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Fix the Shop First · Part 6 of 9

How to Choose Which Repairs Your Tech Repair Shop Should Offer

Not every repair deserves your bench

Score every repair on nine factors. Keep, reprice, or refer.

Fix the Shop First | A 9-part series | Tech Care Association

How do you choose which repairs to offer in a tech repair shop? Build your service mix from the repairs that earn the most per hour of staff time, without risks you cannot control. Score each repair on nine factors, sort by return per bench hour, and compare it to your floor rate. Keep what clears it, reprice the middle, refer or route the rest.

By Rob Link, Founder & CEO, Tech Care Association · October 14, 2026 · 18 min read

Parts 2 through 5 priced the ticket: the five numbers, the floor rate, the diagnostic fee, and the true cost of the part. This chapter uses those prices to set your service mix: which repairs your shop should offer at all. Part 3 called it the third lever when the market's ceiling sits below your floor.

This guide is for owners and managers of independent shops that fix phones, computers, tablets, and consoles. It comes from the Tech Care Association (TCA), the trade association for independent tech repair professionals, and includes a free Service Category Scorecard. Today is International E-Waste Day, and its Fast Tech theme gets the last word as a test case.

Key Takeaways

  • Bench hours are the scarcest thing in the shop, and every repair you offer is a bid for them.
  • Return per bench hour is the sort key. In the worked example, the biggest ticket is the third-best use of an hour.
  • Score the repair, not just the device, and ask whether you can finish it: the part, plus any pairing, calibration, or software step.
  • A low score has three answers: drop it, refer it, or price it the way the scorecard says it should cost.
  • Many Fast Tech items are poor candidates for paid repair. A shop can still help by knowing where they go, if it can route them safely.

Key terms

TermWhat it means in this series
Service mixThe set of repairs a shop offers, and how much bench time each one gets.
Staff minutesTime people spend on a ticket: intake, diagnosis, repair, testing, the call, checkout. Not time a device waits for a part or pickup.
Floor rateThe least every billable hour must bring in after the part, covering fixed costs, loaded technician pay, and margin (Part 3).
True parts costInvoice plus warranty replacements, shipping, and an inventory allowance (Part 5).
Minimum contributionFloor rate x staff minutes ÷ 60: what a ticket must leave after the true parts cost.
Return per bench hour(Ticket minus true parts cost) ÷ (staff minutes ÷ 60).
Parts pairingSoftware that ties a component to one device by serial number, so a replacement may not work fully without the manufacturer's approval.

What Shops Are Saying

In the online discussions the TCA reviewed this month, owners named the repairs they have stopped doing without hesitation. In one discussion of roughly 45 comments, about 40 named at least one. Smartwatches came up most often (about 14 mentions), then the Microsoft Surface line (about 12), Nintendo DS and 3DS handhelds (about 7), and Samsung folding phones and televisions (4 each). The reasons were rarely "we can't do it." They were time against money, callbacks the shop cannot prevent, parts it cannot trust, and prices customers will not pay.

The disagreement is the useful part. One commenter does fine on Surface devices and dropped watches; another said the reverse. About 5 said they fix everything, one of them with a waiver and a frank conversation at intake. Shops know what they have given up. Few described knowing what it cost to keep.

Method note: TCA Repair Community Listening, a qualitative review of approximately 270 comments in 13 industry discussions, September 9 to October 12, 2026. Counts are mentions, not shops, and not a survey. Comments are paraphrased. Full method under About this data.

Is "We Fix Everything" a Good Strategy for a Tech Repair Shop?

Usually not. A shop does not run out of devices; it runs out of hours. Every repair on the price list asks for a share of them, and the shop that takes everything lets the walk-ins decide how they are spent.

What is return per bench hour?

Return per bench hour = (ticket minus true parts cost) ÷ (staff minutes ÷ 60)

It is contribution before labor and overhead, on purpose: the floor rate already covers both, plus margin, so you compare the two directly. If card processing is not in your Part 3 fixed costs, subtract it from the ticket too.

The series example shop (illustrative, from Parts 2, 3, and 5)
Monthly repair revenue / tickets / average ticket$14,400 / 120 / $120
Billable hours per month88 (about 4 a day)
Floor rate / callback rate$178.98 per hour / 3.3%
Phone screen: true parts cost / staff minutes$47.09 / 35

One owner this month described phone-to-phone transfers at $40 to $50 that take too long for what they bring in. Put a transfer next to a phone screen on the same bench day:

One bench day, two categories Four billable hours filled two ways. Phone screens return $193.56 per bench hour, $774.24 for the day. Phone-to-phone transfers at $45 return $60.00 per bench hour, $240.00 for the day. The floor for four hours at $178.98 is $715.92. Illustrative, not a benchmark. Floor for the day: $715.92 One bench day, two categories Four billable hours, the series shop's average day. Illustrative. Phone screens $193.56 per bench hour $774.24 Phone-to-phone transfers $60.00 per bench hour $240.00 Screen: $160 ticket, $47.09 true parts cost, 35 minutes. Transfer: $45, no part, 45 minutes. Floor: $178.98 per billable hour x 4. Illustrative inputs carried from Parts 2, 3, and 5. Not a benchmark. Tech Care Association

Chart 1. One bench day, two repairs. Four hours of phone screens clear the day's floor; four hours of $45 transfers return a third of it. Illustrative, not a benchmark.

That does not make transfers a bad service. It makes $45 a bad price for 45 minutes at this shop's floor, and the scorecard is how you tell the difference.

How to Choose Which Repairs to Offer: The TCA Service Category Scorecard

Return per bench hour is the sort key, not the whole decision. A repair can return well and still come back on warranty every third week, or depend on one technician. The scorecard puts nine factors side by side, each scored 1 to 5, where 5 is best for the shop. Every input comes from your own records; the TCA has not published a category, demand, or margin benchmark and will not invent one.

The TCA Service Category Scorecard: nine factors A three by three grid of the nine factors, each with the question the owner asks and where the input comes from: demand, labor time, parts and software access, failure risk, warranty risk, average ticket, margin, technician skill, and opportunity cost. Each is scored 1 to 5, equal weights by default. Nine factors, one score per category Score each 1 to 5, where 5 is best for the shop. The input comes from your own records. 1 Demand How often does it walk in? Input: POS, last 90 days 2 Labor time How long does it hold the bench, door to door? Input: Your own tickets 3 Parts and software Can I get the part and finish the whole repair? Input: Suppliers, OEM tools 4 Failure risk How often does it end in could not repair? Input: No-fix outcomes 5 Warranty risk How often does it come back? Input: Callback rate, Part 2 6 Average ticket What does one ticket bring in? Input: Average ticket, Part 2 7 Margin Does it clear the minimum contribution? Input: True parts cost, Part 5 8 Technician skill Who on my bench can do it today? Input: Your bench, your tools 9 Opportunity cost What would that hour earn in my best category? Input: Return per bench hour Equal weights by default, 45 points possible. A shop may double-weight margin or opportunity cost. Score bands are the TCA's suggested defaults, not industry benchmarks. Tech Care Association

Chart 2. The nine factors and where each input comes from. Four measure money and five measure risk and fit. Score bands are the TCA's suggested defaults, not industry benchmarks.

Score the repair, not just the device. A shop can be excellent at laptop batteries and SSD upgrades and have no business doing board-level work. Wherever labor, parts, equipment, or failure risk differ inside a device category, split it and score each repair on its own line. A low score for board-level laptop work says nothing about laptops.

The scoring rubric

Factor and input54321
Money
Average ticket
vs. your shop's average
1.5x or more1.0x to 1.49x0.75x to 0.99x0.5x to 0.74xUnder 0.5x
Labor time
staff minutes per ticket
30 or less31 to 4546 to 7576 to 120Over 120
Margin
contribution ÷ minimum contribution
120% or more100% to 119%85% to 99%70% to 84%Under 70%
Opportunity cost
return per bench hour ÷ your best repair's
90% or more75% to 89%60% to 74%40% to 59%Under 40%
Risk and fit
Demand
tickets, last 90 days
A top-three repairSeveral a weekAbout one a weekA few a monthA few a quarter
Parts and software access
suppliers, lead time, any pairing or calibration step
Next day from trusted suppliers; no software step you cannot finishNext day, two suppliers; software steps done in houseA few days or one supplier; or a warning you must explain to the customerA week or more; or a step you cannot finish on some modelsNo part you would warranty, or tools you cannot get
Failure risk
could-not-repair rate vs. your shop's
Half or lessUp to 1xUp to 2xUp to 3xMore than 3x
Warranty risk
callback rate vs. your shop's
At or belowUp to 1.5xUp to 2xUp to 3xMore than 3x, or a promise you cannot make
Technician skill
bench, tools, floor space
Anyone, tools on handMost of the benchOne personNobody yet; addable this quarterNobody; a major investment

The reasons owners gave this month map straight onto the rubric. Water resistance on a watch is warranty risk: the repair can be done, the promise cannot. Calibration trouble on folding phones is parts and software access. Stick drift is labor time. Board work nobody will pay fairly for is margin. A phone line dropped because a supplier's parts kept failing is parts access, and so is the e-bike one owner quotes weeks out because it needs floor space a phone shop lacks.

Can you finish the job? Parts pairing and repair software

Getting the part is half the question. The other half is whether your shop can install it, complete any pairing or calibration, and hand back a device that works fully, without a warning on the screen. That is why factor 3 asks about software as well as parts.

The Federal Trade Commission's 2021 report to Congress, Nixing the Fix, listed unavailable parts and repair information, and software locks and firmware updates, among the ways manufacturers restrict independent repair. Some states now limit parts pairing. Oregon's law bars it from being used to block a working replacement part or reduce a device's function, for covered devices manufactured after January 1, 2025. Colorado's law, in effect since January 1, 2026, restricts pairing that reduces functionality or shows misleading warnings, for covered equipment first made and sold or used there after that date. Coverage depends on the state, the product, and the manufacture date, and Colorado's law excludes game consoles. iFixit's teardown of the Nintendo Switch 2 found a glued-in battery, soldered charge ports, and no parts or manuals from Nintendo.

A repair your technician can physically do is not always a repair your shop can finish, warranty, and earn from.

Before you add a repair, check three things: a dependable part, access to any diagnostic, pairing, or calibration tool it needs, and a way to test full function at checkout. This is a summary, not legal advice; next week's Right to Repair update covers the laws in detail.

Weighting, bands, and what the total means

Equal weights by default: 45 points. A shop short on bench time can double-weight opportunity cost; one short on cash can double-weight margin. Normalize back to 45 so the bands still apply: score = (sum of factor x weight) ÷ (sum of weights) x 9.

Score (of 45)Suggested answer
36 to 45Keep. Protect its bench time and parts supply.
27 to 35Reprice. Check margin and opportunity cost first.
Under 27Refer or route, or keep it on purpose for the door.

One rule overrides the bands: a repair that returns less than your floor is never "keep as is." The total is a decision aid, not a tested predictor of profit; its job is to make the call visible, consistent, and easy to revisit each quarter. Once you have a quarter of history, count failed attempts and warranty rework in the hours. Illustrative: if one board-level attempt in five fails after 90 minutes and loses an $18 part, the worked example below drops from $140.50 to $116.42 per bench hour.

Score your own repairs

Free, no signup, and nothing you type leaves the page. Enter up to eight repairs; it computes return per bench hour, normalizes weights, sorts the list, and suggests keep, reprice, or refer, with the math shown.

Your shop

How to score the five you rate

Demand (tickets, last 90 days): 5 a top-three repair, 4 several a week, 3 about one a week, 2 a few a month, 1 a few a quarter.

Parts and software access: 5 next day from trusted suppliers, no software step you cannot finish; 4 next day, two suppliers, software steps done in house; 3 a few days or one supplier, or a warning you must explain; 2 a week or more, or a step you cannot finish on some models; 1 no part you would warranty, or tools you cannot get.

Failure risk (could-not-repair rate vs. your shop's): 5 half or less, 4 up to 1x, 3 up to 2x, 2 up to 3x, 1 more than 3x.

Warranty risk (callback rate vs. your shop's): 5 at or below, 4 up to 1.5x, 3 up to 2x, 2 up to 3x, 1 more than 3x or a promise you cannot make.

Technician skill: 5 anyone, tools on hand; 4 most of the bench; 3 one person; 2 nobody yet, addable this quarter; 1 nobody, a major investment.

Scored automatically: average ticket vs. your average (5 at 1.5x or more, 4 at 1.0x, 3 at 0.75x, 2 at 0.5x, 1 below); labor time (5 at 30 minutes or less, 4 to 45, 3 to 75, 2 to 120, 1 over); margin as contribution ÷ minimum contribution (5 at 120%, 4 at 100%, 3 at 85%, 2 at 70%, 1 below); opportunity cost as return per bench hour ÷ your best repair's (5 at 90%, 4 at 75%, 3 at 60%, 2 at 40%, 1 below).

Results, sorted by return per bench hour

RepairReturn per bench hourvs. floorScore (of 45)Suggested answer
Show the math

Return per bench hour = (ticket minus true parts cost) ÷ (staff minutes ÷ 60). Average ticket, labor time, margin, and opportunity cost are scored automatically; you score the other five. Score = (sum of factor x weight) ÷ (sum of weights) x 9. Bands: 36 to 45 keep, 27 to 35 reprice, under 27 refer or route. A repair below your floor rate is never "keep as is." Bands are the TCA's suggested defaults, not industry benchmarks. Nothing you type leaves this page.

