Can You Use an Extra $30,000 This Year? The only thing that separates most retail jewelers from the “---Mart” stores and everyone else who changes batteries for $2.99 is the price. And before you say “We do quality work”, the end result is the same – the battery is changed and nothing more. So effectively, if you charge $10 for a battery and the “—Mart” store charges $3, the real difference to the customer is $7. What we teach our students is that in order to get more money, you have to give more service. Here is what the difference to your profits can be if you offer your customers a “Tune- Up” service: The average retail jeweler changes approximately 50 batteries per week, or 215 per month at the national average of $9 each. That’s $1,935 per month. Our students who offer their customers a choice of a $9 battery, a $24.95 5-year battery or a $39.95 Tune- Up Service find that 40% will choose a $9 battery, 40% will choose a 5-year batter at $24.95 and 20% will choose a Tune-Up at $39.95. When you do the math, you will find that the difference in profits for the year will be over $32,400! The biggest complaint associated with retail jewelry store customers and watches is regarding water-resistance. First, let me dispel some common wives’ tales. There is no “hermetic” factory seal. The factory does nothing special to reseal a watch that you could not do yourself. The difference is in the details. You will need a few things to ensure you have done a good job: · Silicone grease · Gasket Assortment · “Rocket Cement” or G.S. Crystal Glue · Case Press · Case Opener/Bench knife/Case Spanner · Loupe · Bergeon 5555 Pressure Tester – OPTIONAL The cost of all necessary supplies (except the Pressure Tester) is under $100 total. These are all readily available from your material distributor. Most watches have three possible point of entry for water. They are the stem and crown, the back and the crystal. Here we will explain how to seal all three. We will explain this from the point at which the watch has already been opened. With the watch opened, remove the stem. On all water-resistant watches, there is a case tube. This is simply a tube that the crown slips over and that the stem passes through. In order for a watch to be as water resistant as it is capable of being, it is necessary to apply silicone to the case tube. Don’t worry if some of the silicone gets dragged into the movement when you put the stem and crown back in. It hurts nothing and in many quartz watches, actually helps. This alone makes a huge difference in the water-resistant capabilities of the watch. Next, we need to take a close look at the back gasket. This of course will necessitate using a loupe. What we will be looking for is cuts, dried areas, caked on dirt, and if it is stretched out (too large for the space). If the gasket is damaged in any way, measure the diameter of the back to the groove where the gasket rests with a millimeter gauge. They are measured in whole and 10ths of a millimeter, e.g. 27.5 mm. Inasmuch that they cost less than 10 cents each, not much to invest in a quality job. Next we will need to apply silicone to the gasket. The way I do this is I place a dollop of silicone on the edge of the case back, where the gasket rests. Then I spread the silicone around the entire gasket with my finger so that the entire gasket has a consistent but thin layer around the circumference. Then replace the back as you normally would. Next, we use either “Rocket Cement” or G.S. Crystal Glue. Where the crystal meets the bezel apply a liberal amount of glue to the seam. Inasmuch that this is a rubber type cement, when it begins to become tacky, an excess can be wiped a way with a cloth and still leave a thin seam of glue between the crystal and the bezel to insure it is water tight. You will, however, have to take a close look at the crystal and ensure that there are no cracks or chips. When you take these processes, the big difference between you and the “---Mart” stores is no longer $7, it is a professional job and being paid for it. We now offer a video of this procedure and marketing this service for only $39.95. If you would like one, please call Sheila Gendron at 888-750-3330. ________________________________________________ Dan Gendron is a 6th generation watchmaker and is the country’s leading instructor on building big, new profits with watch repairs. He offers books, videos and a hands-on course teaching jewelers to perform their own Quartz Watch Repairs. He can be reached at 888-750-3330. For class schedules and locations, visit his website, www.watchfix.com.
