British luxury jeweler Prestons has achieved a pioneering milestone by becoming the inaugural family-owned independent establishment globally to be embraced by the Rolex Certified Pre-Owned program.
Rolex introduced its formal Certified Pre-Owned (CPO) initiative in December 2022, with Bucherer as its pioneering partner in Europe and the United States. The program, designed to extend the lifespan of Rolex watches and elevate the pre-owned market, ensures that watches undergo meticulous evaluation, servicing, and refurbishment before being granted a two-year international guarantee.
The Watches of Switzerland also stepped into the Rolex CPO arena, initiating participation in select American stores this July. Its UK network of Rolex boutiques is primed to integrate the CPO program during the upcoming autumn season, as communicated by Brian Duffy, the Chief Executive of Watches of Switzerland.
The Rolex CPO framework accommodates watches that have been meticulously restored and inspected, either by the retailer itself or by Rolex. The certification process culminates with a comprehensive examination conducted by the brand itself, resulting in the issuance of the internationally recognized two-year guarantee. Unlike Rolex’s restrictions on the online sale of new watches by its partners, the CPO program extends the scope for certified pre-owned timepieces to be marketed online.
As the Rolex CPO ecosystem takes shape, the program’s pricing dynamics come to light. Notably, prices listed on Prestons’ website for Rolex watches that have undergone the CPO process and received the associated guarantee appear to carry a premium of around 33% compared to current market values. This insight unveils the potential for authorized dealers to establish their own pricing strategies within the CPO framework.
While early indicators suggest that profit margins for Rolex CPO watches mirror those for new timepieces within the realm of authorized dealers, a detailed assessment is yet to be conducted. Brian Duffy noted during a financial analysts’ conference call that it is premature to ascertain precise margins, but expectations align with the overarching business model.
The integration of an esteemed independent jeweler like Prestons into the Rolex CPO program stands as a testament to the horological brand’s dedication to innovation and sustainability within the luxury watch market.