Download the printable scorecard (PDF)

Worked Example: Which Repairs Earn Bench Space?

The series example shop scores four repairs. Prices, parts costs, and minutes are illustrative; the risk-and-fit scores are assumptions about a fictional shop, not data. For context, this month's discussions put current-generation screen labor at $120 to $170 for about 20 minutes on the bench, and named a console HDMI port most often as the ideal repeat job.

Illustrative inputsTicketTrue parts costStaff minutesReturn per bench hour
Game console HDMI port$189$9.4045$239.47
Phone screen$160$47.0935$193.56
Laptop board-level repair$299$18.00120$140.50
Wireless earbud battery$49$14.0050$42.00
Factor (1 to 5)Console portScreenLaptop boardEarbud battery
Average ticket5451
Labor time4423
Margin5421
Opportunity cost5421
Demand (assumed)4522
Parts and software access (assumed)4531
Failure risk (assumed)4521
Warranty risk (assumed)4432
Technician skill (assumed)3533
Score (of 45)38, keep40, keep24, refer15, refer or route
Four illustrative categories sorted by return per bench hour Return per bench hour against the $178.98 floor. Game console HDMI port $239.47, score 38, keep. Phone screen $193.56, score 40, keep. Laptop board-level repair $140.50, score 24, refer. Wireless earbuds $42.00, score 15, refer or route. Illustrative, not a benchmark. Floor $178.98 Four categories, sorted by return per bench hour Ticket minus true parts cost, divided by hours on the ticket. Illustrative. Game console HDMI port Score 38 of 45: keep $239.47 Phone screen Score 40 of 45: keep $193.56 Laptop board-level repair Score 24 of 45: refer $140.50 Wireless earbuds Score 15 of 45: refer or route $42.00 Inputs: console $189, $9.40 part, 45 min; screen $160, $47.09 part, 35 min; laptop board $299, $18 part, 120 min; earbuds $49, $14 part, 50 min. Floor from Part 3. The TCA's arithmetic on illustrative inputs. Not a benchmark. Tech Care Association

Chart 3. Four illustrative repairs sorted by return per bench hour, with each one's score. The TCA's arithmetic on illustrative inputs; not a benchmark.

The biggest ticket is not the best hour.

The laptop board job brings in $299, the largest ticket, and returns $140.50 per bench hour, $38.48 under the floor. The screen scores highest overall because it rarely fails or comes back and anyone can do it; the console port returns more per hour but depends on one technician. The earbud battery would need a $163.15 ticket to clear the floor, more than many customers would pay for a new pair. Double-weighting margin, opportunity cost, or both moves each score by less than two points and changes no answer. The best-to-worst gap is $197.47 per bench hour; your own gap is the one that matters.

What to Do With a Repair That Scores Low

Drop it when it fails on factors price cannot fix: a warranty promise you cannot make, parts or software you cannot get, failure rates that eat the bench. Say no with a reason and somewhere to go: "We don't take those anymore, because we can't stand behind the repair the way we stand behind everything else. Here's who does them well." One customer in the discussions said an owner's honest no on a tablet repair is why she sends people there.

Refer it to keep the customer. Shops already do: two discussions this month were owners asking who does board-level work for other shops, and replies pointed to shops in at least eight states. Refer to a named partner, or find one with a WhereToRepair search. A repair many shops have dropped is one someone can own, and that shop may send its phones back to you.

Reprice it when the repair is fine and the price is not. The $45 transfer from Chart 1:

Phone-to-phone transfer, 45 staff minutes, no partAt $45At $135
Return per bench hour$60.00$180.00
Average ticket / margin / opportunity cost1 / 1 / 14 / 4 / 4
The other six factors (unchanged)2727
Score (of 45)30, reprice39, keep

The other six are labor time 4, parts and software 5, skill 5, warranty 5, and demand and failure risk 4 each (assumed). The minimum contribution for 45 minutes at the series floor is $134.24, so $135 clears it. Shops in the discussions already tier transfers by data volume or by the hour, and board shops price difficulty with a set charge per torn pad or ripped trace. If the market will not pay what the scorecard asks, you are back at Part 3's ceiling, where the last lever is exit.

Should you keep a low-margin repair that brings customers in?

Sometimes, if you can prove it. This month's longest argument was over an $80 insurance screen: one side called it a customer the shop did not pay to find, the other said not when the bench is full of $150 work. Measure it: of the customers who came in for that repair in the last 90 days, how many came back for something that clears the floor? If you can name them, it is a door. If not, it is a habit. And if one repair carries the month, as one commenter warned about console HDMI work, that is a concentration risk the demand line will show.

Should a Tech Repair Shop Fix Fast Tech? The E-Waste Day Test Case

Mostly no, but score it first. International E-Waste Day is organized by the WEEE Forum, an international association of producer responsibility organizations, every October 14. The 2026 theme is Fast Tech: low-cost earphones, charging cables, adapters, string lights, mini fans, single-use vapes, and other gadgets bought on impulse and thrown away. The campaign's call, in the WEEE Forum's words: "Take back the fast tech!"

Fast Tech itemWhere it usually strugglesUsual answer
Wireless earbudsParts, failure risk, ticket. Designs vary: iFixit's September 2026 teardown found AirPods 5 batteries removable by a skilled technician for the first time, with no replacement parts yet on the market.Score by model; refer or route most
Cables and adaptersNot a repair; replacement costs less than diagnosis.Route
Single-use vapesNot designed for repair; a lithium cell.Route, only if handled safely
Smart toysLabor against a ticket the customer will not pay.Route

A shop can help without spending a bench hour by knowing where these items go. Taking them in at the counter is a decision, not a default, because of the batteries: the U.S. Environmental Protection Agency identified 245 lithium-ion battery fires at 64 U.S. waste facilities from 2013 to 2020, compiled from news reports, so the real number is likely higher. Before accepting anything with a battery, a shop needs safe storage and handling, a check of local rules, and an established downstream partner. Without them, point the customer to a collector. In the DMV, eWaste Warriors, a separate nonprofit, runs collection, with Reboot Hour the last Monday of the month in Arlington (next: October 26). eWaste Warriors serves the DMV only; elsewhere, find a collector near you.

From the TCA's Second Life Sessions. Two conversations from the series pick up where this section ends: Frank Pipolo of FutureDial (Episode 11) on why batteries and screens make end-of-life devices a handling problem, and Joel Mansnerus, CEO and Co-Founder of Fixably (Episode 4), on the value left in a device at the end of its life. About the Second Life Sessions series · Watch on the TCA YouTube channel

International Repair Day is Saturday, October 17: a good day to spend an hour with the scorecard before the holiday rush sets your mix for you. The TCA keeps a complete calendar of all industry events in one place; find it on the TCA events calendar.

The TCA's Take

A healthy tech repair shop service mix says no to more repairs than most shops do, and the right no is a referral, not a shrug. A shop that cannot say what each repair returns per hour, and whether it can finish it, is letting the walk-ins set its strategy.

"Turning work away loses customers." Turning it away with nothing to offer does. A reason and a referral keep the customer. "Small jobs fill the gaps." Only if the bench would otherwise sit idle; Parts 2 and 3 called that a filler, not a foundation. "Customers expect a one-stop shop." They expect one place to start, and that can be the counter rather than the bench.

Method note: the TCA's Take is the TCA's position. The Community Listening here shows what commenters described and where they disagreed, not what share of shops do it.

What to Do Monday Morning

Three steps, this week

One hour with last quarter's tickets. Repeat every quarter.

  1. List your top eight repairs by ticket count from the last 90 days, with average ticket, true parts cost, and staff minutes.
  2. Score them on the nine factors, in the scorecard or on the printable sheet. Sort by return per bench hour.
  3. Act on the lowest one this week: drop it with a counter line, refer it to a named shop, or reprice it until it clears your floor.

Fix the Shop First | A 9-part series | Tech Care Association

Common Questions About a Tech Repair Shop's Service Mix

What is a tech repair shop's service mix?

The set of repairs a shop offers and how much bench time each gets. A good service mix is not a fixed list; it is the set of repairs that clear the shop's own floor rate per hour of staff time, at a warranty and failure risk the shop can stand behind.

What repairs should a tech repair shop offer?

The ones that score well on your own numbers. Score each repair on nine factors (average ticket, labor time, margin, opportunity cost, demand, parts and software access, failure risk, warranty risk, and technician skill), sort by return per bench hour, and keep what clears your floor rate. Reprice the middle; refer or route the rest.

How do I calculate return per bench hour?

Subtract the true parts cost from the ticket and divide by the staff minutes over 60. In the illustrative series example, a $160 screen with a $47.09 true parts cost and 35 staff minutes returns $193.56 per bench hour against a $178.98 floor rate.

Does parts pairing affect which repairs my shop should offer?

Yes. If a replacement part needs manufacturer pairing, calibration, or software you cannot access, the repair may not be finishable or warrantable, whatever your technician's skill. Oregon and Colorado now restrict some uses of parts pairing for covered devices, but coverage depends on the state, product, and manufacture date. Score it under parts and software access.

Should my shop repair earbuds or vapes?

Score them first. In the worked example, an earbud battery at $49 scored 15 of 45 and would need $163.15 to clear the floor. Earbud designs vary, so score the model. Single-use vapes are not designed for repair. Both usually come out as route, and routing battery items is only for shops with safe handling and a downstream partner.

When should a tech repair shop refer a repair to another shop?

When it scores under 27 of 45, or returns less than your floor rate, and repricing would not fix it. Refer to a named partner or use a WhereToRepair search. Turning work away with a referral keeps the customer; turning it away with nothing does not.

The series pauses for a Right to Repair update next week and returns November 4 with the phone. Part 7 is about the call that comes in before the customer reaches the counter, and why so many of them hang up.

Start here: Download the one-page Service Category Scorecard (PDF): eight rows, nine factors, the full rubric, and the return-per-bench-hour line.

How healthy is your shop, really?

TCA ShopCheck is a free two-minute health check built for independent repair shops. Your Run It Well score is the fast read on how the operational side is functioning. Knowing which repairs earn their bench time is one of the habits behind it.

Run TCA ShopCheck Free

More from the TCA Blog

Rob Link is the founder of the TCA. He built and ran a multi-location repair chain in an earlier era of this industry, and he'd tell you today's operators have it harder. The TCA is independent of carriers, manufacturers, and insurance companies, which is exactly why it can tell shop owners the truth about growth.

Sources and methodology

  • WEEE Forum, "International E-Waste Day 2026 to focus on 'Fast Tech'," June 18, 2026. weee-forum.org
  • Federal Trade Commission, "Nixing the Fix: An FTC Report to Congress on Repair Restrictions," May 2021. ftc.gov
  • Colorado General Assembly, HB24-1121, "Consumer Right to Repair Digital Electronic Equipment," signed May 28, 2024; effective January 1, 2026. leg.colorado.gov
  • Oregon SB 1596 (2024), signed March 2024; parts pairing provision for covered devices manufactured after January 1, 2025. Summary: Reinhart Boerner Van Deuren, "Oregon Passes Right to Repair Law: First to Ban Parts Pairing." reinhartlaw.com
  • iFixit, "Switch 2 Teardown: Still Glued, Still Soldered, Still Drifting," June 6, 2025. ifixit.com
  • iFixit, "AirPods 5 Are the Least Unrepairable AirPods Yet," September 29, 2026. ifixit.com
  • U.S. Environmental Protection Agency, "An Analysis of Lithium-ion Battery Fires in Waste Management and Recycling," EPA 530-R-21-002, July 2021. epa.gov
  • Tech Care Association, Fix the Shop First, Parts 2 to 5 (September 16 to October 7, 2026), for the series illustrative example: $14,400 monthly revenue, 120 tickets, 88 billable hours, the $178.98 floor rate, the 3.3 percent callback rate, and the $47.09 true parts cost on a 35-minute screen ticket.
  • TCA Repair Community Listening, discussions dated September 9 to October 12, 2026.

About this data: The TCA reviewed approximately 270 comments from repair professionals in 13 online industry discussions, dated September 9 to October 12, 2026, on Facebook industry groups and public pages. Discussions were included if they named a repair a shop dropped, kept, referred, or repriced, stated time per job by repair type, or described revenue that does not use the bench. Comments were coded by repair named and reason given. Counts are mentions; participants were not deduplicated, and some commented in more than one discussion. This is qualitative community listening, voluntary and not a representative survey, and the findings should not be read as estimates for the repair industry. Comments from parts vendors, software vendors, and service resellers were excluded. All comments are paraphrased, no participant is identified, and source notes are retained by the TCA. The discussions did not address earbuds, cables, vapes, or smart toys; the Fast Tech section relies on other sources. Every worked number is illustrative, carried from earlier chapters, and not a benchmark. Legal points are summaries, not legal advice.

Published October 14, 2026. Last updated October 14, 2026.

Fix the Shop First · Part 5 of 9

How to Mark Up Parts in a Tech Repair Shop: The True Cost Formula

Markup is not margin. There is no magic percentage.

