Thursday, December 26, 2013

Price Comparison and Trend of Major Rolex Models between 1970's to 2000's

Price listed here is US Dollars

The Pricing scheme of the product is an important factor to determine the position of it.

Pricing set-up of a Product is very important as it determines the target profit margin, Marketing value, market acceptance, Images, should be also consider the Competitors pricing!

Imagine if one day you can buy the Rolex at a discount of 10% in one Rolex Authorized Dealer, and next day the other Rolex AD opposite the Nathan Road can offer less 15%. We all know the result and consequence; no one will be interested in this product anymore!

Over the year, Day Date was position as the Flag Ship of Rolex, I believe that Rolex was not able to tell what will be their ultimate Flagship model at the beginning, not until one day, the model would be accepted my majority of customers as the Ultimate buy, ideal Watch of Rolex! And of course, Rolex had to develop a showcase model to differentiate with other watches, Day Date is the one with the more complicated movement, so as the Daytona.

Rolex started itself from a diver’s Iconic watch since 1926 when their watch was proven to be able to survive through the English Channel, that was a very important motive for Rolex to decide what direction they should go.

By 1956, The Day Date was invented with challenge on the watch movement as it has to drive both the “Day” and “Date” wheels at almost the same time. It adds on extra Loading to the watch power chain, and it had to maintain a 36 hours power reserve at same time. Rolex had to develop new movement that Patek and AP had no such technology by that time.

I selected prices of these three years selected as for some comparison, 1973, 1984, 2004, it is interesting to see….

Day Date Ref 1803
It was selling at $1,850 in 1973, and was increased 5.1 times to $9,450 in 1984!

From my other sources, early DD (Bubble Back) was selling at about $350 in 1956 and was increased to $1,850, I guess that there was no oil-crisis in 1973, the DD price would not be so low in 1973!

Overall pricing of 2004 over 1973 is ten times for DD.
Daytona Steel, interesting to see that the watch price of Daytona of 1984 is just two times of 1973, I think that the Daytona was not a popular model in 80s’ But it was becoming very popular model after 80s.

The Submariner Date gold and Day Date has similar price trend over the years.

Daytona watch as the fastest price growth,; the price 1984 is six times comparing with 1973 and twelve times of 2004 comparing with 1973.

Over the year, Day Date is maintained the Flag Ship model as price of a Day Date is equivalent to 3 Date just Two Tone and 5 Date Just Stainless Steel.

The Day Date Ref 1803
Nowadays, a presentable Ref 1803 is roughly 1.3 price of a new Stainless Steel Date Just!
Who do you think? It is under-value, it is the Chateau Mouton 1945 of Bordeaux, it is the Jumbo 747-400 of Boeing, the best-selling model of Boeing.

It is the Rolls-Royce 40/50 Silver Ghost, It is just like the DB5 of Aston Martin. It is the best of this kind for the Rolex.
When we spotted a good beautiful Rolex DD, don't let it go.

As DD is "cheap", it is having more fun and choice for us to buy. A Datograph is almost the price of 6 pieces of Ref 1803!

I could wear 5 different Rolex Day Date to work, but I can only wear the Same Datograph from Monday to Friday.

of course, one has unlimited budget to buy watches does not have this concern. Or someone has a Lambor, he could use that amount of money buy 10 Datograph and 50 Rolex Ref 1803.... !! :)
HK Snob

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