David Geller

Why Offering Multiple Fees for Product Guarantees Could Net You More Profits

For example, offering a watch battery guarantee for either one year or five years can raise your average battery sale.

Published

3 years ago

May 1, 2023

David S. Geller Instore May 2023 Issue

IN THE 1980S, we charged $5 to replace a watch battery. Why? Because the United States government made a $5 bill.

One day, we decided to try what Fast-Fix did: have a two-tiered battery price. We started charging $8 for a one-year guaranteed battery and $15 for a five-year guaranteed battery. (Same battery, we just guaranteed it for five years.)

No paperwork required; all you need is a sharp-pointed pen. We opened the back and wrote inside a “1” or a ”5” for the battery warrantee along with the date.
Why Offering Multiple Fees for Product Guarantees Could Net You More Profits
When a customer came in and needed a battery, we said, “Great, you have two choices: a one-year guaranteed battery for $8 or a five-year guaranteed battery for only $15.” 60 percent of customers chose the five-year guaranteed battery.

Our average battery sale went from $5 to $12. If the battery died before the guarantee expired, we gave them a new one, but it was only guaranteed for the remainder of the original time frame.

In addition, many people have started using our suggestion of a “Watch Spa”:

Watch Spa And Lifetime Battery – $117

Remove the movement, ultrasonically clean the case and band.
Install a new battery.
Install a new rubber gasket.
Using silicone, seal the back gasket and apply silicone to the stem/crown area.
If the crystal is removed, reglue.

People will pay. Not only that, but giving customers a menu of choices helps them and your store.

Funny story: I used to travel to stores to train and help with QuickBooks. One day, I was doing something at the store’s point-of-sale computer and I was the only person in the showroom (the rest of the staff was in the back). In walks a very elderly woman who said she needed a battery for her husband’s watch. I gave her what I just typed about the two choices of warranties. She stood there gazing at the ceiling and finally replied: “He’s 98, just give me the one-year guaranteed battery.” True story.

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Bob Bonaci spent 35 years building a jewelry business and community presence in Kent, Washington. When he decided it was time to retire, he knew the process would take careful planning — and the right help. Fellow jewelers who’d been through it pointed him to Wilkerson. The results exceeded expectations. Wilkerson’s hands-off approach let Bonaci step back while the team handled every detail, meeting his personal and financial goals throughout. “It is phenomenal, the success that we’ve had.” Watch Bob share his retirement story.