Increasing Service & Repair Revenue Through Drop Ship

Jul 17, 2017 — Channing Kochylema
Cellphone service and repair Dropship Revenue.jpg

“I’ve never broken my phone screen,” said no one ever. With the advent of the cellphone and the extreme jump in users that this industry has seen over the last 10 years, a spin-off industry has been created that’s becoming more prevalent in all our cities; Service & Repair. This industry has the sole focus of not only fixing your phone, but also aiming to remove the pain of having to wait days, or even weeks to have your phone back up and running.

Beyond the Repair

Service & Repair companies are in an exceptional position to create a unique relationship with their customers. They can come to the rescue and fix a situation that is often very stressful for the owner of the phone. Cellphone users are extremely attached to their phones, almost to a scary degree. When your consumer has this extreme emotional attachment to an object, being able to quickly turn a negative situation into a positive creates emotional attachment to your brand. In turn, you create loyal customers and ones who will advocate for your brand.

So now we’ve covered that you have a very loyal customer and one who is likely spending time in your store waiting for their phone to be repaired. Sounds to me like there’s a perfect opportunity to capitalize on additional streams of revenue.

Drop-ship to Pick-up Revenue

Drop ship capabilities will allow you to provide additional products to your customers without having to increase your overhead or occupy valuable store space. While customers are waiting for their phone to get fixed, they can peruse phone accessories that you’ve now made available to them using the drop ship product. While you can fix their phone, it’s likely you cannot fix the case that may have also broken, or maybe your customer would like to buy a new case while they wait because they’ve gotten sick of that pink leopard print case they currently have. Maybe they’ve learned their lesson and would like a screen protector to protect the brand new screen you’ve installed.

The possibilities here are only limited to the product offering you’d like to include within your stores. Through our own market research, we’ve witnessed our customers are able to sell up to an additional 16 accessories per month, per location with drop ship. These sales have equated to an additional revenue of up to $445 per month, per location. Keeping in mind there is no cost to add this service, it’s clear to see why implementing a drop-ship program will enhance your bottom line, increase customer loyalty and satisfaction, and separate your company from the competition.

Looking for more tips on how to take your approach to repairs up a notch? Check out our whitepaper, The Right Fix: Winning with Mobile Device Service & Repair.

Get the Whitepaper

Topics: Retail Operations

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