Not everyone will be familiar with Resultco, but Jeff Freedman, one of the company’s partners, is adamant that the name will be on the minds of the whole UK watch industry before long.
Resultco specialises in the development of brands, and in the world of watches it offers no less than 14 of them to potential retail partners for their websites. It is this breadth of offering that convinces Freedman that the UK could soon be benefitting hugely from Resultco’s services. In a wide-ranging discussion with WatchPro, Freedman does his best to explain what a unique proposition his company represents.
“Resultco offers the retailer the ability to expand their internet business,” Freedman explains. “When selling on the internet offering more product will capture greater sales. As with bricksho and mortar the longer the consumer shops, the greater the chances that a purchase will be made.”
So how does this all work? What does a working relationship with Resultco actually involve? “We are unique, as we do not request the retailer to make an investment in product,” Freedman tells WatchPro. “We offer a programme to enhance their website. We have in-house internet design and a photo studio, and we will produce custom email campaigns at zero cost. We are more than a supplier that sells product, we aid in the marketing of the retailer’s store and internet site.”
In other words, Resultco aims to provide a total and complete service to its retail partners, not just providing product but then helping to market and even enhance the website. “We help the retailer build its watch category with zero investment. We also have full control of internet retail pricing,” Freedman continues. “Our business model guarantees that all sales from Resultco will be profitable,” he asserts.
Does such a business model suggest the sort of online discounting that has been as detrimental as it has been beneficial to watch brands in the last few years though? Emphatically no is Freedman’s riposte. “Retailers are very concerned selling online, due to the fact it is a price war and the lowest price wins. However, our business model assures all retailers are offering our watches at the same retail price. In a few minutes of searching for our brands on the internet, the consumer will discover all watches in multiple retail locations selling at the same price.”
The logic is sound enough in theory, and in practice the company has already enjoyed considerable success in other markets, including the United States. Having only been established in 2006, Resultco appears to have found the right niche at the right time, as internet watch sales have risen exponentially in the last decade.
Freedman is surprisingly candid about the lack of familiarity with his brands, but he is at pains to demonstrate that this is almost irrelevant for the retailer, not least because it doesn’t charge for stock until it’s been sold. “We provide free services to our retailers and a profit stream with zero investment, which makes us unique to the watch industry.”
Resultco’s unique business model seems to work and produce results, so for Freedman the only task now is to communicate the benefits to potentially sceptical retailers. “Initially many retailers do not understand our programme,” he admits. “Yet after an eight minute conversation the retailer wants to participate. They [the retailer] is in 100% control with no risk and an opportunity to profit with no investment.
Resultco is presenting a unique business model to the market, and only time will tell whether the UK becomes as big a success for it as the USA has already been.