The appliance repair industry reports annual revenues that surpass $4 billion. In fact, a majority of shop owners report earning between $40,000 and $80,000. Indeed, there are opportunities for savvy entrepreneurs.
In this article, we’ll discuss the essentials of starting an appliance repair business. You will also find tips on how to ace this field.
How do you start an appliance repair business?
You want to get things off on the right foot to have a successful appliance repair business. Here are some things you should focus on:
Start with a business plan
First off, you’ll need a solid business plan. This forms the backbone of your whole appliance repair operation. It sets out how your business will work. Some big things to include are:
- Who your target customers are
- What their specific needs might be
- What services will you offer
- How will you set your prices
- Researching competitors and trends in the market
- How you’ll promote yourself and find customers
- How will your day-to-day operations run?
- Goals you want to hit and how you’ll track your progress
- An overview of your company and the prominent people involved
- Startup costs, funding, revenue projections,
- How to pay yourself
Also, you need detailed profit and loss statements, balance sheets, and cash flow forecasts to know how things look financially.
Having a well-thought-out business plan is super helpful. It acts like a map, guiding and keeping you focused on your goals. It will support your success in the appliance repair world.
Know your competitors
Look into the competition in your area. First, pay attention to the prices they charge and what kinds of services they provide. Also, see if they focus on a specific type of work or customers. You’ll also want to check out how they promote themselves and how their business compares to yours.
By scouting out the other companies, you’ll better understand how to position your appliance repair business. It can help you figure out what makes you different from others and what you may be able to learn from them, too.
For example, other leading companies primarily work on high-end appliances and target wealthy customers. That means you have an opening to aim for middle-income folks and more familiar brands, giving you a bigger pool of potential clients.
If there’s already a general appliance repair place in town, you can offer specific repairs for washers/dryers or refrigerators.
Use the research on your competition to help shape your business and make sure you have a clear plan for who you want as customers, what services you’ll provide, and if you’ll focus on any brands in particular.
Choose your business name
Now, it’s time to pick out a name for your business. You want something catchy that rolls off the tongue easily and gives people an idea of what you do. Here are some ideas for where to look for inspiration:
- Visual Thesaurus is an excellent site that maps out related words to help spark your creativity.
- Shopify’s business name generator simultaneously checks available web domains and spits suggestions.
- NameMesh and Naminum both let you generate potential names; the former focuses more on startups, and the latter enables you to narrow it down based on a theme.
Once you settle on one you like, register your appliance repair business to make it official.
Apply for a business license
When starting your business, you must get all your paperwork in order. Whether forming a corporation or an LLC, you must obtain licenses and permits from specific government agencies.
First, check with your state on what licenses you need. This usually depends on your business type — like a contractor license if you’re in construction. You may also need essential business licenses or occupational licenses.
Once you have all that in order, protect yourself with insurance. General liability to cover accidents, property insurance if your inventory could get damaged, and even errors and omissions insurance if you give advice.
Finalize your list of services
So you have to decide what kind of services you’ll offer customers. Usually, for an appliance repair business, you’d offer services like cleaning out refrigerators, freezers, ovens, dishwashers, and microwaves.
Also, you can offer repair services for washing machines and dryers. Whatever you choose to work on, ensure you or your technicians know what they’re doing when fixing different appliance issues. You want to be able to actually solve people’s problems, not make them worse.
Arm yourself with the right tools
First, you’ll need some tools and equipment for the repairs. You can only run the company if you have what you need to fix people’s appliances.
It’s mandatory to invest in the necessary tools. The procurement cost could be at least a few thousand dollars. If you don’t have that kind of cash upfront, you may need to look into a small business loan to buy what you need.
As the new owner, you must have money to get the essential things before opening your doors. A big part of startup costs will be the tools and gear.
When buying the basics, ensure they can handle most appliance issues. However, some standard tools that cover various repair tasks are screwdrivers, nut drivers, a multimeter, putty knives, needle nose pliers, gloves, and safety glasses.
The bottom line is to stock up on what you need for appliance repairs. That’s the best way to get your business running strong.
Important Things To Remember When Getting Clients
When researching other companies and making your business plan, you learn much about who you want to target and how to reach them. Now, it’s time to use that information.
Know who you want as your target market
Demographic information forms the backbone of your target market analysis. Factors you need to consider include:
- Age,
- Gender
- Location
- Income Level
- Education
- Occupation
- Family Status
By dissecting this information, you can create detailed customer personas that represent your ideal audience segments.
You can gather data from various sources to find your ideal customer. Try running surveys or doing interviews and focus group discussions. Read industry reports to find out what your customers need. The goal is to uncover nuanced insights to inform your marketing strategies and tactics.
Finally, analytics tools are your friends. Utilize Google Analytics to track website traffic, conversions, and engagement. Social media analytics can identify patterns, trends, and opportunities. Harness this valuable insight to supercharge your marketing campaigns, ensuring they resonate deeply with your target audience.
Communicate to your target market
It’s time to put those marketing plans into action. Here are some ideas to get you started:
First up, make sure you get yourself online. Build a website and business pages on social media. This lets people check out your services and tips from the comfort of their couch.
Next, spread the word locally. Take out an ad in the neighborhood paper or community magazine. You never know who might need an appliance fixed!
Knock on some doors, too. Leave flyers on community boards or deliver them to homes nearby. Get your name out there.
While you’re at it, make business cards and a logo. Having professional branding makes people trust you can get the job done. And remember your vehicle. Stick a sign on the side so people see you rolling down the road.
Just be sure to target people who need your help most. Watch your budget, too. Try different things and see what gets you the most calls before spending too much.
Marketing now helps attract customers later when something breaks down. With more people knowing your name, you’ll be the first they call for appliance repairs.
The important thing is to emphasize to your target audience that you’re someone credible. One way is to use original and high-quality replacement parts for their broken appliances.
Suppose a client owning a Hampton Bay appliance had their heating system broken. When you work on them, only use Hampton Bay replacement parts. Using an original equipment manufacturer (OEM) part protects the device and ensures it lasts long.
Put a price tag on your services
Pricing is also essential when getting new clients and making money. Here are some things you’ll want to think about when deciding what to charge:
First, see what your competition is charging. You’ll want to be priced similarly so people choose you, but still leave yourself enough money to profit. Also, think about the type of customer you want. Price it so those people are attracted to you based on their age and preferences.
Adjust what you charge depending on what appliances you work on. Repair jobs requiring more time and skill should cost more than easy fixes.
Remember all your business costs, like tools, supplies, insurance, and overhead. Ensure your rates cover those expenses and give you some money left over. Consider your experience in the field, too. Experts can charge higher than newbies since they know what they’re doing better.
Also, consider what you need or want to earn as the owner. Work that salary into your pricing so you get paid well.
It helps to have a price list showing what you charge for different services. Review it regularly to stay competitive and profitable as time goes on.
Image by Kaho Lee on Unsplash
Research Before Starting the Business
Starting a business will require you to take a risk. However, don’t just jump in without a plan. Take some time to understand the market and who your potential customers are. What problems are they facing that you can solve? What kind of product or service would they be willing to pay for?
Do your homework before going all in. It’s exciting to start, but slowing it down will serve you well in the long run. Steady and thoughtful progress is way better than rushing in without a strategy. Be smart about how you start—the success will follow.
Image by Barrett Ward on Unsplash
