One could surmise that Rolex’s margin might be beyond 30% on the gold models, when you take into the price of gold, the actual weight of the gold in the watch, the price variance between the gold and the stainless models and the market demand. Also, I believe that Rolex is owned by a foundation, which is registered as a charity and pays no corporate income tax which certainly helps the margins. They must be doing something right as sales don’t seem to be sluggish.

In terms of offering a discounted replacement for the Tissot, good on them as not too many firms stay in business that long or recognize the need to help a customer. Take a 1967 Ford Galaxie (blown engine and transmission) back to your Ford dealer and see if they give you a Fusion at 60% off sticker.