Operating a mobile phone business can be very profitable. It doesn’t matter where you’re based at – whether you’re in Europe, USA or in Asia. Here’s the thing: almost everyone uses a mobile phone repair service sometime in their lives.
Especially if they’re using Apple iPhones and Samsung mobile phones.
This article teaches you how to start your very own mobile phone repair business with little experience and a small investment.
How you make your profits are through repeated business from your clients who then use word-of-mouth to help you scale your business. Not to mention that mobile phone repairs can come with high profit margins.
All you need to operate such a profitable mobile phone repair business is to have the proper instruments, skills and a small shop (or even online or a work-from-home model). If you’re young, this is something you could do without much capital.
Why Mobile Phone Businesses are Naturally Profitable: There’s Always Demand
The mobile phone business is on a growth trajectory thanks to the constant introduction of new phone models – not just by the big brands in the likes of Apple, Samsung, Xiaomi or Oppo.
What makes mobile phone repair businesses a profitable venture is the competition between these mobile phone brands that makes them more compelling to users.
Hence, allowing yourself to specialise in the more profitable models allows you to be an expert in repairing that particular brand, hence getting a steady stream of revenue.
Moreover, breaking your mobile screen is commonplace and no matter what sort of gorilla glass anyone has installed on their smartphones, everyone is vulnerable to mobile screen mishaps (yes, that include accidental drops in toilet bowls).
There are a few ways that you can start your cell phone repair business, but there exists two main models that are popular:
(1) Having a physical storefront
(2) Operating an online mobile repair business.
Let’s cover both of them in a bit of detail.
Location of your shop is very important
Skip this section if you’re planning to build your mobile phone repair business from home (which we recommend)
Basically, you want to be wherever your customers are.
If you’re targeting working professionals looking for a quick fix for their broken phone screens, then locate your store in the business district or in a small shop near to where they stay (usually fringes of the city).
Have a few spare mobile phones for your customers to use while you’re repairing their phones
I suggest that you have a few cheap smartphones which you can give as a backup for the customers to use while their phone is being repaired. Transfer the contacts and the SIM card into that backup phone.
Then you have met their immediate needs of having a replacement phone. Consider selling secondhand phones as part of your mobile phone business plan as well.
Pay your business partners and get them to help you out.
Plug into the supply chain where you can call your spare parts dealer who will send them through your local bus driver or someone who travels everyday. Pay them something. Never ask for free help. Have a few basic parts like batteries etc.
But who will repair them? If you can, good. But if you can’t, then learn. You can’t afford to depend on another mechanic who thinks that you are dependent on him. He should feel that you are providing him the job , though you can do it yourself.
You want to make sure that you have enough parts to keep up with the demand of your service.
Depending on how much availability you have, you may want to start with 5-15 pieces of each item you wish to repair.
This allows you to continue to serve your customers while waiting on more parts to arrive. This cost can range between $100-500.
Now that you have all of the parts you need to repair the phones you have chosen to fix, you need to make sure that you have the right tools.
There are many cell phone repair kits out there, but each device requires a different type and amount of tools.
It is good to start with the basics like screwdrivers, spudgers, adhesive tape, scissors and tweezers. This cost is about $50.
That is all of the requirements needed to fix a phone. If you are starting a business though, you need to begin marketing that business to start receiving customers.
How to Market Your Cellphone Business
Before you start advertising your cell phone repair business, you need to sit down and define your target audience clearly.
A lot of people make this mistake in the early stages. They don’t define the target audience, start running ads and don’t get enough conversions. Even if you are not opting for paid advertising, a specific target market is mandatory.
Once you have clearly defined your potential customers, now is the time for choosing from different type of advertising / marketing strategies which can suite your business. They can be:
1- Social Media
2- Word of Mouth
3- Search Engine Marketing (AdWords etc.)
4- Email Marketing
5- Search Engine Optimization (SEO)
Of course you must have a website because the world is constantly and rapidly shifting towards digital media. And if you don’t have a website, then you are not doing it right!
For more Marketing tips, check out our Marketing section.
What Type of Phones Should You Repair?
You should chose which phones to repair based on the demographic of your area. The easiest phones to get started with are iPhones as they require little experience to fix and minimal parts and tools.
However, Android phones control most of the market share of devices on the market. The big 3 brands out there are Samsung, HTC and LG. These require a bit more equipment and experience to fix though.
Another brand that receives a small amount of business are Windows phones.
In a future article we will cover how to get started on practicing the repair of each individual device and where to find resources to fix them.
For now, explore the options of parts and tools costs associated with each and see which one suits your business model the best.
Earn Additional Revenue by selling other products and services
Moreover, in the mobile phone repairing business, you should expand your offerings to selling mobile phone accessories, smartphone cases, and old mobile phones.
In fact, you can even run a business from your mobile device these days.
If you’re looking to sell a service (which you can earn a higher margin as compared to just running a mobile phone repair business), look at expanding your skills to learn:
- Instagram Markeer
- App Developer or Mobile Testers
- Tech Support
The success of your mobile phone repair depends heavily on how much value you bring to your customers, your marketing plan and your customer service. Work on improving your skills, your marketing plan so you don’t miss out on growing your very own business from home.