Hey, repair shop owners!
Setting the right price for repair services and accessories can be tricky. Surely you want to attract customers but if you set the prices too high, you will scare away them. Contrary to that, if you set the prices too low, you will hardly break even. So, how you should set the right balance?
Starting by researching your local market can be a smart way. Keep an eye on nearby repair shops and find out what they are charging for similar repair services. Or what do they charge for accessories like chargers, earbuds, batteries, etc. However, ensure your prices are neither too high nor too low, compared to your costs.
This can include labor, overhead expenses, rent, parts, marketing, and maintaining charges. If you try to extract maximum profit out of a single customer, you will lose their trust. That’s one of the common mistakes cell phone repair business owners make, which costs them their reputation.
Offering competitive prices does not mean you cannot make a lot. You need to focus on value instead, and with that, you can increase your customer base. On average, cell phone repair businesses make a profit margin of 15-20%. If you purchase an accessory for $200, you can sell it for $240 to $260. Â
You also need to convey to your customers that not every repair job is the same. You can fix their screen, or replace the battery for $50 bucks, but for complex repairs like motherboard, you have to pay higher to your technicians. So, for that, they need to pay up to $150 or more, depending upon the case. All in all, it’s about how you deal with customers and make them trust what you say.
Lastly, keep your operations streamlined using repair shop management software. With RepairDesk’s inventory management, and reporting features, you can keep track of parts and inventory costs, and monitor your profit margins on every repair job.
Remember, customers will pay more for warranties, reliable parts, and services. So, don’t undersell yourself, but keep a balance between pricing and high-quality service
Stay competitive, stay profitable, and watch your business grow!
