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