Gadget repair has become a pretty competitive industry. With more skilled technicians popping up everywhere, it isn’t easy to make profits while retaining customers. To keep your business in the running against the competition, the inflow of revenue needs to increase. However, not everyone can expend more and more resources like big brands to increase their profit margins. But what if we told you that you could do that for your business with the existing resources? It sounds almost impossible, we know, but it is definitely doable. And here are a few easy ways:
Finalizing a Financial Plan
If you are in the cell phone and computer repairs business, chances are your expertise lies within repairing, not accounting. However, if you’ve decided to turn your skill into a business, bookkeeping is now a part of it too. It is an ability that all budding business owners need to acquire if they hope to make it a success. But handling the finances of a repair shop is no easy task for experienced owners either. But there are a few ways you can influence your store’s profit without needing mastery of all aspects of your business, but it sure helps.
Accounting for Your Repair Shop
To start, you ought to review your repair shop’s current finances and determine the increase you would realistically like to see within a specific period of time, be it a week or a few years. Once you’ve figured that out, you work backward from there to make it a reality. And not to worry, if the accounting aspect of it really seems so daunting, half of the work can be done through your POS software’s revenue reports and the accounting integrations it may offer.
Adjusting Your Pricing
A vital and probably obvious part of this is honing a pricing strategy. The prices of your services and products should reflect your revenue goals. But remember that you shouldn’t boost the prices to a point that it begins to impact your sales adversely. Conduct a competitor pricing comparison and understand where your repair store services and products stand in comparison according to the customer.
Keeping your pricing sensitive to the season may help you make more profit and raise your position in the marketplace: for example, is it the new school year start? This means that there will be more repair jobs this time of the year. With gradual increases in the price, your clients are less likely to be incensed. This significantly impacts your profit margins without draining your client roaster dry.
Boosting Revenue with Discounts
Another adjustment could be offering periodical discounts. Publicizing them can generate additional sales by incentivizing customers to start buying. Whether a store-wide discount or a buy one and get the other 50% kind, you can bet your bottom dollar that it will drive up your sales.
Utilizing Marketing Strategies
Marketing is often an overlooked aspect of running a repair store. But the thing is, it has an essential role to play in any business’s growth. It can be done online or offline. Offline marketing involves collaborating with electronic shops to offer repairs for their clients. Discounts for their clients or vice versa, as well as both stores advertising each other through flyers in the other’s shop. Your store’s clientele would trust their products, and theirs would trust your services. This easily forms a loyal customer base for both businesses.
Digital Marketing for Repair Shops
Online marketing, on the other hand, is a whole other ballgame. Not only does it take a lot more effort, but it also gets the word out quicker and faster. There are many different ways to market online. But the ones that require no added resources but still bring in returns are Google and POS integrations. If you make a business profile for your store on Google, it can help you get noticed easier by anyone searching for repair shops in your area. It may not seem like much, but you’d be surprised at how far just that can take you. What’s more, your POS system’s marketing integrations and the in-built marketing automation tool are already equipped to handle your online marketing with a few clicks. From sending follow-up emails and SMS for repair jobs and products to regularly emailing a list of prospects and existing clients with offers and reminders. It all can quickly be established through marketing integration in your POS software.
Increasing the Streams of Revenue
Another excellent way to maximize income with your existing resources is by increasing the possible streams of revenue flowing into your business. For instance, think about how bad it looks on a store’s record to state that they don’t offer a specific repair. To avoid a tainted reputation and loss of a customer, consider subletting the repair. Partner up with a trusted third-party repairer who specializes in the required repair.
This will allow you to get new business and keep a cut of the money for your store, providing a new revenue opportunity. It will even benefit the third-party partner by introducing more clients to their work—a win-win situation for everyone involved.
Training Employees to Hike Up Revenue
Additionally, you could even go a step further and offer more repairs at your store. You may have a cell phone or laptop repair shop; if one, why not the other? Start training your technicians to learn the other device repairs. The best part is that most of these learning curves wouldn’t cost you anything other than time. But at the end of them, you will have highly skilled employees and another long-last source of revenue. The revenue, in general, can be boosted by ensuring that you train your employees to perform quality repairs.
Reevaluate Revenue Flow
Some costs of running a repair business often go unnoticed. These hidden costs can drain your business revenue dry if not kept in check. A great way to avoid them is by establishing a monthly review on the financial aspect of the store. Keep an eye on where the money is coming from and where it is being invested. Check your monthly reports and determine where the leakage may be. Plug up your revenue losses and let the stream flow directly into your profit margins. You’d be glad you optimized with our advice!