Appliance repair can be a lucrative business to get into. Everyone has appliances in their homes and now that more consumers are trying to lead sustainable lifestyles, they’re looking to repair existing appliances more often rather than buying new ones.
However, there are obvious costs associated with owning and operating an appliance repair company. From the equipment needed to employee pay and vehicle management, it’s important to consider all of these costs before you decide to jump into the business or change careers.
Let’s cover some of the common costs of starting an HVAC and appliance repair company, how you can cut them as much as possible, and how making your business sustainable can help to reduce those costs even more — along with lessening your carbon footprint.
Building Your Startup
If you’re thinking about building an appliance repair company, you’ll end up spending the most money at the beginning. If you’re starting from nothing and don’t have a lot to spend, you can probably get away with investing about $1,000 into your business. That’s assuming you already have a reliable vehicle and just need some tools and equipment. However, you might have to be the only employee for a while until you start getting consistent business.
A more realistic financial goal to get started is about $5,000. That should cover the cost of things like:
- Diagnostic tools;
- Repair tools;
- Vehicle maintenance;
- Marketing;
- Hiring an extra employee.
If you want to boost your chances of success, make sure you have a solid appliance repair business plan before you start investing money. It should include looking at local competition and what they’re charging for services, how they are marketing, and their average return on investment. Appliance technicians charge an average of $65 per hour for their efforts, but it’s a good rule of thumb to learn what people are paying locally so you can be on par with those prices. If you can afford to be slightly cheaper, you may gain more customers quickly.
Cutting Your Costs
Once you get your business up and running, you should focus on keeping costs low and maximizing profits. It’s important to give your HVAC and appliance repair technicians a fair wage — even if you’re trying to cut costs elsewhere. Your employees should be considered on top priority. If they’re happy, they’ll be more productive and efficient on every call.
You might be surprised to know that some of the best ways of reducing your costs are actually good for the environment, too. First, keep track of unused parts. You should have a system in place for every part in your inventory so you can ensure everything gets used and nothing gets wasted. If there are unused parts in your field trucks at the end of the day, they need to be accounted for so they can be used on another job.
Next, plan out your routes as efficiently as possible. By reducing the travel distance between jobs, you’ll save money on fuel, you’ll put less wear and tear on your vehicles, and your workers can decrease the amount of time it takes them to complete a job.
Make sure your vehicles are always in top shape, as well. Vehicle maintenance might not seem like a big deal, but regular oil changes, tire rotations, and air filter replacements can make a big difference in how efficiently your trucks run and the extent of their carbon footprint.
Promoting Sustainability
Another thing you can do to boost your business’s sustainability efforts and pass some savings onto your customers is to encourage and promote energy-efficient appliances. Nowadays, more people are looking for home upgrades that are budget-friendly and better for the environment.
New appliances can save consumers thousands of dollars on their utility bills. You might be able to partner with certain appliance companies to get a few perks when you recommend them. Even if that’s not the case, smart appliances are the future. You can promote them to your customers and clients by sharing some of the benefits, including:
- Reduced water waste;
- Reduced energy waste;
- Lower carbon footprint;
- Lower utility bills;
- More control;
- More convenience.
If you take some time to ensure your workers know how to repair smart appliances and devices, you’ll be one step ahead of the competition. Regular training and education on the latest in appliance technology should be a priority for your business. It will boost your marketability and profitability when you’re one of the only businesses in the area able to work on specific appliances.
HVAC contractors can make anywhere from nearly $70,000 each year to well over $400,000. It’s all about knowing how to operate your business efficiently and learning how to cut costs without cutting corners. Use some of the suggestions here, considering promoting sustainability, and you can enjoy a profitable, energy-efficient business that will be successful for years to come.
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