Precision Time is a leading provider of while-you-wait watch repair services, fashion watches and watch accessories with a presence in 20 states across the United States. Unicorn’s acquisition of a 28.3% equity stake in the company in September 2006 allowed the company to double its presence to 120 stores, and the goal is to grow the company’s presence to approximately 550 stores by the end of 2010.
Precision Time was established in 2000 through the acquisition of an existing mom-and-pop business in Provo, Utah. The company’s kiosks and stores are typically found within malls, which is critical to the company’s concept and success. Not only do consumers in the US expect to avail of watch repair services at malls, but malls are also the largest retail format and offer enough local and repeat foot traffic to generate a solid amount of watch repair business.
While-you-wait accessories and services account for the majority of Precision Time’s sales. Since 2005, the company has focused efforts on increasing inventory levels and refining the individual store model.
Precision Time is run by an experienced senior management team with a unique combination of retail merchandising, operations, finance, entrepreneurial and specifically watch-related expertise. The management team is backed by a participative Board of Directors with significant retail experience. Unicorn has one seat on the Board as well as one Board observer.
The management of Precision Time has developed a highly profitable model. Stores typically ramp up over thirty-six months, at which point they achieve contribution margins of over 24%.. Precision Time averages 76% gross margins, with margins relating to services and accessories in excess of 90%. Contribution margins at mature stores (open for 36+ months) exceed 24%, and this is expected to increase as the company continues to refine its operating model.
