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Different Streams of Revenue in the Cellphone Repair Industry

Different Streams of Revenue in the Cellphone Repair Industry

Owning a cellphone repair shop does not mean that you should stay limited to repairing cellphones only. There are many opportunities for earning in the repair industry to stay ahead of the competition. And with cellphone repair shop software flexibility, adding new services is pretty simple.

Cellphone repair shops are unable to grow due to a lack of planning strategy for the future. Screen repair, battery replacement, and water damage are commonplace services that you are already offering. But there’s so much more that you can offer.

So, repair shop retailers need to keep up with the competition by adding more services and making their business the go-to shop in the area.

Here are other streams of revenue that you can explore.

Computer Repairs

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Working and studying from home has become normal in a post-covid world. This means the dependence on computers and laptops has also increased. And the more the usage, the higher the probability of damage.

So, there has been a boom in the repair industry. And offering cell phone repair only will only take you so far. If you really want to grow, start offering computer repairs as well.

Some computer repair related services that you can offer include:

  • Screen replacement
  • Software installation
  • Heat repair
  • Battery replacement
  • Touchpad repair
  • Keyboard repair
  • Motherboard repair
  • Ports repair
  • Diagnostics

Of course, you will need to hire a computer technician or two, but the profits you can earn from computer repairs far outweigh the expenses incurred.

Accessories Sales

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The US cellphone accessories market was a $28.53 billion market in 2018. It is expected to expand to $74.43 billion by 2026. Similarly, the computer accessory’s market size is expected to grow at a CAGR of 5.71% from 2017 to 2021. 

Selling accessories in-store will make your business the ultimate retail destination. While customers wait for their cell phones or computers to be repaired, they can browse through the accessories section. Or, you can always train your employees to up-sell.

So, for instance, what better time to sell a cover or a screen protector when a customer just got their screen repaired? While they wait for their device to be repaired, you can upsell by offering accessories to keep their valued possession safe. 

Accessories you can offer include:

Cellphone Accessories Computer Accessories
Chargers and charging cables Speakers
Headphones Laptop desk
Wearables Laptop sleeves
Cellphone covers Cooling pad
Power banks Wireless mouse
Selfie sticks Keyboard cover
Waterproof pouch Cleaning kit
Gimbals

Adding a wide variety of accessories to your inventory can be costly. However, you can partner with an investor and split the profit equally. Or you can easily apply for a loan. If you are a RepairDesk user, it’s even simpler for you as we offer RepairDesk Capital for cell phone repair shop owners looking to grow their business.

New Devices Sales

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With manufacturers like Apple making devices harder and more expensive to repair, people have begun to upgrade their devices instead of getting them repaired.

Keeping that in mind, selling new devices should be a natural extension of your cellphone repair business. However, considering your market, you can go all out and invest in other electronics to sell as well.

For instance, if your shop is close to a school district, stocking tablets would be a good idea. 

If you go down that road, you need to have the proper infrastructure to conduct the expansion seamlessly.

Some of the devices you can offer are:

  • Popular/trending cellphones
  • Wireless headphones
  • Laptops
  • Gaming consoles
  • Tablets
  • Smartwatches
  • Drones
  • Televisions
  • Printers

Andrew Mourer of YCD Electronics is one example who has had success in earning more through device sales. 

“We don’t really have a place where you can go and get a variety of electronics, but also have staff that’s knowledgeable about the electronics. And so that’s how we branched into those. Security products like cameras and stuff like that, one of our repair suppliers actually supplies those products now. So that was part of the reason we got into that. In terms of like the TVs and printers and things, I mean, they make us money, so why not sell them?”

Device Buybacks & Trade-Ins

Cellphone-Repair-Shop-SoftwareDevice buybacks and trade-ins have a lot of potential. Many repair shop owners don’t realize how quickly it can help them grow their business. Moreover, integrating buybacks and trade-ins in your cellphone repair shop software is really easy.

There are many ways you can go about buy-backs. You can train your employees to upsell. So, when a customer comes in for a repair, you can convince them to sell their device to you and upgrade to a better device.

You can refurbish those devices and sell them keeping a good profit margin.

On the other hand, there are vendors selling damaged phones that you can buy in bulk. You can invest in them, fix them and then sell them for a profit.

Integration of buyback programs and selling refurbished cellphones attracts new customers that want to purchase high-end alternatives. Moreover, with buybacks, you can source pre-owned cellphones by refurbishing them, and then give customer credits on the trade-in. 

It is a profitable stream, but it comes with risks. You might quote a lower price on the cellphone and then end up sacrificing the profit to meet the gap.

To be safe, you can integrate a vendor for buybacks who can help you quote the right price. It will save you from the risk of undervaluing or overvaluing the device.

Custom PCs for Gaming

Cellphone-Repair-Shop-Software

Gaming PCs are gaining a lot of hype with more people joining the gaming bandwagon. The increased demand calls for repair shops to provide high-end gaming PCs and PC repairs.

This opens up two main streams of revenue: custom PCs and PC repairs.

For a customized PC, you need the following:

  • Processor – It is the central part of your PC that dictates many of the selections you make for the rest of the PC.
  • Motherboard – An essential component that is compatible with a PC
  • Graphics Card – The leading game player is the graphics card that fits in the motherboard. It is the most expensive item in the build.
  • RAM – This is another integral part of the PC. The current RAMs use RGB lighting that provides extra coolness.
  • Storage – Comes in a fast SSD or slower mechanical HDD.
  • Power Supply – The power supply powers all the parts.
  • PC Case – It is the chassis for your entire PC. Without it, the PC won’t have a perfect finish.

Custom gaming PCs might be a niche market but it has very high-profit margins. And so, this could potentially be a revenue stream that can help you grow.

Laser Engraving

Laser engravings are increasingly becoming popular because they personalize your devices. You can engrave cellphones, laptop covers, tablets, jewelry, knives, etc. You can gain an advantage from high repetition accuracy and extreme precision levels both for serial and individual production.

Cellphone repair shops can also perform functional inscriptions such as corporate branding and safety markings through laser engravings.

You can include the following services in your portfolio:

  • Personalization
  • Customization
  • Corporate branding
  • Safety markings
  • Back glass replacement

Laser machines cost around $2500 on average and each machine comes with its own set of functions. Learn what they are and offer services accordingly.

You should be able to leverage its cost in 2-3 months. Of course, if your shop is in a high-demand area for laser-related tasks, you can cover the cost more quickly. 

One thing you should keep in mind when pricing laser engravings is the risk factor involved. For example, a customer comes in for laser engraving on their MacBook. You need to price the service considering that you can damage its housing and may have to replace it. So, a good way to go about it is to add half the cost of housing as the risk factor. 

If you want to purchase a laser machine you can easily use the RepairDesk cellphone repair shop software vendor integration Mobilesentrix to get one now.

Micro Soldering

Cellphone-Repair-Shop-Software

Another high-end stream of revenue is micro soldering. Micro soldering involves soldering components so tiny that can only be visible through a microscope. These small parts consist of capacitors, resistors, connectors, microchips, etc.

Big manufacturers like Apple are not offering micro soldering as a repair alternative. Instead, they have upgrade programs, recommending users to purchase new devices instead of repairing the old ones. By integrating micro soldering in your cellphone repair shop, you open a new market for people who want their devices repaired instead of upgrading them.