What a part really costs by the time it is installed and warrantied, and the least every repair has to earn before the shop says yes.

Fix the Shop First | A 9-part series | Tech Care Association

How much should a tech repair shop mark up parts? There is no correct percentage, because a percentage scales with the supplier invoice and your costs do not. Price every part from its true cost, not the invoice. Then set the minimum every repair must earn in dollars: your Part 3 floor rate multiplied by the minutes the ticket takes. Cheap parts end up with a high markup, expensive parts with a low one, and both come from the same floor. A repair that cannot clear it is repriced, special-ordered, declined, or turned into a replace recommendation. Part 5 of the nine-part Fix the Shop First series, with a free True Parts Cost worksheet.

By Rob Link, Founder & CEO, Tech Care Association · October 7, 2026 · 30 min read

That is the TCA's position, and it is the second chapter in this series to take one. Part 4 ended with a promise: the fee protects labor; this week protects the part. The question, stated precisely: when a repair needs a part, how much should a tech repair shop charge for that part, and what is the least a single repair can earn before the shop should not do it?

The answer most shops carry around is a habit: double it, add fifty percent, part plus a hundred dollars. None of those rules knows what the part costs the shop by the time it is ordered, shipped, installed, and warrantied. This chapter replaces the habit with arithmetic the shop already has after Part 2 and Part 3: the true cost of the part, the floor rate, and one dollar figure every ticket must clear.

What's in this post

  1. Key Takeaways
  2. Invoice, True Cost, Markup, Margin, Contribution: What Each One Means
  3. The Short Answer, Including What to Put in the POS Tomorrow
  4. The Framework: True Cost, Required Contribution, Decide
  5. What Shops Are Saying
  6. What the Record Shows
  7. Why Markup Is Not Margin
  8. The TCA True Parts Cost Formula, Worked
  9. Two Pockets, One Floor: The Minimum Contribution Per Repair
  10. Why a Dollar Floor Beats a Percentage
  11. Building a Declining Markup Matrix From Your Own Numbers
  12. Economy, Premium, OEM, Refurbished: Same Formula, Your Callback Rate
  13. Customer-Supplied Parts, RMAs, and One Supplier
  14. How to Say It
  15. The Two Numbers to Watch Every Month
  16. The TCA's Take
  17. What to Do Monday Morning
  18. Quick summary
  19. Frequently Asked Questions About Tech Repair Shop Parts Markup

Key Takeaways

  • Markup is not margin. Markup is what you add to the invoice. Margin is what the ticket leaves behind after the part is really paid for.
  • The invoice is not the cost of the part. True parts cost adds the replacement parts you supply free under warranty, shipping both ways, and an allowance for stock on the shelf. It is a pricing measure, not an accounting definition of inventory cost.
  • Every repair has a floor: true parts cost plus the minimum contribution, which is your floor rate multiplied by the minutes the ticket takes. Below that, reprice, special-order, decline, or recommend replacement.
  • Parts and labor are two pockets with one floor. How the ticket splits them is presentation; whether they add up is not. "Part plus $100" does not say whether the part is at invoice or above it, and in the discussions the TCA reviewed almost nobody said.
  • A percentage fails at both ends. Doubling a $12 part leaves about $9 toward a ticket that needs about $104; doubling a $140 part leaves more than the ticket needs on a part the customer can price-check. The shape that works is a declining matrix with a dollar minimum underneath.
  • Part tier and markup are one decision. The warranty line is the only input that changes by tier, and your callback rate by tier is the number that decides it.
  • Answer "I found it online" with what the price includes, not with a discount. A transparent estimate shows the part price and the labor price; it does not ordinarily require the supplier invoice.

Invoice, True Cost, Markup, Margin, Contribution: What Each One Means

  • Invoice price. What the supplier charged. The number most shops multiply. Not the cost.
  • True parts cost. Invoice price plus expected warranty replacement, shipping both ways, and an inventory allowance. The number this chapter multiplies. A TCA management-pricing measure, not an accounting definition of inventory cost or cost of goods sold.
  • Markup. What you add to cost, measured against cost. A $100 part priced at $150 carries a 50 percent markup.
  • Margin. What you keep, measured against price. The same part carries a 33 percent margin. Same dollars, different denominator.
  • Contribution. Dollars a ticket leaves behind after the true cost of the part, before rent and everything else. Part 2's gross margin per ticket, with the part priced honestly.
  • Minimum contribution per repair. What one ticket must leave behind: floor rate multiplied by ticket minutes, divided by 60. A dollar figure.
  • Minimum repair price. True parts cost plus the minimum contribution. The least the ticket can total before the shop should not do it.
  • Warranty reserve. Callback rate multiplied by the part-side cost of a callback: the replacement part, consumables, and return shipping. The bench time on a callback is already inside a floor rate built on billable hours, so it is counted there, once.

The Short Answer, Including What to Put in the POS Tomorrow

There is no correct markup percentage, and the TCA is not going to hand you one. Mark the part up from its true cost, not the invoice, and set one minimum every repair must clear: your floor rate multiplied by the minutes the ticket takes, on top of what the part really cost you. That minimum is a dollar figure, and it does not move when the invoice moves.

For the owner who needs a number in the point of sale tomorrow, the practical answer is a declining markup matrix: a high percentage or a fixed dollar minimum on cheap parts, a moderate percentage in the middle, a low percentage on expensive parts, and the minimum contribution underneath all of them. The percentages are yours, derived from your true cost and your floor; the shape is universal, because the costs that make a $12 part expensive to handle are the same costs that make a $300 part cheap to handle. The matrix section below shows how to build one from the two numbers this chapter produces.

The Framework: True Cost, Required Contribution, Decide

Most of the argument about parts markup dissolves once shops stop using "markup" and "margin" to mean the same thing, and stop treating the invoice as the cost. The framework the TCA recommends is five lines, and the first three are arithmetic.

  1. Find the true parts cost. Invoice plus warranty reserve plus shipping plus inventory allowance.
  2. Find the minimum contribution. Floor rate multiplied by ticket minutes, divided by 60.
  3. Find the minimum repair price. Add them. This is the floor for this repair.
  4. Compare it to the ceiling. What the customer will reasonably pay, which is bounded by the manufacturer's repair price where one exists and by what the device is worth.
  5. Decide. Quote it, reprice it, move the part to special order with a deposit, decline it, or recommend replacement. All five are answers. Absorbing the gap is not.
Markup is what you add to the invoice. Margin is what the ticket leaves behind. Shops get in trouble when they manage the first and never look at the second.

What Shops Are Saying

Observational evidence from TCA Repair Community Listening. Method and limits are in the footer.

In the online discussions the TCA reviewed over three weeks, repair professionals rarely talked about marking up parts at all. They talked about adding to them. Across the nine discussions that touched parts pricing (about 190 comments, September 9 to October 1), the parts price almost always appeared as "part plus a number," and the number was labor. Only two participants stated a markup on the part itself, and neither explained what the multiplier was meant to cover. Where the part itself earned anything, almost nobody said so.

The structures stated, from the largest pricing discussion in the set (about 45 comments on what to charge for a screen): part plus $100 from five participants, the most common single answer; part plus $120 to $150 from several, often keyed to device generation; labor of $60 or $100 keyed to whether the part cost under or over $50 from one; and full price ladders by model from several, with the part absorbed into a list price. The two stated multipliers were one and a half times the part plus $40 in labor, and one and a quarter times the part plus $120 or $150 by generation. The arithmetic later in this chapter runs all three against the series' illustrative shop, and one clears the floor.

Three comments carry the rest of the chapter. One participant, on a public page (about 35 comments), stated what the shop earns per repair by tier rather than a price: roughly $80 to $120 on economy screens and $150 to $220 on premium OLED screens carrying a lifetime warranty. One shop's figure, not a benchmark, and the only comment in the set that stated the number a markup is supposed to produce. Another characterized the economy screen install as a one-time profit of about $30, thin enough that one callback removes it. A third said most of his prices are outdated and that keeping every price current as supplier costs move is not realistically possible, which is The Data Gap in an owner's words: a markup is meaningless if the cost it multiplies is stale. No participant described checking margin before giving a quote.

"Part plus $100" does not say whether "part" means the supplier invoice or something above it. In these discussions, it almost never did. That ambiguity is the problem this chapter solves: shops know what they are adding without knowing what the ticket has to leave behind.

What the Record Shows

Community Listening tells you what owners say. Four other sources show what the practice looks like on paper, each specific to electronics repair, none a benchmark.

The TCA's 2025 pricing formula, and what it left out

In 2025 the TCA published Simplifying Your Tech Repair Shop Pricing, which set the formula as parts with markup plus labor. Part 3 superseded the labor half. The parts half was right as far as it went: the part should carry a markup. It did not say markup on what, or to what. This chapter supplies both.

Repair-shop software already assumes the markup should vary

RepairDesk, a point-of-sale system built for electronics repair, publishes a repair parts markup feature that lets a shop define markup "slabs," each with a minimum cost, a maximum cost, and a markup percentage, with the marked-up part added to the service charge on the ticket. Read the implication: even the software assumes a $10 part and a $300 part do not necessarily deserve the same markup. If the tooling many shops already run allows a declining matrix, a shop applying one percentage to every part is choosing to.

The customer can increasingly see a genuine-part price

Apple's Self Service Repair program gives individuals access to genuine Apple parts, tools, and repair manuals for out-of-warranty repair, and says these are the same parts and tools it makes available to its authorized service providers. The same page notes that for certain repair types the customer may receive a credit when the replaced part is returned. Two consequences. For supported devices and repairs, consumers can increasingly see what a genuine part costs before walking in, which makes "double every part" indefensible on the expensive end. And a core credit means the part's net cost to the shop is lower than the invoice; if the point of sale records the gross price as cost of goods, the margin report is wrong. Price from the net cost after the credit, and from the gross cost until it arrives.

Price transparency is not cost disclosure

California's electronic and appliance repair statute requires an initial written estimate before any repair, states that the estimate must include all costs for parts and labor, and prohibits charging beyond the estimate without the customer's consent. Note what it requires and what it does not. The customer is entitled to the price of the part and the price of the labor before work begins. A transparent estimate does not ordinarily require disclosure of the shop's acquisition cost or supplier invoice. Hold that distinction for the "I found it online" objection below, and know your own state's estimate rules.

Why Markup Is Not Margin

Two mistakes hide inside "mark it up fifty percent." The first is arithmetic: markup and margin are different numbers that sound the same. The second is the base: the percentage is applied to the invoice, and the invoice is not what the part costs.

The arithmetic

Markup is measured against cost. Margin is measured against price. On a $100 part:

Markup on costPart priceDollars keptMargin on price
25 percent$125$2520.0 percent
50 percent$150$5033.3 percent
100 percent (doubled)$200$10050.0 percent
150 percent$250$15060.0 percent

To keep a target share of the price, divide by one minus the target, the same move Part 3 made for labor. A shop that says "we mark up 50 percent" and believes it keeps half is keeping a third.

The base: what the invoice does not show

The second mistake is invisible on every ticket. Before a part earns the shop anything, the price has to cover what happens after the invoice.

Defective units. Some share of parts fail on the bench or come back under warranty. The supplier may replace the part; the shop still supplies the second adhesive, pays the return shipping, and often eats the first part. The expected cost is Part 2's callback arithmetic applied to the part side: callback rate multiplied by the replacement part, consumables, and return shipping.

Shipping, both ways. Every order carries inbound freight, divided across the parts in it. Every RMA ships back, and the replacement ships again. A $20 part in a six-part order with $12 of freight cost $22 before it was opened.

Stock on the shelf. A part on the shelf is cash that is not in the bank, on a model getting older at a price drifting down. A battery that turns twenty times a year costs almost nothing to hold. A display for an unusual model that sits nine months costs real money, which is why slow movers belong on special order.

The time nobody bills. Somebody looks up the part, orders it, receives it, tests it, and does the RMA paperwork, and somebody spends the second block of bench time when a part comes back. That time is real, and it is already paid for: a floor rate built the Part 3 way divides all of the shop's payroll and overhead by billable hours, so every unbilled minute is inside it. Count it there, once. The exception is a shop with no floor rate, or one paying technicians per repair, where handling and callback time are incremental and belong on the part; the worksheet has a line for it, set to zero by default.

The invoice price versus the true cost of a part A stacked bar. The invoice price of $43.33 is extended by a warranty reserve of $1.50 and shipping of $2.26, with an inventory allowance of zero on a fast-moving part, to a true parts cost of $47.09, about 9 percent above the invoice. A dashed extension shows $3.00 of handling for a shop with no floor rate, reaching $50.09. Illustrative. The $43 part that really costs $47 One part from the series' illustrative shop, by the time it is installed and warrantied True parts cost $47.09 Invoice price $43.33 $50.09 with handling Invoice $43.33 What the supplier charged Warranty reserve $1.50 3.3% callbacks x ($43.33 + $2 consumables) Shipping $2.26 $12 freight over 6 parts, plus returns Inventory allowance $0.00 Fast mover; slow movers get one Handling $3.00, only with no floor rate 8 min at the $22.50 loaded hour; a Part 3 floor already carries it $3.76 above the invoice, about 9 percent, before a single dollar of contribution. Illustrative: $43.33 average part and 3.3 percent callback rate from Part 2. Freight, consumables, and handling are placeholders. Not a benchmark. Fix the Shop First, Part 5 | Tech Care Association

The part the shop thinks cost $43.33 cost about $47 by the time it was installed and warrantied, and about $50 at a shop whose labor line was never built on billable hours. A markup applied to the invoice starts behind. Illustrative.

