How in touch are you with the value of your repair business? Though repairs average 10-15% of monthly sales, more than 50% of customer traffic can be attributed to these services. Here are some simple ways to take advantage of that traffic flow and maximize your repair business.
Start with the Right Price
According to David Geller:
Repairs are not PRICE sensitive,
they are TRUST sensitive.
You guys know that Geller’s Blue Book is the industry standard when it comes to repair pricing. Why, in that case, is there such a price variation with even common repairs such as ring sizing and chain repair?
Let’s test it. Comment down below what your store charges to change a watch battery.
I’m predicting there to be at least a 50% difference between the highest and lowest answers! The takeaway? Don’t sell yourself short. Your customers trust you as an expert at your craft and will pay the industry standard.
Add in an Efficient Process
Another way to take control of your repair profit margin is to simplify the process. From in-take to pick-up, how long the process takes is just as important as how much you charge!
Develop an in-take standard. Whether you are using POS software or handwritten repair envelopes, the process should be the same. ALWAYS use a loupe or microscope to fully examine the piece in front of the customer. Have a discussion with them regarding the condition of the piece and make notes on the repair slip. Taking your time during in-take will save you time (and money) in the long run.
Invest in your bench. This is a no-brainer, but having quality tools and materials stocked is the easiest way to minimize repair time. You may not need the latest laser welder, but having fresh burs, plenty of sizing stock, and a selection of basic findings on hand will certainly help the flow of repairs in and out of your store. Ultimately, invest in innovation to avoid repair frustration.
Pick up and follow up. Just because you have completed a quality repair at a competitive price, doesn’t mean that your job is done! Picking up the piece is part of the experience. Here’s how to take advantage of these critical moments with your customer:
1) Organization: If you are expecting a pick up, have the piece packaged and easily accessible. Rummaging through a collection of completed repairs wastes vital time you could be engaging your customer (possibly showing them your latest inventory). Also, part of being organized is being familiar with the customer. Knowing their name and the piece they are picking up as you are first greeting them can be a game changer.
2) Presentation: Another way to decrease price sensitivity is with superior presentation. Try packaging repairs up in drawstring bags or throwing in a free polishing cloth. Your customers will appreciate this small gesture and it’s cost friendly for you. PRO TIP: These items are reusable. Add your logo to them for a casual reminder each time your customer uses their free gift.
3) Communication: The last step is the follow up! It’s the simplest way to nurture your relationships with customers and generate that trust we’ve been talking about. Our suggestions include sending a handwritten thank you note within a couple of days of the repair and making a quick phone call to check on the piece a couple of months out.
Enjoy Your Profit Increase
Here’s the bottom line:
- Price your services competitively and lucratively
- Simplify the process and use it to build meaningful relationships
- Enjoy your profit increase!
Do you have other tips and tricks regarding repair pricing, process, or anywhere in between? Let us know in the comments below!