Ultimately you will be providing customers cost-effective and straightforward solutions.

Some of the solutions that micro soldering provides include:

  • No Touch, Touch Screen Issues, Multi-Touch Problems
  • Searching / No Service Issues
  • Charging Port Replacements
  • Damaged Connector Replacements
  • No Backlight/No Display
  • Battery Components
  • Camera Issues

Micro soldering is very profitable. However, it requires a lot of precision as well. So make sure you and your technicians really understand the complexity before offering it in your shop.

Cellular Service Activation

To provide a complete cellphone experience to your customers, you can also offer cellular service activation. Not only will it keep bringing customers back to you for bill payments, but it will also add another stream of revenue to your cellphone repair shop.

The best part is that it does not require much work. Some of the networks you can offer include AT&T, Verizon, T-Mobile, and Sprint.

The cellphone repair business is full of opportunities. You can easily cash in on these opportunities to earn more revenue. So, pull up your socks and get down to business.

 

The 10 Commandments of Cell Phone Repair Business: Part 1

The 10 Commandments of Cell Phone Repair Business: Part 1

Once upon a time, there was a humble community of cellphone repair shop owners. They had families, kids and dreams of having it all. But burning the midnight oil doing repairs, their personal life suffered.

However, they continued to hustle. They put more hours than ever into their shop. They took everything they could on themselves because they were over-possessive about their business, believing no one else could do justice to it. Over time, they started becoming unhappy, lethargic and hopeless.

Seeing how little they could manage to feed their families, they began to increase their prices. They began to put their needs before those of their customers and employees. They began to focus on instant gratification over long-term planning.

And then came the worst! Their shops started shutting down, one after the other. Those that remained struggled. No one knew what they could do to make a decent living.

Around that time, a group of men came forward, proclaiming to be the messiahs of the cellphone repair shop community. The unbelievers shunned them and told everyone they were spreading lies. But a small number of people saw truth in them.

Gradually, each of the messiahs with their followers went on to grow their repair businesses to great heights and achieved success. And then they lived happily ever after.

You may be one of the unbelievers, but for those who believe, we present the 10 Commandments of Cell Phone Repair Business!

COMMANDMENT # 1: Thou Shalt Not Over-charge Your Customers

We get it. Your shop is in an expensive area, your overhead charges are huge and your prices reflect that. It makes sense.

But when you are working out of your own house or a small kiosk, where you aren’t paying a lot on expenses, charging very high profits is considered going astray.

What you should do is find out what your per-hour cost is and offer competitive prices accordingly. If you don’t know how to price your services, get help and figure it out.

You can use your POS software to track your weekly or monthly expenses. And then divide it with the number of hours your shop was open. It is important that you know exactly what your cost is. Only then will you be able to price your services correctly.

Sign Up for a 14-day FREE POS Software Trial!

Usman Butt, the CEO of RepairDesk emphasizes the importance of knowing the cost of your business. Because if you know what your cost price comes up to, you know how much of a discount is acceptable.

For instance, if a customer comes in and insists on a $10 discount, you may not give it to them and lose a customer. But if you knew that $10 will just minimize your profits a little, you may consider giving the discount and keeping the customer. This way, you can earn from this customer for a long time to come by giving them a one-time $10 discount.

“You don’t want to lose a customer because he wanted $10 off and you could have given him an off and made that money from up-selling the customer, by getting a referral every one or two months, or getting a review. So I believe that if you’re a great technician, great, but you are in business to make money, and grow your business.”

So, knowing your per-hour expenses is crucial.

Likewise, make sure you’re not pricing yourself out of the industry. So, do your market research. Check what your competitors are charging. And see how you can offer competitive prices. Your end goal should be to work in the best interest of your customers.

Make sure you’re not priced too low either. Because that will bring down the prices of other cell phone repair shops, making it impossible to earn a living in the industry.

Timothy Phelps of the Techy franchise has devised a price guideline that they stick to. His franchises follow the same guidelines even when the prices increase or decrease. So, for a repair part that costs less than $50, the labor charged is $75. Likewise, if the part costs more than $50, a $100 labor is charged and so forth.

For Timothy, what’s important is the experience you give to your customer because you want to retain the customer for life. And you should do what you must to achieve that.

“It’s all about experience. When you give into these customers, it’s about the experience and you want to gain those customers. It’s all about customer value life. So, you want to do whatever it takes to obviously gain that customer. But you’re selling an experience, more than just a product. And so you have to understand that more than anything.”

So, be transparent with your customers about the repair process. Treat them like you care about them, like you know the agony their broken device is causing them. And they will keep on coming back to you.

Israel Quintal of AdCentral goes further into pricing and insists on a pricing model that reflects the demographic that you’re targeting. So, for instance, if your shop is close to a college and your target audience is college students, keeping your prices on the low side is probably a good idea. But if your shop is in an upscale area where you’re targeting an older, working demographic, you can charge higher prices.

Moreover, Israel designs his pricing around up-sells. He brings the profits to a minimum to lure the customer into his shop and then earns from up-sells. However, he says this pricing model requires active supervision to make sure the ticket average doesn’t fall too low. Because if it does, that means you’re going into loss.

“Now, when they come into your shop, our job is to up-sell them. So, we know what our ticket has to be in order for us to keep this model going. And this is an active monitoring, where if for some reason the ticket average goes below what it should be, then it’s a red alert. Something is not happening.”

You can also stock multiple qualities of the same item to cater to all your demographics out there and teach your employees to up-sell. For instance, there are some customers who do not care about the price, but rather the turnaround time. And then there are those who will go for the cheapest option irrespective of the quality.

For jobs like screen replacements, Israel suggests keeping different qualities of screens. So, when a customer walks in, you ask them a few questions to understand which demographic they fall in.

  • Is the customer really concerned about the quality?
  • Are they particularly concerned about the turnaround time?
  • Are they price-conscious?

Once you’ve figured the above out, you offer them a screen replacement best suited to their persona.

Moreover, when you’re pricing your repairs really low, you should be prepared for the influx of orders. You must know how to handle that kind of growth. Because if you don’t have enough technicians to do the repairs, you lose out on the opportunity. So, make sure you have a POS software with an efficient ticketing system so you can create tickets speedily and you and your customer are updated on the status of the repair in real time.

Israel insists that pricing isn’t the end all game. It is a means to a strategy. For some cell phone repair shop owners, going really low on the prices won’t work. For others, it might work. Whatever you choose to do has to ultimately align with your goals.

Because there are cell phone repair shop owners who are happy with one shop and do not wish to expand. And there are those who want to increase their revenue exponentially. So, whatever goal you have in mind needs to compliment your pricing strategy.

“I think that price is not everything either. I mean, I think price is the means to strategy, right? But we cannot say that because you’re not cheap enough people won’t come. You can build an amazing brand. You would just know what your limitations are.”

So, pricing your repairs is a tricky business. However, the takeaway from Israel’s experience is that you need to define your goals and know your per-hour shop expense. These two factors should determine the price of your repairs.

Ahmed Abusharbain of UppLuck shares his experience from when he had a repair shop. He says a lot of repair shop owners price their repairs very high because they don’t have a lot of income and are desperate. And that’s one of the biggest mistakes you can make.

You want to retain customers, even at the cost of your own profits sometimes.

