For those of us who have had the misfortune of breaking our phones, we can all remember the awful shattering sound it made after it plummeted to the floor. In 2017, SquareTrade, a company that insures smartphones, reported that “a cellphone in the U.S. breaks every two seconds.” With the increasing popularity of these expensive, yet fragile smartphones, it’s no surprise that the repair industry has seen a boost in sales over the past few years.
Despite this growing demand, the cell phone repair industry remains an unconsolidated sector, without industry standards, and inhabited by mostly single-location dealers battling it out among themselves. Some larger wireless chains do offer repair services, but the market is largely comprised of these independent repair retailers. With this increasingly competitive environment, having software to enable you to easily manage all aspects of your business is key.
Here are 4 benefits of using a point of sale system in your repair shop.
1. Inventory management
Without a POS system, inventory tracking is manual, time-consuming, and has room for error. In addition, not having a comprehensive retail management system means it is more difficult to predict when stock levels are low, and more products and parts need to be ordered.
Keep Track of Parts Better – With so many parts and pieces involved in maintaining a repair business, an inventory management system will allow you to keep track of parts from ordered to received to sold on a repair, and see cost/profit.
Increase Profitability – Through repair part forecasting, stock balancing, and aged inventory tools to weed out old inventory, you can increase your revenues in having the right products and the right amount.
Real-Time Inventory – Be provided with real-time, up-to-date notifications of what you have on hand. With multiple store locations, this makes it easy to transfer inventory from one location to another, reducing overstock at one location when there is not enough of the product at another.
Having a POS system provides you with reporting, not only on your inventory and trends in sales throughout months and year over year, but with the tools to make smarter decisions about your business, ultimately impacting your bottom line.
Accurate, Real-Time Reporting – Having real-time knowledge and visibility into your business allows your sales associates to make the best decision at that time. In addition, this allows them to be as agile as possible using a variety of information based off customer buying habits.
Overall Sales Performance – Reports that analyse sales to identify trends in your business allow you to better staff your company, order accurate inventory, and provides you with information to more accurately predict device repair times to your customers.
Inventory Reports – Having visibility into the products you use the most in repairs, sell the most as add-ons, sell the least and should no longer stock, or have been returned the most allow you to operate a more efficient, reducing age of inventory.
Integrations, as part of a centralized software solution, can connect every component of your supply chain, with the Retail Management system as the focal point.
Dropship – With a Dropship integration, offer hundreds of additional products, like cases and screen protectors, to your customers without the risk of stocking them.
Vendor Managed Inventory for Repair Parts- Work with your suppliers to establish seamless processes for replenishment and special orders.
Phone Buyback – Use an integrated vendor for buyback of devices, streamlining your customer’s experience. The integration will tell you the current value of a customer’s old device given its current state.
Warranty & Protection – Become a one stop shop and provide Sales Associates the ability to sell warranties to customers within in same transaction.
4. Scaling your business
With many single-location dealers in the repair space, business growth is inevitable. To effectively scale your business with adding locations, expanding product offerings, and hiring additional staff, a POS system is key to this success.
Reduces Manual Work - With many requirements of managing day to day operations, a POS system gives owners and managers the most useful resource back – their time. Using a streamlined tool provides them with information efficiently and effectively to manage their business.
Monitor Your Business – With a POS, monitoring sales, inventory, and staff across multiple locations is easy with the ability to have multiple locations in one system. This bird’s eye view provides quick visibility into overall business performance.
Launch & Growth Support - A system that offers launch and growth support is a must. Having a team that is available to offer support, industry specific knowledge, and suggestions on your growth will make is a smoother and greater experience.
So, how can businesses succeed in this dynamic, shifting marketplace? With carriers getting into the repair arena, how can independent cell phone repair shops keep pace?
The answer is to take the next step beyond manual methods or outdated technology to compete on a more sophisticated level – using automated, cloud-based, fully integrated systems, regardless of your business size – implementing a POS system.
Interested in hearing more? Learn all you need to know about optimizing your cell phone and device repair shop in our five-part webinar series.
Shutterstock / Poravute Siriphiroon