You'll get a better price, usually, by dealing with Rolex at one of their national service centers. You send them the watch, they will open it up, determine everything that is needed and quote you a price. If you want it done, they'll do it; if not, they'll close it up and send it back to you.
Some of the things on their list will be required, in order for the watch to be returned operating properly and sealed properly, some will be optional. I typically spend between $400 and $500, which includes complete disaasembly of the watch; cleaning, lubing, reassembling and regulating the movement; refinishing of the case and bracelet, new crown, crown tube, gaskets, etc.; a new crystal (if it is an older watch) and sundry other items.
When I get the watch back, it looks and runs like a new one.
Here's a description of the process:
http://www.rolexreferencepage.com/service.html
JR