Do you want to know how much cell phone repair shops make in profit? If YES, here is an analysis of the income potential of cell phone repair business owners. A cell phone repair shop repairs broken or damaged cell phones and tablets. The target market for these shops is technology consumers. In this business, you will be reaching out to the savvy tech user who understands how a repair can save them time and money.
As cell phones and other devices become more costly and powerful, the owners will want to stay with their tried and trusted choices for tech connectivity. You can literally start with a single cell phone screen and make enough money to quadruple your inventory. Depending on how available you are, you may want to start with 5 – 15 pieces of each item you wish to repair. This allows you to continue to serve your customers while waiting for more parts to arrive. This cost can range from between $100 – 500.
Note there are many cell phone repair kits out there, but each device requires a different type and amount of tools. It is good to start with the basics like screwdrivers, spongers, adhesive tape, scissors, and tweezers. The cost is about $50. If you are starting a business though, you need to begin marketing that business to start receiving customers. We will cover that in a future article.
Estimated Profit Potential of a Cell Phone Repair Shop
It is hard to pinpoint how much a cell phone repair shop can make monthly or yearly. Some shops in the industry are sole proprietorships and only open part – time. Others are brick and mortar shops with several employees. However, profitability rests on market demand plus your availability and ability to successfully manage costs and promote your business, among other factors.
Revenue in this business is generated through the fees customers pay to have their cell phone or other mobile device repaired or upgraded. Repair and upgrade prices will vary, depending on the make and model of the device. The average cost of a broken screen, for instance can start around $75 but can rise to as much as $300.
Meanwhile, an average cell phone repair business could net profits in the range of $50 – 65,000, as you continue to become more well – known and successful.
In this business, it is important to make sure that your prices are competitive, but remember that a repair on a $1000 phone will still be much more affordable than replacing the phone all together. If you earn an average of $80 per repair and complete five repairs per week, you will earn around $400 weekly (less overhead), which amounts to around $21,000.
If your repairs increase to ten repairs, then you will earn $800 per week. At 20 repairs, you will earn around $1,600 – which comes to $83,000. But if you hire employees, you could scale your business exponentially. Many cell phone repair businesses expand to include repairs on all kinds of tech gadgets. Gaming systems and music production equipment may also be good fits for modern repair shops.
In this business, to increase profitability, you can also offer customers phone and data plans through third – party service providers. As the technology surrounding our lives increases, as it is sure to, there will be more avenues to explore and include in your business plan.
In this technological era, cell phones are a very popular and useful item for almost everyone. They are fast becoming a necessity for most, no matter where you reside. We humans have adjusted to managing both our business and personal lives with these pint – sized technical powerhouses.
When one breaks or is no longer working properly, many individuals find themselves in a situation in which they must quickly find a replacement. However, not every person has the incentives or access to pick up a new phone or device, when there’s trouble with their current one.
Owing to this, repairing a cell phone becomes another necessity for remaining connected. Repairing a cell phone, hence, becomes the ideal and only option for many.
In addition, with cell phone sales and prices continuing to rise, there will be many more devices requiring repairs in the coming days, months, and years. The cell phone repair business is poised to become one of the larger facets of the technology industry, with even more individuals opting for a repair, especially as the price of cell phones continues to skyrocket, as well.