Servicing vs. Appliance sales. I may have found an answer.
Gross appliance repair YTD $12k profit = ?
Store gross YTD roughly $86k. =22.5 profit
So I think I have come to a conclusion. I really, really love doing COD service work. Its not very intense, And average profit per call is around $200. If I could do 4-5 of those a day, Im making some serious money. The problem is: not enough lucrative COD work. My observations while reading this site is the fact that most of you would like to increase your COD workload, as in you are not working a full schedule. You end up doing warranty work for some scum bag insurance, or factory warranty work for $75 per completed call. You fall in to the trap of thee cheap calls being fed to you, and well, the end.
The store can wind up the same way. I could get used to selling shit machines that are dirty for $150/ with a 30 day warranty. I would just be another hillbilly selling junk. But I digress.
When I fix a washer in my store, I essentially made $150. I just didn't collect the cash yet. When I'm in my groove, I can fix north of 15 appliances in one day. That means I can essentially make over $2k / day as a shop owner. Now that tax season started, they are starting to fly off the shelves.
Owning a store is a real pain in the ass, but it pays accordingly.
My conclusion is this. *If, you can keep yourself moderately busy doing COD work, Servicing can be a decent living. For me, I currently gross about $6k/ month. Lets say I run a tight ship and 2/3rds of that goes in my pocket. That works out to about a thousand bucks a week clean money, or about $50k/ year. Not really enough for me.
If I was doing 5 COD calls a day, 5 days a week, at roughly 150 profit each, thats 3750/ week - 1/3= $2475/ week, $128k/ year. ( this is goooooood money)
PLEASE can anyone share with me roughly what you make in a month/ year/ day? Im just trying to get some perspective.
The store makes about 40-50k per month. Without blowing up my calculator, I can say that generally speaking my take home is about 20%. Being conservative, I take home about 8 grand a month. There are some months I only pull in 30k, and my profit margin goes in the toilet. See, my labor is basically a fixed cost, insurance, etc. I need $2k a week to cover payroll, whether I sell anything or not. So at 30k per month, my net profit is not 20%, actually might be only 10. After 30k, most of the money is mine.
So ultimately, we are in the same business.
Sorry if this blog is all over the place, I have been working 7 days a week for the last 2 months (tax season), and its late. If anyone has a topic they would like me to write about, let me know.