Are you trying to figure out how much it costs to start a phone repair business?
Then you’ve taken a step in the right direction.Â
The US has more than 310 million smartphone users. Their devices are prone to wear and tear and bigger damages, so the repair industry has great potential.
Considering it’s likely to turn profitable, you’ll be surprised at the cost of starting a cell phone repair business today. In this article, we have put together everything you need to consider before investing your money in a mobile repair business.
What are the Startup Costs to Consider in a Repair Business?
Here’s a heads-up: Whether you start by renting a retail space or prioritize skilled technicians and repair equipment, the initial cost will go up pretty quickly. If you like going into details, there is also the cost of branding, licensing, and even marketing your phone repair business.Â
You must carefully put together your cell phone repair business plan to achieve long-term success. Here are some of the essential areas you must spend money on:
- Purchasing/leasing a retail store: $10,000 – $50,000 depending on size and location.
- Licensing and permits: $500 – $2500
- Repair equipment: $2,000 – $15,000
- Hiring skilled technicians: $2,000 – $10,000
- Inventory (spare parts, accessories, tools): $5,000 – $20,000
But these are just the basics. You also need to consider insurance, accounting, and initial advertisement costs.
The Cost of Inventory
Inventory is one of the essential aspects of any business. In order to ensure that you don’t leave any customer unsatisfied, you need to have all the necessary replacement parts and accessories at your disposal. This includes common spare parts like phone batteries, screens, charging ports, headphone jacks, and more. Apart from addressing customers’ needs, you also need to pay attention to the must-have repair tools needed to start a phone repair business.
With all that considered, you can expect your initial inventory cost to be somewhere between $10,000 and $50,000. However, its always better to automate your inventory management process to avoid stockouts or overstocking at your warehouse.
The Cost of Hiring Technicians
In a mobile repair business, everything comes down to the skill of the technician. If you are able to hire the right technicians, they can establish your business right from the start. So every time a customer searches for a mobile repair shop near me, your repair store comes up on top.
It’s important to set the right criteria for hiring technicians. Not only should they be able to handle all kinds of repairs but also must have the ability to keep themselves updated with evolving technology. Considering the technicians’s expertise and the average salaries in the US, you need to set aside between $30,000 to $50,000 per year.
It All Comes Down to the Process
Now that we have seen the main costs of starting up a cell phone repair business, lets shed light on the aspects others won’t tell you about. Once you have handled inventory, technicians, store space, and repair equipment, you will be faced with the next challenge – operational efficiency. Regardless of how much you spend on all of the above, manual operations will not allow you to meet the expectations of today’s customers.
To go above and beyond, you need to invest in the best repair shop management software. One that can take the burden of your shoulders and actually do the work for you. Processes like billing and invoicing should be a breeze, so customers do not have to wait and get frustrated.
Moreover, you should not be handling manual paperwork when there is a software that allows you to create repair tickets. And why should you worry about stockouts when an automated system can source the right items from parts suppliers?
As industry experts, we know that the key to long term success as a cell phone repair business is to invest in improving the customer experience. Don’t forget to include that in your cell phone repair business startup cost.