Carrying High-End Watches Without the High-End Commitment In a previous article we discussed creating your own watch line. Very seldom do I speak to jewelers who have committed to a watch line – High- End or otherwise -- that can justify the expense. Let’s say you carry a mid-price-point Swiss watch line. Certainly, there will be models in that line that are hot sellers. Unfortunately, much of what you are forced to carry as a part of the watch line commitment will be “dead dogs”. It’s not unusual for these “dead dogs” to take years (literally) to sell -- if at all. Add to this the apparent lack of loyalty of some watch companies as evidenced by the fact of many traditionally “jeweler only” watch lines now turning up at discounters, buyers clubs, the ever popular 75% off sales, and not least of all, the Internet. So when we add it all up, most retail jewelers have little reason to carry a watch line, other than to have bragging rights and having something to put in the watchcase. But for those of you who have customers who “buy branding”, there is another solution. What savvy jewelers use is “outsourcing”. Outsourcing is achieved by finding watch dealers who re-sell watches to jewelers without asking for the commitment of carrying an entire line. Let’s say that Tag-Heuer is a popular watch in your market area, and worse yet you cannot purchase the line because they have a direct-market retailer in your area. Finding a re-seller is a great way for you to compete without the full-blown expense of carrying the line. Imagine being able to order just ONE watch when YOU need it, and not being forced by a watch company to place orders you don’t need and can’t sell. Sounds good doesn’t it? I know jewelers who use this method to their full advantage. Here’s how I have seen it done successfully. Have just one case in your store for watches. In that case, place a mix of one ladies’ and gent’s each of the following watch brands. Tag Heuer Omega Rolex Cartier Seiko Kinetic Citizen EcoDrive Breitling If there is a particular watch brand that is not mentioned above that is in demand in your area, include that brand in the watch case, too. Also in that case, place a small easel sign that says, “We have resources for all major watch brands. If you don’t see what you are looking for, please ask.” This will serve as a market test for your store that will not cost you the expense and time of having an entire watch line. Your turnover on inventory will be great! And you will find that many times your customers will tell you exactly what they are looking for, and give you time to get it. Don’t forget-- customers aren’t always buying price. More times than not, they are buying availability. Someone who wants a James Bond Omega, wants a James Bond Omega, and the jewelers who carry the Omega line probably ran out of them long ago, if they were lucky enough to have gotten any to begin with. So there is no reason to discount on these highly desired watches. You just need a resource to get them. Here are some sources for your “remote inventory”. INVENTORY ADJUSTERS, INC. 3437 E McDowell Phoenix, AZ 85008 602/278-5966 Cheryl Carlson www.inventoryadjusters.com ALL ABOUT TIME, INC. P.O. Box 1709 Dania, FL 33004 954/964-7705 [FAX: 954/894-9912] Suzanne Knohl watchinfo@aol.com SERGES & CO. 3841 W. Broward Blvd. Plantation, FL 33312 877/973-7437 [FAX: 954/583-6559] Chip Hurd chip@watcheslikenew.com http://www.watcheslikenew.com
Cashing In on Watches By Dan Gendron By virtue of the title, I’m sure that many readers will pass this article by. But that’s true about watches and jewelers for the last 25 years -- jewelers passing by the profits and customer good will watches can generate. In this article we will cover how to sell watches at a triple keystone profit and how to cash in on the Christmas watch sales others make. First, I’m sure most of you are skeptical about how anyone can make triple keystone on watch sales. That’s reasonable, because most watch lines only offer a straight keystone markup -- if you can even get that! Most traditional watch lines are heavily discounted everywhere. Without naming names, most watch lines that have for years been the bread and butter for retail jewelers have become a burden to the bottom line. It makes no sense for any jeweler to inventory a watch line that only makes them 25 % to 30% gross. Many of you have given up on carrying a line because of this, and that, in itself, is a good enough reason. Why should jewelers carry a line that only makes the watch companies richer? The answer is, there is NO GOOD REASON! In the classes I conduct on quartz watch repairs, the question always comes up, “What watch line should I carry?” I always answer, “Yours!!” It is a little known fact that anyone can have their own watch line. It’s called “private labeling”. Private label watches are purchased from a supplier, who puts your name on the dial! With private labeling, your own watch line is very easy and very profitable. An excellent source