Connect with us

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.

mm

Published

on

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.

Advertisement

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

Watch Spa And Lifetime Battery – $117

  1. Remove the movement, ultrasonically clean the case and band.
  2. Install a new battery.
  3. Install a new rubber gasket.
  4. Using silicone, seal the back gasket and apply silicone to the stem/crown area.
  5. 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.

Advertisement

Most Popular