most of which are crafted in-house and of impeccable quality. Coupled with the brand’s high reputation, the price of a Rolex watch doesn’t come as much of a surprise to those familiar with it.
Superior Quality
Over the years, Rolex has slowly shifted its focus towards producing as many components as possible in-house. That includes everything from the cases, movements, and metals to even the lubricants. By controlling nearly every aspect of the watchmaking process, Rolex can ensure that every timepiece that leaves their HQ is of the highest possible standard and will hold its value and perform long-term.
So far, they’ve added such innovations to their portfolio as Cerachrom ceramic for their bezels, anti-magnetic Parachrom for increased shock resistance, and a bevy of proprietary metals, including Oystersteel and Everose.
Additionally, every Rolex, from start to finish, takes about a year to produce. That factor alone is enough to justify the high price of a Rolex watch.
RARE VINTAGE MODELS
With such impeccable quality, it should also come as no surprise that many Rolex watches outlive their original owners and become cherished heirlooms passed down from generation to generation. Some of these vintage editions boast astronomical values that command upwards of millions of dollars at auction.
Why are they so expensive? Most of the rare vintage Rolex watches were produced before the brand was considered a luxury and when significantly fewer examples existed, resulting in an extremely limited available quantity on the market today.
These watches were often lost or destroyed by their original owners. Additionally, they entered the market when production standards were far less consistent than they are today, resulting in far more variations of the same reference than one would see today. The rarer your example, the most likely it is to command much more than it was originally worth decades ago.
RETAIL PRICES VS PREOWNED
Many Rolex watches are commanding well above retail price in today’s market, even current production models. What drives the price increase in this instance is simple supply and demand.
Rolex cannot keep many of their most desirable models, such as the stainless steel Daytona 116500, in stock, leading many customers to turn to the secondary market rather than join a long waitlist where the average price is anywhere between 200% to 300% more than retail.
More often than not, the average collector cannot buy the latest sports model at retail. This drives the price and adds even further to why Rolex watches are so expensive.
ROLEX COMPARED TO OTHER BRANDS
In reality, even though Rolex watches are still considered expensive, they are relatively affordable compared to other luxury brands on the market. For example, another big name in Swiss watchmaking is Audemars Piguet, which commands significantly more than Rolex, even for their “entry-level” options.
The iconic Royal Oak Offshore Chronograph in stainless steel and leather retails for about $30k. While Rolex’s most comparable model, the Daytona ref. 116500 in Oystersteel and on a metal bracelet retails for about half that price at $13,150.
Another example is Patek Philippe, with their entry-level Aquanaut in stainless steel and rubber retailing for $21,650. The all-steel edition currently retails for $24,840. The chronograph edition of the Aquanaut commands double that price at $49,680 retail.
Considering the insanely long waitlists required to obtain any of these watches at retail and how much over their sticker price collectors are willing to pay to get their hands on one without the wait, one could even argue that Rolex watches are actually underpriced.