“I don’t think anybody wants to charge a lot for a small repair. But when you don’t have income, you’re desperate. You start making mistakes and that’s a big mistake, chasing customers away instead of the keeping them in the house. I’m speaking about my retail days. I would satisfy the customer, even if I made a little bit, just to make sure that he brings me more customers.”

We have 9 Commandments left that will show you the right way! So, hang in there and look out for Part 2! And in the meantime, check out how you can score a school district contract.

Why Small Cell Phone Repair Shops Are Unable To Grow

Why Small Cell Phone Repair Shops Are Unable To Grow

Any business that wants to sustain itself knows that growth is essential. But sometimes, it might not be all that easy to branch out. Repair shops often face trouble when trying to go for their next big move, and they may feel stunted or stuck as a result.

If you want to have a successful repair business, you’ll first need to analyze why your growth is stagnant and what you can do to make things better. Once you have a fix on the issue and know how to solve it, then you’ll be able to take your small cell phone repair shop to the next level. Let’s look at why small cell phone repair shops are unable to grow and what can be done about it.

Why can’t cell phone repair shops grow & what can be done?

Cell phone repair is a pretty common thing in today’s world. Almost everyone carries a cell phone and they will need repair services from time to time. This means that opportunities for cell phone repair shops should be abundant, however, that is not always the case.

Like any other business, cell phone repair shops are also limited in their growth by certain factors. Here are some of the reasons that keep them from growing.

Shop Owners Have Disorganized Processes

When you first start off a repair shop as an owner, you’ll be wearing a lot of hats. You’re going to be the technician, the store clerk, the accountant, the manager – everything will be handled by you. With so much going on, you hardly have the time to spare for any additional things like business growth and marketing.

In order for your small cell phone repair shop, you need to look into what you can do to expand. However, because you’re always busy, you’ll be unable to find the time to focus on growing your business. It’s this constant demand that you need to do something about if you want to find more opportunities for growth.

Solution: Make your work more efficient

If you want to save time, you should look into how you can make your business processes more efficient. One of the best ways to do that is to use automation. If a majority of your work is being done manually, see how you can optimize it by making certain parts run automatically.

For instance, scheduling repair jobs should be an automated process of your cell phone repair shop software so that you don’t have to list everything down. Similarly, contacting customers and letting them know when their repair is ready can also be automated. This frees you up to get to the next job at hand and ultimately leads you to save time that can be better used elsewhere. With this strategy, you can cut down on the busy work and start giving your growth plans some serious thought.

Learn how important processes are for Israel Quintal, Founder and CEO of AdCentral, in our podcast episode.

Being hesitant to hire

Most repair shop owners take it upon themselves to overlook everything. They feel that as business owners, they need to manage it all because they can do it the best. But the reality is that there is so much to do at a cell phone repair shop for just one person. Every repair shop owner has a limit to how much time and energy they can give to their business.

Most small business owners would shy away from hiring someone to help out with repairs. This is often because of the new hire’s lack of experience and proficiency, but could also be due to monetary reasons. Having an extra set of hands at your store would be good, but for a small repair shop, hiring a new person means working on payroll and other employee-related concerns. That’s a belief that needs to be changed if you want to grow.

Solution: Start outsourcing where needed

Because of your busy schedule, you might need someone to split the load with but not the time to interview potential hires. More importantly, there may be certain aspects to your business that you might not be good with, like accounting and marketing. To resolve that, you should look into outsourcing your work to save time and maintain efficiency.

Small repair shops are usually hesitant with bringing new people in or contracting them for work. It takes away from your revenue, sure, but the pros outweigh the cons by a lot. For example, you can get a human resources company to manage your hiring process or an accountant for about $80-$90 a month to take care of your bookkeeping.

You could also have a marketing team develop custom content and promote your repair shop for you online. Companies like AdCentral specialize in creating targeted video ads and promotional content for small cell phone repair shops that need it. This has the benefit of freeing you up for tasks that require more of your attention. At the same time, a proficient team takes care of whatever else is necessary. Outsourcing your work makes running your store a lot easier since you won’t be tied down with so much.

Taking too much responsibility

One bad habit that most business owners fall into is that they become too possessive. Because they invest a lot into their work, business owners feel that they need to protect that investment and overlook it to get the best results. This leads to them often micromanaging things, even in areas where they are not proficient, all because they are afraid of failing.

Micromanagement not only drains more time from your schedule, but it also adds a lot of unnecessary burdens. You’ll constantly be worried about how the little things are faring that you won’t be able to give time and focus to your growth strategy. Spending all day in the backroom working on overseeing your repairs ultimately drains you and doesn’t work well with the people you employ. Taking too much responsibility for your business is a habit that needs breaking, especially when it gets in the way of progress.

Solution: Start delegating and entrusting

Being possessive about your business is a part of human nature; however, it can be detrimental when you make decisions without complete knowledge. The best way to deal with that is to trust people and give them more responsibilities to work with. Small cell phone repair shops need to remember that it’s okay to make mistakes and that people do their best work after having gone through so many mistakes.

Once you begin entrusting people with your tasks, you’ll have an easier time devoting yourself to growing your business. The key here is to start being comfortable with other people working on the things you take care of. Being confident in their abilities helps you remain carefree on the minute details and more capable of working on growth.

Not knowing how to start growing

Usually, a repair business owner is a tech-savvy person who can work on repairs. They know how cell phones work and what components are needed. They see the equipment that they need and how to use it. But when it comes to the business aspect of their cell phone repair shop, they don’t know how to make the best of it.

Most repair shop owners feel lost and confused about how they can expand their business. This comes from a lack of experience and knowledge, along with the fear of failure. Running a repair shop entails more than just repair work. You’ll also need to hire employees, manage them, work on bookkeeping, establish strong business relationships, etc. Continuing to think like a technician will only get you so far and changing that is necessary if you want to reach farther. To expand your business, you will need to start thinking like an entrepreneur, and entrepreneurs take risks all the time.

Solution: Change your mindset

What repair shop owners need to do is change how they want to operate and expand their horizons. Look into how successful businesses are run and how to employ the best strategies for your shop. Learning how to take care of your customers’ needs and give them a good experience is essential. Small business owners often overlook these things, so make sure you pay close attention to them. Start thinking about how you can grow and nurture your business, then follow accordingly.

One of the best ways to change the way you think is to enlist the help of a mentor. A mentor can be anyone from within or outside of the industry, but who can teach you valuable lessons. These lessons can then be implemented into your life and business so you can ultimately be more satisfied.

Having a mentor is necessary because they help you view things from a different perspective that you might not have considered before. Their knowledge comes from experience, and using that experience to help better your business is a smart idea. If you’d like to change the way you think about your business, having a mentor around is a great way to do it.

As Ahmed Abusharbain, CEO of UPPLuck puts it:

“We have to have a mentor. I have a mentor – guy I met when I was… twenty-some years ago. And he got me into this business, like from wide open. I mean, he showed me the role and he said, ‘Just go, ride.’ And I just kept trying and trying till I got where I’m at. So definitely, mentors are important.”

Disconnect with the customer’s needs

People who run small cell phone repair shops become so involved that they aren’t able to ask themselves really important questions about the business. What you ultimately need to know is, what exactly is your customer looking for? Until you have the answer, you won’t be able to serve them better, and as a result, your business growth will be stunted.