The TCA True Parts Cost Formula, Worked

True parts cost = invoice price + (callback rate x part-side callback cost) + allocated shipping + inventory allowance, plus handling time at the loaded rate only where the floor rate does not already carry it.

One sentence before the numbers: "true parts cost" is a TCA management-pricing measure built to set prices, not an accounting definition of inventory cost or cost of goods sold. Your bookkeeper's number and this one answer different questions.

A worked example (illustrative numbers carried from Parts 2 and 3, not a benchmark). Part 2's example shop spent $5,200 on parts across 120 tickets, or $43.33 per part, with a 3.3 percent callback rate. Add three placeholders: $2 of consumables on a redo, $12 of inbound freight on a typical six-part order, and $8 to ship a return. The part is a fast mover, so the inventory allowance is zero; a slow mover gets the shop's own allowance or goes on special order.

The $43 part that really costs $47

  1. Invoice price: $43.33
  2. Warranty reserve: 3.3 percent x ($43.33 + $2.00) = $1.50
  3. Shipping: $12 / 6 parts = $2.00, plus 3.3 percent x $8 return = $0.26, total $2.26
  4. Inventory allowance: fast mover, $0.00
  5. True parts cost: $47.09. $3.76, or about 9 percent, above the invoice before the shop has earned a dollar.

Handling at the $22.50 loaded hour (Part 3) adds $3.00 only for a shop with no billable-hours floor rate: $50.09, about 16 percent. Illustrative. Not a benchmark.

Nine percent does not sound like much until it is applied to every part the shop touches. Across Part 2's 120 parts a month, $3.76 a part is about $450 a month that a shop "passing parts through at cost" is quietly paying its supplier, its carrier, and its warranty customers.

Two Pockets, One Floor: The Minimum Contribution Per Repair

True cost tells you what the part is. It does not tell you what to charge. The second number does, and it comes from Part 3.

Part 3 said the floor rate is what every billable hour has to bring in after the part is paid for, however the shop collects it: a labor line, a parts markup, a flat price, or some of each. "After the part is paid for" means after the true cost. So the minimum a single repair must contribute is one multiplication, and the floor for the repair is one addition:

Minimum contribution per repair = floor rate x ticket minutes / 60.
Minimum repair price = true parts cost + minimum contribution.

Worked (illustrative). Part 3's example shop has a floor rate of $178.98 per billable hour and timed its common screen ticket at 35 minutes door to door. Minimum contribution: $178.98 x 35 / 60 = $104.40. Minimum repair price on the example part: $47.09 + $104.40 = $151.49. The ticket can total more. It cannot total less without the shop subsidizing it.

Two pockets, one floor A ticket is shown as a bar: true parts cost of $47.09, then a contribution of $104.40 split between a parts pocket and a labor pocket, totaling the $151.49 minimum repair price. Three ways to split the contribution are shown reaching the same floor: part at true cost with $104.40 labor; part at $56.09 with $95.40 labor; a flat $151.49. Below, the structure "part at invoice plus $100" totals $143.33, $8.16 short. Illustrative. Two pockets. One floor. How the ticket splits the contribution is presentation. Whether the two pockets reach the floor is not. The floor for this repair True parts cost $47.09 Minimum contribution $104.40 (floor rate x 35 min) $151.49 minimum repair price Three ways to reach it Part at true cost $47.09Labor line $104.40 Part priced at $56.09 (1.29x invoice)Labor line $95.40 Flat repair price $151.49 The community's most common structure, with the part at invoice Part at invoice $43.33Part plus $100 $8.16 short About $980 a month across Part 2's 120 tickets, leaking out of a price that looks fully priced. Illustrative: $178.98 floor rate and 35-minute ticket from Part 3, $47.09 true parts cost. Not a benchmark. Fix the Shop First, Part 5 | Tech Care Association

Parts pocket plus labor pocket equals the contribution. Three splits reach the same floor; the one the community uses most, with the part at invoice, falls short of it. Illustrative.

Run the three structures from this month's listening against the series shop, on the series' numbers and not on any participant's own:

  • Part plus $100, part at invoice: $143.33. Short of the floor by $8.16, about $980 a month across 120 tickets.
  • One and a half times the part plus $40: $105.00. Short by about $46.
  • One and a quarter times the part plus $120: $174.16. Clears the floor by about $23.

Same part, same shop, three structures shops actually use, one that works, and none of the three participants could have known, because none described starting from the floor. If the labor line is at the floor, the parts pocket only needs to recover true cost. If the labor line is below the floor, as a flat $100 is for this shop, the parts pocket has to make up the difference, and now the shop knows exactly how much: $4.40 above true cost, a part price of $51.49, about 1.19 times invoice. Not a rule; the result of two numbers the shop owns.

When the floor is above the ceiling

Part 3 spent a section on the ceiling below the floor, and it applies to the part with one addition: device value. If a laptop is worth about $350 used, the display's true cost is about $178, and the minimum contribution on an hour-long ticket is $179, the minimum repair price is about $357. The arithmetic is not telling you to raise the markup. It is telling you this repair does not clear the floor at any price the customer will accept, and the diagnostic from Part 4 should produce the word "replace." That answer has value; the customer who thanked a shop for it in last month's listening is the proof.

The answer to a repair that cannot clear the floor is not a bigger markup. It is reprice, special-order, decline, or replace, said before the device is opened.

Why a Dollar Floor Beats a Percentage

Here is the fault in every flat percentage, including the one the TCA's own 2025 article implied. The costs that sit on top of the invoice are mostly fixed dollars per part: the same box, the same return label, the same minutes. And the contribution the ticket needs is a fixed dollar figure set by the floor rate and the clock, not by the invoice. A percentage of a small invoice cannot cover fixed dollars, and a percentage of a large invoice covers them many times over on the part the customer can price-check.

A $12 part and a $140 part, both doubled, against the contribution the ticket needs Two bars against a required contribution of $104.40. A $12 part doubled to $24 contributes $9.28, leaving $95.12 for the labor line to carry. A $140 part doubled to $280 contributes $133.05, $28.65 more than the whole ticket needs before any labor line. Illustrative. Same multiple, opposite failures What each doubled part contributes toward the $104.40 the ticket needs Ticket needs $104.40 $12 part, doubled to $24 Labor line must carry $95.12 Contributes $9.28 after a true cost of $14.72. The percentage is 100; the dollars are nine. $140 part, doubled to $280 Contributes $133.05 +$28.65 over, before any labor After a true cost of $146.95. The customer can look this part up online, and the labor line is now charging twice. Contribution from the part at 2x invoice Gap the labor line has to fill Illustrative: 3.3 percent callbacks, $2 consumables, $2.26 shipping; $104.40 is the 35-minute contribution at the $178.98 floor rate from Part 3. Not a benchmark. Fix the Shop First, Part 5 | Tech Care Association

Doubling the $12 part leaves the labor line carrying almost the whole ticket. Doubling the $140 part collects the whole ticket twice. One rule fails at both ends. Illustrative.

Both ends fail for opposite reasons, and the fix is the same: a dollar minimum on the small end, so the part plus labor reaches the contribution; and a low percentage on the large end, so the part carries its true cost and a visible share while the labor line carries the rest. That shape has a name.

Building a Declining Markup Matrix From Your Own Numbers

A markup matrix is a short table that applies a different percentage to different cost ranges, and it is the operational answer to this chapter's headline. The TCA will not print one with percentages in it, because the right percentages come from your true-cost inputs and your floor rate, and a table that works for a shop with 3 percent callbacks and $8 freight loses money at a shop with 8 percent callbacks and $20 freight. What the TCA will show is the shape, because the shape is universal.

True parts costWhat the parts pocket has to doShape of the markup
Small (a battery, a port, an adhesive)Cover true cost; the labor line carries nearly all of the contributionA fixed dollar minimum, or a high percentage that produces one
Mid-range (most phone screens)Cover true cost and a share of the contribution, so a flat labor line does not have to carry it aloneA moderate percentage
Large (laptop displays, genuine assemblies)Cover true cost and a visible share; the customer can see a reference priceA low percentage, with the labor line carrying the rest of the floor

Illustrative shape only. This is what a declining matrix looks like, not a TCA benchmark, and the boundaries and percentages are yours.

To build yours: take the top ten parts by volume, run each through the true-cost formula, decide what the labor line will carry on that ticket, and the parts pocket is what is left. Three tiers usually do it; do not build twelve. Then check two things once a month: that the bottom tier's part plus labor still clears the contribution, and that the top tier's part price still looks reasonable next to a manufacturer's repair price. A matrix is a rule for the counter. The floor is the reason the rule exists.

Economy, Premium, OEM, Refurbished: Same Formula, Your Callback Rate

Part 2 found the economy-versus-OLED argument in four discussions in one week and said it would stay an argument until warranty returns divided by completed repairs was a number shops tracked by tier. This month it was still an argument. Here is the arithmetic it is waiting for.

The true-cost formula does not change by tier. One input does: the warranty reserve, which is your callback rate for that tier multiplied by the part-side cost of a callback. Illustrative, with made-up tier inputs the TCA has no source for: an economy display at a $30 invoice with a 10 percent callback rate carries a $3.20 reserve and a true cost of about $35.46; a premium display at a $60 invoice with a 2 percent callback rate carries a $1.24 reserve and a true cost of about $63.50. The invoice gap is $30; the true-cost gap is about $28. On the part side alone, the economy part is still cheaper, and the formula is honest about that.

The cost it does not show is the one that lands on everyone else. Every callback is a block of unbilled bench time, and unbilled time is what lowers utilization and raises the floor rate for every ticket in the shop. A tier that comes back one time in ten instead of one in fifty is not just a $2 difference in reserve; it is a tax on every other repair, and it shows up in Part 2's number four and Part 3's utilization before it shows up anywhere else. That, plus the reputation cost nobody can put on a ticket, is the real price of the cheaper invoice. The formula makes the part side a decision instead of a reflex; the callback rate by tier tells you the rest.

Genuine or OEM-equivalent parts add one line: the customer can increasingly see a reference price, so the markup on that tier will be low and the labor line carries the floor. Refurbished parts add another: the supplier's warranty terms become part of the price, which the next section takes up. What this chapter will not do is tell you which tier is right, name a supplier, or claim one supplier's parts fail less than another's. The TCA has no data for any of that. It has a formula that lets you find out for your own shop.

Customer-Supplied Parts, RMAs, and One Supplier

Three questions come up every time parts pricing does. Each gets a paragraph here and a fuller chapter in 2027.

"Can you use my part?" You can, and if you do, the economics change and the ticket should say so. Where permitted by applicable law and disclosed before work begins, a shop can set a policy that customer-supplied parts carry no shop warranty on the part, that installation labor is charged at the full rate and remains payable if the supplied part turns out to be defective or incompatible, and that a stated bench fee covers the risk of an unknown part. Write all of it on the ticket before the device is opened. Customer-supplied parts prove this chapter's point in reverse: when the shop does not supply the part, the shop does not earn the part's contribution and does not carry the part's warranty. Those two things travel together.

RMAs. A supplier's return process is part of its price. Track two numbers per supplier: how many days a return takes to become a credit or a replacement, and what share of returns are actually credited. A supplier whose part is $3 cheaper and whose returns take three weeks and come back denied one time in four is not cheaper. The return shipping belongs in the true cost; the turnaround belongs on the bench, where a part stuck in transit is a device stuck on the shelf.

One supplier. A shop with one supplier has a cost input it does not control. A shop with two has a price it can check. The stale-prices owner in this month's listening cannot keep up with supplier cost changes; a second supplier does not fix that, but it turns a surprise into a comparison, and an RMA dispute no longer stops the bench. Carry a second source for the top ten parts by volume, even if you buy from the first one nine times out of ten.

How to Say It

Three objections, each under a minute spoken. They are also in the one-page worksheet at the end of this chapter.

"I found the same screen online for $12."

"You can find a screen online for that, and you might get a good one. What our price covers is a part we chose and tested, installed by a technician, with our warranty on the whole repair. If it fails, you bring it back and we handle it, including the part and the time. The online part comes with none of that. If you'd like to bring it in, we'll install it at our labor rate, with the warranty on the labor only. Either way is fine. They are two different things."

"The shop down the street charges less for the screen."

"They might. I don't know what part they use, what their warranty covers, or what happens if it comes back, and those are the things that decide what a screen repair costs. Ours is [price], it uses a [tier] part, and it carries a [length] warranty on the part and the work. If you want the lowest price on the block, I'd rather you knew what you were comparing than guessed."

"Why is the part more than the website price?"

"Our parts price includes finding the right part, keeping it in stock so you aren't waiting a week, checking it before it goes in, and the warranty we give you on the repair. If the part fails, replacing it is on us, not you. That is what the difference pays for."

