In today’s super-competitive repair market, technological advancements are unleashing new doors of innovation. Keeping with this pace of new releases, people are regularly searching for the latest cellphones, making upgrades to their laptops, and getting repair services. Customers want to get their hands on the updated version of their devices, which works in your favor, whether you’re selling cellphones, trending accessories, or offering repair services.
If you want to increase your traditional repair store sales, you need a way to build customer loyalty—something that will lead to increased recurring revenue for your business. That’s where subscription billing comes in.
Beyond just a place to stop in and shop, repair businesses can use subscription plans for repair services to build relationships with their customers and bring them even more value. It suits you best if you regularly sell products or offer services to the same customers.
It is now worth switching away from invoicing to a subscription billing model and recurring payments.
What is Subscription Billing & How’s It Useful?
A subscription model means that your customers sign up to receive repair services periodically, for example, every month. Using subscription billing, you and your customers agree to pay for those services on the same regular basis – and often in advance.
Payment is automatic and fast and has the following benefits.
- It gives you a more predictable cash flow because you know how much and when you will be paid.
- Allows you to bill people up-front rather than waiting for them to pay you in later.
- It lets you price your products based on value rather than time.
- Reduces the risk of late payments from customers.
- It helps you keep existing customers and reduce the churn rate.
In addition to these, repair store owners can also use subscription billing for the following purposes.
Receiving Bill Payments
Use subscription billing at your repair store to charge your customers’ monthly bills on any given date. This will automate the process, and you won’t have to go through all the invoices every month. Time is money, and we work hard to save your time so you can make more money.
Selling Device Protection Plans
This is another exciting use of subscription billing, and RepairDesk has a dedicated Recurring Payments module. Amidst the COVID-19 situation, people stay at their homes with their children, which means they will be breaking their electronics more than often. In this case, you can offer Device Protection Plans against a monthly fee.
It will give your customers some peace of mind that your repair store will be there to repair it in return for a fixed monthly fee. This will improve your customer retention and also let your customers know that you got their back.
It often happens when a customer is interested in a product but falls short of money to pay for it. In that case, you can secure your sale by offering layaway.
Your customer will pay whatever sum they have for a product, and you will reserve it for them in your shop. The remaining amount can be distributed in recurring payments that your customer can make over time. Once your customer has paid fully for the product, he/she can come and collect it from your store.
Boosting Customer Retention
Many B2B repair shops enjoy the set-it-and-forget effect that recurring billing has on their monthly/annual bills. Be considerate about those bills in the same amount each month and due on the same date each month. You’ll also avoid undue messages that constantly remind customers to pay. With subscription billing, they appreciate the security & knowing that they pay their bills each month without fail, without effort, until canceled.
Take the Next Step:
Start earning recurring revenue easily with RepairDesk’s Recurring Payments. Just click on the button to schedule a demo and sign up for our new feature.