Most business owners will have a vague idea in their mind of their customers’ needs. But more often than not, these ideas are predicated on what you “think” the customer wants as opposed to what they actually do. Sure, most people would assume that you have an attractive lobby or give service with a smile for the best experience, but that’s all skin-deep. Ultimately, your customer service rests entirely on one single premise – how well do you know your customer’s needs, and how can you give them what they want. Every customer loves good service, but it shouldn’t come at the expense of their time or their knowledge. They don’t want to get bogged down with the details or caught up in the technicality – they’re there for solutions. If your thinking isn’t aligned with them, then you’ve got a problem that needs addressing.

Solution: Understand what customers want

There’s a saying that goes around in business – service above self. Your customers will want to have efficiency, accuracy, speed, and simplicity above all else. As a repair shop, you need to understand what your customer is looking for, give them the solution, and move to the next.

Customer service is a significant part of the business. Your understanding that you work for the consumer needs to be prioritized. When people come to any repair store, they are looking for quality service done fast.  So, make sure that your solution is as swift, straightforward, and effective as possible.

The best way to do this is to give out ETAs and let them know when they can pick up their cell phone before committing to the sale. Schedule their repair in a calendar with time slots so you’re more organized and efficient.

In order to cater to your customer’s needs, you need to first build a relationship with your customer and make it so they feel like they’re being heard. Timothy Phelps, the COO of Techy gives a very simple guide to building that relationship:

“Just listen. It’s simple, guys. Just listen, give them that – one-on-one, pay attention. Show them an experience that they’re never gonna forget and that’s the first step to it, and that’s it. There’s really no magic tool to this, give it your all. When these customers walk through the door, treat them like either they are going to pay or you’re going to die.”

Solution: Get customer feedback

Understanding what your customer wants is one thing, but you also need to know how they respond to your business and the services provided. Customer feedback is not just a good thing to have at your store; it’s a critical part of your growth. Using customer feedback, you can analyze and determine what your customers need and how well they respond to your service. Most small businesses often believe that they know what the customer wants. Still, you’ll hardly find anyone with a detailed list they’re tracking and keeping an eye on.

Sending customer surveys after doing business with you and getting their input is the way to go here. Send them an email asking them to leave a review for you on something like Yelp or Facebook. Keeping a short survey card at your checkout counter or a quick survey on your customer-facing display would be great for getting feedback. You could also go for more verbal interaction; just make sure you note their feedback down for future reference.

RepairDesk QR Code Suggestion
You can follow this suggestion by Usman Butt, CEO of RepairDesk, on how to use QR codes effectively.

Since people are really busy with their daily lives, you could work on making the feedback process a lot easier for them. Place a QR code at the entrance to your repair shop and at your counter for your feedback or survey form. QR codes have the advantage of having a small footprint, being virtual, and play on the interest of your customers. QR codes are very popular and have seen a roughly 28% increase in usage from 2018 to 2019. So having one at your store can make it so much easier for people to give their feedback while they’re on the move.

 

Not knowing how much you make

As a cell phone repair shop owner, if you were to ask yourself how much you make, you’d have a vague idea at best. Your POS system could probably help you out, but in most cases, you’ll only know what your gross profit is. The truth however is that your takings at the end of the day aren’t exactly how much you’re making from your business.

Businesses have overhead costs and lots of other things which need money. Your shop will have expenses like ordering new parts and tools, and overheads like utility bills, rent, etc., and often you’re not going to know right away what they are. Some shop owners might not even know what those terms mean, which is a grave mistake. These numbers are the basis on which your repair business runs, and knowing about them is fairly crucial.

Solution: Get tools to help you with your financials

Figuring out operational costs, labor costs, inventory costs, break-even point, etc., is necessary for your cell phone repair shop, and it’s something you should pay close attention to. Bookkeeping for a repair shop can help give you a better idea of your gross profit and net profit. You may be making a tidy amount every day, but you won’t be able to grow unless you know what your net profit is.

Getting tools that help you analyze these metrics is the way to go. Your POS system probably already has them, and if it doesn’t, find out how you can get those numbers in the most convenient way possible. You’ll want to look at expense reports, sales reports, inventory numbers, payroll management – all necessary for a healthy business. Most software these days even let you view analytics so you can make better business decisions. The easier it is for you to know your profit, the better you’ll be able to operate.

5 Reasons You Should Apply For A Cell Phone Repair Shop Loan Right Now

5 Reasons You Should Apply For A Cell Phone Repair Shop Loan Right Now

Most cell phone repair shop owners do not have the funds to invest and grow their business. Since their credit scores are generally poor, they are often rejected by banks for loans.

If this sounds like you, do not worry. There are financial institutes that dole out loans to new and small repair business owners.

For RepairDesk users, in particular, there’s RepairDesk Capital. Those using other cell phone repair shop POS might not be able to avail RepairDesk Capital but for them, there are other financial institutions that offer loans to people with a low credit score.

Why Should You Apply for a Loan?

Whether it is RepairDesk Capital or any other loan that you are eligible to apply for, getting a loan has many advantages. Here’s what cell phone repair shops usually use their loans for.

  1. Buy Inventory

The top reason why cell phone repair shop owners apply for a loan is to buy inventory. Being the biggest business expense, inventory investment takes time to show any return. So a loan that you can return in a year or more would be helpful.

A good way to go about ascertaining if getting a loan to invest in inventory is a good idea is making sales projections and comparing them to the cost of the debt. Since sales figures can vary on a yearly basis, it would be wise to be conservative in projecting sales.

  1. Buy Equipment/Tools

If your main source of revenue is repairs, investing in more advanced equipment makes sense. It is also the second most common reason why cell phone repair shop owners take loans. Moreover, you may want to add more types of repairs so you’ll need additional equipment for that. For instance, if your shop deals with cell phone repair and you want to expand to computer repair, you’ll need more tools.

You may also need funds to subscribe to a good cell phone repair shop POS. Or you may just need new display shelves or have to renovate the shop to give a more posh feel and charge a premium. All of this is possible by getting a loan.

  1. Market Your Services/Products

The third most common reason to get a loan is when repair shop owners want to market their services or products to reach a larger audience. RepairDesk cell phone repair shop POS also has internal marketing tools but they only work with existing customers. To attract new customers, you can use social media. Successful cell phone repair shop businesses usually spend $500+ monthly as Facebook ad spend alone.

You may also order big signs to display outside the shop to increase your shop’s visibility. These act as a marketing gimmick as well.

  1. Move To A Bigger Location

You usually move to a bigger place when the business is booming and you do not have enough space to accommodate your existing clientele. But just because you’re doing well does not mean you have the money to move into a bigger place.

The added expense could be renovation costs, more expensive location, inventory purchase, moving costs, etc. A loan can cover all of these expenses.

  1. Build Credit Score

Having low credit score may not get you bank loans. But if you get a loan via other financial institutes, it still builds your credit score. So, loans make for an excellent way to build your credit score.

Moreover, the next you apply for a loan, you will have more options and better terms.

What Are The Pre-Requisitions For The Loan Application?

Different financial institutes will have different requirements. However, the pre-requisites for a RepairDesk Capital loan are pretty simple.

  • You have a credit score of at least 500.
  • You have an incorporated business for at least 6 months.
  • Your minimum acceptable monthly revenue is $6000. There have been instances where a loan has been approved for a shop generating $5000 monthly revenue but that is rare and under very special circumstances.
  • You have a strong plan and great ideas for the use of funds.

