Appliance repair businesses specialize in fixing household appliances like refrigerators, laundry machines, ovens, and dishwashers, offering both in-home and shop-based services to make repairs, provide routine maintenance, and test appliances to ensure they work properly.
Owning an appliance repair franchise can prove to be a solid investment – especially during times of economic uncertainty. When budgets are tight, homeowners are more likely spend money on repairing their current appliances rather than buying brand new ones.
But if you’re unsure whether appliance repair is the right business for you, consider weighing the pros and cons. You may find that an alternative home services business is a better fit for you.
Market Outlook for Appliance Repair Businesses
Before making any type of investment, it’s crucial to understand the current state of the market. Fortunately, the appliance repair industry has experienced steady progress. Over the past five years, appliance repair has seen a compound annual growth rate (CAGR) of 1.9%, and projections estimate that revenue will reach $6.5 billion in 2024.
However, it is important to note that some experts believe the appliance repair market will actually shrink in the coming years, which will cause a drop in revenue.
Benefits and Drawbacks of Appliance Repair
Beyond industry activity, compare the advantages and disadvantages of owning an appliance repair business:
Pros of appliance repair:
- Steady demand: Mishaps happen, or sometimes appliances just give out. Whatever the case, most homeowners would rather hire someone to diagnose and remedy the issue than try to solve the problem themselves.
- Affordable startup costs: In most instances, you’ll be making house calls. Therefore, you won’t need a large storefront to run your business from. Instead, you’ll mainly need space to house spare parts and equipment.
- Flexibility: As a business owner, you can set your own hours and work around your customers’ schedules – establishing a healthy work-life balance.
- Recurring revenue opportunities: Most households have multiple appliances. Providing professional, efficient service allows you to build relationships with your customers, which can lead to repeat business.
Cons of appliance repair:
- Specialized knowledge required: You must be a highly skilled technician – or have hired trained specialists – to properly handle appliance repair services.
- Physical demands: Making repairs may involve lifting heavy appliances, maneuvering them in and out of tight spaces, and spending long hours on your feet. You might also need to crouch, kneel, or climb to access the malfunctioning machines.
- Potential safety hazards: Appliance repair does come with risks. If you’re not careful, you could experience electrical shocks, gas leaks, or other injuries. Be sure to prioritize safety training for you and your team.
- Maintaining customer expectations: It’s important to be clear with customers about the cost, time, and parts needed to repair their appliance. Set realistic expectations to reduce any frustration or disappointment.
Exploring Alternative Investment Options
If appliance repair doesn’t seem like the right fit for you, consider other home services opportunities like property restoration franchises. With our nation’s aging infrastructure and natural disasters increasing in frequency, property restoration is in high demand.
Over the next five years, the U.S. property restoration market is projected to experience a CAGR of 4.5%, resulting in a value of $7.1 billion in 2024. This consistent growth makes now a great time to partner with restoration franchises like Lightspeed Restoration – backed by Home Franchise Concepts, a leader in home service franchises.
Franchise with Lightspeed Restoration
Lightspeed Restoration, the premier home and commercial restoration franchise, offers a multitude of services including water and fire damage restoration, mold removal and remediation, air duct cleaning, storm recovery, and more. Our dedicated franchise locations help home and business owners restore their properties back to pre-loss conditions.
We have plenty of market availability and are eagerly looking for franchise candidates who are passionate about growing a business while also helping others in their community. If this sounds like you, inquire now to get started.