None of these scripts reveals the invoice, and none apologizes for the price. Customers are entitled to understand what they are being charged for and what it includes. A shop that can say that in one breath does not need to hide anything.

Our parts and warranty policy

Five lines. Written once, applied by everyone, posted where the customer can read it.

  1. Every part we supply is priced to include sourcing, stocking, testing, and our warranty on the repair.
  2. Our repair warranty covers the part and the work for [length]. If a part we supplied fails in that time, replacing it is on us.
  3. We will install a part you supply. Labor is charged in full and remains payable if the part is defective or incompatible. Parts you supply are not covered by our warranty.
  4. Your written estimate shows the part price and the labor price before any work begins. We do not exceed it without your approval.
  5. If a repair is not worth doing at our price, we will tell you so and recommend replacement.

Free to copy. Check lines 3 and 4 against your state's consumer and repair rules, and fill in your warranty length from the worksheet. Tech Care Association

The policy, as a card. Print it for the counter and paste it on the website. The worksheet has the same five lines with blanks.

From the TCA's Second Life Sessions. In Episode 7, Jordan Notenbaum, President of MobileSentrix, talks through the parts supply chain from the distributor's side: what moves a part's cost between the factory and the shop's shelf. Watch it with this chapter's formula open.

About the Second Life Sessions series · Full playlist on the TCA YouTube channel

The Two Numbers to Watch Every Month

Part 3 added a sixth number to Part 2's five: the effective labor rate. This chapter adds the seventh and eighth, and they travel together, because this chapter has spent several thousand words arguing that a percentage alone does not tell you whether the ticket works.

Parts contribution = parts revenue minus true parts cost, in dollars, by month. This tells you whether the parts pocket is putting enough money on the table.

Blended parts margin = parts contribution / parts revenue, as a percentage. This tells you whether the pricing is efficient, and it is the one that moves first when a supplier raises a price and the price list does not follow.

Parts revenue is what customers paid for parts, if your point of sale separates the part line from labor; if it does not, that separation is the first thing to fix, because without it the two pockets cannot be told apart. True parts cost is the formula above run on the month's invoices: invoices plus the replacement parts actually supplied under warranty, plus freight actually paid, plus an allowance for what sat on the shelf. Put both numbers on the same sheet as the five numbers and the effective labor rate, and watch the trend. When either drops, the cause is one of four things: supplier prices moved and the price list did not, callbacks rose on a tier, freight rose, or somebody started discounting the part to win the job. Each has a different fix, and the numbers tell you to go look.

Set your own target the way Part 2 set every target. There is no sourced benchmark for parts contribution or parts margin in independent tech repair, and the TCA will not invent one. Take last month's parts contribution. If, added to last month's labor contribution, it did not cover fixed costs with room to spare, the target is the figure that would.

The TCA's Take

This section is the TCA's position, not a finding from the community evidence above.

A shop should never quote a repair below its true parts cost plus the minimum contribution that ticket requires, and it should know both numbers before the quote, not after the bank statement. A markup is a means. The contribution per ticket is the number. Set the markup from the contribution you need, not the contribution from the markup you inherited.

The TCA's position is not that parts should carry a specific percentage, and it is not that every shop must itemize a markup on the receipt. It is that the part is a cost center with lines the invoice does not show, and a price built on the invoice alone subsidizes the supplier, the carrier, and the customer who brings the device back, in that order. Recover those costs inside the part price, inside the labor line, or inside a flat price. The choice the TCA argues against is the one most shops make by default: a multiple nobody derived, applied to a cost nobody updated, checked against nothing.

Every objection the TCA heard this month has the same answer.

"The customer can get it cheaper online." Yes, installed by themselves, tested by nobody, warranted by no one. Answer with what the price includes. If you cannot say what it includes, that is the problem, not the price.

"Part plus $100 works for me." It might. Run it against your true cost and your floor once and you will know, which is more than most of the shops stating it this month could say. On the series' illustrative shop it was about $8 short on every ticket.

"Economy parts are fine." "Economy parts are killing your brand." Run the warranty reserve by tier and look at what the callbacks did to utilization. One of you is right for your shop, and the numbers will say which.

"If I price it right, the customer will walk." Some will. A repair that cannot meet the shop's floor does not become profitable because the customer accepted it. Listening shows, it does not prove, and this month's discussions contained plenty of owners afraid of losing the job and none who described losing one to a price that was explained.

What to Do Monday Morning

Three steps put a tech repair shop parts markup on a floor this week.

  1. Pull last month's parts invoices and your RMA count. Add the freight you actually paid and the returns you actually shipped, divide by parts received, and you have your true cost per part, on average. The gap to your average invoice is the number you have been giving away.
  2. Run the floor on your top ten repairs. True parts cost plus your Part 3 floor rate multiplied by the ticket minutes you timed in Part 3. Put the result beside what you charge today. Circle every repair under the floor; those are the ones you reprice, move to special order, or stop offering.
  3. Put the minimum contribution in dollars on the pricing sheet, and build the three-tier matrix underneath it. One line at the top: no repair leaves the shop below true parts cost plus $[your floor rate x your typical minutes]. Then post the five-line parts and warranty policy at the counter and on the website, in the same words.

The fee protected labor. The floor protects the part. Next Wednesday, October 14, Part 6 asks the question the first five chapters make answerable: now that the hour, the diagnostic, and the part are priced, which repairs actually earn their bench space, and which ones have been filling it.

Quick summary

  • Markup is not margin. Markup is measured against cost; margin against price. A 50 percent markup keeps a third of the price, not half.
  • The invoice is not the cost. True parts cost = invoice + (callback rate x part-side callback cost) + shipping both ways + inventory allowance. Illustrative: $43.33 becomes $47.09, about 9 percent more, or about $50 at a shop with no floor rate.
  • The minimum contribution per repair is a dollar figure: floor rate x ticket minutes / 60. Illustrative: $178.98 x 35 / 60, about $104.
  • The minimum repair price is true parts cost plus the minimum contribution. Illustrative: about $151. "Part plus $100" with the part at invoice was about $8 short on the example.
  • Two pockets, one floor. Parts pocket plus labor pocket equals the contribution. The split is presentation; the total is not.
  • A percentage fails at both ends; a declining matrix with a dollar minimum is the shape that works, and the percentages in it are yours.
  • Tier and markup are one decision, and the callback rate by tier is the input, on the part side and in utilization.
  • The TCA has not published a parts markup, parts margin, or callback-rate benchmark, and the structures from this month's listening are what participants stated, not an industry pattern.

Frequently Asked Questions About Tech Repair Shop Parts Markup

What is a fair parts markup for a tech repair shop?

There is no single fair percentage, and the TCA has not published a benchmark. A fair part price covers the part's true cost (invoice plus warranty replacement, shipping, and an inventory allowance) and leaves, together with the labor line, the minimum contribution your floor rate requires. The practical form is a declining matrix: a high markup or dollar minimum on cheap parts, a low markup on expensive ones.

What is the difference between markup and margin on a part?

Markup is what you add, measured against cost. Margin is what you keep, measured against price. A $100 part priced at $150 carries a 50 percent markup and a 33 percent margin. To keep a target share of the price, divide cost by one minus the target.

Should a tech repair shop pass parts through at cost and make money on labor?

Not at invoice cost. The invoice is below what the part costs the shop once replacements, shipping, and shelf time are counted, so passing it through at invoice loses money on every part. A shop can choose to collect the whole contribution on the labor line, but the part must at least be priced at its true cost.

How do I set the minimum contribution per repair?

Multiply your Part 3 floor rate by the minutes a typical ticket takes door to door, then divide by 60. That is what the ticket must leave behind after the true cost of the part. At the illustrative floor used in this series, a 35-minute ticket needs about $104. Your floor rate and your timed tickets produce your number.

Should a repair shop install customer-supplied parts?

It can, with the economics stated on the ticket before work begins and consistent with local rules: labor at the full rate and payable regardless, no shop warranty on the part, and a bench fee if the shop chooses to charge for the added risk. The customer who supplies the part takes on the quality risk the shop's markup would otherwise have covered.

How should I price an economy part versus an OEM or premium part?

Run the same true-cost formula on each tier with that tier's callback rate in the warranty reserve, then look at what each tier's callbacks do to your utilization. The cheaper invoice is only cheaper if both say so. On genuine or OEM-equivalent parts, expect the markup to be low because the customer can increasingly see a reference price, and let the labor line carry the floor.

Should I tell customers my markup?

Customers are entitled to the price of the part and the price of the labor before work begins, and to know what the price includes. A transparent estimate does not ordinarily require the shop's supplier invoice. Price transparency is not cost disclosure.


Start here. Free, no signup.

Download the True Parts Cost Worksheet (PDF)

The true-cost calculation with blanks (and the optional handling line), the minimum-contribution line from your floor rate, a three-tier matrix to fill in, a tier comparison strip, the three counter responses, and the five-line parts and warranty policy. One page for the office, one for the counter.

How healthy is your shop, really?

TCA ShopCheck is a free two-minute health check built for independent repair shops. Your Run It Well score is the fast read on how the operational side is functioning. Knowing what a part really costs, and what every repair has to clear, is one of the habits behind it.

Run TCA ShopCheck Free

More from the TCA Blog

Rob Link is the founder of the TCA. He built and ran a multi-location repair chain in an earlier era of this industry, and he'd tell you today's operators have it harder. The TCA is independent of carriers, manufacturers, and insurance companies, which is exactly why it can tell shop owners the truth about growth.

Sources and methodology

  • Part 3 of this series, How to Calculate Your Tech Repair Shop Labor Rate, for the $178.98 floor rate, the $22.50 loaded hourly cost, the 55 percent utilization, and the 35-minute ticket. The floor rate divides all payroll and overhead by billable hours, which is why unbilled handling and callback time are not added to the part again in this chapter.
  • Part 2, Busy or Profitable?, for the $43.33 average part, the 3.3 percent callback rate, and gross margin per ticket. Part 2's $90 average callback included bench time; this chapter uses only the part side of a callback in the warranty reserve.
  • Part 4, Free Quotes Are Not Free Diagnostics, for the diagnostic that produces the repair-versus-replace answer.
  • Tech Care Association, Simplifying Your Tech Repair Shop Pricing, April 2, 2025. This chapter extends its parts-with-markup formula by defining the cost base and the contribution target; Part 3 superseded its labor formula.
  • RepairDesk, Repair Parts Markup, product documentation describing cost-range markup slabs, accessed October 5, 2026. Cited as evidence that tiered markup tooling exists in repair-shop software; not an endorsement.
  • Apple, Self Service Repair, accessed October 5, 2026, for consumer access to genuine parts and the replaced-part credit.
  • California Business and Professions Code Section 9844, written estimate requirements for electronic and appliance repair dealers, accessed October 5, 2026. Other states have their own rules; nothing in this chapter is legal advice.
  • Second Life Sessions, Episode 7, Jordan Notenbaum, President, MobileSentrix, Tech Care Association, 2026. No statements from the interview are quoted in this chapter.
  • "True parts cost" is a TCA management-pricing measure, not an accounting definition of inventory cost or cost of goods sold.
  • All worked numbers are illustrative and carried from the series example. The added inputs ($2 consumables, $12 freight per six-part order, $8 return shipping, eight minutes of handling) are placeholders chosen to show the formula, and the tier inputs in the tiers section are made up to show the arithmetic. None is a benchmark, and the TCA has not published a benchmark for parts markup, parts margin, parts contribution, callback rate by tier, or any input in this chapter.
  • Stated prices and formulas from Community Listening are reported as participants stated them. Arithmetic on stated figures is labeled where it appears and is run on the series' illustrative numbers, not on any participant's shop.

About this data: The TCA reviewed approximately 190 comments from repair professionals across 9 online industry discussions about parts and repair pricing between September 9 and October 1, 2026. These discussions were voluntary and were not collected through a representative survey. Findings describe the comments reviewed and should not be interpreted as estimates for the entire repair industry. Comments from parts vendors and service resellers were excluded. Individual participants are not identified without permission.

Published October 7, 2026. Last updated October 7, 2026.

Fix the Shop First · Part 4 of 9

Free quotes are not free diagnostics

Quotes are free. Diagnosis is work.

Where a tech repair shop should draw the line, how to set the fee from your floor rate, and what to say at the counter.

Fix the Shop First  |  A 9-part series  |  Tech Care Association

Should a tech repair shop charge a diagnostic fee? Yes, whenever finding the fault takes bench time. A quote for a known repair is free. A diagnostic for an unknown problem is billable work: your floor rate multiplied by the minutes it takes, credited to the repair if the customer proceeds and kept if they decline. Part 4 of the nine-part Fix the Shop First series, with a free script and policy PDF.

By Rob Link, Founder & CEO, Tech Care Association · September 30, 2026 · 32 min read

That is the TCA's position, and this chapter is the first in Fix the Shop First to take one. Part 3 gave you a floor rate; this week you use it. The question, stated precisely: when a customer brings a device into a tech repair shop and the problem is not already known, should the technician's time spent figuring out what is wrong be billable?

Yes, whether you recover that time through a diagnostic fee, a minimum labor charge, or a repair price that already includes it. What a shop should not do is routinely value skilled diagnostic work at zero. This chapter recommends the credited diagnostic fee as the cleanest model, and shows how to set it, say it, and publish it.