If the above requisites resonate with you, you pass the minimum qualification to get approval for a loan.

How To Apply For A RepairDesk Capital Loan?

All you have to do is connect your bank account or upload your bank account statement to begin the RepairDesk Capital process. Based on the size of your business, you may have to provide additional documents but that comes later when you’re presented with the offer and the contract.

Your data is compiled and the optimal lending options are accordingly explored by maximizing the funding amount while optimizing the pricing. Once that is done, you are made a loan offer.

Your approval can take as little as 24 hours. Yup, that’s right!

Should You Have An Excellent Credit Score?

No, you don’t need a good credit history or excellent credit score to apply for RepairDesk Capital.

On average, most cell phone repair shop owners are young. This means that they have less credit history or there are issues with their credit history. So, they have a lower score. Considering that, they are never approved for banks loan.

With RepairDesk Capital, however, your lousy credit history is not a deal-breaker. You can still be eligible for a loan. So, RepairDesk Capital is a big value add for you.

Nonetheless, there are certain aspects that will be factored in when determining the parameters of the deal. For instance, the total revenue that your shop is generating and your average bank balance are important metrics to consider. Additional considerations include the FICO score and credit score. However, they will not impact the approval of a loan. Because the credit score threshold isn’t high.

Jon Fry, founder, and CEO of LendFlow, our RepairDesk Capital partner, says that apart from the bank statement, other inputs include,

“How much revenue are you doing? How much balance on average is in their bank account? Those are going to be the most important metrics. The FICO, the credit score, is going to be weighted as well. So it is going to have an impact. If you have a very poor credit score, you’re going to be deemed a higher risk and that risk is going to be priced into the product, into the loan. So, well, the threshold is not very high.”

So, if you have a low credit score, you are a high-risk candidate for a loan. The risk factor will be added to the loan.

If you have a credit score of 700 or above, you get full points. A credit score from 600 to 700 is considered slightly risky. If your credit score is between 500 and 600, you are considered high risk.

For high-risk customers, the loan will be comparatively more expensive.

As far as the revenue is concerned, the minimum acceptable monthly revenue is $6000. But if you’re doing $10,000+ in monthly revenue, you will get better loan offers. At $20,000 monthly revenue, the options open up further. And if you’re doing $50,000+ in monthly revenue, you get the options of getting term loans, opening lines of credit, and more.

What Loan Amount Should You Expect?

The loan can range from $2000 to $100,000 and more, depending on your requirements and your means of paying back the loan.

As a new cell phone repair shop owner, you may not have a good credit score but that does not mean you shouldn’t get the same opportunities as someone with a good credit score to grow your business. So, if you have a solid plan to grow your business and use RepairDesk, apply for RepairDesk Capital today.

Learn How to Choose the Best Location for Your Next Repair Shop

Learn How to Choose the Best Location for Your Next Repair Shop

Any business will tell you that location is very important. This holds true for repair shops as well. Whether you’re repairing cell phones or fixing computers or just doing general repairs, location is going to be important. Not only will this help your business grow in size, but with the right location, you’ll also spend considerably less on marketing and visibility.

When growing your business, you want it to have the best chance of success it can get. If you want to choose the best location for your next repair shop, you’ll need to know certain criteria. Fortunately, once you look out for these simple things, you’ll easily be able to determine what that is every time.

When should you consider moving to a new repair store?

The first question that springs to mind is, why exactly would you want to move? If you’ve been engaging in business at your current location, it makes sense to keep yourself there and keep things stable. However, there could be several factors that might motivate you to scope out a new location.

Reason No. 1: Not enough room

Probably the biggest factor would be that as your business grows, so does the size of it. You’ll have more people in your workspace or more items to repair. In any case, you could find that your current setup might not be suitable for your needs.

Having the right amount of space is going to be necessary for your business. Sure, it may seem like you can manage, but sooner or later, that space is going to get pretty cramped if you’re seeing success. There’s only so much room for a handful of workers and a lot of items that need to get fixed, and you might need display cabinets or storage for more things. In these cases, moving to a new location is a good idea.

Reason No. 2: Better business prospects

Another major reason for changing your location or opening up a new one is the potential for business. The place that you’re moving to might be better for visibility. Moving to a new location can benefit you by tapping into a new area and getting customers from there. It could also help boost your marketing efforts to attract more people.

Most businesses often move to new locations or open up new stores there to improve their business prospects. Repair shops can easily get more work by moving to a location where it would be easier for them to get customers that are looking for repair services.

Reason No. 3: Better facilities

Odds are, you would like to move to a new location if your current one is lacking in certain facilities. Most repair shops start out wherever they can manage to find space, but those spaces aren’t always the best for them. You might find yourself in a place that lacks air conditioning or has problems with access. Maybe the setup isn’t right for the way you want to layout your store. Or maybe the walls are just falling apart and you want to get moving before everything collapses.

In truth, changing locations for better facilities makes a lot of sense. The better facilities you have at your store, the better you’ll be able to serve your customers. If you’re lacking something, chances are your customers will notice. So, think of it as an investment – changing your location or opening up a new store in a certain area can be a great source of income.

Lots more reasons…

There could be a lot more reasons you want to open up a new location for your repair shop. Maybe you want to be closer to a local carrier, or maybe you’re getting a really good deal on a place. Maybe your services are required more by a certain community that you’re comfortable with.

All in all, there are a number of factors that can motivate you to get a new location, and they can all work out tremendously. What you need to know is how to choose the best one for yourself.

Learn how Israel Quintal, Co-Founder and CEO of AdCentral, got the perfect location for his first repair store in our podcast.

What to consider for your next location

Moving a business around or opening up a new store isn’t easy. There’s a lot that goes into the whole process and being aware of it means you’ll have a greater chance at succeeding at it. When choosing a new location, keep in mind the following elements.

Target demographic

Let’s start off with the customer base that you’re trying to capitalize on in your location of choice. Any place that you go to will have people of a certain age group, gender, ethnicity, social bracket, buying power, etc. Your repair shop will be serving these people, who will ultimately help drive your business. In order to make your move profitable in the long run, you need to know what your target demographic is and what it requires.

For instance, moving into a community that is more into reuse and repair will serve your interests better. If you’re going into a place with a lot of millennials, for example, selling accessories like cell phone cases, selfie sticks, or headphones and speakers can be a great business prospect. If your new location is in an upscale part of town, consider stocking some high-ticket items or premium services. Having a sound knowledge of your target demographic helps down the line.

Ease of access

To make the most out of your decision, you will want your new location to be easily accessible for people. Places that are on busy streets, in clear view, and have good foot traffic are great for this reason.

Getting a place that is convenient and easy for your customers to reach makes it more viable for success. If your repair shop is not easy to access or has some sort of obstruction in the way, or if it’s tucked away in a corner, it makes it less appealing for customers to go into. What you want is a place that will make it visible and where you can put up different kinds of signage. Always ask yourself, how many people are passing by the location you’ve chosen, either on foot or by car. Look at where the entry points of your store are going to be and what angles it’s visible from. Even though it may seem basic, keeping these things in mind is necessary.

