Rolex makes money by selling extremely high-quality watches at very high prices. They give their owners a sense of pride and a signal to the world that they have “made it.” They stayed on top by sponsoring famous explorers and athletes to prove their watches are the best. Their secret is that they limit how many watches they make, so their products often go up in value even after you wear them. They use Brand Leverage to run a Premium model distributed through exclusive boutiques.