In today’s fast paced lifestyle, people are relying more on their smart phones and mobile devices for more and more aspects of their everyday lives. The Apple iPhone is the most popular smart phone in the world with over 60 million units sold, and their sales are growing exponentially. With the ability to manage your whole life and business from these devices, it is no wonder why people depend so much on their iPhones. They face only one downfall – they are very susceptible to breaking.
On average 4.5 million iPhone glass screens break every year. In the past the only options were to take the phone to Apple ($200 to repair), take it to a big repair shop ($80 to repair) or do a mail in repair service and be without a phone for 3-5 days. A new trend of home based iPhone repair businesses are now emerging and becoming extremely successful.
The factors that contribute to their success are
- Local – Within 10 miles of customers
- Fast – Repairs done in under 15 min
- Inexpensive – On average charging $40 – $60
iPhone Repair Business Start-up
After you have decided that you want to start an iPhone repair business the first step is to learn the repairs. It is easiest to do this by buying a broken iPhone so that you can practice on it and not worry about breaking one of your customers phones. This also gives you more time to get comfortable opening the phone up and working with the tiny components.
Now that you have mastered the skills of the trade you can begin to determine how you are going to run your business. Things like where are you going to get replacement parts, how you are going to market, and where you actually want this business to take place. There are a growing number of people operating home based iPhone repair businesses and simply set up shop at home. This model works well because it helps to keep costs down on all fronts and you can work form the comfort of your home.
Even if you do plan to open a store eventually, starting out of your home and getting a feel for the demand in your market is always a good idea. If you do decide to work from home it is important to check local laws about running a business from your home and make sure that you are in compliance.
Which iPhone Repairs Make the Most Money
The iPhones front glass screen is very susceptible to drops and accounts for 80% of the broken iPhones out there. The rest of the repairs consist of water damage, charging port, speakers ect. The great thing about the front glass screen on the iPhones is that a replacement screen can cost under $10. This leaves a profit margin of $40 – $50 per repair which takes on average 10 minutes. The business or repairing cracked iPhone screens alone is more than a $200 million dollar business, based on the average price of $50 per repair.
Your inventory level should grow as your sales grow. However, it is prudent to start small, keeping inventory at a realistic level. For instance keeping enough parts on hand to last you at least 5 – 7 days is a good measure. This way you will have enough time to order more parts and account for shipping time. It is always good to carry a little more inventory than necessary so that you are never out of parts if you have an un-particularly busy day.
Another big factor when buying parts is the quality. There are dozens of parts suppliers out there and not all parts are created the same. For instance, the iPhone 3G screen has four different quality levels that are all marketed as the same part by online suppliers. You will never know which quality you get until they are shipped to you. There is also the question of using a US or Chinese supplier. It is recommended to start with a US supplier and then based on your own personal risk tolerance, and time you are able to wait for shipping try other options.
Marketing Your iPhone Repair Business
Once you are comfortable with the repair process you need to start marketing your new business. If possible the best first customers are friends or acquaintances that you know because they will be understanding if you take a long time to do the repair or encounter a problem.
The next step is to start marketing around your local area. There are dozens of ways that this can be done for free. There is absolutely no need to spend money on anything else other than business cards and flyers. One way for example is to put up flyers with pull tabs on pin boards in grocery stores, day cares, car washes and restaurants around your city. Another free option is to post advertisements on websites like Craigslist and Kijiji.
Pricing your iPhone Repair Services
Pricing your repair services is a challenging proposition. Setting your price too low and you run the risk of undermining your profits. While if you set your prices too high you can run the risk of losing customers to competitors. One important thing to take into consideration is your competition and what prices they are charging. You can find them by doing an online search of “Your City iPhone Repair” and this should bring up your major local competitors.
The one price point that is universal is Apple who charges $200 to repair a cracked screen. It is not always beneficial to undercut your competition, but in a home based iPhone repair business it is usually pretty reasonable since you are cutting costs on having a storefront. Setting your price is pretty straight forward just remember to account for the replacement parts, labor, advertising, and any other expenses that you incur. The typical profit margin for most repairs is $40 – $60.
Opportunities in the home based iPhone repair business market are growing exponentially. Your income potential depends on how hard you work and marketing your business because if you live in any city or suburb then the market is there!
There are dozens of iPhone repair businesses started by United iPhone Repair, some full time and some part time. The part time businesses, people just repairing phones in the evening, are able to bring in on average 3 iPhone repairs per day which equates to $37,500 in revenue per year or $30,000 in profit. While the full time businesses can bring in 5 – 10 phones per day and generate revenues over $100,000 annually.
Recommended Books on iPhone Repair Business:
- Business Plan for an iPhone Repair Service (Professional Fill-in-the-Blank Business Plans by type of business)
- iPhone: The Missing Manual
- The Unauthorized Guide to iPhone, iPad, and iPod Repair: A DIY Guide to Extending the Life of Your iDevices!
- iPhone Screen Assembly Repair Guide – Do It Yourself!
- iPhone 4 & 4S Back Glass Repair Guide
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Category: Business Ideas