Have good anchor stores nearby

One of the best ways that you can make your new repair store location choice a success is if you have good anchors nearby. An anchor store is a major retail store that is drives businesses to smaller retailers. Anchor stores are usually found in shopping malls or strip malls and are major landmarks there. Big box retailers like Best Buy, Walmart, Home Depot, etc. can serve as big anchor stores that fuel your repair business with active customers.

The idea behind having good anchor stores nearby is that you get to benefit from the foot traffic that they receive. If your repair store is close to an anchor, you’ll ultimately have people coming in or at least remembering you’re there for future visits. Don’t underestimate the impact that a good anchor store can have on your business. Remember, your repair shop is a “destination” – it’s where people go for more than just getting the job done.

Keep your financials in mind

Of course, it all comes down to ultimately how much you can afford for a place. Price does count as a factor, though we’d consider it to be something on the lower end of your priority list.

Generally, it’s a good idea to go for a place that you can easily afford. Picking a good location obviously is going to be dictated by how much capital you have, and places like shopping malls will undoubtedly be more expensive to set up shop in. However, your investment in an expensive location can ultimately pay dividends if you play your cards right. If stretching yourself to get a new location in an expensive place is doable, you should consider it. Going for pricey places can actually help you get a good return on your investment, given the foot traffic and visibility.

We wouldn’t advise you to break the bank on this one. However, if you have the margin for it, consider it an option that will reward you handsomely.

Don’t forget to inform your existing customers

Now, this is one that you shouldn’t let fly under your radar: make sure your customers are informed of your new location. If you’re moving your store to a bigger place, this is essential for retaining your sales.

Your existing customers will, more often than not, remember the place where you operated out of more readily. Once you move, however, they might be confused as to where you’ve gone. This could end with you losing business as a result. So, make sure your customers know where to find you well in advance and keep reminding them. Put up signage weeks before you make the move and contact them via email and text messages. Give them the new location and stay in touch with them using your repair shop management software.

The transition to a new store is usually going to come with a drop in your business. Be sure to mitigate that as much as possible with proper communication. Keep your customers in the know if you’re planning to move well in advance, and continue to drop them messages. If you do it right, you won’t have to deal with the slump for too long.

Plan for a grand opening

This is a great idea to work with when moving to a new location. Consider having a grand opening at your new store to attract more business and leave an impression on the local community.

Opening your store with decorations and special offers can really drive in sales when you first open up. It will help you build a presence in the location you’ve moved to and let people know you’re there. You can partner with your local Chamber of Commerce for assistance in the matter, and they can help you keep everything within budget and under regulation. In fact, joining your local Chamber of Commerce can prove to be very beneficial in the long run, so don’t sleep on it.

When you do get your grand opening underway, reach out to your old customers and invite them as well. It makes for the perfect reason to get in touch with them about your recent change. You’ll not only make new customers with the endeavor but will also be able to significantly retain old ones.

In Conclusion

RepairDesk-Best-Location-for-Your-Next-Repair-Shop-Blog-Image

The best location for your next repair shop requires you to consider a lot. Moving to a new location will no doubt bring you better business. However, to make the transition a success, you need to take into account a few key factors. Determining why moving is a good option for you is important, as is figuring out the intricacies that go with it. Ultimately, by being smart about it and following these tips, your new location can be the next major step for your repair store on its road to success.

The Best Cell Phone Repair Parts Suppliers in the United States (Updated for 2021)

The Best Cell Phone Repair Parts Suppliers in the United States (Updated for 2021)

Cell phones are a major part of almost every person’s daily life. We rely on them a lot for all sorts of things, be it productivity, entertainment, or communication. And because we rely on them heavily, they tend to often break or fall into disrepair and must be fixed. That’s where cell phone repair shops come in.

Cell phone repair shops work on fixing phones for customers so they can be useful again. In most cases, these phones need parts to be repaired that have to be sourced from suppliers. But what suppliers would be the best choice for a repair shop? Well, we’re here to answer that question.

Here’s a list of some of the best cell phone repair parts suppliers in the United States that you can reach out to.

MobileSentrix

One of the leading companies that supply cell phone repair parts, tools, and accessories is MobileSentrix. They have an impressive catalog of quality parts available to thousands of customers in North America. Additionally, they provide lifetime warranties on all their products, making it easier to get a new item if your order has some defects.

MobileSentrix is well-known for its customer service and reliable deliveries of orders. The company offers several shipping methods for the items you order, so you can easily choose the one you prefer. Checking them out for your needs is a great idea.

Injured Gadgets

Injured Gadgets is another company that provides great cell phone repair parts in the US. Their catalog offers wholesale parts, tools, and accessories for cell phones, tablets, MacBooks, and other systems. They offer competitive rates, overnight FedEx shipping, lifetime warranty on LCDs, and global insurance on devices and items.

The company also has an LCD buyback program where they offer to buyback LCDs for tablets, smartwatches, iPhone, and Samsung smartphones at competitive market rates. This comes in especially useful if you’re dealing with cracked screens most of the time.

One of the best parts about this supplier is that they are very active with the community and have a personal Discord server where you can reach out to them or other customers. Their openness to discuss with customers and members of their community has helped them make a strong impression on a lot of people. A great choice for repair shops of all sizes.

Phone LCD Parts

Yet another company that has exceptional quality with their products, Phone LCD Parts is a great option for US business owners for their orders. They offer high-quality products for all sorts of phones, both popular and uncommon. Along with LCDs and other parts, they offer cases, cables, speakers, chargers, and other accessories as part of their catalog. Additionally, they have plenty of tools that help with repairs and parts replacements.

The company claims that all its screens are hand-tested throughout the supply chain to ensure quality control is maintained. If, however, customers are not satisfied with their purchase, they offer easy refunds for any defective parts.

Mengtor

Mengtor is a company that has been in the repair industry for more than a decade. They house the largest collection of cellular repair parts in the market. Their online catalog has a wide range of cell phone parts and accessories from the past decade. You’ll also find plenty of easy ordering options with them.

The supplier also offers parts for game console and iPad repairs, bringing more value for repair shops. As with other suppliers, Mengtor also has a host of tools from Qianli, JC, 2UUL, and other manufacturers to make your job easier. They provide 180 days warranty on all their parts and offer free FedEx ground shipping on orders over USD 400. Check out their website to learn more.

Mobile Defenders

If you’re looking for a supplier that is consistent in delivering the best cell phone repair parts to the industry, Mobile Defenders is a great choice for you. They offer quality parts to all their customers and are genuine OEM suppliers for companies such as OnePlus, Motorola, Lenovo, and LG.

The company offers parts for the usual Apple and Samsung phones, while also expanding their services and offering parts for iPads, Samsung Tabs, iPods, MacBooks, Surface tablets, and Chromebooks as well. In addition, parts for popular systems like the Xbox and Playstation are also available with the supplier. The company also has a broken screen buyback program, a pre-owned devices program, premium accessories, 30-day (or more) payment terms, and a lifetime warranty on its parts.

THIS Is How Your Cellphone Repair Shop Can Score A School District Contract

THIS Is How Your Cellphone Repair Shop Can Score A School District Contract

You’ve often read on cellphone repair shop POS Facebook groups and sub-Reddits that a certain shop owner repairs 50 devices a week because he has a contract with a school.

And this makes you wonder; wouldn’t it be perfect if you had some steady source of repairs as well?

