How To Open a Cell Phone Repair Shop: 7 Mistakes To Avoid

The most common reason people upgrade their phone is because it needs a basic repair like a battery replacement. In the past, people avoided making repairs because they might void their warranty, or improvements between smartphone generations were too good to ignore.

But the landscape has changed. 

Differences in performance between upgrades are increasingly insignificant, and various states continue to pass right to repair legislation, making repairs more viable. Inflation and cost of living increases are also persuading people to get the most out of their smartphones before getting a new device.=

As a result, independent cell phone repair shops can find success and seize new opportunities. If you’re wondering how to open a cell phone repair shop, you’re not alone. 

However, many smartphone repair businesses crash at launch because they fail to address some simple (and avoidable) mistakes. In this post, we’ll cover the most common missteps new business owners make when starting a repair shop and how to avoid them.

7 Common Mistakes When Opening a Cell Phone Repair Shop

Starting a new business is intimidating and many business owners want to rush up the ladder to success. However, moving too quickly or without strategy is a surefire way to make unforced errors that can hurt your business in the long run.

These are seven mistakes we frequently see and some advice on how to avoid them.

1. Choosing a Bad Location 

Location, location, location. 

Everyone has heard that little phrase hundreds of times but it still tends to be overlooked. At a time when digital experiences and online sales are dominant, many business owners assume that location isn’t as important as it used to be — but they’d be wrong.

With so much competition out there, shoppers will try to find repair shops that are conveniently located. Try to establish your shop in a location with good foot traffic that’s close to other shopping areas. 

Note: Even with great reviews, people will only go so far out of their way for basic repairs (which will make up the majority of your business).

2. Not Having a Business Plan

Many repair shop owners think that their business can glide along on technical knowledge alone, and they’re surprised when it fails.

A business plan is a guiding star, a holistic view of your goals, financial requirements, and processes. While writing a business plan can be time-consuming, it sets you up for success by helping you discover your target customers, unique strengths, and other things you’ll need to know to stand out against the competition.

Note: Having a fully formed business plan is also a must if you plan on applying for loans or financial help to get you started.  

3. Relying on Manual Processes

There is a lot to keep track of when running a cell phone repair business. At any given moment you’ll be working on multiple repairs, tracking down spare parts, checking warranty status, and more — all while maintaining a high standard of customer service.

Relying on spreadsheets or a convoluted web of separate software is a ticket for disaster. Just one repair ticket falling through the cracks can turn into a bad review which can be devastating for a small business. Manual processes also become more error-prone and complex as your business grows or expands to new locations.

Leverage a combined point of sale (POS) system, inventory, and repair ticketing solution to seamlessly manage all aspects of your business in one place. When choosing a software solution for your business, find a solution that includes:

• Serialized and non-serialized inventory management
• Integrated repair tracking and ticketing
• Customer relationship management (CRM) tools
• Flexible payments and layaway payment support
• Resale inventory and sale features
• Employee management and training

Adopting any new system comes with a learning curve, but the benefits far outweigh the short-term discomfort.

Note: There are many generic retail POS solutions, but they won’t all have the specific functionality cell phone stores need to function efficiently.

Related Read: How To Use Your POS To Track Maintenance Tickets

4. Neglecting Customer Service

The ability to quickly diagnose issues and make repairs is likely a big part of why you want to start a phone repair business. However, you won’t be working with technology alone — you’ll be working with people. 

People, not their smartphones, will pay for your services, interact with your staff, and leave reviews. No amount of technical knowledge will save a repair business with poor customer service.

So, what can you do to make sure your customers stay happy?

• Communicate frequently: Customers want to stay up to date on the status of their repair. Reach out frequently or use automated messages on your POS system to keep them informed.
• Be transparent: Always be upfront with cost estimates, repair time, and other details. No one is happy when their phone isn’t working and they’ll be even less happy if they’re hit with an unexpected cost. Promptly update customers if the repair estimate changes and before you start work.
• Be efficient: Use repair ticketing software to prioritize repairs and keep your processes as efficient as possible. You should also keep your parts and tools well-organized. 
• Set up waiting areas: Don’t neglect your physical space. Make sure customers have a comfortable area to wait for diagnostics and repairs. Place popular accessories and other items nearby to encourage a last-minute purchase.

Note: Adopting customer-centric processes will keep your customers happy, which will in turn boost profits and word of mouth referrals.

5. Cluttered or Confusing Store Layout

The physical space of your store will form your customers’ first impression of your business before they ever talk with a repair tech. 

Ensure your shop is clearly laid out so customers can quickly find exactly what they’re looking for. Unlike other retail stores that are designed to encourage people to wander and browse, many people coming into a cell phone repair store have a very clear objective — so make getting there easy.

Note: For more insights into an ideal store layout, read our recent blog that breaks down the best practices for electronic repair shop design.  

6. Failing to Market and Advertise

The best advertisement for a repair service comes directly from your customers — but until you have customers, you have to start somewhere. Many new cell phone repair shops fail to bring in new customers because they neglect marketing.

Marketing is how you spread the word about your services and your expertise. Typical marketing strategies include (but aren’t limited to):

• Building a user-friendly website: Make sure your website is easy to navigate and lists the make and model of phones you service, as well as the various services you offer. It’s a good idea to list prices for common repairs like screen and battery replacements.
• Posting on social media: With millions of active users, social media is a great way to share your expertise with the world. No matter what platform you use, post regularly to build up a customer base. Share repair tips, hardware advice, and any deals or promotions you’re running.
• Start a customer loyalty program: Use your POS system to create a customer loyalty program, rewarding customers with discounts or other goodies for repeat business. 

It’s never too early to start marketing your business. Use the sales data stored on your POS system to see your most frequent repairs, profit margins, and other key metrics to understand where to focus your marketing efforts.

Note: Many people think of marketing as a simple sales pitch — but it’s much more than that. Use marketing channels to show your expertise and why you’re the best choice when customers need help with their electronics.

7. Not Embracing Change

Technology changes constantly. New phone models come out every few months, OS updates come out frequently (and potentially break things), and preferences for styles and types of tech shift all the time.

If your business doesn’t evolve with your customers and technology, you’ll be left in the dust. Make sure you stay ahead of the latest technology trends and provide ongoing training and support for your staff. 

Additionally, many cell phone repair shops don’t earn their profits solely from fixing cell phones. Consider expanding your business by repairing other types of electronics, selling accessories like cases or headphones, or even offering repair classes and training.

Note: Expanding to new locations isn’t the only way to grow your business. Always look for ways to improve your services and offers in every location. 

Avoid Common Mistakes With a System Built for Cell Phone Repair Shops

Many cell phone repair businesses make unforced errors that cause them to fail — but you don’t have to. To recap, ensure your new business is a success by putting extra attention into these areas:

1. Choose a great location
2. Write a business plan
3. Leverage technology
4. Provide exceptional customer service
5. Create a welcoming in-store environment
6. Market your services
7. Expand your services and embrace change

Most importantly, exceed your customers’ expectations by modernizing the way you manage your business. CellSmart POS is specifically designed for repair shops and electronic stores to handle the unique challenges of their industry. 

With features like built-in repair ticketing, customer management, IMEI and inventory tracking, and sales data, we arm repair shops with all of the tools they need to succeed.

Schedule a demo today to see how we can help your cell phone repair business get the right start.