The Rolex shortage remains in full force. Certain models – the stainless steel Daytona, GMT-Master II and Submariner – might as well be made of unobtanium. Models further down the food chain – the stainless steel Explorer, Air King and Oyster Perpetual – aren’t sitting on the shelves, either. They come in, they go out to waiting customers. As we enter the New Year, strong demand has facilitated yet another Rolex price hike, as follows:
The Explorer I emerges unscathed! Customers who ordered any other Oystersteel Rolex before the 2020 price hike have to pay the new prices – even if they put down a deposit last year. They won’t complain. The price hike will do nothing to curb their enthusiasm – or the Rolex shortage. bobswatches.com (not affiliated) explains:
A stainless steel Rolex Daytona ref. 116500LN had a retail price of $12,400 in 2019. Although that exact same watch in 2020 will now be accompanied by an official retail price of $13,150, this is still significantly below the open-market value for the watch, which is currently sitting just above $20k.
Although the 2020 price increase will certainly not be popular among retail customers, it is highly unlikely that it will deter buyers in the slightest. For those individuals out there that have waited several years for the opportunity to purchase their favorite model, a price difference of several hundred dollars is hardly going to be the factor that makes them abandon their planned purchase.
As the image above indicates, this ain’t Rolex’s first price hike rodeo. Ascending prices didn’t hurt them over the last five years, and it won’t hurt them over the next five years. Unless and until the world economy tanks. That could be months, years or even decades away – if it even happens.
Meanwhile, as Hot Chocolate sang, everyone’s a winner baby. Rolex could have hit the market with much higher price increases, especially for grail watches. The 2020 price hikes sustain values for pre-owned Rolex. And really, financial pain is a temporary problem. A Rolex lasts forever. Or so they’d have you believe.
[Click here for the inside dope on how to score a Rolex Daytona from a dealer.]