How Much Do Cell Phone Repair Shops Make? + 5 Ways To Make More!

Over the last five years, the cell phone repair industry has grown almost 4% annually — but the overall number of businesses has declined. 

In other words, a smaller number of shops make more revenue and competition is heating up. So, how much do cell phone repair shops make and what can business owners do to increase their chances of success?

In this post, we’ll break down the most important aspects of repair shop revenue including:

• The average mobile repair shop revenue and profit margins
• Factors that affect profitability
• Practical tips for increasing your revenue and customer satisfaction

Let’s get started.

How Much Do Cell Phone Repair Shops Make?

The average revenue for a cell phone shop is about $24,000 per month, with well-established shops potentially earning upwards of $50,000. Profit margins can vary drastically, between 20% to 90%, depending on a variety of factors, such as: 

• Location: The population density around your shop, the amount of foot traffic, and the demographics of your customers will play a big role in how much business you get. However, rent and utilities costs are higher in more densely populated areas.
• Devices serviced: Demand for particular device repairs is higher than others. For example, iPhones are more popular with Millennials and Gen Z — so if you’re based in a college town but don’t service Apple products, you’re missing out on a big source of revenue. 
• Marketing and awareness: A profitable business will constantly bring in new customers through marketing campaigns and promotional offers. 
• Brand recognition: More established brands with multiple locations and great reviews will likely draw in new business. 
• Revenue sources: The most profitable repair shops generate revenue from a variety of sources such as providing different services and selling refurbished phones, cases, headphones, and other accessories.
• Operating expenses: Operating expenses like rent, utilities, payroll, software subscriptions, payment processing fees, and more will cut into your profits.

Whether you’re starting a brand new business, opening a new location, or reassessing your existing finances, it’s a good idea to look at your projected sales and revenue data to find areas you can be more efficient. 

5 Ways To Boost Profits From Smartphone Repair

It’s tempting to think that simply opening more locations and doing more repairs will automatically generate more revenue for your business. That isn’t always the case. 

It’s best to take a strategic approach to ensure you’re putting your time and effort in the right places. Start by using the data on your point of sale (POS) system to identify a few key metrics, such as:

• Customer retention rate: How many repeat customers do you get?
• Sales data: What are your most frequently requested and top-performing repairs? What items do you sell that have the highest profit margins?
• Repair turnaround time: How long does the repair process take from the initial diagnosis to giving the device back to the customer? Look to identify any inefficiencies.
• Stock levels: Are there any products or parts that are frequently over or understocked? How much are you spending on storage? 

These are just a few examples of the data you can pull from your POS system. These metrics will give you an honest view of your strengths and weaknesses, and give you a good idea of where to focus your attention.

Based on that information, you can use these five methods to effectively boost your revenue and profitability.  

1. Offer Resale and Used Phones

The average lifespan of a smartphone is about four and a half years. Additionally, many people feeling the crunch from cost of living increases aren’t as inclined to splurge on a brand new phone when the time comes to upgrade.

Rather than just repairing phones, why not refurbish them and resell them? Near-new phones are appealing to customers looking to save money, and repair shops can enjoy high profit margins. 

To build customer trust, make sure your POS system is equipped with features for resale and used inventory, such as pictures of the original seller, IMEI tracking, and more. When choosing which devices to repair and resell, you can also use your historical data to find out what devices your customers prefer.

2. Step Up Your Marketing Efforts

More marketing can mean more revenue — but only if you do it smartly. Unfocused marketing and blanket offers aren’t particularly effective in capturing new business.

Instead, personalize your marketing based on customer preferences and bestselling services. Use your customer relationship management (CRM) software or customer loyalty program to target offers directly to users based on their purchase history. 

For example, if you have customers who purchased a phone from you within the last year, send out a targeted email blast to those customers offering them discounted services for the next six months. 

Marketing is also a tool to share your expertise. Instead of posting generic sales offers or “come on in” posts on social media or in a newsletter, share common device issues, repair tips, and other things that showcase your knowledge.

3. Leverage Repair Management Software

People do everything on their smartphones, from work and talking with friends to shopping for groceries and booking travel. When something breaks, they want their phones diagnosed and back quickly.

Manually tracking repairs is error-prone, especially as you get more customers or expand to multiple locations. Ensure nothing falls through the cracks by using repair ticketing software. Repair ticketing software will help you: 

• Track repairs: See the status of all of your repairs across all of your locations.
• Update customers: Keep customers updated with automated status updates.
• Provide accurate estimates: Quickly build out custom repair quotes so customers know exactly what to expect — and make quick updates to an estimate if anything changes along the way.
• Assign parts inventory: Automatically identify the needed parts based on the device being serviced and ensure all parts are in stock.
• Manage loaner devices: For more extensive repairs you might offer customers a loaner device to use in the meantime. Repair management software will allow you to track these devices as part of the repair ticket.

Ideally, find a POS system with built-in repair management so you can combine your estimates, payments, parts inventory, and repair tracking all in one place without complex integrations or juggling multiple systems.

4. Solicit Positive Reviews

When most people search for a cell phone repair shop, they’ll start with a near-me search and then dive into customer reviews. The importance of positive customer reviews cannot be understated — but building that word of mouth can take time.

Start by making sure your Google Business Profile is accurate. This is one of the primary places customers will look. Ask customers for reviews by posting a sign near your register or printing a code on their receipt. 

Negative reviews are inevitable but don’t just ignore them. Respond to positive and negative reviews. If you can, offer to remedy issues customers highlight in negative reviews. Search their name in your database so you can refresh yourself on the details of their case.

If done right, you might just turn a negative review around. As you build reviews, highlight them on your website and social media to promote your business.

5. Optimize Your Inventory

Optimizing inventory levels, both for parts and products, is essential to reducing overheads and avoiding stockouts. Cell phone shops also need to be able to track IMEI numbers for warranty status, purchase history, and more.

Use the inventory management functionality on your POS system to improve stock visibility, transparency, and efficiency. Ensure you use an inventory management solution with features built for repair shops such as:

• Parts inventory and supplier management: View your inventory in real time and manage suppliers you use to restock. Set automated alerts to restock items when they fall beneath a preset threshold to ensure you’re never caught off guard with an out-of-stock part.
• Repair notes: Make notes on common repairs for certain device types or specific notes on individual devices.
• Serialized and non-serialized inventory support: Track both serialized inventory (items with barcodes, IMEI numbers, etc.) and general SKUs (cell phone cases, chargers, etc.) in one system.
• Multi-store inventory: Have a unified view of parts and product stock levels at all locations and manage them on one system.
• Reports and analytics: Get insights into inventory churn, bestsellers, profit margins per supplier, and more.

Inventory management software will also make it much easier to spot sources of shrinkage quickly and address them before they become a problem.

Increase Your Revenue With a Comprehensive Cell Phone Repair System

How much money can your cell phone repair shop make? The cell phone repair market is projected to keep growing and increasing right-to-repair legislation is making it easier for independent electronic repair shops to operate on a wider range of products.

If you make smart choices, your mobile repair business has a real chance to flourish. By optimizing your processes, technology, and marketing, you can significantly increase your revenue and drive growth.

Whether you’re starting a brand new business or finding ways to expand your current one, make sure to choose the right technology partner. 

CellSmart POS was specifically built to support cell phone shops and mobile repair centers. With a comprehensive suite of features including quick contactless payments, built-in repair tracking, and sophisticated inventory management, CellSmart POS has everything your business needs to be successful in the short and long term.

Schedule a demo today to see how CellSmart POS can support your business goals.