zOwie Omega Discussion Forum

There are brands in many product categories that command a higher price because of their ability to combine qualities like:
a) respect in their industry,
b) history/longevity,
c) effective marketing,
d) high product quality/reliability,
e) better than average resale value/liquidity,
f) style, and
f) brand recognizability.

A simple fact of life in business is that people are quite willing to pay for intangible benefits and companies work hard at developing intangible value. I believe one of the reasons that you see high prices and minor discounting of Rolex watches is that they've managed to cultivate a clientele that are impressed wtih their ability to combine the product qualities described above.

I too believe that Omega makes a watch that is competitive Rolex on accuracy/relaibility and can deliver at a much better price point. But I still think a Rolex makes a great watch and has managed their business well. Managing a business like that in today's highly competitive environment is hard work and my hat is off to them.

In any event, I believe your definition of truth is too limited. The psychology in the marketplace for watches--like cars, guitars, and cigars--is a little more complicated than you might think. I'd guess that many intelligent, thoughtful Rolex buyers understand that Omega makes a comptitive product and still choose Rolex.