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 3 1/2 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.

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.

A good source for tools for this type of repair is the Cas-Ker Company of Cincinnati, Ohio (800-487-0408). They have several different types of tools for safely removing the pins and rivets from watch bands with ease. The tools cost in the area of $15 to $50. It also helps to have a sign that says "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!

About the Author

Dan Gendron, Certified Master Horologist, is a sixth-generation watchmaker, and the world's foremost instructor of Watch Repair for Profit. Hundreds and hundreds of retail jewelers and others have learned to make Thousands of Dollars Extra each year, or have found a new, lucrative career, using Dan's simple, step-by-step learning method for watch repairs.

Dan offers One-on-One training classes in Quartz Watch Repair, Basic Mechanical Watch Repair, and High Grade Watch Repair.  Learn from the world's foremost instructor on Watch Repair as a Profitable Part of the Retail Jewelry Business.  His website is www.watchfix.com.