for your own private label watches is Belair watches of NJ (800-223-1654). There is a one-time fee to make up a die for your dials (this can be your logo, or if you don’t have one the name of your store will do). Most jewelers who sell private label watches mark them up 3½ times, and occasionally offer a discount of 20% off. Still a very nice margin! Selling private label watches with your name on them is the easiest watch sale you will ever make. Why, you might ask? First, whether you realize it or not, the real reason people come to your store is because they trust you! Never discount this. It’s the most valuable item in your inventory. What better way to bring this to the forefront? Second, one way to make the sale “bullet-proof” is to make an “irresistible offer”. Most offer lifetime batteries and lifetime repairs at no added cost to the customer. Add it up… · YOUR NAME SELLS!! · LIFETIME BATTERY REPLACEMENTS!!!! · LIFETIME REPAIRS!!!!!!!! Equals -- an IRRESISTABLE OFFER!!!! Don’t worry about the cost of lifetime batteries. Watches in today’s market are every bit as much a fashion item as a timekeeper. Styles change and watches that were once cutting edge, in a few years are old news. Typically, you will replace batteries in 20% to 30% of the watches in the years following the sale, and within 5 years this number drops off to nearly nothing. If you are concerned about the lifetime repair promise, don’t be. The watches sold by Belair are fundamentally no different than most mid priced watches. Most movements used in them cost in the area of $7 to $15, and typically you will need to repair only 2% to 5% at worst. Even if you need to send them to a trade shop, this is not big problem, compared to sending them to a factory service center. You really have everything to gain from carrying your own private label watch line -- and a nice profit margin to boot! Now for the second part of this article -- Cashing in on the watch sales of others. I realize that this part intrigues most of you! Every jeweler in America has other watch sellers’ customers coming in to have their watch band sized because the store that sold it to them doesn’t offer that level of service. We can complain all we want about the nerve of a store selling a watch that they cannot size the watch band on, or we can cash in on it. If you’re thinking it’s OK to begrudgingly size watch band for $5, you’re not thinking about this service in the proper light. If we offer these services too cheaply, we are subsidizing the other retailer. What I mean by this is if you “give away” this service, you are de facto working for the other store at discount prices and helping them make the sale. To make this service viable, we need to be charging at least $15 per side, that is, if we have to remove links from both sides of the band, we charge $30. It’s a little known fact that many retailers who sell watches and cannot size the band will reimburse the customer for the cost of the sizing. The truth is, most customers are only too happy to pay you what you require -- if you will only ask. As a matter of fact, most customers are quite sheepish about asking you to size the band in the first place. You might also consider offering these new repair customers something like lifetime batteries, or even a lifetime watch repair contract (another great money-maker). More on those services in a future article. The tools cost in the area of $15 to $50. It also helps to have a sign that say “Minimum bench charge $25”. This prepares the customer, and for those who opt to not pay you the fee, consider this: whose customer are they? Not yours. Take the opportunity to make some money while they get aquatinted with your store. And, by the way, those customers who don’t want to pay you a fair price for your services won’t ever make you money, anyway! Dan Gendron is the Executive Director of the Gendron School of Horology, www.watchfix.com dan@watchfix.com
Attitude IS Everything by Dan Gendron Most of us have had some exposure to concepts like those explored by self-help gurus like Tony Robbins and the late Dr. Norman Vincent Peale, and for the most part we can agree that those ideas and concepts are worthwhile. But how many of us actually use those principles in our role as watch repair department liaisons? The truth is that whether or not we realize it, our attitude affects the results we experience in the repair department. It is no stretch to have a bright, happy attitude when we are selling what we enjoy, e.g. a large diamond, or something we have created. The real trick is to develop a happy, expectant attitude when it comes to repairs - especially watch repairs! I have had many occasions to visit jewelers and I find more times than not jewelers behave less than enthusiastically when they encounter a watch repair customer! As a matter of fact, I have observed that most act as though the customer just handed them a dead rat! We need to realize that our customers are sensitive to the demeanor we show