6 Reasons Why Cellphone Repair Shops fail &How to Fix It
It takes a lot of hard work to set and run your cellphone repair business. And mostly it is said that almost half of businesses fail in their first year. Why?
Because of poor management and planning that comes with not using repair shop software. This might make you vigilant but don’t worry. It’s a myth that has stopped many from following their dreams.
Research has shown that almost 20% of business businesses fail in the first 2 years. 45% fail in the first five years. Whereas 65% fail in the first 10 years. Shockingly, only 25% of businesses make it to 15 years and more. These numbers have been relatively consistent since the 2000s.
But, the COVID-19 pandemic has created a deviation in this graph. As we are witnessing the shutdown of many cellphone repair shops in the USA.
So the question here arises – why do businesses fail? That’s a billion-dollar question. To learn how to grow and stabilize your cellphone repair business, you need to understand what leads to its failure first. And how those obstacles can be either avoided or managed altogether.
So here are a few things that might lead to the failure of your repair business.
- Mismanagement of Inventory
Any cellphone repair business is bound to fail with poor inventory management methods.
Usually, repair shop owners go after ordering new repair parts, cellphone accessories, and replacement parts. And then end up in confusion on how to manage everything properly. We are not ignoring the most important thing, which is “parts.” This is a necessary investment.
Instead, what we suggest is to plan how you will organize it before you start ordering.
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The idle way to combat the challenge of inventory mismanagement is cellphone repair shop software. The software will create tickets, purchase orders, track inventory items, create reports and provide automated inventory counts.
If you don’t track your top-selling items or trending sales, you will likely experience an inventory shortage or surplus. And it will ultimately affect profits.
- Poor Task Scheduling and Allocation
We understand your need to do everything promptly. Along with managing all repair tasks on time. But at times, it results in poor-quality repair jobs and mismanagement. If you are not aligned with the tasks at your shop properly, your technicians might feel overwhelmed with the work burden.
Businesses that end up failing usually have busy schedules and terrible customer feedback. Because they are not doing what they are supposed to.
Way Out
A seasoned repair store owner knows what to do and exactly when to do it. A cellphone repair shop software can help you with that. You can conveniently add repair tickets with labels and can view them in the repair calendar at any time.
Once you have a repair task list on your screen, it will show you the progress of each repair and who is responsible for it. A repair tracking software gives you flexibility over the scheduling and assigning of tasks.
For that, all you have to do is make a repair ticket. The software will inquire about the repair charges, the employees responsible for it, due date, etc. And will send an email automatically to the customer informing them about the damages and when to collect the device.
The cellphone repair shop software even does way more than that. So, use it for your benefit.
- Manually Tracking Repair Tasks
Repair shop owners usually think of happy customers, successful repair jobs, plenty of cash, and good reviews when starting their business. What they don’t think of is the piles of paperwork. But, a significant portion of the day of a repair shop owner goes around task tracking.
Way Out
The real solution to this problem is automated tracking. Now you must be wondering how to do that? The right way is to invest in repair shop software. Because it provides full transparency in repair jobs at every step.
A good cellphone repair shop software can cover email and SMS notifications on the repair job. And notify the manager if any task’s due date has passed while helping you stay on top of your game.
- No Track of Sales Record
Repair shop owners often overlook the need for effective reporting before they start their operations. For any business dealing in sales or repairs, reports play a crucial role in measuring the business growth, task progress, ROI, and employee performance.
When you don’t have adequate data, you will end up with wrong numbers that will result in inadequate planning.
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To avoid consequences resulting from poor reporting, repair shop owners need to have a solid number of their profits, sales, labor expenses, inventory costs, etc. And everything else that makes the future decision intelligent.
- No Upselling or Cross-Selling Tools
Most cellphone repair shop owners don’t understand the importance of cross-selling and upselling. And how it can help them in earning more.
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Add-ons and upgrades, for instance, accessories, will help you improve the business output. Having a system that offers dropship and endless aisle functionality allows you to run your business seamlessly with one repair shop software.
In addition to this, you can have a buyback program as well. It can either be through an integrated partner or in-house. And can add another stream of revenue for your repair business.
- Not Having an Online Presence
How can your business earn more without having a proper marketing strategy in place? Marketing is the fundamental pillar that drives sales and awareness of your business. Without it, your repair business will not get a suitable attraction.
Think about it – when a potential customer breaks a phone, the first thing they do is search online for a repair shop closest to them.
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A website will help you showcase your basic store information, including phone numbers, locations, store hours, and the type of repair services you offer. Another way to stay competitive in the market is to have an online appointment scheduling system.
Why? Because it will allow customers to book appointments through a few clicks effortlessly. Your repair shop software should have a feature like this to don’t have to get a different online system to set it up.
So, after going through the points that result in the failure of the repair business, it’s safe to say that repair shop software is the right savior. While looking for one, make sure it has the following features:
- Inventory management
- Repair tracking
- Employee management
- Sales records
- Task scheduling
- Email alerts
- Marketing Automation
- Analytical Reporting
- Shift Management
- Billing & Invoicing
- Customer Management
- Multi Store Management
It’s the perfect time to improve your business’s efficiency while keeping an accurate record of stocks. Once your business is streamlined, you will earn more revenue and ultimately invest in expanding your business.
Also, keep in mind the increasing numbers of growth in the repair industry. And with the increased numbers comes more competition. So, as a repair shop owner, you need to be ready for the increased market saturation. You can simply do that by avoiding the mistakes mentioned above that most businesses make. Only then can you go head-to-head with the competition.
It’s high time you stop living in the Stone Age and shift to an era where automation is essential.
