Industry Research

AWCI Market Research Questionnaire Results

September 17, 2012
Richard F. Tozer, DBA
Consultant, Tozer & Associates
Henry Kessler,
President of Sy Kessler Sales Inc. / Renata Batteries NA Headquarters

The Survey

The AWCI Marketing Committee and staff used the Survey Monkey internet survey service to create a market research questionnaire. This questionnaire was made available on the websites of Horological Times, InStore, JCK, and National Jeweler magazines. Participation w
as also promoted by multiple member websites and email blasts. This methodology differs from the classic survey methodology of reaching out toget responses from specific participants chosen to represent a random sample of the audience being surveyed. In contrast, our respondents actively chose to respond. Their responses may not be representative of those (presumably less active) members of the audience who did not respond, and may not be representative of the entire group. There is no way to estimate this non-response bias. We received a total of 172 responses. Not all who responded answered each question.

1. Industry Organizations.
Only 166 responded to our question addressing membership in industry organizations. Of these, 72 (43.4%) reported they were members of AWCI, 52 (33.1%) members of NAWCC. Of these, 37 were members of both groups. Members of both groups combined represented 90, or 54.2% of the 166 respondents.

We used the interactive Required Sample Size table at www.research-advisors.com to determine the statistical significance of the survey results. If we assume there are 2,000 AWCI members, and that our sample is indeed random, we can have 80% confidence that the true answers for the entire population are within plus or minus 7.5% of the results of our survey questions. These results are less statistically significant than those typically relied upon in industrial surveys, which generally aim at 95% or 99% confidence within plus or minus 5%. In other words, these results are good but a larger sample size from all 3 groups would have been more ideal.

Are these results statistically significant for all watchmakers? If there are a total of 5,000 watchmakers in the U.S. and if we have assembled a truly random sample, then the interactive table tells us that with a sample of 90 AWCI+NAWCC members we have the same degree of confidence with a smaller margin of error than for AWCI members alone.

If we assume the there are 25,000 retail jewelers in the U.S., the interactive table tells us that with a total sample of 172 we can have 80% confidence that the true answers for the entire population of retail jewelers are within plus or minus 5% of the answers to our survey questions, still a lower level of statistical significance than is typically sought in industrial surveys, but more significant than the results for AWCI members alone or for AWCI+NAWCC members. (As the population gets larger, the percentage of the population required for the sample becomes smaller). While the results for all jewelers appear to be more reliable than those for all watchmakers, we believe our sample of retail jewelers may not be representative.

Many of the respondents that indicated membership in AWCI also indicated membership in a variety of retail jewelry organizations. Of the 72 AWCI members reporting, 26.4% reported they were also members of JA; 19.4% were members of the GIA Alumni Association; 6.9% were members of MJSA; 5.6% were members of RJO; and when combined, 4.2% were members of IJO and WJA.

2. Watch Batteries.
We asked respondents how many watch batteries their stores sell in a typical day within various ranges from 0 to 31+. Choosing to ignore the 0 responses, 160 respondents reported an average of 11.3 batteries per day.

Interestingly, the average JA member reported selling 12.1 batteries per day.

Apparently some respondents sell much larger quantities than the average. A total of 14.4% of the respondents indicated sales of 26 or more batteries/day.

We asked respondents how much their stores charge for basic watch battery replacement within various ranges from $0 to $50+. Choosing to ignore the 0 responses, the 134 respondents reported an average of $12.87.

Some charge much more than this average – 2.9% of respondents indicated charges of $31 or more.

JA member stores reported charging less than AWCI member stores.

3. Water Resistance Testing.
Among AWCI+NAWCC members, 49% reported they offer this testing when replacing a battery; 28% said they do not offer this service; 23% did not answer this question.

Also, 56% reported offering this service separately from battery replacement, 22% said they do not, and 22% did not answer this question.

The average price charged for this service was $31.94.

If we assume tool and equipment costs of $3,000 and training costs of $500, at this price, the cost of equipment and training would be fully amortized after performing fewer than 110 tests.

4. Watchbands and Straps.
We asked respondents how many replacement watchbands their stores sell in a typical day within various ranges from 0 to 11+. Ignoring the 0 responses the average reported by the 131 respondents to this question was 5.1 per day. Some respondents sell much larger quantities than the average. A total of 2.3% of the respondents indicated sales of 9 or more bands/day.

