Your Jewelry Store Doesn’t Need a ‘Profit Center’ Like This

IN A SENSE, watch-battery replacement is a thriving business for Gene the Jeweler’s store. He has an employee dedicated to the task, and she does about 50 jobs a day.

But he only charges $5 per replacement, and he pays the employee $12 an hour. He has to factor in the cost of the batteries, and the fact that occasionally, the employee breaks a watch and it has to be replaced.

All things considered, he couldn’t be making much profit on the operation.

So why bother?

Once again, the problems in Gene’s fictional jewelry store reflect poorly on his management practices. He says the watch-battery situation is all part of the “circle of jewelry life.”

But should it be?

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