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MST Radio Episode 28 - The Biz of Selling New Appliances

Samurai Appliance Repair Man

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Special guest, Justin Duby, with Just-in Time Appliance Repair in Grantspass, OR ( @applianceman97 here at Appliantology) joins us to talk about his experience selling new appliances and offer tips and advice for anyone thinking of adding this to their appliance service business.

Also, at the end of the show, we give an update on the developing Facebook data-selling debacle that's unfolding. More info on this in my previous blog post.

 

You can subscribe and listen to the audio-only portion of the podcast here: http://mstradio.com

 

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applianceman97

Posted

Had a great time! Thanks for having me on!

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Samurai Appliance Repair Man

Posted

You did great! Thanks for taking the time to come on and give a lot of helpful, inside info on this side of the Biz. I’m sure it was helpful to those thinking about doing this. 

Another good topic that we’d like to do sometime is on growing a single owner-operator business to a multitech operation. I know lots of owner-operator techs are wondering about this. You have personal experience with this. Let me know if you’re interested in doing another episode with us sometime on this. 

Thanks, Justin! 

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applianceman97

Posted

1 minute ago, Samurai Appliance Repair Man said:

You did great! Thanks for taking the time to come on and give a lot of helpful, inside info on this side of the Biz. I’m sure it was helpful to those thinking about doing this. 

Another good topic that we’d like to do sometime is on growing a single owner-operator business to a multitech operation. I know lots of owner-operator techs are wondering about this. You have personal experience with this. Let me know if you’re interested in doing another episode with us sometime on this. 

Thanks, Justin! 

Of course! I’m in!

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Adirondack Bob

Posted

Awesome job Justin!

Just a thought- 

I sub for a fairly large self servicing dealer and he offers half back off the service call if they buy new from him.

If customer declines the repair I collect $80.00 plus tax and let them know if they purchase a new appliance $40.00 will be credited back to them when buying new.

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applianceman97

Posted

18 hours ago, Adirondack Bob said:

 

If customer declines the repair I collect $80.00 plus tax and let them know if they purchase a new appliance $40.00 will be credited back to them when buying new.

Thanks Bob!!!

I did try this method but there was a lot of people just purchasing the cheapo appliances when I was doing this and that really cut down on profits. I did this before I had a few of my brands so maybe ill give it a shot again.

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Justin,

Can you give a ballpark figure on what it would cost to get started selling new appliances.  Maybe you can give a sample checklist and estimated cost per item on the list.  

Thanks,

Tony

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Samurai Appliance Repair Man

Posted

On 4/8/2018 at 12:23 PM, etdawk said:

Justin,

Can you give a ballpark figure on what it would cost to get started selling new appliances.  Maybe you can give a sample checklist and estimated cost per item on the list.  

This is a good question, Tony. @applianceman97 - got any general ballpark figures? Would financing ever be needed to get started?

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applianceman97

Posted

On 4/8/2018 at 9:23 AM, etdawk said:

Justin,

Can you give a ballpark figure on what it would cost to get started selling new appliances.  Maybe you can give a sample checklist and estimated cost per item on the list.  

Thanks,

Tony

I spent roughly $30,000 to start. 

The biggest thing that changes the start up cost is the cost of your physical location as well as which appliances you want to sell. Different brands have different flooring requirements. Samsung may require 22 units to displayed where LG may require 16. 

You really can start up for any cost. It all depends on how hard you want to hit the retail industry. 

Do you have a location already?

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Thanks Justin,

I could possibly have a location.  We have a building with an old laundry.  It was great in its hayday, but the previous owner let the competition sneak in with a new, larger format.  We're gonna shut it down and gut it.  I'll have about 1600 square feet to work with.  

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Quick

Posted

Great hustle Justin!

Been there done that. 

I've suggested this before on this site. I'll suggest it again.

A buying group such as Nation Wide Brands Direct will end your finding product battles ( for the most part.) Always a shortage of something.

It will also open up to you a whole new world of ideas to make money!

10 to 15% margin on your appliances? Try 50% plus margin on a easy to deliver mattress. Or 50% plus margin on a living room suit. 

Wishing you all success.

Quick

On 4/14/2018 at 11:13 AM, applianceman97 said:

Hard finding a distributor.

Quick

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applianceman97

Posted

12 hours ago, Quick said:

Great hustle Justin!

Been there done that. 

I've suggested this before on this site. I'll suggest it again.

A buying group such as Nation Wide Brands Direct will end your finding product battles ( for the most part.) Always a shortage of something.

It will also open up to you a whole new world of ideas to make money!

10 to 15% margin on your appliances? Try 50% plus margin on a easy to deliver mattress. Or 50% plus margin on a living room suit. 

Wishing you all success.

Quick

Quick

Yes, you are correct. But as a servicer, when I opened my retail store I didn’t even know what a buying group was. I now am apart of Brandsource which really helps with the issues listed in the podcast but when I started up, it really was an issue. 

I would love 50% markup. There is already 8-10 mattress stores in my town. I guess that’s why. 

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smee123

Posted

Is there any way to get wholesale prices without having a showroom?

stock say,  50 appliances 

Id be happy just selling to my cuatomers and word of mouth seems silly to pass that up..

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TurtleRock

Posted

Great Info. Justin,  I am in used Appliance business and consider selling new but decided against it because of some of the points that you mention. 

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