Computer Repair Business Overview
Computer repair businesses provide maintenance and repair services for electronic devices, including computers, laptops, tablets, smartphones, and related equipment. These businesses handle a wide range of issues, from simple hardware replacements to complex system repairs. Services include virus removal, screen repairs, battery replacements, operating system reinstallation, and motherboard repairs. Most repair businesses work on both consumer devices and business equipment, including point-of-sale systems, printers, and office networks. Many also provide maintenance services to prevent future problems and extend device lifespans.
The most common business models include:
- Retail Location: A physical storefront where customers bring their devices for repair services
- Mobile Repair Service: Technicians travel to customers’ homes or offices to perform on-site repairs
- Mail-In Repair Center: Customers ship their devices to a central location for repair and return shipping
- Combined Sales and Service: Businesses that both sell electronics and provide repair services
Related: Checklist To Start A Business
How Do Computer Repair Businesses Make Money?
Computer repair businesses generate revenue through labor charges for diagnostic and repair services. Most shops charge an initial diagnostic fee ranging from $30-$100, which may be applied toward repair costs if the customer proceeds with the service. Labor rates typically range from $50-$150 per hour depending on the complexity of the repair and location of the business. Parts are generally billed separately with a markup over wholesale costs. Many shops offer flat-rate pricing for common repairs like screen replacements or virus removal to provide pricing transparency for customers.
Additional revenue sources for computer repair businesses include:
- Data recovery services: Retrieving lost or corrupted data from damaged storage devices
- Maintenance plans: Regular system checkups and virus protection services billed on a subscription basis
- Component sales: Selling replacement parts, upgrades, and accessories to repair customers
- Business IT support: Providing ongoing technical support and maintenance for local business clients
- Training services: Teaching customers basic computer maintenance and software usage skills
Industry Statistics
Computer and electronic repair services are classified under NAICS 811212 – Computer and Office Machine Repair and Maintenance. Here are some statistics about the repair industry.
Computer Repair Industry Size & Growth: The computer repair industry generates $21.3 billion in annual revenue. Over the past five years, revenue declined at an average rate of 2.0% annually. The industry is projected to continue declining as consumers increasingly opt to replace rather than repair electronic devices. The decreasing cost of new electronics and rising consumer income levels contribute to this trend. (IBISWorld)
Number of Computer Repair Businesses: There are 29,745 computer repair businesses operating across the country. The industry remains highly fragmented, with most businesses being small, independent operators. (IBISWorld)
Computer Repair Average Profit Margin: Computer repair businesses typically see profit margins of 7.4%. (IRS)
States with Most Computer Repair Businesses: The distribution of computer repair businesses closely follows population density. The highest concentration of repair shops is found in California, Texas, Florida, and New York. These states account for nearly 40% of all repair businesses. (U.S. Census Bureau)
Startup Stories
Also See: Ideas for Naming a Computer Repair Business
Costs To Start a Computer Repair Business
Starting a computer repair business can cost between $2,000 and $50,000. The lower end represents a home-based or mobile operation, while the higher end typically involves a retail location.
Here are some of the more expensive items when starting a computer repair business:
Tools and Equipment include basic repair tools like screwdrivers, anti-static mats, soldering equipment, and diagnostic software. A complete set of professional repair tools typically costs $1,000 to $5,000. This also includes specialized equipment for testing components and cleaning electronics.
Inventory consists of commonly needed replacement parts such as hard drives, memory, screens, and batteries. An initial parts inventory typically ranges from $2,000 to $10,000. Having these parts on hand allows for faster repairs and creates additional sales opportunities.
Location and Setup for a retail repair shop include rent deposits, utilities, workbenches, and basic furnishings. Retail locations typically require $15,000 to $30,000 for initial setup, which includes modifications to the space to accommodate repair workstations and customer service areas.
Computer Systems include laptops or desktop computers for diagnostic testing, customer database management, and point-of-sale systems. Business computer systems generally cost between $2,000 and $5,000. This also covers software licenses needed for repair and business operations.
These estimates represent approximate costs; actual expenses will vary based on location and business size.
Resources:
Association for Computing Machinery
Association of Computer Repair Business Owners