We asked respondents the range of prices their stores charge for replacement watchbands and straps. AWCI+NAWCC members reported an average range of $25.66 to $154.00.

5. Watch and Clock Service.
Of the 127 AWCI+NAWCC members reporting, 79% reported that their watch and clock service work is performed in house; 17% is sent out to independent watch technicians; 4% is sent to factory service centers.

6. Comebacks.
About half of the AWCI+NAWCC members reported fewer than 2% watch repair comebacks, about a third reported 3-5%, and a tenth reported 6-10%.

7. Qualifications.
Almost all AWCI / NAWCC members (95+%) feel their watch repair technicians are well qualified.

8. Training.
Slightly more than half of the AWCI+NAWCC members reported that their watch service technician had received training within the past 2 years. An additional quarter reported their watch service technician had received training within the
past 2-5 years, about 2% had received training 6-12 years ago, and about 6%
had no formal training.

9. Certifications.
More than 40% of all the AWCI+NAWCC members reporting have certifications from AWCI; about 40% are watch factory trained; about 30% have certificates from 2-year colleges; about 20% reported certifications from WOSTEP; about 15% have no certifications and about 11% have certificates from NAWCC. Many have multiple certifications.

10. Specific Training Interests.
Slightly more than half of the AWCI+NAWCC members reporting indicated that they would be interested in obtaining basic watch repair courses for members of their staff. Slightly less than half indicated they would not.

Also, slightly more than half of the AWCI+NAWCC members reporting indicated that they would be most interested in receiving training for their staff on mechanical overhauls; about half indicated an interest in training their staff on how to communicate with customers about technical features; slightly less than half, communicating with customers and manufacturers about service; and slightly less than half indicated an interest in training on case refinishing.

Slightly more than 40% of these AWCI+NAWCC members were interested in training their staff on waterproofing with the same fraction interested in training on quartz overhaul.

About one third were interested in training on movement replacement with about the same fraction interested in training on battery replacement.

Almost a quarter of these members were interested in training on bracelet sizing and band replacement.

About a fifth were interested in training on crystal replacement.

Not surprisingly, specific training interests were different for members of other groups. For example, JA members were most interested in training their staff on waterproofing, battery replacement and communicating with customers about technical features.

11. Reasonable Training Costs.
AWCI+NAWCC members reported they think a reasonable cost for on-line training per course would be an average of $98.10; for DVD training materials, $98.67; for classroom training, $118.49 per course day; and for private in-store training, $254.45 per day.

Members of other groups reported a willingness to pay slightly more, however, we believe the sample of these groups is not statistically reliable.

12. Travel for Training.
About 20% of the AWCI+NAWCC members reported that travel for training is generally not feasible for their staff members. About 15% are willing to allow their staff to travel within 25 miles; about 30% within 100 miles; 20% within 500 miles; about 2% within 2,000 miles; and about 14% further if necessary.

13. Training Time.
About 33% of the AWCI+NAWCC members reported that they would be willing to allow their staff to be away for training for a week; about 20% for 3 full days; 20% would allow 2 full days; about 10% would allow 1 full day. About 12% would not allow their staff to leave the shop for training. Approximately 5% would allow their staff to be away longer than 1 week.

14. Interest in Results.
About 75% of all respondents indicated that they would like to see the results of this survey.

15. Interest in Additional Information.
About 65% of the AWCI+NAWCC members reporting said they would like to receive information on current and future training programs, and about 35% (43% of all respondents) said they would like to receive more information on AWCI.

About 38% of the NAWCC members and, surprisingly, 26.5% of the 34 AWCI members who answered this question reported an interest in receiving information about Horological Times magazine.

About 25% of the AWCI+NAWCC members who reported said they would like to receive information about both a referral directory linking consumers with local repair sources, and locating or retaining a qualified service technician.

About 20% of the AWCI+NAWCC members reported interest in receiving information about the AWCI Industry Advisory Board.

16. Primary Concerns.
The respondents’ largest concern with respect to watch and clock service is the availability of original equipment parts.

The most frequently cited services the respondents would like to see provided by the national associations of watch and clock service technicians are facilitating the ability of certified technicians to buy OEM parts and the training and development of younger watchmakers.

Thank you for your interest in the analysis of the survey.
Please send any comments or suggestions to Mr. Kessler at moc.relssekysnull@relssekh.
Copyright 2012 American Watch-Clockmakers Institute. All rights reserved.