So you may have heard that Rolex watch pricing just went up for 2022. If we are the first to tell you this, let us say we are just as annoyed and you can just add it to the list of things so far that may have burned your toast in 2022. Betty Davis AND Bob Saget died, COVID is still part of our lives, it's cold out and now Rolex raised their prices! But, let us find the silver lining of this new price increase and was this price increase probably inevitable anyway?
So, what did Rolex change pricing wise? The quick answer is pretty much everything. The big whoppers are the sports models that everyone wants. The Submariner Date, GMT Master II, Daytona, Etc. all went up about 10%. That seems a bit more than just a tick up for inflation. However, the Datejust lines, Oyster Perpetuals, and most if not all the gold Rolex watches only went up about 3% on average. I can understand the 3% increase in the Classic Collections but I was sticker shocked that the Professional Collections went up by almost 3X of annual normal inflation. But why is this?
One reason has to be the overwhelming demand for the Professional / Sports watches in steel. Rolex is obviously a very well run, extremely organized company. They watch the market, study what is wanted by their customers and they for the most part absolutely nail it. With that, they know that these watches are in demand. They know that Authorized Dealers have lists and lists of prospective buyers. Why wouldn’t they increase their profits on these models? Of course they would, and we should appreciate that as we are capitalists ourselves. Plus, now your Rolex is worth more than it was yesterday! For a moment, realize that real estate has risen in value, your car is somehow now an appreciating asset, Bitcoin is $42,500 a coin and everything is more expensive and in high demand right now. Good for you and Rolex, rising tides raises all ships.
Image Source: Great Image from ablogtowatch.com of all the increases in pricing in 2022
Another factor to consider this change by Rolex is the Grey market or second-hand Rolex market. Grey dealers are getting multiples of Authorized Dealer pricing for Daytonas, Oyster Perpetuals and most of the rest of the Rolex collection is at the bare minimum 30% over retail on the second-hand market. Rolex has been trying hard to manage this, but at some point they also are going to “go with the flow.” Rolex knows that this market exists, does not like it but of course will take advantage of this unique situation. This increase in price was inevitable.
Pictured about is a brand new Rolex GMT Master II Pepsi in an Everest Watch Roll
Lastly, should you care if you are yet to be a Rolex owner about this increase in price? The answer is no. Here is why, if you could not afford a GMT Master when it retailed for $9700.00 then now that it is $10,750.00 - you shouldn’t have bought it in the first place. However, if you were in the market to buy a watch of that caliber before and still are, then don't fret over another $1000.00 today. It is a lifelong watch that you can wear forever, and will eventually (if taken care of) will become multi-generational. A 10% price increase should not be the reason you are turning it down if the local AD gives you a call.
So, is this something that we should be concerned with? Is this something that should wreck our day? NO!!! It is fine. It was inevitable and frankly it is most likely a good thing. So, I say we all go back to hoping for a brighter future and stop by the Rolex Authorized Dealer to see if today is your lucky day!
*Hero image from Rolex.com's submariner in collection image.