The whole chapter fits in a paragraph. Quotes are free; diagnosis is work. If the problem is known, quote the repair. If the problem is unknown, quote the diagnostic. The diagnostic buys the customer an answer: what failed, what it takes to fix, what it will cost, and whether the repair makes sense. If the customer proceeds, credit the diagnostic toward the repair. If they decline, the shop has still been paid for skilled work it performed. Everything below exists to prove and operate those sentences.

What's in this post

  1. Key Takeaways
  2. Diagnostic Fee, Quote, Estimate, Bench Fee: What Each One Means
  3. The Short Answer
  4. The Framework: Known, Unknown, After
  5. The Phone Quote Trap
  6. What Shops Are Saying
  7. What the Record Shows
  8. Where the Big Chains Draw the Line
  9. What Regulators Have Said About Diagnosis
  10. What a Free Diagnostic Costs a Tech Repair Shop
  11. How Much Should a Tech Repair Shop Diagnostic Fee Be?
  12. When to Credit It and When to Keep It
  13. How to Say It
  14. Track Diagnostic Conversion
  15. The TCA's Take
  16. What to Do Monday Morning
  17. Quick summary
  18. Frequently Asked Questions About Tech Repair Shop Diagnostic Fees

Key Takeaways

  • Quotes are free. Diagnosis is work. Answering "how much for a screen?" is counter time. Opening a no-power device to find the fault is bench time.
  • The framework is three lines. Known repair: quote the repair. Unknown problem: quote the diagnostic. After diagnosis: quote the repair.
  • A free first look is a choice; disassembly and testing is the line. Tell the customer exactly where free ends, before the device is opened, in writing.
  • The big-box websites will not tell a customer with a dead laptop what it costs to find out why; they route the customer into the store. That is not your model. Publish a simple diagnostic policy on your website and at the counter, in the same words.
  • The fee is not a market number. It is your floor rate from Part 3 multiplied by the time a diagnostic takes, rounded to something the counter can say out loud.
  • Credit the fee to the repair when the customer proceeds. Keep it when they decline. Written once, applied by everyone.
  • The customer is buying an answer, not a look: what failed, what the fix is, what it costs, and whether it is worth doing. Define that deliverable and the fee explains itself.
  • In the 11 repair-owner discussions the TCA reviewed, no one volunteered a customer lost to a disclosed diagnostic fee. Several described losing the diagnosis itself by giving it away. That does not prove fees never cost a sale; it shows free diagnosis has a cost too.

Diagnostic Fee, Quote, Estimate, Bench Fee: What Each One Means

  • Quote. A price for a known repair, given before any bench work. Free. Subject to inspection for additional damage.
  • Diagnostic fee. A charge for the technician's time finding an unknown fault: opening, testing, isolating. Due before the device is opened, credited to the repair on approval.
  • Estimate. The repair price given after the diagnostic, when the fault is known. This is the quote the diagnostic makes possible.
  • Bench fee or minimum labor charge. Another way to recover diagnostic time: a floor on labor billed on every job, whether or not a separate diagnostic line exists.
  • Credited fee. A diagnostic fee applied in full to the repair price when the customer proceeds. The customer pays for diagnosis once, either inside the repair or as the fee.
  • Diagnostic conversion. Diagnostics that became repairs, divided by diagnostics performed.

The Short Answer

Yes. A quote is free; a diagnostic is work. When a technician opens a device to find out what is wrong, that time is a billable hour like any other, and the fee is your floor rate multiplied by the time it takes. Credit it toward the repair when the customer proceeds and keep it when they do not. The shops that lose customers over a diagnostic fee are the ones that cannot explain the difference between a quote and a diagnostic. This chapter is that explanation, the arithmetic, the policy, the words to say at the counter, and the case for publishing all of it where the customer can see it before they walk in.

The Framework: Known, Unknown, After

Most of the argument about diagnostic fees dissolves once shops stop using "quote" and "diagnostic" to mean the same thing. They are different products.

A quote is a price for work you can already see or the customer has already named. The screen is cracked; the screen costs this much. The customer wants a battery; the battery costs this much. You give it away because it costs no bench time to produce; the answer is on your price list. A shop should never charge someone for asking what a screen costs. That is customer service, and a repair shop is a service business. The line this chapter draws is not between selling and serving. It is between counter time, which is free, and bench time, which is not.

A diagnostic is the work of finding out what is wrong. The device will not power on. The customer dropped it in a sink. Touch fails sometimes. Nothing about the price is knowable until a technician has opened the device, tested it, and ruled things out. Once a technician has to test, disassemble, measure, troubleshoot, research, or isolate a fault, the shop has crossed from quoting into performing a service. That is bench time, and bench time is what your floor rate exists to recover.

The three-line framework: known repair, quote the repair; unknown problem, quote the diagnostic; after diagnosis, quote the repair.Three rows. Known repair leads to quote the repair. Unknown problem leads to quote the diagnostic. After diagnosis leads to quote the repair. Beneath, the test: can you price it without opening it? Known, unknown, after: the three-line frameworkKnown repairQuote the repairFault visible or service named.Free.Unknown problemQuote the diagnosticSeveral causes.Fee due before opening.After diagnosisQuote the repairNow you know.Price it, credit the fee.The test: can you price it without opening it? Yes, quote it. No, it is a diagnostic.Fix the Shop First, Part 4 | Tech Care Association
The framework in one picture. Known repair, quote the repair. Unknown problem, quote the diagnostic. After diagnosis, quote the repair.

The framework the TCA recommends is three lines:

  1. Known repair: quote the repair. The fault is visible or the customer is asking for a specific service. Give a firm price, subject to inspection for additional damage.
  2. Unknown problem: quote the diagnostic. The symptom has several possible causes. Give a range if you have one, then quote the diagnostic fee and explain what it buys.
  3. After diagnosis: quote the repair. Now you know. State the exact price, credit the fee, and ask for the go-ahead.

The deciding question is one line: can you price it without opening it? If yes, quote it. If no, it is a diagnostic, and the customer is paying for an answer, not a repair.

There is one more stage worth naming, because it is where most of the confusion lives. Between the free quote and the paid diagnostic sits the initial assessment: the technician takes the device in hand, confirms the model, reproduces the symptom, checks the obvious, and decides whether this is a known repair or an unknown problem. You can make that free. Many good shops do, and a 700-plus-store chain does. What you cannot do is let it drift, unannounced, into the paid work. The moment the technician has to open the device, substitute a known-good part, measure, or investigate an intermittent fault, free has ended, and the customer needs to have heard that before it happens.

Repair type Quote or diagnostic Why
Cracked screen, device otherwise working Quote Fault is visible; price is known
Battery swap on a device that boots Quote Service is named; part and time are known
Charge port on a device that charges intermittently Diagnostic Could be port, cable, board, or liquid
No power Diagnostic Could be battery, power management, board, or liquid
Liquid damage Diagnostic Extent is unknown until opened and inspected
Intermittent fault of any kind Diagnostic Cannot be reproduced or priced without testing
Overheating Diagnostic Could be thermal paste, fan, dust, battery, or board
Board-level work Diagnostic Fault must be located before it can be priced
Slow computer, "acting weird" Diagnostic Could be storage, malware, thermal, or hardware
Data recovery Diagnostic Recoverability is the question being answered

Quotes are free. Diagnosis is work. The line is not between selling and serving; it is between counter time and bench time.

The Phone Quote Trap

The framework matters most before the customer ever walks in, because that is where the leak starts.

Someone calls and says, "My laptop won't turn on. How much to fix it?" A shop that answers with a number ("that's $149") has just quoted a repair it has not diagnosed. It does not know whether the fault is the charger, the DC jack, the battery, corrupted firmware, liquid damage, a board failure, or something else. The $149 is fiction. If it turns out to be right, the shop got lucky. If it turns out to be wrong, the shop now has a customer who feels misled and a repair it has to either eat or renegotiate.

The other common answer is to guess the fault out loud for free. In one public thread the TCA reviewed (seven comments, Sept 18), an owner with years at the bench described what happens next: she names the likely cause over the phone, and the caller takes that answer to a cheaper shop. She has given away the part of the job that took the longest to learn. Two participants in the same thread said directly that callers asking for a phone diagnosis are often collecting a number to take elsewhere.

The better phone answer does three things. It tells the caller what the shop's typical prices are, because that costs nothing. It explains that this symptom could be several things. And it quotes the diagnostic:

"There's no charge to tell you our typical repair prices. Repairs for that symptom can run from about [low] to [high] depending on what's actually failed. We wouldn't know what yours needs without testing it. Our diagnostic is [fee], it comes off the repair if you go ahead, and we give you the exact repair price before doing any additional work."

The shop still advertises prices and answers every "how much?" call. It just stops giving away bench time over the phone. The fee is not competing with free quotes; it is what makes an accurate quote possible when the problem is not already known.

What Shops Are Saying

Observational evidence from TCA Repair Community Listening. Method and limits are in the footer.

The TCA reviewed 11 discussions among repair professionals between September 9 and 29, 2026, that touched on diagnostic fees, bench fees, free quotes, and phone quotes. This is Community Listening, not a survey; it describes what participants in these discussions said, not what the industry does. Methodology is in the footer.

The pattern that did not show up

The TCA went looking for the story every owner fears: the customer who walks out because the shop charges to look at the device. In these 11 discussions, no participant volunteered one. Eleven discussions cannot prove the customer does not exist, and this chapter does not claim that. What the discussions do contain is the opposite loss, described above: the caller who takes a free phone diagnosis to the shop with the lowest price. Free diagnosis has a cost too, and the participants who had paid it were the ones talking about it. A participant from automotive repair said that not diagnosing over the phone is the one rule that holds across trades.

Every stated fee was credited

Five participants across two threads (seven comments each, Sept 18 and Sept 28) stated a diagnostic, assessment, or cleaning fee. Every one of them applied it to the repair when the customer proceeded. Not one described a fee stacked on top of the repair price.

Each participant described the same sequence: the fee is named at the counter, the customer is told what happens in each outcome, and only then is the device opened. One owner tells the customer they are out the assessment fee if they decline, and described the credit as the thing that brings the customer back for the follow-on work. Another states a two-price quote at intake ("this much if we can keep the port, this much if it needs replacing") so the diagnostic and the estimate happen in one conversation.

The shops that do not charge have replaced the fee with something else

This is the fair reading of the other side. In the port-cleaning thread, one owner charges a small cleaning fee and waives it if the cleaning does not resolve the problem, reasoning that a minute of bench time is not worth the friction and customers almost always proceed to a replacement anyway.

In a separate phone-script discussion (about 16 comments, Sept 9), one owner sorts callers into "price checking" and "discussing options," gives price-checkers the lowest number immediately, and saves the consultation for the counter. In a thread on call versus text versus web quotes (five comments, Sept 18), one owner publishes every price online so nobody's time is wasted, and another shop said an online quote form produced 50 leads in 15 days. A counter-view in that same thread: tiered pricing makes public prices a maintenance burden, and customers want a conversation before they commit. None of these participants argued that diagnosis has no value. They argued it should be fast, published, or free when it fails.

Diagnosis is a pricing input

In a console thread (about 20 comments, Sept 19), one participant priced the job by how long the diagnosis took. In a thread on unfamiliar repairs (15 comments, Sept 22), one owner tells customers plainly that a first-time repair will take longer and reported that no customer has objected. Two participants in a MacBook thread (eight comments, Sept 28) said a used logic board is cheaper than component-level diagnosis on an older machine, which is exactly the repair-versus-replace call a diagnostic is supposed to produce.

The free assessment that builds trust

On a public business page (about 12 comments, Sept 20), a customer thanked a shop for telling her an iPad repair would cost more than a replacement and declining the job. Keep this in mind for the rest of the chapter: the fee should pay for exactly this kind of honest assessment, not discourage it.

Why the fee and the intake form travel together

Two threads this month were about what happens when free work goes wrong. In one (about 20 comments, Sept 29), a shop that replaced a charge port on a phone the customer had washed with soap, tried a second port, and declared the device unrepairable was later sued for the cost of a replacement phone after another shop revived the device months on. In another (about 25 comments, Sept 28), an owner who replaced a screen for free and had the customer sign a waiver received a police report eight weeks later when touch failed.

The consensus in both threads was that the shop had done nothing wrong and had still created its own exposure by working for free on something it could not stand behind. Three participants in the first thread said the fix is a signed intake agreement; one participant in the second said low prices attract the customers who file reports. The pattern for this chapter: a paid, documented diagnosis is something a shop can point to later. Free work leaves nothing on paper.

What the Record Shows

Community Listening tells you what owners say. Three other sources tell you what the practice looks like on paper, and each is specific to electronics repair.

The TCA's 2025 diagnostic fee poll

In the TCA's 2025 diagnostic fee poll of participating shops, the most commonly reported phone diagnostic fee was $20 to $50, and about a quarter of participants reported charging no diagnostic fee. Computer and laptop fees ran higher and spread wider. Because the published results did not record the sample size or field dates, the TCA does not treat those figures as an industry benchmark; they are member feedback from spring 2025, and they are here for two reasons. The most common band lines up with the arithmetic later in this chapter, and a meaningful share of participating shops charged nothing, which this chapter does not pretend otherwise.

