4 Profitable Repair Business Ideas You Should Consider
You’d rather change your cellphone screen or have your computer fixed than buy a new device. Why? It’s the more logical thing to do since it’s usually cheaper. Why spend that much when you can have your gadget as good as new if you take it to a good repair shop? See why the repair business will continue to thrive? According to Statista, the electronic repair service’s market size will rise from $121.65 billion in 2023 to $238 billion in 2033. So, if you want to put up a business but don’t know where to start, why not set up a repair shop? Here are four repair business ideas you might want to consider.
1. Smartphone Repair
More than 4.6 billion people use a smartphone. By 2028, this number will increase to 5.1 billion. As smartphone usage grows, the demand for repairs will increase as well.
Cracked screens, malfunctioning buttons, and battery issues are common problems smartphone users encounter and won’t mind paying you to solve.
The beauty of this business is that you don’t need huge startup costs. Depending on your location, your initial expenses will mainly cover rent and utility. To keep these costs down, you can kick things off by setting up a small kiosk in a mall or any place with high foot traffic. It’s a business you can also have at home to eliminate the overhead costs related to a physical location. You’ll also need to budget for cell phone spare parts and other repair service supplies. The upside is you might already own some essential tools like screwdrivers and adhesives. This means your main expenses will be spare screens and replacement parts. The icing is that once you finish the repairs, your earnings will help you recoup these initial costs.
Charging your customers might seem tricky, but it’s up to you most of the time. Check what your competitors are charging for similar services. This way, you can set a competitive price point and a profit margin that matches the market. Generally, you can earn from $20 to as much as $300, depending on what needs fixing. The most challenging part of the smartphone repair business is getting the word out. Your best marketing tool at the start is word of mouth. So, make sure every customer walks away not just with a fixed phone but with a great impression of your service. This positive experience motivates them to spread the word about your business.
You can also have your website or use social media platforms. For example, you can post before and after photos and provide repair tips, or videos of the repair process like Binodssaw Technical does on YouTube. These channels help you connect with potential customers and build credibility.
After building your online presence, you can extend your offering to accommodate online repair services. That means your audiences can contact you online and ship their devices for repair. After repair, you mail it back to them. This further reduces your overhead costs. To streamline your business processes you can use an estimate template created by Luzenta.com online invoice generator.
2. Appliance Repair
Every household has one or more appliances. With several moving parts, these appliances tend to give out eventually. Fixing them seems reasonable since consumers are five to ten percent cheaper. The result? Appliance repair business owners can make an average of around $50000 annually.
To kickstart this repair business idea and establish it as a limited liability company (LLC), you’ll first need to decide which service you want to provide. You can give any common ones like microwave, oven, freezer, refrigerator, and dishwasher repair services. Your choices will determine the types of licenses you need. For instance, the US federal law mandates refrigerator repair professionals to have an Environmental Repair Agency (EPA) certification. After choosing your services, the first expense will be tools and equipment. The basic kit includes:
- Screwdrivers
- Gloves
- Glasses
- Multimeter
- Nut drivers
- Putty knives
As for the business model, you can offer services directly to customers, such as:
- Homeowners
- Appliance retailers and manufacturers,
- Small businesses
- Property management companies
Some appliance repair business owners also consider franchising. That way, you won’t start from scratch. Instead, you can partner with established companies and tap into their existing customer base.
3. Computer Repair
Computers are everywhere, and they sometimes break. Whether it’s a hardware or software issue, people need their computers fixed, and that’s where you come in. Starting small is brilliant, especially if you bootstrapped the business through the early stages. So, begin by offering straightforward services like virus removal, troubleshooting, or hardware upgrades for individuals and companies. As you gain traction and more funding, you can consider branching out to advanced services like data recovery and networking solutions.
You don’t necessarily need IT certifications for most of these services. However, they can make you more marketable and boost your credibility in certain situations. For instance, say you’re pitching your services to a company that uses Dell primarily. In this case, having a certification from Dell can increase your appeal.
You also need to answer the question of “where.” You can offer computer repair at home, in a storefront, or online, like smartphone repair. But sometimes, you’ll have to deliver on-site services at your client’s premises. Take, for example, when dealing with businesses that must protect sensitive data on their computers. Due to security concerns, relocating their system might not be viable.
Finally, you might be tempted to offer your computer repair below the market price. But that might backfire. Consumers typically associate low prices with low quality. So, always aim for fair pricing that reflects the quality of your service. According to Step by Step Business, prices for computer repair range from $60 to $80 per hour.
4. Automotive Repair and Detailing
If you understand cars and their components, auto repair and detailing is a profitable business to try. Automotive repair shop management software can help you streamline your operations and improve efficiency. Automotive repair typically involves diagnosing, fixing, and maintaining vehicles to keep them working at their best. This means your daily job will include tasks like:
- Diagnosing engine and transmission misfires
- Fixing electrical glitches
- Routine maintenance services include oil changes, tire rotations, and brake replacements.
As for detailing, you’ll focus more on improving the vehicle’s physical appearance. Therefore, it typically involves thorough vacuuming, polishing, and protecting the vehicle’s interior and exterior to maintain its showroom-worthy appeal. Before entering any of these businesses, ensure you have enough funds to cover ongoing costs like labor, shopping, and business insurance. Further, consider a hire purchase for some tools like diagnostic equipment or pressure washers if you can’t afford them initially. This gets you going without straining your initial capital.
Now, the best part. You can make money by charging a flat fee or an hourly rate. The average vehicle repair bill is $600. According to Mobile Tech RX, the average price range for car detailing in the US is from $114.59 to $213.67. The exact amount to be paid to you will depend on various factors. The most important one is your location. Setting up your business in areas with a high concentration of luxury vehicles can amplify your potential income. But be careful not to try fixing luxury vehicles if you don’t have the technical expertise in the first place.
Lastly, as your business grows, consider forging partnerships with related industries. Collaborations with auto dealerships, for example, can provide you with a steady stream of customers seeking post-purchase services.
Repair Business Ideas – In Closing
The repair industry is thriving and profitable. So, if you think this aligns with your passion, you can consider any of the four repair business ideas in this guide. These ideas include smartphone, appliance, computer, and automotive repair and detailing.
Remember, when you’re just starting, you need your customers to come through with word-of-mouth. So, offer valuable services to gain client trust and use their referrals to build your brand. Further, make sure your business has a website. This helps you target a larger audience pool and makes it easier for potential customers to learn about your offering in the field of repair business ideas.
Good luck!
Leave a Reply