Quote: (12-29-2018 08:22 PM)Ballr Wrote:
Just do it. Stop asking if your ideas are going to work. Execute.
Agreed. This idea is very testable with low capital investment.
The main factors are the following:
- Demand for the service
- Competition
- Cost of customer acquisition
- Cost of parts and labor
What are your competitors doing? What I've observed is that there are lots of strip mall stores that do these types of repairs. More recently, I've noticed chain stores pop up, so there are some companies that are scaling this type of repair business. Are there lots of these stores located in your area? Any chain stores? That will give you a good idea of the competition, and what the local demand may be, as well as the prices you can charge.
How are these competitors advertising? Depending on how competitive your area is, you may be able to get away with a zero dollar acquisition cost. Look into advertising on Craigslist. The other marketplace sites are also a possibility, but I'm not sure of their policies on selling services rather than goods: Facebook Marketplace, OfferUp, LetGo. There is also Yelp, and Google Maps to list your business. Also, social sites where you can create a local presence like Facebook and Nextdoor could also be good places to advertise. If you scale the business, then paid acquisition channels become more important, but just starting, there are a lot of free possibilities.
Try to figure out a really common phone model and problem, and run advertisements just for that to test the waters. Start small and simple. See how many responses you get. Test the demand before you buy a shitload of parts from Alibaba. Make adjustments to the parts you buy as you get more details about demand.
One advantage to having a mobile business is that you don't have the overhead of a storefront. This is ideal for just starting out. But if you scale, I think it's a disadvantage not to have a storefront, because you will need a workbench with a bunch of tools and parts. Also, figuring out the logistics of driving to various customer locations is inefficient. A storefront is ultimately the way to go with this business, because I don't think it's a business that depends on foot traffic. Customers are likely searching online when their phone breaks for a repair store (except for maybe if they walk by your store and decide to get their cracked screen fixed that they've been putting off for a while). Since customers are searching for the service, this means you can get a sub-optimal retail location for a cheaper lease, and the only other main overhead cost is labor. Plus, the efficient logistics of a fixed work bench where customers come to you and drop their stuff off is ideal. You can also sell high margin accessories in a retail location.
There are a couple trends in your favor. Phones at the high end are getting more expensive. Top of the line phones are $1,000+ now. People have more invested in these phones, so they're more likely to want to get them repaired instead of buying a new one. Also, I think people are replacing their phones less frequently nowadays, so they may want to get their current phone repaired to last longer.
In terms of long term trends, I see this business going the same way as computer repair and other electronics repair services. These fell by the wayside as electronics got cheaper and more disposable. These types of repair services are barely around anymore. But, it seems like a good hustle in the meantime, and it may take you in an unexpected direction as you talk to your customers and discover what they want.
