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