How To Start An Appliance Repair Business

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By: Scam Risk - Expert Reviewer

How To Start An Appliance Repair Business (2021 Update): Every Single Step

You might consider starting your own appliance repair business if you are passionate about fixing machines and can identify the cause of the problem.

A business that repairs appliances will allow you to apply your creativity, attention, and problem-solving skills to many different appliances.

Your business will allow you to manage all aspects of the company, from marketing to scheduling. However, this can also be an exciting opportunity to build a business and become your own boss.

Towards the end of this article, you’ll find answers to some of the most frequently asked questions on how to start an appliance repair business…

But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.

Table of Contents

Business Overview

Appliance repair shops often offer repair services for household appliances such as refrigerators, stoves, freezers, dryers, air conditioning equipment, and washing machines.

Many times these services can be provided in the homes since it is difficult to transport them. These businesses can help homeowners save money instead of buying a brand new appliance.

Repair businesses often keep a stock of common parts to repair any appliance they work on. This allows them to go to the customer and diagnose the problem, then fix it all in one trip.

Industry Summary

According to IBIS World, from 2014 to 2019, the appliance repair industry grew by an annualized rate of 0.2% and is expected to grow by 1.3% in 2019.

The industry is a $4.9 billion market as of 2019 and has the potential to continue to grow because of the increase in disposable income.

As consumers have more disposable income, they’re more likely to pay for nonessential appliance repairs, rather than putting these repairs off or attempting DIY repairs themselves.

This means that appliance repair businesses may see increased demand for their services.

Industry Trends

The transition from traditional appliances into smart appliances is one of the biggest trends in the appliance repair industry.

According to the New York Times survey, smart appliances are expected to grow in popularity. In 2018, 59% of adults were interested in purchasing a smart appliance.

Smart features are becoming more common in traditional appliances, like refrigerators with touch screens. Repair businesses will need to keep up with the new technology for them to stay ahead of smart appliances.

Major manufacturers like Whirlpool and Sears also offer repair services to appliance repair companies. Appliances are covered by warranty. However, many consumers will take advantage of these services. Independent repair businesses must market themselves to ensure that customers know their availability to hire them for appliance repair.

Who Is The Target Market For Your Appliance Repair Business?

A repair business’ focus is a key factor in determining its target customers. While some repair businesses specialize in repairing one type of appliance like kitchen appliances, others might fix any brand such as GE or Panasonic. This business’ target market is generally homeowners who have the income to pay for appliance repair.

Skills, Experience, And Education Useful In Running An Appliance Repair Business

Although a degree in business is not required to open an appliance repair company, specific skills and experience can help increase your chances of success.

Experience and skills in appliance repair. The owner of a repair business must be skilled in working with the appliances they are repairing. A thorough understanding of appliances and extensive experience in diagnosing and fixing them will prepare a business owner for the many challenges they’ll face.

Problem-solving and creativity. There are always problems in this industry. A business owner who is creative and willing to actively solve them will be successful. Repair technicians might need to be creative in finding parts that are difficult to find and overcoming other obstacles.

Organization skills. Repair business owners must have excellent organization skills.

Customer service skills. Running a repair company requires excellent customer service skills. A good phone manner, excellent interpersonal skills, and the ability to keep calm when a customer is upset will all go a long way in building customer loyalty and establishing a good business reputation.

Scheduling skills. Repair business owners must also be able to create and maintain a schedule. It can be challenging to travel from one place to another for repairs, but it can help build customer loyalty.

Startup Costs For An Appliance Repair Business

Your business model will partly determine the cost of opening an appliance repair shop. Repair businesses often travel from one place to another, so they need a truck or an SUV to transport tools and supplies. Another option is to open a brick-and-mortar store. However, this will limit the ability of the business to work on small appliances that can be transported by customers.

A bare-bones appliance repair business can be started for as little as $1,000. However, a fully-stocked company will cost you closer to $5,000. You’ll need to buy or lease a vehicle to make the business profitable.

The following are typical startup costs:

  • Diagnostic tools
  • Equipment and tools for repairs
  • Stock of repair parts
  • Storage for supplies and vehicles

Steps To Starting An Appliance Repair Business

Step 1: Write Your Business Plan.

Next, you need to create a business strategy. A business plan will be required by banks. Numerous studies also suggest that having business planning can increase your chances of starting a successful company.

Step 2: Form A Business Entity.

The legal structure of a business to be legally operated is called a business entity. There are four main business entities that you can choose from: a sole proprietorship, partnership, or corporation, as well as a Limited Liability Company (LLC). Each entity type has its pros and cons. These include liability exposure, costs, and administrative requirements.

Step 3: Name The Business.

