How Much Profit Can Your Make in Appliance Repair

Making A Living in Appliance Repair

If you find yourself repairing little household appliances in your home, apartment, for neighbors, and friends, then you might have the idea of starting an appliance repair business. An impressive aspect about appliances is that everyone, irrespective of their income can own one, and while some people are into replacing faulty and outdated appliances, many people prefer repairing their appliances in order to save money. For many, appliance repair rarely requires licensing or training to start, but if you will deal with refrigerants, you will need to receive a certification from the Environmental Protection Agency. And while formal training is not quite a necessity for you to start this type of business, having some experience from an apprentice program or vocational training could give you an edge over your competitors.

By now you are probably wondering, how profitable is an appliance repair business? Well, according to many who have been into this business space, appliance repair is an area that is proving to be very lucrative because appliances in business premises and households are always increasing and there is a need for skilled technicians to handle repairs. Although profitable, the appliance repair business has a few risks associated with it, especially since it involves lifting and repairing appliances. Moreover, electric shocks and gas leaks are a few incidents that you should always be wary of.

To understand the profitability of the appliance repair business, we will look at the industry overview as well as reasons why this is a business space that many people are targeting.

Industry Overview

In the United States alone, there are more than 9,000 appliance repair service and sale businesses. These businesses inject billions of dollars to the country’s economy while creating jobs for thousands of people. The yearly growth revenue for the appliance repair industry has been at par with the rate of population growth in the United States; a trend that is expected to continue for several years to come. Between the years 2011 and 2017, the appliance repair industry has experienced a 1.6% growth with more than $4 billion being generated annually. Although this industry has a few dominant companies, the truth is that these large companies do not have a huge market share compared to the independent and local appliance repair businesses that hold sway in different regions.

In any business setting, an entrepreneur is always looking to venture into a niche business in order to stand out and get a specific segment of the target market in a bid to maximize on profits. When it comes to appliance repair, going into a niche lets you focus on a single area and provide specialized services to customers. If you will start your repair business on a small scale, you need to focus on not more than two niches. However, if you will employ technicians or run a large business, you could go into as many niches as you can. Some of the popular niches in this market space include sale of spare parts, appliance repair services, electronic and precision repair services, home, and garden equipment repair, and personal household items repair services.

Competition and Profitability

The level of competition in Appliance Repair Lansing business typically depends on the location of the business. This is due to the fact that you need to physically interact with customers for you to repair their faulty appliances. And when it comes to appliance repair, customers are always looking to get a quick and excellent service. Once a customer understands this, they will remain loyal to a specific service, and this is an aspect to leverage. Therefore, although appliance repair businesses are highly profitable, you should be ready to encounter stiff competition so you should make a point of offering services that stand out from other industry players.

What Makes the Appliance Repair Business Profitable?

While appliance repair is not for everyone, it could be an excellent business to venture into and could be very profitable if you run your business in a region with a high population density. There are a few favorite things about the appliance repair business which make it a profitable venture for anyone seeking to explore the business space. Here are some aspects that make appliance repair business profitable ventures.

1. Home-Based

One of the reasons behind the profitability of an appliance repair business is that it is a home-based idea. What does this mean? If you have the knowledge and tools, you can easily set up your business from home. This means that you will not have to worry about the expensive rental charges you will have to foot should you get an office. Although it is home-based, you might need to visit your clients’ homes to perform the repair works or ask that appliances be brought to your place of work. It all depends on your way of doing business, but most clients prefer repairs being done at home.

2. Small Scale

The profitability of any business venture often boils down to its nature as a startup. The appliance repair business is a small scale business which you could easily expand with dedication and hard work. Being a small scale venture, your expenses will naturally be low hence higher profits in the long run.

3. Huge Market

The market potentiality of the appliance repair business is vast owing to the fact that every homeowner owns a type of appliance in their homes. When the market is large, it implies that there will be a high demand for the repair services and hence a higher ability to cash in.

4. Recession Proof Business

The appliance repair business is one that is not affected by recession because appliances could break at any period of the year. And even in the event of a downturn, many homeowners opt to repair than replace their appliances because of the costs involved.

When it comes to the business of appliance repair, you are not dealing with a luxury item but rather a necessity since almost every household has an appliance that will break down at one point in time. With breakdowns, people will always find money to repair them, and this gives you the chance to leverage this valuable market space.