There is a lot of money to be made in the repair industry, but revenue growth doesn’t just depend on just actual device repair. Repair retailers that are thinking above and beyond repairing devices and are looking at the more advanced angles of their operations that will not only be more competitive but will help them make a lot more money and scale their business much faster.Does more money sound good to you? We thought so! Below are five key ways to diversify revenue beyond just repair:
Stock Accessories In-Store
A simple addition to your repair business is to increase peg space for accessories. What better time to sell a customer a screen protector or phone case than when they’ve just had to pay to repair their device? They’ll want to protect that investment and your staff can encourage them to do so while offering products they actually want.
But accessories can go above and beyond just cases or screen protectors; you can also offer other consumer electronics products like chargers, headphones, speakers, wearables, smart home products, and other useful products! Make yourself more than just a repair shop, become a retail destination. While customers wait in-store for their device, they can browse your additional options and when they find what they want, you will see the increased margins.
Fulfill Orders with Dropship
While the above option sounds great, it may not be completely realistic. Depending on the size of your repair shop, you may not have a ton of room to stock accessories. You may also not have the cash on hand to invest in a bunch of accessories and device inventory.
Rather than just offering these products in-store, why not offer customers drop ship items where they can order from your store and have the product shipped directly to their home or office—right from your accessory vendors! It’s that easy. The best part about this option is you won’t need to invest in the inventory until you already have your customer’s cash in hand.
Offer Warranties & Protection Plans
By offering extended warranty options you’ll be increasing your customer’s confidence in your parts and repair services. But again, your customers have just paid to repair their device and likely aren’t feeling as invincible as they once did. Give them the opportunity to buy additional protection plans for their device so they feel protected the next time something unexpected happens.
By offering these protection plans you’ll not only be giving your customers full-service and peace of mind, but you’ll see a brand new revenue line.
Integrate Trade-Ins & Buybacks
Cell phone buybacks can be used to motivate customers to trade their devices up, and another use they offer is an alternative to costly repairs. Having programs that support trade-ins and buybacks is an easy way to diversify yourself as a business, see additional revenue, and offer the best solution for your customer.
With buybacks, you can source pre-owned devices and have a system in place in your stores for valuing the customer's old phone, then give the customer a credit on the trade-in. This is a profitable option, but keep in mind that it does have greater risk. If you don’t want to live on the edge, you can also use an integrated vendor for buybacks who will tell you the current value of the customer’s device. The risk of over-valuing the trade is transferred to the third party; this protects you. However, we all know with less risk comes less reward. This second option may result in a lower margin.
Sell Pre-Owned Devices
What happens with those phones that have been traded in? Make the most of them! By repairing those devices and offering them to future customers as an alternative, you can be making a higher margin on that device than the original repair. Customers may want additional, less expensive alternatives, and this is a good one. This option may also bring in new customers that don’t even necessarily need a repair! They’re just looking for an out-right device at a lower cost, and with what you can offer, they’ve come to the right place.
By thinking about how you can extend your operations beyond repair by implementing these additions to your business, you’ll be far more profitable in no time. And who doesn't love a better bottom line?
Whether you're new to the repair market or your an industry veteran, we've got your guide to growth in the ever growing repair segment.
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