Accurate pricing is imperative for the growth of your business. However, it is hard for your employees to calculate the exact price and cost of a repair at times. Especially in the cases of a new employee or unusual repair.
But it is very crucial to put the accurate price of products and repairs in your computer repair shop. For this, you also need to get a precise cost of repair.
For instance, a good technician typically consumes 20-30 minutes to fix an iPad. But if your technician is taking more time than this, you just need to adjust the price accordingly because your cost is also increasing.
Formulas to calculate your price?
Four different formulas will help you to price your repair services.
The Efficiency formula
An efficiency formula is an ideal option for a cell phone repair shop owned by a single person. But, first, you need to calculate your revenue per hour, which is pretty simple.
Sales (monthly) / hours worked (monthly) = revenue per hour (monthly)
After calculating your sales per hour, now calculate your expenses. Your expenses include your labor, repair parts, and operational cost. So, you can calculate it conveniently by this formula.
Costs (monthly) / hours worked (monthly) = cost per hour (monthly)
You can calculate your average profit per hour (monthly) by subtracting the revenue per hour by cost per hour.
It will help you determine the price you can quote to your customer, including your employees’ time on each repair. You can also figure out how much discount you can offer without compromising your profit.
The complex formula
This formula is a bit complex and commonly used by experienced shop owners. Here is the formula
Part Cost + Operational Cost + Labor (variable) + Risk Factor (variable according to difficulty of repair) + Mark Up + Retail Experience (variable if B2B or B2C)
= MSRP
This kind of risk is with the iPad. Because if a customer came with an iPad for a simple battery change, it also carries the risk of a broken screen.
Furthermore, devices that have low repairability scores, usually have more risk factors. So, these are integral factors that you need to consider when deciding how much you choose to charge as the risk factor.
If you talk about retail experience, this will also include the cost of pick and drop or shipping. It will also count added services.
The general formula
Out of all these three formulas, the most recommended one is General Formula. For retail, it is the best option. Here is how you can calculate it.
Part Cost + Operating Cost + Mark Up = MSRP
But there is also a convenient option – Repair Cost Estimator
The Repair Cost Estimator
To calculate your profit, you need to know about your cost. What if you get a feature that allows you to calculate the cost of unusual repairs?
Yes, a Repair Cost Estimator can help you with that. And you can also calculate the price of your repair.
Why do you need a Repair Cost Estimator?
Suppose a customer comes to your repair shop with a broken tablet that you will repair for the first time. And you don’t have the parts in your inventory you will need in repair. So, you will create special parts orders through your computer repair shop software.
You gave the repair price of 100$ on the ticket, and your customer goes home satisfied.
When your technician starts the repair, he spends more time on it than doing it for the first time.
So the repair cost goes up, and you begin repenting of the repair price you quoted.
Now, to avoid such kind of situation, you can seek help from a repair cost estimator.
It helps you to quote the price of unusual repairs precisely. There will be no chance of undercharging or overcharging with the repair price calculator.
Benefits of repair cost calculator
Repair cost calculator counts the part cost, markup, labor cost, and tax while quoting a repair price.
The best part of it is that you can instantly quote the repair price. It will also be helpful for your new hires, the ones who are not familiar with the pricing scheme of your repair shop.
Following are other benefits of repair price calculator/repair cost calculator.
Easy to use
No doubt, using a repair price calculator is not an uphill task. You even don’t require any technical assistance or knowledge. It is effortless to use,
Any repair shop owner can use it conveniently without any hassle.
Quotes accurate repair prices
Yes, the repair prices quoted by the repair price calculator are accurate and precise. The repair price calculator is designed by bearing in mind the precision of repair quotes.
Enhance efficiency
The repair price calculator will help you to enhance the efficiency of your repair shop. Your employees will be sure about the pricing of repairs.
They don’t need to spend extra time calculating the price of unusual repairs. It will also boost the confidence of your employees.
View the price with and without tax
Repair price calculator also gives you an option to see the price without tax. So it saves your time, and you don’t have to do your calculation again.
You can perform this task by just clicking a single button.
Final word
Repair Price Calculator is designed to facilitate repair shop owners using computer shop management software and help them to quote accurate prices and avoid chargebacks.
With technological advancement, you can get repair price suggestions according to your zip code. Isn’t it more convenient?
We suggest you create your profile on the repair price calculator, so you don’t need to enter the labor rate or select tax class again.
Contents