How to Diversify Your Business Outside of Device Repair?
By Injured Gadgets - October 26, 2020 1659 Views
With Americans dropping their phones at least four times a week, there is a lot of money to make in the repair industry. Besides, retailers looking above and beyond just device repair will be more competitive and generate additional income (in both the short and long run).
Another benefit of diversifying your business outside of device repair is that you will likely become a go-to shop for all the device needs, from repair to accessories.
But the question is how to diversify business outside of device repair? Here are the six best ways to widen your business beyond just repair.
Provide Accessories In-Store
Providing accessories in-store makes your business a retail destination. The list of mobile accessories is endless, covers, headphones, chargers, screen protectors, power banks, and speakers, to name a few.
While customers wait for their phones to get repaired, they can browse additional products that go with their devices. And, when they find what they want, you will see an increase in sales (and profits).
Besides, the best time to sell a screen protector or a cover is when someone gets their device repaired. They will want to protect their investment, and a little encouragement from your side will get them buying.
Another reason to sell phone accessories is that people are likely to purchase them more often.
When was the last time you changed your phone’s screen protector? Do you already feel like changing it? Or want to buy a new case for your mobile? There are chances that you change your tempered glass (and cover) every few months.
You can buy mobile accessories of top brands from Injured Gadgets and stock your store with products that your customers love.
Stock Smart Home Products
Revenue in the smart home industry is expected to show annual growth of 16.1% (CAGR) between 2020 and 2025. The smart home market is projected to reach a $195,295 million market value by 2025 (up from $92,744 million in 2020).
As the numbers indicate, the demand for smart home products will increase in the next five years. What’s the best way to capitalize on it than stocking smart home products in your store?
You could also invest in smart security systems. Smart home users are expected to spend around $19.4 billion on security systems in 2020, and the number is predicted to double to $35.6 billion by 2024.
If you are skeptical about investing in smart home products, begin by stocking a limited number of systems. Analyze the demand for those products in your neighborhood and increase your product base gradually.
Tip: Offer assistance in installing smart home systems to widen your services. It helps boost your credibility (as a business owner) and eliminate last-minute hassles like “I don’t know how to use or install it.”
Sell Mobile Devices
With new phones launching almost every day, the demand for new phones doesn’t seem to slow down any time soon. Though the pandemic has badly hit the smartphone industry, the IDC (International Data Corporation) expects the market to grow in 2021 with the launch of 5G devices.
In the long-term forecast, IDC anticipates the smartphone market to reach 1.492 billion units by 2024 (up from 1.242 billion units in 2020).
If you have a limited budget, you can fulfill orders with drop shipping. Allow customers to order smartphones from your store and have them delivered to their home or office, right from your accessory vendors.
Offer Insurance and Warranty Plans
Mobile phones are highly responsive to physical and technical damages, making it imperative to buy insurance plans. The increasing costs of smartphones, incidents of thefts, and device malfunction are also compelling users to buy mobile phone insurance policies.
According to Grand View Research, the mobile phone insurance market is forecast to register a CAGR of 12.7% between 2019 and 2025.
By offering insurance and warranty extension plans, you can give your customers full service and peace of mind. Besides, you will generate a handsome amount of revenue on each insurance plan you sell.
You can also offer extended warranty options for your repair. This will increase the customers’ trust in your parts and repair services. For instance, Injured Gadgets provides a limited lifetime warranty on all mobile parts.
Sourcing your mobile repair parts from Injured Gadgets allows you to offer a lifetime warranty on your services, thereby increasing your store’s credibility and revenue.
Support Trade-Ins and Buyback Programs
Integrating trade-in and buybacks is an easy way to diversify your business outside of device repair. First, you will be able to encourage customers to ditch their old devices for a new and better one. Second, you can source pre-owned devices and sell them at a higher price.
The second-hand mobile phone market is growing rapidly. The used phone market is forecast to reach $52.7 billion by 2022. Repair the pre-owned devices, erase all the data, and sell it for a premium. This way, you will be generating a higher margin on that device than the original repair.
But remember, it does have greater risks. If you don’t value the customer’s old phone right, you might end up losing more than you earn.
Integrating buyback programs and selling used mobiles also attracts new customers that are looking for less expensive alternatives. New phone buyers will get a discount on their purchase, while second-hand mobile buyers will get an outright device at a pocket-friendly price.
Provide Spare Parts to Small Repair Shops
The most critical aspect of the mobile repair business is spare parts. Today’s customers demand high-speed service, which depends on the surplus parts at hand. Leverage it to your advantage by providing spare parts to small repair shops in your neighborhood.
Not only will this help you diversify your business outside of device repair, but it will also increase your profit margin. For instance, when you source parts in bulk from Injured Gadgets, you are entitled to receive them at an optimal price plus a significant discount.
To get the most out of your spare parts supply business, make sure:
- You partner with small repair shops beforehand. It is not advisable to first stock the products and then aim to sell them.
- Avoid overstocking the parts as their prices fluctuate recurrently.
- Know what parts are in demand (when ordering in bulk).
Wrap Up
The device repair business is great, but it can help you generate a higher income when combined with other similar strategies. Begin by providing accessories and stocking smart home products. Gradually diversify to selling mobile devices, insurance plans, buyback programs, and spare parts.
Did I miss any great way to diversify your business outside of device repair? Which way to diversify your business did you like the most? Let me know in the comments.