03.11.2016 - Rolex

Rolex Rolls Out a 10% UK Price Increase Across All Models Such as the Daytona and the Submariner

The day many watch dealers and enthusiasts were so eagerly waiting for has finally come – the Rolex price increase. Despite there being a lot of rumours and speculation on the subject, Rolex quietly implemented the price increase yesterday and confirmed with the prices on their website. The role of Brexit means that inevitably we are now seeing a 10% price increase from Rolex. Despite, not publically declaring the price increase, Rolex has implemented these changes within a very short time frame, meaning sudden changes for everyone. There are many similarities to the Audemars Piguet price increase that took place earlier in the year.

What does a price increase mean?

A price increase is exactly what it means to say – a 10% price increase across all models from the new Daytona to the classic Yacht-Master I. Every now and then the Swiss company has to make these changes in order to keep balance in the market and to make sure that the brand is not hurt by external market influences. However, despite the price increase hurting your pockets, don’t be discouraged! There has been examples of brands decreasing their prices in a similar sort of fashion – and with an ever changing market, Rolex might just do that in the not so distant future!

rolex-boutique-copy

So why has the price increase taken place?

Great Britain’s decision to leave the European Union has had a significant effect on the watch and jewelry industry. Number one reason for this is the fact that the GBP has been decimated against all major currencies, which means that buying a watch in the UK now has never been so cheap (unless you’re actually a UK citizen). In order for Rolex AD’s (Authorized Dealers) to balance the ever tipping relationship with supply and demand, a price increase was completely necessary. We also see that, asides from blaming Brexit, factors such as falling interest rates in the UK and the steady rise of Gold over the past year has all contributed to this Rolex price increase.

Ft.com - Price of Gold 100oz over a period of a year.
The Price of Gold per 100oz over a period of a year. Source Ft.com

How will the price increase effect pre-owned watches?

For those that own a Rolex then guess what – the value of your Rolex has just gone up! Unfortunately those that are still on the look out for a Rolex, it will now be even more difficult to acquire one for the time being. However, if there is one positive to take from this (aside from those who already own Rolexes), it’s that this is a clear example of the investment side of Rolex and an indicator of what to expect as a Rolex owner. One southwest retailer welcomes watch increases as a significant happening, stating, “I welcome price increases as they reinforce the idea of a watch as an investment and boost the second hand market”.

When will the price increase come into effect?

The bad news if you’re reading this is that the price increase is already in effect. The price increase happened yesterday and as you can imagine was followed by the increase of prices of all Rolex watches outlets in the UK.