So you research and ask around to try to find out how someone would approach a school and get on their payroll. But to no avail. There are no resources on the internet to help you out. You don’t know any shop owner who has a similar contract. And the online community is of little help.

You know school contracts are profitable. You also know you need that steady flow of income so bad.

So, what do you do?

Forget about it? Absolutely not!

We’re here to help you figure out exactly what to do to get school contracts and grow your cell phone repair business.

Why Should You Get A School Contract?

If you aren’t convinced already, let us walk you through the benefits of getting into a contract with schools.

  1. Less Hassle

If you’re getting 20 devices to repair from a school per month, you’re only dealing with one person, not 20 different people. Even when you’re using the best cellphone repair shop POS, adding so many tickets will take time. Dealing with one point of contact is much less hassle. You are only answerable to one person for updates, inquiries, and other repair-related issues.

  1. The School Rep Doesn’t Own the Device

You’ve dealt with far too many difficult customers to overlook the benefit of having an unattached customer. Since the school representative doesn’t own the devices that come in for repairs, they are not as finicky or emotionally invested in the repair. So, when a device cannot be fixed, they couldn’t care less. They don’t get mad at you.

  1. Steady Flow of Income

School contracts come with a steady source of income that most repair shops struggle to get. If you have a steady amount of money coming in, you will have peace of mind, the ability to focus on expanding your business rather than dwelling on making ends meet, and have more money to invest in your business. So, regular income is just an added bonus that comes with working with organizations like schools.

  1. Free Publicity

If you get into a contract with one school, you can use that to get contracts with other schools as well. The school staff have a dense network and are likely to refer you within that network. Moreover, if you’re approaching a second school, you can always mention you’re already working for another school. This will add to your credibility and raise your probability to get the business.

The free publicity can also work in another way. The school staff is likely to use your services for their family as well once you prove yourself reliable. So that is additional business coming in.

What Are The Pre-requisites To Get A School Contract?

Getting a school contract requires some groundwork. You have to qualify in a few departments to be eligible to get a school contract.

  1. Strong Branding

You don’t want potential customers landing on your Facebook page and you last updated it in October 2019. You are bound to lose credibility.

Your cell repair shop must have a presence on at least one social media platform. You can experiment with more if you can handle it. But, be consistent. Spend maybe 10-15 minutes a day or delegate this responsibility to one of your employees to keep your page updated.

You should also have a complete, functioning website that is regularly updated. Keep on updating it with the latest offerings as well. That will build your brand as a serious business and improve your cell phone repair shop’s visibility on search engines.

Neither one of these requires a lot of money, just some time and effort. And if you really want to secure a school contract, you should be able to find the time to work on this. Dedicating an hour every week is enough to keep your website up and running.

  1. Competitive Pricing

Make sure that your repair shop has structured pricing. Because some schools have one to ten iPads and then others might have a hundred iPads. And it is professionals that you’re dealing with who expect professionalism in return.

So, make sure you have competitive pricing. The ideal way to go about it is by creating a pricing hierarchy. So, you charge $x for 1-10 iPads, $y for 11-20 iPads, and so on.

Come up with price breaks so if a potential school rep asks you how much for 50 tabs, and then how much for 80 tabs, you are ready with the prices. Here’s a sample email that gives a breakdown of pricing.

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  1. Ability to Service Volume

You cannot be a one-man show to deal with school contracts. You will need multiple helping hands because school contracts come with multiple repairs at a time. There may be schools with 10 tablets and you might get a school with 100 tablets. So make sure you’re well-staffed to cater to a school contract. If you think handling so many employees will be difficult, use a good cellphone repair shop POS system that will help you monitor them easily.

  1. Ability to Service Variety

Another factor that will help you score a school contract is having technical staff with a variety of expertise. School administrators really like that. They don’t want to run around to different places for different types of repairs and accessories.

SO, let’s say the school wants a hundred cases, you offer installing them too. Or if a school wants a hundred temper glasses, you offer to install them too.

  1. Reviews

If you are a new repair store, encourage your customers to leave you a review online on platforms like Yelp. You can even offer them a voucher or a discount if they leave you a review. This will help you get a reliable online presence and build your shop’s reputation. In return, it will be easier for you to score school contracts.

If you have no online reviews, don’t worry. Slowly build towards it. Once you have around 50 reviews with an overall 4.5 rating, you can start reaching out to schools.

  1. Compliance

The state of California requires all repair shop stores to have the state license to repair to function legally within the state. Not all the states in the US have that pre-requisite but check if yours does. And make sure you get that license. You can even add this to your sales pitch because this presents you as a legitimate business. Moreover, this means the customers can make a complaint against you to the state which makes them more comfortable trusting you.

  1. Certifications

It is always a good idea to have some of your technicians certified. For instance, getting a PII certification can be an added benefit that you can pitch to the school. The PII certification teaches you how to handle data and privacy which schools would really appreciate. Now certifications aren’t exactly required but they do leave a good impression on schools.

  1. iPad & Chromebook Technicians

Schools usually have both iPads and Chromebooks. If your technicians specialize in iPads only, you won’t get the contract. Because a school will prefer going to a repair shop that offers iPad as well as Chromebook repairs.

How Often Should You Expect Repairs From Schools?

You are likely to get some repair business every two months from schools on average. However, right before the summer break is the hottest time. Because the school’s new budget will shortly come in and they have money from the previous budget that they need to spend.

The beginning of the school year is also very busy because that’s when the new budget kicks in. But most of the services required at that time are getting cases and screen protectors installed.

So, How To Get A Contract With Schools?

Now that you’re set with the basics, here is how you go about approaching a school.

Step 1: Which Schools Do You Have In Your District?

Each district in the United States has a minimum of 5 schools. You probably know the schools in your district already. But in case you don’t, a simple Google research will take you there.

So, pick out the schools you want to target and get started.

Step 2: Who Should You Contact?

The IT Director or the superintendents are your best bet. They are the ones responsible for outsourcing device repairs.

Step 3: Where Should You Contact Them?

There are many ways you can go about finding contact details. If you know the location of the school, you can visit it. However, with Covid-19, there may be certain protocols in place to visit a school so make sure you’re aware of them.

If physically visiting the school is not an option, go to the school’s website and look for the IT department head. You should be able to track their email ID there. And if you’re lucky, you may even come across their official phone number/office extension.

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If the phone number or email ID isn’t stated, call/email the administration office and inquire about the required details. They should be able to help you with that.

Here’s an email template you can use to inquire about the head of the IT department.

Step 4: Should You Prepare A Script?

That totally depends on how well you know your services. If you feel creating bullet points will be helpful, make them. It is generally preferable that you give the IT Head a call. But if you don’t get the number, do not underestimate sending an email. More often than not, you will get a response.

When writing an email script, make sure you are not too generic. Keep the subject catchy and write something like “Local business wants to service you” or “We can service your IT department.” It has to be something that resonates with their values and needs.

Start with briefly introducing yourself. Go on to elaborate on your services.

Cover everything basic. What services do you provide? Why are you the best candidate for this job? Where can they reach you? Giving your phone number is ideal.

Step 5: Cold Call/Email

The next step is to either call them or send them an email. If you have the email ID, try to get their phone number via email and talk to them. A cold call is always more personal and comparatively more successful than a cold email.