Independent computer repair research

The most direct outside evidence the TCA found is a field experiment in the German computer repair market published in the Journal of Public Economics in 2023. Researchers sent identical laptops with a deliberately loosened memory module into real shops. Among the 62 shops where the researchers could identify a diagnosis fee, the average was 36.47 euros, and the authors note that most shops in that market charge a diagnosis fee that is usually offset when the customer orders the repair. The study was not about diagnostic fees; it was about how consumers get overcharged. It is also older European evidence, fieldwork from 2015 and 2016, not a current US benchmark, and the euro figure should not be imported.

Its value here is narrower and still real: it documents, in a real computer repair market, that charging separately for diagnosis and offsetting the charge when the repair proceeds is an established pricing model, not a TCA invention.

Apple and Samsung repair terms

Apple's US repair terms include a section titled "Service Exclusions and Diagnostic Fee." If Apple inspects a device and finds it does not need service, has failed for an excluded reason such as liquid damage or unauthorized modification, or the customer declines a revised estimate, Apple may charge a diagnostic fee, capped in the United States at $100 plus tax. The same document carries a notice to California customers that a service dealer may, in writing, charge a reasonable fee for determining the nature of the malfunction in preparation of a written estimate. That notice cites California's electronics and appliance repair statute.

Samsung's US repair terms for in-home service state a non-refundable $155 diagnosis fee, plus tax, if the customer cancels or declines once the technician has arrived.

The point of citing the manufacturers is narrow. It is not that a phone shop should charge what Apple charges. It is that Apple has written into its repair contract that diagnostic work has a price whether or not the customer proceeds, and that a state consumer statute recognizes the same thing. A shop that treats diagnosis as free is holding itself to a standard the manufacturers do not.

Where the Big Chains Draw the Line

The strongest counterexample to a diagnostic fee is uBreakiFix by Asurion, a 700-plus-store repair chain, and it deserves a fair reading, because it turns out to support the framework rather than contradict it.

uBreakiFix: free look, paid troubleshooting

uBreakiFix by Asurion advertises free diagnostics nationally, for every repair, on anything with a power button, with the line "What's the catch? There isn't one!" Read the rest of the same page. If the technicians cannot identify the problem right away, the company performs advanced troubleshooting for a fee, which it describes as taking the device apart and testing different ways to fix the problem. The fee is applied toward the repair if the customer proceeds. The company says it will tell the customer beforehand if the issue cannot be diagnosed for free, and that pricing and details vary by store; no national amount is published. So the accurate description is not "free diagnostics." It is: initial look free; disassembly and testing paid; paid diagnostic credited to the repair. That is the three-stage model in this chapter, run at scale, by the company whose marketing says the opposite.

Best Buy and Staples: come in and we will tell you

The big-box retailers are a different story, and it is one worth telling to your customers, because they are living it.

Try to find out, from a big-box website, what it costs to have a laptop that will not boot looked at. Best Buy sells a $149.99 "Device Diagnostic and Repair" service; read the fine print and it is a remote software service performed over the internet that excludes hardware. When customers ask on that same page about a hacked laptop or a failed update, Geek Squad's published answer is to set up a free consultation at the local store. Staples lists "Diagnostics and Repair, In Store, $159.99," bundling troubleshooting with software fixes and virus removal, so there is no way to learn what a diagnosis alone costs; a few inches above it on the same page sits a free in-store PC health check that "makes recommendations based on findings," and a few inches below it a protection-plan offer and a trade-in program. None of these pages will tell a customer with a dead laptop what it costs to find out why it is dead. All of them will tell that customer to come in.

Whatever the intent, the result is friction: a customer with a dead laptop cannot learn from the website what it costs simply to find out what is wrong, and is directed instead toward an in-store consultation, a bundled service, a membership, a protection plan, or a trade-in. The TCA's read, offered as opinion and one that should not surprise anyone who has worked retail, is that this is not an accident. Once the device and the customer are in the building, the sale that matters to a retailer is rarely the repair; it is the plan, the trade-in, or the new device on the shelf behind the counter. That model may make sense for a company whose margin is in hardware and services. It makes much less sense for a shop whose product is the repair itself.

The protection-plan comparison

One more pattern the chains produce is the one behind the "shop down the street" objection: the protection-plan price. A customer with a manufacturer or retailer protection plan sees a small repair service fee because it is a deductible on coverage they already paid for, monthly or up front. Comparing that fee to an independent shop's cash price is not a comparison between two repair prices; it is a comparison between an insurance claim and a repair. Say so at the counter. A protection-plan repair is not a cash repair, and the customer did not get diagnosis for free; they prepaid for it.

Tell the customer exactly where free ends. Before the device is opened, on the ticket, on the wall, on the website.

Where free ends is discovered too late

Consumer complaints filed with the Better Business Bureau against national repair and retail brands describe the friction that model produces: a free look, a quoted repair, a deeper inspection, a different price, and a dispute over what was owed. Those are allegations by customers, not findings, and they prove nothing about any one company. What they show is what happens when the customer discovers the line between free and paid after the fact instead of being told before.

What the independent shop should do instead

Do not do this. Your customer is comparing you to a store that would not give them a straight answer. Give them one: a diagnostic policy simple enough to fit on an index card, in words a customer understands, published on your website, where they are deciding whether to call, and at the counter, where they are deciding whether to leave the device. Not in a terms-of-service page, not in the technician's head. A shop that does this is doing something a 700-store chain structurally cannot, and it is a reason to choose the independent shop. The five-line policy later in this chapter is written to be posted.

What Regulators Have Said About Diagnosis

No federal or state action the TCA could find says a tech repair shop must, or must not, charge for diagnosis. Nothing in this chapter should be read as a legal requirement. But several government actions treat diagnosis as a distinct part of repair and independent shops as legitimate places to get it, and they belong on the record.

  • In 2018, the Federal Trade Commission sent warning letters to six companies, including makers of phones and game consoles, over warranty language implying that using an independent repairer or third-party parts voided the warranty. The FTC said such statements may violate the Magnuson-Moss Warranty Act and could be deceptive under the FTC Act.
  • In 2021, the FTC's report to Congress, "Nixing the Fix," examined repair restrictions including withheld diagnostic software, proprietary tools, and parts limits, and found scant evidence supporting manufacturers' justifications for them. The Commission then adopted a policy statement committing to increased enforcement against unlawful repair restrictions.
  • New York's Digital Fair Repair Act, in effect since December 2023, requires manufacturers of covered electronics to make diagnostic and repair information, tools, and parts available to independent repair businesses on the same terms as authorized repairers. Minnesota's law, in effect since July 2024, does the same, and the Minnesota Attorney General's guidance gives "exorbitant fees" for diagnostic tools as an example of a violation.
  • In 2020, Apple settled with 34 states for $113 million over allegations that it did not accurately tell iPhone owners what was wrong with their devices and what the fix was, in the matter usually called Batterygate. Not a diagnostic-fee case, but a government finding that telling the customer what is actually wrong matters.

Two things follow. First, regulators are forcing manufacturers to give independent shops the tools and information needed to diagnose devices; that does not make the technician's time using those tools free. Second, the thread running through all of it is disclosure: what the device needs, who is allowed to fix it, and what the customer is being charged for. A diagnostic fee stated before the device is opened and credited on the receipt is the independent shop's version of that disclosure.

What a Free Diagnostic Costs a Tech Repair Shop

Part 2 listed unconverted diagnostics as the third leak in labor utilization. Here is what that leak looks like in the series' illustrative numbers.

The Part 3 example shop arrived at a floor rate of $178.98 per billable hour. Illustrative; your number is yours. At that floor, one minute of bench time is $2.98. A 20-minute diagnostic is about $60 of bench time. A 30-minute diagnostic is about $90.

Now put a week behind it. Say the shop performs ten diagnostics a week that do not turn into repairs and charges nothing for them. At 20 minutes each, that is 200 minutes, or about 3.3 hours, a week. Over a month that is roughly 14 hours of bench time and, at the illustrative floor, roughly $2,580 of bench capacity, valued at the shop's floor rate, given away. Illustrative again. Change the minutes or the count and the figure moves, but it does not move to zero.

Bench capacity given away: ten free 20-minute diagnostics a week is about 14 hours and roughly $2,580 a month at the example floor rate.Four weekly bars of about 3.3 hours each build to a monthly bar of about 14 hours, with a callout of $2,580 a month of bench capacity valued at the $178.98 example floor rate. Illustrative. Bench capacity given awayTen free 20-minute diagnostics a week that do not convert, at the $178.98 example floor rate3.3 hrsWeek 13.3 hrsWeek 23.3 hrsWeek 33.3 hrsWeek 4about 14 hrsThe month$2,580a month of bench capacityvalued at the floor rate14.4 hrs x $178.98Illustrative example carried from Part 3 ($178.98 floor rate, 20-minute diagnostics, 4.33 weeks). Not a benchmark.Fix the Shop First, Part 4 | Tech Care Association
Ten free diagnostics a week does not sound like much. Over a month it is about 14 hours of bench capacity, valued at the example floor, given away.

Bench capacity given away is the concept to hold onto. It is not lost profit; it is time the shop could have billed and chose not to.

Two things about that number. First, it is invisible. It never appears on a ticket, so it never appears in a report, so the owner never sees it. Second, it is not the customers who stayed who are paying for it. It is the customers who stayed paying for the customers who left, because the shop's rate on paid work has to absorb the unpaid hours. A fee moves that cost back to the person who consumed the time.

How Much Should a Tech Repair Shop Diagnostic Fee Be?

This is where the chapter stops being about what other shops do and starts being about your shop. The fee is arithmetic, not a market survey.

The fee arithmetic: floor rate times diagnostic minutes divided by 60, rounded, then credited to the repair.Four steps. Floor rate $178.98 per billable hour. Typical diagnostic time 20 minutes. The fee: $178.98 times 20 divided by 60 is $59.66, rounded to $60. The credit: applied to the repair on approval, kept if declined. Illustrative. The fee arithmetic: floor rate, minutes, fee, credit1. Floor rate$178.98per billable hour, fromPart 32. Diagnostic time20 mintypical, timed over tentickets3. The fee$60$178.98 x 20 /60 = $59.66, rounded4. The creditAppliedto the repair onapproval; kept if declined15 min = $45 | 20 min = $60 | 30 min = $90 | 45 min = $135Illustrative at the $178.98 example floor. Your floor rate produces your number.Fix the Shop First, Part 4 | Tech Care Association
Four steps from your floor rate to a number the counter can say. Illustrative; your floor rate produces your fee.

Step 1: Take your floor rate from Part 3

If you skipped that chapter, go back; the fee has no foundation without it.

Step 2: Time your diagnostics

Not one; ten. Pull the last ten diagnostic tickets and note the bench time on each, or time the next ten. Phones and consoles tend to run shorter; laptops, liquid damage, and board-level work run longer. If the spread is wide, set two fees (basic and advanced) rather than one average that is wrong for both.

Step 3: Multiply

Floor rate times typical diagnostic minutes, divided by 60.

Step 4: Round to a counter-friendly number

The technician should be able to say it without looking it up.

If one fee does not fit your work, two usually will. Do not create seven diagnostic SKUs.

Basic diagnostic Advanced diagnostic
What it covers Symptom verification, opening the device, visual inspection, known-good part substitution, standard tests Board-level fault isolation, intermittent failures, liquid damage, extensive disassembly, research, extended testing
Typical devices Phones, tablets, consoles Laptops, board work, liquid damage on anything
Fee Floor rate x basic minutes Floor rate x advanced minutes

Whichever fee applies, the customer is buying the same thing. A completed diagnostic produces four things, and the ticket should show all four: what the technician found; what repair is recommended; what that repair will cost; and whether the technician believes the repair is worth doing. That is the product. You are not charging $60 to look at a phone. You are selling a professional assessment the customer can make a decision with, whether that decision is to fix it here, fix it elsewhere, or replace it.

What the customer buys with a diagnostic fee: what was found, what is recommended, what it will cost, and whether it is worth doing.Four cards: what we found; what we recommend; what it will cost; whether it is worth it. What the customer buys with a diagnostic feeFour things on the ticket. You are not charging to look at it; you are selling an answer.1What we foundThe fault, in plain words2What we recommendThe repair, or replace it3What it will costThe exact price, fee credited4Whether it is worth itOur honest callFix the Shop First, Part 4 | Tech Care Association
The diagnostic is a product. These four things are what the customer takes home, whether or not they repair with you.

At the illustrative $178.98 floor:

Typical diagnostic time Arithmetic Counter number
15 minutes $178.98 x 15 / 60 = $44.75 $45
20 minutes $178.98 x 20 / 60 = $59.66 $60
30 minutes $178.98 x 30 / 60 = $89.49 $90
45 minutes $178.98 x 45 / 60 = $134.24 $135

Illustrative throughout. A shop with a lower floor rate arrives at a lower fee by the same route.