It can be hard finding the perfect name for your business. Names must not only be appealing to your customers but also have to be easy to remember.

Step 4: Select Your Location.

Some repair companies start in the owner’s garage. They may also offer a pick-up option. This dramatically reduces your costs but comes at the expense of having drive-by traffic see your sign.

Step 5: Register For Business Licenses And Permits.

Before opening a business in certain states, you will need a small appliance/electronics repair license from the state. Repairs that involve refrigerators and air conditioners are subject to additional regulations. The Environmental Protection Agency requires that technicians have a Type 1 certificate under the Clean Air Act.

General, local, state and federal business registrations include a sales permit, employer identification number, and occupation permit.

Step 6: Find Financing.

You have to keep in mind that it’s one thing to have a great business idea and another to get the financing to start it. It can be hard to finance an appliance repair business even though it is expensive. The borrower needs to have good credit and invest between 15-25% of the total startup costs to get a loan.

Step 7: Open A Business Bank Account.

It is easier to track your personal and business finances by keeping them in separate credit and business bank accounts.

Step 8: Get Your Marketing Plan In Place.

Although repair customers can become repeat customers, they won’t return to the business if an appliance breaks. Repair businesses need to market themselves actively to attract new customers.

There are many marketing options available, including direct mail, print advertising, and social media. The costs for marketing will vary depending on the volume and method used.

Your reputation is the best marketing strategy, as word-of-mouth referrals are what drive most repair businesses.

Even though profit margins are often slim, home warranty companies can offer consistent leads that make it worthwhile.

Step 9: Get Business Insurance.

For full coverage of your appliance repair business, you should consider purchasing multiple insurance policies.

  • Commercial liability insurance covers the business in case a customer is injured at work. It can also cover legal fees.
  • If an event such as a fire damages equipment or supplies, commercial property insurance will cover the costs of replacing it.
  • Only if the company hires employees, worker’s compensation insurance covers medical expenses if the employee is injured while on duty.
  • Commercial auto insurance covers the vehicle of the company and provides protection in case of an accident.

Insurance policy costs can vary depending on the location and value of the equipment. Request quotes from several companies to get a better idea of the cost of insurance.

Compare the quotes, paying particular attention to differences in their premiums, deductibles, and coverage limits.

Step 10: Hire Employees.

Although many appliance repair companies are sole proprietorships, a company can grow and hire staff. Glassdoor reports that the average salary for appliance repair technicians is $32,606.

After the purchase of parts, labor is often the most significant expense for an appliance repair company. A repair company must have a budget for employees before hiring.

This includes salaries and additional costs such as workers comp insurance, unemployment insurance, and health insurance contributions.

Step 11: Set Up An Accounting System.

It is crucial to have an accounting system to ensure the long-term success and sustainability of your business.

Tax compliance is vital for ensuring that the business does not get into trouble with the government. The numbers can also be used to track trends and monitor cash flow and maximize profits.

How Much Can You Potentially When You Repair Appliances?

A business’s ability to earn a living as an appliance repair specialist depends on many factors, including its location, size, and years of operation.

According to the Bureau of Labor Statistics, the median home appliance repair technician annual wage was $39,270 as of May 2018. The average salary for the upper 75th percentile was $50,100, and that of the top 90th percentile was $60,930.

You can increase your earnings by distinguishing your repair business and maximizing your profit margins.

Things To Consider Before Starting An Appliance Repair Business

Consider the competition in your area before you open a repair shop. Also, think about what market needs might be unmet.

Local homeowners could benefit from a refrigerator technician. Smart devices are becoming more popular in the region. Are homeowners searching for technicians who specialize in repairs of these kinds?

Your business will be more successful if you are unique than the rest.

As you begin to build your customer base, it can be challenging to transition into a full-time appliance repair company.

Instead of starting your business as a part-time venture, consider doing so temporarily. Part-time work on weekends is an excellent way to get the business off the ground.

Is Starting An Appliance Repair Business Right For You?

When starting an appliance repair company, there are many things to take into consideration.

Here are the main pros and cons.

Pros Of Starting An Appliance Repair Business


You have the freedom to put in as much or as little time as you like. You can take on the job if you enjoy the work and have experience in the beginning.

Ability To Start Your Business From Home

You have the freedom to put in as much or as little time as you like. You can take on the job if you enjoy the work and have experience in the beginning.

Meaningful Business Connections

As an appliance repair business, you never know who you might meet. This could be the beginning of a great business opportunity.

High Customer Retention Rates

If a customer decides to invest in your product/ service, it means that they have invested their time and energy in utilizing your product/ service. Your customer will often find your product/ service indispensable.

Unlimited Income Potential

There is no limit to the amount of income you can make by starting an appliance repair company. Your business skills will improve, and your work ethic/ time will increase.