Try to make the call/email personal. You don’t want to sound too salesy. Rather, you want to build a relationship. Concentrate on solving their problem rather than providing your solution.

If you’re writing an email, make sure you’re as specific about your services as possible and present the variety. Like, you know schools usually have iPads and Chromebooks so mention that you can fix iPads and Chromebooks, you have their accessories, you can install those accessories, and you can pick and drop the tablets.

Don’t limit yourself to tabs though. Tell them other devices that you cover as well so in case they have a Macbook lying around, or a computer that needs fixing, they know they can go to you.

If you’re calling the relevant person, remember that calls require a quicker reaction so spontaneity works well. Some of the things you should ask them on the first call are:

  • Number of devices they have
  • What kind of devices they have
  • What exactly is their need

Most schools will prefer working with a local business so always mention if you are. Also, do not give prices on the first call. Always tell them that you will revert back with that detail. This way you will be better prepared to give a more realistic number.

Step 6: Follow Up

Once you have had that call, email a roundup of everything you discussed over the phone.

cell-phone-repair-shop-POS

If you take a look at the sample email, the repair shop owner mentions the type of repair, the price, the turn-around time, and all other details in written form. This works as a kind of informal contract between you and the school.

When working with schools, you will not officially enter into a contract. This does not mean that there is no form of agreement at all. The invoice usually does contain all the terms and conditions. So those make for the contract.

You can draw up a formal contract but it will be project to project. If the relationship works for them, they are likely to keep you on board and continue their services with your cell phone repair shop.

However, you can put a school on a monthly retainer for a year-long contract. But that depends on the terms you and the school agree upon.

How To Price Your Services?

It is important that you know how you are going to price your services. Since a school contract is not an everyday, one-off repair, you will have to give some discount. How much discount? Well, that depends on your expenses and a number of other factors.

Generally, giving a 15% discount is the general practice. However, it depends on volume and the type of repairs you’re getting. So, it changes according to the deal and is tailored according to their needs. The amount of discount also greatly varies if your repair shop is a franchise.

But as long as you’re making at least $50-$75 per device on bulk orders of at least 20 devices, after all expenses have been accounted for, it is a good profit. Again, a good technician will be able to fix an iPad in 20-30 minutes. But if your technician takes longer, you have to account for that and adjust the price accordingly.

We partnered up with a few industry experts and came up with three different formulas to help you price your services.

The Efficiency Formula:

For a single-person owned cell phone repair shop that doesn’t work with volume and has a largely B2C customer-base, the Efficiency Formula is ideal. First, you need to know your revenue per hour and you can calculate it using the following formula.

Sales (monthly) / hours worked (monthly) = revenue per hour (monthly)

Now, you need to calculate your expenses. This includes all your overheads including labor, parts, and operational costs. So, to determine the hourly expenses, you use this formula.

Costs (monthly) / hours worked (monthly) = cost per hour (monthly)

Subtracting the revenue per hour by cost per hour will give you your average profit per hour (monthly). So if your cost comes up to $30 per hour and you want to charge $50, you will have a $20 profit.

This way you can determine how much you want to charge based on the time each repair takes and how much discount you can offer to still be profitable. This formula is quite simple but is a good base to start with.

The Complex Formula:

This formula is a more detailed version and accounts for more factors than the Efficiency Formula. It should be used for the more experienced shop owners. Here’s the formula.

Part Cost + Operational Cost + Labor (variable) + Risk Factor (variable according to difficulty of repair) + Mark Up + Retail Experience (variable if B2B or B2C)

= MSRP

The risk factor is usually associated with iPads. Because if an iPad comes in for a simple battery change, it carries the risk of a broken screen. Moreover, devices with a low repairability score usually rank higher on the risk factor. So, these are elements that you have to consider when deciding on how much you want to charge as the risk factor. Ideally, it should be between $30-$50.

As far as the retail experience is concerned, this can include the cost of pick & drop or shipping service if you’re providing any. It will also include any added service you offer. For instance, if the school places an order for screen replacements, you offer to install them also. So, the installation costs will go under retail experience.

Basically, retail experience is anything you’re doing to make your customer experience more valuable and unique.

The General Formula:

The most recommended out of the three formulas mentioned, the General Formula is best for retail. Here’s how it goes.

Part Cost + Operating Cost + Mark Up = MSRP

Whichever formula you pick, offer a 10%-15% discount for B2B services depending on the type of repair and/or volume. And, you need to make sure that you are making a profit after the discount.

As far as the payments are concerned, the secretary makes them instead of the IT head. They decide how they will pay you also, which is mostly via checks.

You must keep in mind that schools usually pay on net terms. So expect deferred payments. You can have this discussion on the payment terms once the school agrees to do business with you.

How To Maximize Profits From Your School Contract?

Once you have scored a school contract, there are many ways you can offer more services over time and increase your profits. Here are just a few ways you can do that.

Sponsor Local School Events

This may sound like an expense rather than profits. But think of it as an investment that will reap benefits. So sponsor local school events and your shop will get more exposure and market penetration. You can put up banners advertising your shop. Or you can offer discount cards at the event.

The advertisement will bring in students’ families as potential customers. The discount cards will further promise you business.

Offer Trade-Ins

Although trade-ins should not be your basic pitch, you can offer to buy in the older devices when the school orders a batch of new ones.

Up-sell

You know tablets will need screen protectors and tablet cases. When the devices come in for repairs, you can up-sell these accessories. Moreover, offer to install them as well.

Cross-sell

If a school has tablets, they also need network services. Network services are like a close counterpart of repair shops. So, you can cross-sell network services to them.

Offer Loyalty & Rewards Program

If you are using the RepairDesk cellphone repair shop POS, you can easily offer a loyalty and rewards program to the school. So, in addition to the school getting further discounts for availing the loyalty program, you can extend that discount to the school staff and their families. You can even offer a deal for the students who go to that school. So if they need to get their device fixed, they show their school ID and get a discount.

Put Up A Standee In The School

You can further publicize your services by requesting the school to put up a standee or a banner within the school premises. This will remind the staff as well as the students of your presence and reinforce your brand in their minds.

Tips & Tricks

Here are some further tips to help you maintain a good relationship with schools.

Under-Promise, Over-Compensate

Always give the school a longer turnaround time than you can work in. This is an effective tactic to build a relationship with customers.

For instance, if they send 10 devices to repair and you know you can fix them within 2 days, give them a week’s time. And then get them done within 2 days and send them back earlier than the stipulated time.

Offer Pick & Drop

IT heads are usually quite busy. So, if you offer pick and drop services, they are very likely to avail them. Besides, if you’re a local business, picking up and dropping off the repair order will not be much of a hassle.

You can also offer to ship the order, although that would be more costly. But what matters is that you’re creating ease for them. And the school representative isn’t paying from their pocket so they don’t care about the overheads as long as you providing ease for them.

Warranties

Be very clear on the warranty you offer. Mention it in your terms & conditions and tell the school about it verbally as well. Also, make sure your terms & conditions are printed on the invoice.

Check Back Often

It is important to check in with your person of contact every now then. The IT heads will rarely have the time to come to you for a broken device or two. That’s what you’re here for. Drop them an email once every month and ask if they require your services.

Sometimes it works, sometimes it doesn’t. Nonetheless, it helps refresh their memory and reminds them that you’re there. It keeps them engaged with you, which in turn helps you build that relationship further.