Appliance Repair Business Overview
Appliance repair businesses fix and maintain household appliances such as refrigerators, stoves, freezers, washing machines, dryers, and garbage disposals. malfunction or stop working.
The most common business models in this industry include:
- Mobile Service Provider: Technicians travel to customer locations to diagnose and repair appliances on-site.
- Shop-Based Repair: Customers bring their appliances to a fixed location where repairs take place
Related: Checklist To Start A Business
How Do Appliance Repair Businesses Make Money?
Appliance repair businesses primarily generate revenue through labor charges and parts replacement fees. Labor rates generally range from $50 to $150 per hour, with additional charges for replacement parts marked up from wholesale costs to cover inventory and handling expenses.
Industry Statistics
Appliance repair involves fixing and maintaining home appliances and outdoor equipment. This industry operates under NAICS code 811412: Appliance Repair and Maintenance. Here are some highlights about the appliance repair industry.
Appliance Repair Industry Size & Growth: The appliance repair industry generated $6.5 billion in revenue last year. Over the past five years, revenue has grown by 1.9% annually. The outlook suggests a decline in revenue as economic conditions change. This shift stems from rising unemployment rates and higher appliance prices, which influence consumer decisions between repairing or replacing appliances (IBISWorld).
Number of Appliance Repair Businesses: Currently, 36,004 appliance repair businesses operate across various locations. The industry remains highly fragmented, with no single company holding a dominant market position. Most businesses are independently owned and operated by local service providers (IBISWorld).
Appliance Repair Profit Margin: Repair businesses maintain net profit margins of 14.9%.
Startup Stories
Also See: Ideas for Naming an Appliance Repair Business
Costs To Start an Appliance Repair Business
Starting an appliance repair business can cost between $5,000 to $50,000, depending on the size and scope of operations.
Here are some of the main costs to consider when starting an appliance repair business:
Tools and Equipment: Professional repair tools, multimeters, and diagnostic equipment can range from $2,000 to $10,000. This includes both hand tools and specialized testing equipment needed to work on various appliance brands and models.
Vehicle: If transporting appliances, a reliable service van or truck equipped with shelving and storage systems ranges from $15,000 to $30,000. The vehicle needs to be large enough to transport tools, equipment, and replacement parts to service calls.
Parts Inventory: An initial stock of common replacement parts and components ranges from $3,000 to $8,000. This allows repair technicians to complete many common repairs without waiting for parts to arrive.
Training and Certifications: Technical training programs and manufacturer certifications cost between $1,000 to $5,000. Many appliance manufacturers require certification to work on their products under warranty.
Insurance: Business liability insurance and vehicle insurance for the first year ranges from $2,000 to $4,000. Coverage protects against potential damages while working in customers’ homes or transporting appliances.
These costs represent general estimates and will vary based on location and business model.
Resources:
Association of Home Appliance Manufacturers
Professional Service Association
United Appliance Servicers Association