them in the sales interview. In a recent seminar I gave the analogy that we act less than enthusiastic towards a watchrepair customer, it is much like if a man went to an upscale women's clothing store and upon choosing an expensive dress for his wife, the sales clerk says to the customer, "Why would you want to spend that much money on that fat cow wife yours?” But this is exactly what we are doing when we do not treat our customers' watches without consideration of the way they feel about them. We in the jewelry trades tend to be very "jaded," that is, we see our customers' items with the eyes of what we think is worthwhile. Just today I received a call from one of my trade customers asking me if an Ingersol watch was valuable. He wanted to know this to make a determination of weather not his customer's watch was worth, fixing. This told me from the start that he had not perceived the real value to his customer, nor did he try to evaluate his customer's real feelings about the watch. We have no way of knowing what our customers really think about a watch unless we ask them!! In that vein, the last watch, my father was wearing was Russian Chrono, not worth very much, but while he was in the hospital it was something he did not worry about losing. He died wearing it. I would not value that watch at its "actual value" , at least not to me. To me, it is so valuable that I will keep that watch .running, at least for the rest of my life and no amount of money could ever buy it! Speaking my dad, the late Henri Gendron, the old gent had a way of determining the customer's feelings about their watch. He did this in a way from which we can all learn. When a customer handed him their watch, he would say something to elicit a response from them, e.g., "What a nice Watch. You must be proud of this!" Or "they sure don’t make watches like this anymore." or some other platitude. Then He would listen to the customer's response to his statements. If they agreed, (e.g., "yes, I love this watch!" or, "My husband gave me this for Our 20th wedding anniversary." or some such), he get a confirmation from the customer that they were very interested in having their watch repaired. He then proceeded to give them a detailed estimate to repair the watch. On the other hand, if the customer said "On, this piece of junk?" or, "I never really liked this watch." or some such, he would immediately move over to the new watch case and start selling them a watch. Your rewards will always match your attitude: Poor Attitude, Poor Results Good Attitude; Good Results Excellent Attitude, Excellent Results So the next time you see a repair customer, especially a watch. Repair customer, greet him or her with a smile. Then just watch and see. I think you will notice that watch repair customers aren’t grumpy misanthropes like you thought.
Confidence Sells More than any other skill or asset on the sales floor, telemarketing phone, or advertising written word, CONFIDENCE is the greatest factor. Both men & women find that confidence in the salesperson is the number one reason they buy anything from anyone. The salesperson with confidence shows it unconsciously in everything he or she does as a sales person. Customers are naturally attracted to the sexy, confident sales person. How does one obtain confidence? One key way, particularly in the sales arena, is knowledge about the product one is trying to sell. Most retail jewelers have tons of confidence with customers who are buying something in which they have an encyclopedic knowledge. But when the customer shows interest in something in which the salesperson has little or no knowledge, the sales close ratio drops. All enthusiasm and energy dissolve from the interaction like a sugar cube in the rain. Unfortunately, retail jewelers are hurting themselves by educating themselves only about those subjects that personally interest them. It is so simple, particularly with the Internet, to gain an education in all aspects of a particular business. Become a student of your business! Want to become an expert in your business? Try this: Search Google for “learn watch repair”. You will find well over 8 million hits with that search term. Search “learn laser welding” and you will find over half a million for that. Become a student of all aspects of your business, even just through the internet, and you may find that was once uninteresting to you has now become fascinating, even to the point of becoming a passion. That new knowledge, that passion turns into a confidence that translates into a new blossom in the garden of your business. So find something to be come passionate about, even if it’s something you once had distain for. Even if it’s not your favorite thing to do, it probably isn’t anyone else’s, either. No one like to do things they know nothing about. But there is an old, Eastern European saying: “If no one wants to do it, there’s money in it!” So become passionate about every aspect of your business. And remember, confidence sells.
