Hans Wilsdorf and Rolex
Hans Wilsdorf, with financial help from his brother-in-law Alfred Davis, founded the watch importing and distribution firm of Wilsdorf & Davis in London in 1905. Wilsdorf was convinced that the wristwatch was the way of the future, and soon contracted the firm of Hermann Aegler to manufacture wristwatchs for him. Wilsdorf was a perfectionist, and never ceased pressing Aegler to improve the timekeeping of the watches they made for him, which he now insisted be branded “Rolex” – a name Wilsdorf had invented.
In 1910 Aegler submitted a Rolex wristwatch to the Bienne testing station. It received a First Class certificate and thus became the first wristwatch to be officially certified as a chronometer in Switzerland. On July 15th 1914, a Rolex wristwatch received a Class A precision certificate from the Kew Observatory in Greenwich, which had previously only been achieved by marine chronometers. Wilsdorf remarked that this was a “red letter day” in the development of his firm, which he would never forget. The ability of a wristwatch to maintain accurate time keeping could no longer be be held in any doubt. You can read more about Hans Wilsdorf and the Rolex story on my Rolex page.
How Rolex managed to be number one without beeing that precise or that reliable?
At the end of the day although Rolex certifies each of its watches to the COSC institute for Chronometer Certification, it provides a guaranteed acuracy around some 5 seconds a day while quartz technology watches do that in terms of 5 seconds a year…
As far as reliability, it is very good to dive up to 300 meter, althouh it is humanly very unlikely, experienced divers can use a Swiss timepiece, but the majority are more likely to pick up a digital dive watch from Suunto or a diving computer from Aqualung or Shearwater.
Not to mention that as of May 2019, the record for the deepest normally functioning experimental diving watch is held by the Omega Seamaster Planet Ocean Ultra Deep Professional after reaching a (revised) depth of 10,925 m (35,843 ft) ±4 m (13 ft) of seawater during a descent to the bottom of the “Eastern Pool” of the Challenger Deep.
And Rolex failed at NASA tests when it was looking for a chronograph for its astronauts.
The fact is that Rolex is the Gold Standard in mechanical watches and as a luxury item as such and not only outsells Omega, selling almost twice as much, but does it on average selling its watches for double the price Omega does as you can see at the following table.
How is that possible?
Style is the name of the game and it is done with the heart and not with rational logical thinking…
As far as the lack of accuracy, take a look on a good approach to calm the hearts of Rolex owners.
As far as the COSC certificates, take a look at: Meaningful test or marketing gimmick?
As far as more people willing to pay more for a Rolex, it beats the hell out of me why and probably it is very difficult if not impossible to know why, but I would risk the following:
If you google: What tickles the heart of a rolex buyer? some answers will be:
What is so special about Rolex watches?
OYSTERSTEEL. A Rolex watch must work perfectly and maintain its beauty even in the harshest environments. That is why Rolex uses Oystersteel, a steel alloy specific to the brand. Oystersteel belongs to the 904L steel family, which is particularly resistant to corrosion and acquires an exceptional sheen when polished.
What does Rolex symbolize?
Rolex watches have been worn by a number of the most influential people in the world. … On the other hand, popular Rolex sports watches like the Rolex Submariner and the Cosmograph Daytona have become traditional symbols of success, security, and masculinity.
Where are the buyers of Rolex Watches?
Note that the report opens saying that Miami is the place more likely people will sport a Rolex… and closes buy informing that it is also the place to buy pre loved Rolexes…
How Rolex found out, established a Rolex score and how it sees it
From a forum about: Rational vs Emotion/Heart. How do you decide on buying a watch?
I selected the following that says it all:
“What’s rational about buying a $5k plus diamond ring? What’s rational about buying a $4k louis vuiton bag. What’s rational about a set of $1000 women’s pumps (shoes) or a $2k suit. Whats rational about a $400,000 Bentley or RR? What’s rational about a 10,000 sq.ft. house. Luxury has never been about Rational behavior. When you look at the above, expensive watches don’t look so bad in the grand scheme do they. I asked my wife, what would she prefer a $7k LV bag or another watch. She being smart answered watch, but I bet most women would have answered bag. Watches are truly the only real jewelry men wear and they are useful jewelry so why not make it something nice.”
The best reconciliation:
“A few months ago I walked past a Rolex AD inside a shopping center and a white explorer ii 216570 on display at the window caught my eye. I inquired about pricing and a possible discount, no discounts on SS models so 8.7k after taxes was their price. Not too long ago I thought it was ludicrous (irrational) to spend over 1.5k on any watch, but couldn’t stop thinking about that explorer. I ended up finding a nice (mint) used polar 216570 with box/paperwork a few days ago for a lot less than what the AD wanted for a BNIB. The way I see it I would’ve spent the money on other things and at the end would’ve never know or remembered where that $$ went. To me buying any watch is far from trying to impress, buying status symbols, etc. It’s about spending your hard earned $$ to own, wear, and enjoy what you worked hard for. I still open my watch box to stare at my inexpensive pieces, I still quite enjoy and wear them as well.”
Man & Time J B Priestley 