The question of why one should consider investing time and money in opening a cell phone repair shop can be answered in three parts: Demand, Opportunity and the Ease of Entry.
Demand: In its 2015 report, IBIS World, a market research firm, writes that cell phone repairs revenue grew to $3.9 billion in year 2015, an increase of 0.9% from the year before. The sharp rise in cell phones and personal electronics is fueling the need for repairs as these very-fragile gadgets tumble and take a hit. The fact that the devices are becoming ever more expensive and thus harder to replace means that the demand for repairs and repair technicians has seen a steady increase.
Opportunity: Even though there’s a huge demand for cell phone repairs and even with approximately 8,000 repair shops around the US, most of them independently run “mom & pop” shops, no single player dominates the market, leaving the opportunity open for anyone willing to fulfil the tremendous demand for repair services and take it to the next level.
Ease of Entry. Not only is there a huge demand for cell phone repairs and an opportunity also exists to be successful, there’s also the ease of entry, otherwise known as the lack of barriers to entry. That means anyone looking to enter the lucrative business of cell phone and electronics repairs can do so with minimal investment and training. If you are an existing wireless store, the barriers are even less and the reasons even more valid to begin to offer phone repair service at your shop. Just about anyone can get into cell phone repairs with some basic training, small investment in tools and inventory and a steady hand.
As the cell phone stores become ever present and competition becomes stiffer, it is important to keep re-inventing yourself and look towards cell phone repairs as the next big opportunity in wireless retail (think beepers).
Now that we have covered WHY cell phone repairs business makes sense, in the next blog, we will discuss HOW one should launch themselves into cell phone repairs.