You Are Your Own Boss!

You are responsible for most of the operations when you start an appliance repair company. It can be liberating and empowering to take control of the business.

Predictable Income Stream

Based on how many customers you have signed up with, your business’ income stream is predictable. This makes financial planning and outlooks easier!

Higher Likelihood Of Getting Referrals

Referrals are a powerful way to retain and attract customers. You must have a strong referral program in place to encourage your customers and friends to spread the word about your product.

Location Is Everything!

A physical storefront is often a marketing tool that speaks for itself. So that you can attract people and spark their curiosity, it is essential to pick a location close to major roads.

Simple Business Model

An appliance repair business offers the benefit of a simple business structure, making it easier to launch and build the business.

Greater Income Potential

Your income potential is unlimited with this business.

You Get To Do Something You Truly Love.

With starting a appliance repair business, you get to put your energy into something you are truly passionate about! You’ll find yourself devoting as much time and energy as possible into the business to make it successful.

You Can Decide Who You Work With

No more working in toxic environments with people you don’t like. You are the boss of your small business and can choose who you work with.

Express Your Opinion.

By starting an appliance repair service, you have the opportunity to communicate your thoughts and knowledge to others, which can help you build your personal brand.

You Can Work From Anywhere!

You can start an appliance repair business at home. But you can also operate your business anywhere in the world. This is the ultimate entrepreneur dream.

You Establish Yourself As An Expert.

When you establish your business as an expert in the appliance repair industry, it will help build your reputation. You will gain your customers’ confidence and be more likely to recommend you to friends and family as deliver excellence for every service call.

Can Build Solid Foundation Of Clients

As an appliance repair company, it is unlikely that you will ever have one-off clients. You will usually have a stable base of satisfied customers who use your products and services frequently.

Low Maintenance Customers

Customers in this industry are often very grateful and easy to work with. This can reduce stress and help you focus on your business growth.

Results And Revenue Happen Quickly!

Customers in this industry are often very grateful and easy to work with. This can reduce stress and help you focus on your business growth.

Cons Of Starting An Appliance Repair Business

Motivation Of Employees

Finding creative ways to motivate your sales/content team members can be challenging if you have an ambitious plan. You must be able to provide great incentives and a positive work environment for your employees.

Longer Sales Process

An appliance repair business can require a significant time and financial investment. It is essential to plan ahead and communicate with potential customers.

Low Margin

The average gross margin for an appliance repair business is around 32%. This can make it challenging to incur new expenses and keep profitability high.

Time Commitment

All decisions and responsibilities are yours when you start an appliance repair company. This isn’t necessarily a bad thing. However, it can sometimes lead to work overload. This can put a strain on family members and increase the pressure to launch a new company.

It Is Difficult To Establish Trust With Your Customer.

It can be challenging to build trust with customers when you start an appliance repair company. To grab your customers’ attention and keep their business, you will need to go above and beyond to win their trust.

Impatient Customers

While you may provide a positive user experience to your customer, customers may expect more and might be impatient if your product or service isn’t up to their expectations.

Difficult to scale

It can be challenging to scale a business that specializes in appliance repair.

Learning Curve

You don’t have an upper management team to guide you through your roles and responsibilities when you start your business. Every decision you make will be made by your company. You need to know everything about it.

Equipment Failures

Equipment can become damaged or broken down over time, which can lead to costly repairs. You should plan for these costs and avoid any wear and tear.

Technical Issues May Be frustrating.

This business is not without its problems. To save time and frustration, it may be worth outsourcing technical tasks.

It Is More Challenging To Make Passive Income.

Making passive income can be more difficult in this type of business. The amount of revenue you can bring in depends on how much time you have.

What Is Our #1 Recommendation For How To Make Money In 2021?

Our review team has come across a program in the real estate industry that is next level!

Although it’s not real estate in the traditional sense, it’s all digital.

Yup, Digital Real Estate!

With this digital real estate program, you can have the ability to completely walk away from manual labor!

Sound too good to be true?

Of course it does!

But it isn’t…in fact, business owners wish they had this skill!

All you have to do is build and rank a website and forward the jobs off to a business owner in town, you could even email it to them!

This works for literally any service based business, tree service, plumbing, towing, etc. 

How Do You Get Paid And How Much?

Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.

A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.

Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!

That means at bare minimum you have an asset worth $1000 a month!

See why they call it digital real estate now?

That’s a rent payment. 

The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.

Unlike the passive income ideas I mentioned earlier…

This one actually allows you to collect that without working in a brick and mortar business all day.

Truly passive income!

The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.

You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.

Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.

Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.

Now, I know you probably have tons of questions… So, check this out to learn more.

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