Our July/August 2002 Interview is with Jeff Bernard (JB) of Bernard Watch. Jeff and his company were watch dealing pioneers even before the Internet watch phenomenon started. Read about Jeff's experiences and thoughts in his eDealer Interview.
WF: Tell us about why you decided to become a watch dealer... are you also a watch lover?... what are some of your personal favorite watches that you own and wear?
JB: Back in 1990, when we were in a similar economic situation as today, I was working for a rare coin dealer who decided to put me on commission only basis. I had always had a love for watches and knew that this was one piece of jewelry a man could enjoy. With us both knowing that I could not live off of commissions only, I asked if I could start my watch mail-order business out of his office. He had no problem with it since there was not a conflict of interest and I would stick around and help him out.
I then started buying up vintage and modern watches, photocopied them, then cut and pasted up a price list once a month. I advertised in watch collector magazines, "send for a free price list". My business built up and I was able to venture out on my own a couple years later.
I have a vintage collection of watches that include many Omegas, Rolexes and various chronographs. From time to time I strap one on. My every day watch for the last couple of years has been the Patek Philippe Aquanaut on a rubber double folding clasp. I like it because it is light, comfortable, water-tight, accurate, easy to get on and off and I think it is good looking.
WF: What advice do you have for a person new to the world of watches looking for their first watch?
JB: Buying a watch is largely an emotional decision, so first think about what you like aesthetically. Mechanical, more specifically automatic watches, are more desirable than quartz. Consider buying at least an automatic that is water resistant and has a date.
WF: You have been involved in selling watches since 1990 and online since 1996... how has the watch dealing business changed since the Internet boom in the 1990s? How has Bernard Watches, specifically, changed as a result of the online watch boom?
JB: Prior to the Internet, watch dealers in my circle (pre-owned, close-out, etc.) where dealing primarily in vintage watches. Good vintage watches were much more plentiful; however, the Germans, Italians, Japanese and others cleaned the USA out of many great pieces. During the mid-1990s the modern watches started to take over, as it was hard to make a living in vintage. Close-outs deals became more prevalent and the Internet was starting to take off. I was in the right place at the right time for selling watches on the Internet and knew it could be big.
What a great business model: selling a product that is small, expensive, easy to ship, can be discounted heavily and can be advertised world wide at a minimal expense. My business really blossomed in 1997. I could now sell a watch soon after buying it rather than have my once a month mail out offering.
WF: Your specialty is "quality closeouts"... tell us what this means and where you find enough watches to update your site 3 times each week:
JB: Close outs are usually of models that are being discontinued. The manufacturers will sell these watches in large lots at a big discount to move them off of their shelves and books. It is a great buying opportunity for us as well as for the end user. Though it may seem that there are closeouts everywhere, this is not the case.
Good closeouts, that is desirable models, are getting harder to find. Fortunately, we are well positioned and often get in first on closeout deals. Another equally big part of our business is in modern pre-owned Swiss watches. This is largely the reason we are able to put up incoming watches three times a week. We are always open to taking in clean watches in trade for our watches and do it often.
WF: I have purchased at least 4 watches from you and I know you have a lot of loyal, repeat customers... tell us a little about your customer service philosophy?
Our philosophy is based upon treating others the way we would want to be treated. We try to put ourselves in the other person's shoes when making decisions. We give it our best at being courteous, reliable and easy to deal with. We also try to exceed people expectations by selling clean watches that are conservatively graded, cleaned up nicely and in good running order. We do not participate in unethical practices like selling watches without serial numbers. Our loyal customers know, if watch problem arises, which is inevitable in mechanical things, we will work with them to resolve the issue in a timely and amicable way.
WF: You recently produced a diver's watch with a strong value proposition (Berne Diver) with good looks, great parts and a low price... what have you learned from this experience? Do you plan to make any more watches with your own private label?
JB: "It ain't easy!" is what I have learned. It takes a lot of time and money to produce and market a watch or watch line. I believe we have a great product in the Berne divers watch and built it to show that a quality Swiss automatic divers watch does not have to be expensive. We are taking the bare bones marketing approach which keeps the cost way down. We are going to wholesale the watch to one and all. It is a wonderful buy at $195 when a comparable Tag costing $995. We might continue producing watches next year. For now, our plate is full with BernardWatch.com.
WF: What do you think will be the most effective way to compete, going forward, in the crowded online watch segment?...product?...price?...and what is Bernard Watch doing so as to continue its leadership in the future?
JB: I believe that we live in a world today where most companies need to specialize to prosper. Bernard Watch will continue to specialize in quality closeout and pre-owned watches at great prices. We will stay small and efficient. This way we can provide the personal service and great prices that our customers have come to enjoy.
WF: Anything else you want to commment on or express?
JB:
Rob, I now have a few questions for you and your
watch aficionados. What does the next decade in
watches have in store? We have witnessed the big
conglomerates buy up all of the independent Swiss
movement makers. The Swatch group is the only
one who sells movements and/or ebauches to the
small independent companies. They continue to
make it harder for smaller companies to get movements
and will not sell their high end movements. What
will this do to the watch market? Will Japan or
China start producing high grade mechanical watches?
The Japanese have shown they can do it in cars,
why not watches?
WF:
Answers or remarks, to Jeff's questions, are welcomed
in the Watchfinder.net Feedback Forum.
Thanks
Jeff!
