Computers and Technology

How To Diversify Your Cellphone Repair Business?

If you are managing your repair business effectively with the help of cellphone store software, then it’s time to consider broadening your scope to increase sales.

Diversifying your repair business outside of device repair will make your repair business the go-to shop for all device needs. From repair to accessories, customers will be able to purchase everything from you.

But the question here is how to increase sales outside of device repair?

To help you figure that out, we have listed down all the ways you can widen your ways to increase your revenue.

Provide Accessories In Your Store

Selling accessories in-store makes your repair business a retail destination. The list of device accessories is endless and includes back covers, screen protectors, headphones, chargers, power bankers, speakers, etc.

While customers wait in line to get their devices repaired, they can browse through your accessory stand. It will help you score another sale if they find something they want to buy.

In addition to this, you can offer accessories while checking out a customer through your mobile repair shop software.

For instance, a customer comes in to get their cracked screen repaired. That is the best time to sell a screen protector or even a back cover. They will obviously want to protect the investment they made on their device, and if you encourage them, they will definitely opt to buy accessories for their newly repaired device.

Another reason to have accessories in your repair store is that customers will likely buy them more often. So having them in your repair store will only increase your chances of sales and profits.

Sell Smart Home Products

The smart home industry’s revenue is expected to showcase an annual growth rate of 16.1% (CAGR) from 2020-2025. And this market is projected to touch a $195,295 million market value by 2025, which was $92,744 million in 2020.

So, it is clear from the above stats that the demand for smart home products is increasing, and the trend will remain the same in the future.

Now the question comes, what is the ideal way to capitalize on it rather than stocking smart home products in your POS software?

You can invest in smart security systems. If you are unclear about investing in smart home products, you can start by adding a limited number of systems. Then, monitor the sales for a couple of days and increase your product base gradually according to the demand.

In addition to this, you can offer assistance in installing smart home systems to broaden your services. It will help you enhance the credibility of your repair store and eliminate issues like not knowing how to use it or install it.

Sell Mobile Devices

With new devices launching in short intervals, the demand for more unused cellphones is not expected to slow down any time shortly. Although the pandemic has hit the smartphone industry badly, The International Data Corporation (IDC) says that the market is expected to grow in 2021 because of the launch of 5G devices.

IDC is expecting that the smartphone market will reach 1,492 billion units in the longer run by 2024. It’s a jump from 1,242 billion units which was in 2020.

If your budget is tight, you can complete these orders by drop shipping. Have customers order devices from your repair store and get them delivered to their address right from the device manufacturer.

It’s a win-win for both.

Offer Insurance And Warranty Plans

Cellphones are very responsive to technical and physical damages, making it essential to purchase insurance plans. In addition, the rising costs of cellphones, thefts, and device malfunctions urge people to comply with cellphone insurance policies.

According to the research done by Grand View, the device insurance market is expected to register 12.7% CAGR from 2019-2025.

By giving warranty extensions and issuance plans, you can provide your customers excellent service that ensures peace of mind. Other than this, you will be able to generate a good amount of revenue on every insurance plan that you offer.

Even for repairs, you can give extended warranty options in your inventory management software. It will increase your customer’s trust in your device parts and repair services. For instance, some cellphone repair businesses give a lifetime warranty on all repairs.

Sourcing your cellphone repair parts from suitable suppliers allows you to give that lifetime warranty on your repair services, thereby enhancing your store’s revenue and credibility.

Offer Trade-Ins and Buyback Programs

Integrating buybacks and trade-ins in your cellphone store software is a simple way to diversify your repair business outside of just repairing. Firstly, you will be able to suggest customers leave their old devices for better and newer ones. Secondly, you can buyback those pre-owned devices and then sell them at a better price.

The used cellphone market is rapidly growing and is forecasted to reach $52.7 billion by 2022. So, you can repair the trade-in device, erase the data and then sell it at a reasonable price. This way, you can generate a higher profit margin on the device than the one you would get when you repair the device.

But remember that it does have a lot of risks. For example, if you don’t price the pre-owned device right, you might end up losing money rather than earning profit from it.

Integrating buyback programs in your cellphone store software and selling pre-owned devices attracts new customers that want less expensive alternatives. As a result, buyers of new devices will get a discount, whereas second-hand device buyers will get a suitable device at a pocket-friendly price.

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Provide Spare Parts To Small Repair Shops

The essential aspect of the cellphone repair business is spare parts. Customers nowadays demand high-speed service. And it all depends on the surplus parts that are on hand. So leverage that to your advantage by selling spare parts to small repair shops near your store.

Not only will it enable you to diversify your repair business outside of repairs, but it will also help you increase the profit margins.

For example, when you get parts in bulk from your supplier, you get them at an optimal price along with a significant discount. So, you will be able to earn more.

To get the most out of this part of your business, make sure:

·       You sign a partnership with small repair businesses beforehand. Don’t stock the products first and then try to sell them.

·       Don’t overstock parts because their prices might fluctuate.

·       Do your research to look for parts that are in demand and then order them in bulk.

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The device repair business is good, but it can generate a higher income if combined with the aforementioned strategies. Start by selling accessories and stocking intelligent home products through your cellphone store software. Then, gradually expand your business by selling insurance plans, mobile devices, spare products, and buyback programs.

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