Put the survey beside the arithmetic and the two say different things. The survey shows what participating shops charge; the formula shows what the time costs. The stated fees in this month's listening, and the largest band in the 2025 survey, sit at or below the 20-minute line on that table. That is not a benchmark and it is not a target; it is a reason to time your diagnostics rather than copy a number you heard. If the arithmetic says your diagnostics cost more than you have been charging, the arithmetic wins, because it is the only figure here that knows your rent.

And the fee is a fee, not a punishment. If a diagnostic regularly takes less time than your fee covers, lower it. The point is to recover the time, not to mark it up.

When to Credit It and When to Keep It

The policy is five lines. Write it once and everyone applies it the same way.

  1. The diagnostic fee is due before the device is opened.
  2. The fee is credited in full toward the repair when the customer approves the estimate.
  3. The fee is kept when the customer declines the repair or takes the device elsewhere.
  4. The fee and the credit are stated on the intake ticket and on the receipt.
  5. The policy is posted on the website and at the counter, in the same words.
The five-line diagnostic fee policy, written to be posted at the counter and on the website.A navy card listing the five policy lines: fee due before opening; credited in full on approval; kept if declined; stated on ticket and receipt; posted on the website and at the counter in the same words. OUR DIAGNOSTIC FEE POLICYFive lines. Written once, applied by everyone, posted where the customer can read it.1The diagnostic fee is due before the device is opened.2The fee is credited in full toward the repair when the customer approves the estimate.3The fee is kept when the customer declines the repair or takes the device elsewhere.4The fee and the credit are stated on the intake ticket and on the receipt.5This policy is posted on our website and at the counter, in the same words.Free to copy. Fill in your fee and credit window from the one-page PDF. Tech Care Association
The policy, as a card. Print it for the counter and paste it on the website. The PDF at the end of this chapter has the same five lines with blanks for your fee and credit window.

Lines four and five are the ones shops skip and the ones that protect them. Every participant in this month's listening who charged a fee described stating it before the work began. The intake ticket is where that statement lives, and the website and the counter are where the customer reads it before there is a ticket at all. A policy the customer cannot find is a policy the customer will argue with.

One decision is yours to make: the customer who declines today and returns next month. Crediting the fee within a stated window (30 days, 90 days, whatever you choose) is a reasonable policy, and one owner in this month's listening runs a version of it. So is not crediting it. The only wrong answer is deciding at the counter, case by case, depending on who is standing there.

A commenter on the TCA's 2025 diagnostic fee article asked whether crediting the fee "negates" the time. It does not. Diagnosis is step one of every repair and the repair price already includes it; the fee is that first step billed up front, so the shop is paid whether or not step two happens. Proceed, and the customer pays for it once inside the repair. Decline, and they pay for it once as the fee. Nobody pays twice and nobody pays nothing.

How to Say It

Two scripts, each under a minute spoken. They are also in the one-page PDF at the end of this chapter, with blanks for your fee, your ranges, and your credit window.

The phone version

The caller asks how much to fix a phone that will not turn on.

"There's no charge to tell you our typical prices. A screen or a battery I can quote right now, because those are known. A phone that won't turn on is different: it could be the battery, the charging circuit, the board, or liquid, and each of those is a different repair at a different price. Repairs for that symptom usually run from about [low] to [high]. We wouldn't know what yours needs without testing it. So what we do is a diagnostic. It's [fee], it takes about [time], and I'll call you with exactly what's wrong and exactly what the fix costs before we do anything else. If you go ahead with the repair, the [fee] comes off the repair price. If you don't, you've paid for the answer and you can take it anywhere. Does this afternoon or tomorrow morning work better to bring it in?"

The counter version

The device is on the counter.

"Here's how this works. Because it won't power on, I can't give you a price until I know what's wrong, and I won't guess, because a guess is how people get charged for the wrong repair. The diagnostic is [fee]. That covers the bench time to open it, test it, and find the fault. When I have the answer, I'll call you with the repair price, and if you approve it, the [fee] is credited toward that price. If you decide not to repair it, the [fee] is all you pay. It's written on your ticket here. Can I get your go-ahead to start?"

Three objections

"The shop down the street does it for free."

"Some shops do. Our policy is that the first look is free, but once I have to open the device and test components, that's bench work, and we charge [fee] for it. What you get for that is a written answer: what failed, what the fix is, what it costs, and whether I think it's worth doing. And if you repair it here, the full [fee] comes off the repair."

"Can't you just look at it?"

"I can look at it right now for free, and I'll tell you what I see. But 'won't turn on' doesn't have a visible cause. Finding it means opening the device and testing, and that's the diagnostic. Looking is free. Testing is [fee], and it comes off the repair."

"I'll just buy a new one."

"That might be the right call, and the diagnostic is how you find out. If it's a [low-end] fix, you've saved a phone. If it's not worth repairing, I'll tell you that, and you've spent [fee] to avoid spending a lot more on a repair that wasn't worth it. Either way you're making the decision with the answer instead of without it."

The last objection is the honest-advice case from this month's listening. A customer publicly thanked a shop for telling her not to repair an iPad. The fee is what makes that advice affordable to give.

Track Diagnostic Conversion

Part 2 put utilization on your Monday list. Put this next to it.

Diagnostic conversion is diagnostics that became repairs, divided by diagnostics performed. Most POS systems can produce it if diagnostics are logged as their own ticket type rather than as a note on a repair ticket. If yours cannot, a tally sheet at the bench works for a month.

Why it belongs beside utilization: utilization tells you how much available bench time became billable work. Conversion tells you what happened after the shop was paid to find the problem: how often that answer became a repair. Together they show whether diagnostics are consuming capacity profitably and whether customers are accepting the repairs that follow. Before this policy, unconverted diagnostics were the leak Part 2 named. After it, they are paid work, and conversion is how you judge the quoting that comes next.

What a falling number means. The reflex is to blame the fee. Look first at what happens after the diagnostic. If the fee is stated clearly, customers who pay it have already decided the answer is worth something; the ones who decline the repair afterward are usually declining the estimate, not the fee. A falling conversion rate is a quoting problem or a repair-versus-replace problem before it is a fee problem. Part 5 next week takes up the estimate side.

The TCA's Take

This section is the TCA's position, not a finding from the community evidence above.

Skilled diagnostic work has value whether or not the customer proceeds. A shop that gives it away is subsidizing the customers who leave with the customers who stay, invisibly, because free work never shows up on a report.

The TCA's position is not that every shop must charge a separate fee. It is that diagnostic work should never be valued at zero. Recover it through a fee credited into the repair, which this chapter recommends as the cleanest model, or through a minimum labor charge, or through a published price that already includes it. Where the fault is obvious, quote the repair and skip the diagnostic. The choice the TCA argues against is the one most shops make by default: no policy at all, and a technician deciding at the counter.

Where the independent shop wins is transparency. Do not advertise free diagnostics and let the customer discover theirs was not. Do not give a firm price before you know what is wrong. Do not charge for deeper work the customer did not authorize. Say where free ends, say it before the device is opened, and publish it. The chains manage that line across hundreds of stores. You manage it across one counter.

What to Do Monday Morning

Three steps put a tech repair shop diagnostic fee in place this week.

  1. Set your fee from your floor rate. Pull ten diagnostic tickets, time them, multiply by your Part 3 floor rate, round to a number the counter can say. If the spread is wide, set a basic and an advanced fee.
  2. Publish the policy. Five lines, on the intake ticket, on the receipt, on the website, and on the wall at the counter. Decide now whether declined diagnostics get a credit window, and write down the window. Add a liquid-damage line to the intake form while you have it open.
  3. Run the script on the next diagnostic call. The next no-power or liquid-damage call that comes in, use the phone version: typical prices free, range if you have one, diagnostic quoted. At the end of the week, count how many came in.

The fee protects labor. Next Wednesday, Oct 7, Part 5 protects the part: parts markup and the minimum margin every repair has to clear.

Quick summary

  • Quotes are free. Diagnosis is work. Answering "how much for a screen?" is counter time. Opening a no-power device to find the fault is bench time, and bench time is billable.
  • The framework: known repair, quote the repair; unknown problem, quote the diagnostic; after diagnosis, quote the repair.
  • The fee is your floor rate times typical diagnostic minutes, divided by 60, rounded to a counter number. Illustrative example: $178.98 x 20 / 60, about $60.
  • The policy is five lines: due before opening, credited on approval, kept if declined, on the ticket and receipt, posted at the counter and online.
  • The customer buys an answer: what was found, what is recommended, what it costs, and whether it is worth doing.
  • Free diagnosis has a cost. Ten unbilled 20-minute diagnostics a week is about 14 hours a month of bench capacity, roughly $2,580 at the example floor. Illustrative.
  • The TCA has not published a diagnostic fee benchmark. The 2025 poll figures are participating-shop feedback without a recorded sample size, and the German field study is older European evidence of the credited-fee model, not a US number.

Frequently Asked Questions About Tech Repair Shop Diagnostic Fees

Should a tech repair shop charge a diagnostic fee for every device?

Only for devices that need a diagnostic. A cracked screen with a known price gets a quote. A no-power device, liquid damage, an intermittent fault, or board-level work gets a diagnostic. The test is whether you can price the job without opening the device.

Is a free diagnostic really free?

Sometimes. A free initial look is a legitimate choice, and a 700-plus-store repair chain offers one. But its own page says that when the problem needs disassembly and testing, a fee applies and is credited to the repair. Whatever you choose, tell the customer where free ends before the device is opened.

Is a quote the same as a diagnostic?

No. A quote is a price for a known repair and it is free. A diagnostic is the bench work of finding an unknown fault, and it is billable. After the diagnostic, the customer gets a quote for the repair. Known repair, quote the repair; unknown problem, quote the diagnostic; after diagnosis, quote the repair.

How much should a tech repair shop diagnostic fee be?

Your floor rate times the time a diagnostic typically takes, divided by 60, rounded to a counter-friendly number. At the illustrative floor used in this series, a 20-minute diagnostic works out to about $60. Your floor rate produces your number.

Should the diagnostic fee be credited toward the repair?

Yes, in full, when the customer approves the repair. Keep it when they decline. The credit is what makes the fee explainable at the counter; the fee is what makes the credit affordable.

What if the customer says the shop down the street does it free?

Say that some shops choose to absorb diagnostic time and yours charges for bench diagnosis and credits it toward the repair, then say what the customer gets for it: a written answer they can act on anywhere. Then ask for the go-ahead. The script is above and in the PDF.

Where should the diagnostic policy be posted?

On the website and at the counter, in the same words, plus the intake ticket and the receipt. The customer should be able to learn what a diagnosis costs and what happens to the fee before calling, and see it again before leaving the device.

Does charging a diagnostic fee lose customers?

Some fees cost some sales; no honest answer says otherwise. In the 11 discussions the TCA reviewed this month, no repair professional volunteered a customer lost to a disclosed diagnostic fee, while several described losing the diagnosis itself to a free phone quote. That is not proof either way for your shop. Track diagnostic conversion for a month and decide from your own numbers.

Is a diagnostic fee refundable?

Under the policy in this chapter, no. It is credited in full to the repair if the customer proceeds and kept if they decline, because the work it paid for was done either way. A credit window for a customer who returns later is a choice each shop makes and should state.

What is the difference between a diagnostic fee and a bench fee or minimum labor charge?

They recover the same thing, technician time, in different ways. A diagnostic fee is a separate line for finding the fault, credited on approval. A bench fee or minimum labor charge is a floor on labor billed on every job. Either is fine. Valuing the time at zero is not.

What if the diagnostic finds nothing wrong, or the device is not worth repairing?

The customer still receives the four things the fee buys: what was found, what is recommended, what it would cost, and whether it is worth doing. "Nothing reproducible" or "replace it" are answers, and often the most valuable ones. The fee is kept.

How long should a diagnostic take?

Long enough to produce a written answer and no longer. Time ten and use the typical figure to set the fee; phones and consoles usually run shorter than laptops, liquid damage, and board work. If your typical time is much shorter than your fee covers, lower the fee.

Can a repair shop charge a diagnostic fee the customer was not told about?

It should not, and in some states written disclosure before work begins is required. The policy in this chapter has the fee due before the device is opened, stated on the ticket, and posted at the counter and on the website, so the question never comes up.


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Download the Diagnostic Fee Script and Policy (PDF)

The framework, the phone script, the counter script, three objection responses, and the five-line policy with blanks for your fee, ranges, and credit window. One page for the counter, one for the wall.

How healthy is your shop, really?

TCA ShopCheck is a free two-minute health check built for independent repair shops. Your Run It Well score is the fast read on how the operational side is functioning. A published diagnostic policy is one of the habits behind it.

Run TCA ShopCheck Free

More from the TCA Blog

Rob Link is the founder of the TCA. He built and ran a multi-location repair chain in an earlier era of this industry, and he'd tell you today's operators have it harder. The TCA is independent of carriers, manufacturers, and insurance companies, which is exactly why it can tell shop owners the truth about growth.

Sources and methodology

About this data: The TCA reviewed approximately 175 comments from repair professionals across 11 online industry discussions touching on diagnostic fees, quoting, and intake practices between September 9 and 29, 2026. These discussions were voluntary and were not collected through a representative survey. Findings describe the comments reviewed and should not be interpreted as estimates for the entire repair industry. Comments from parts vendors and service resellers were excluded. Individual participants are not identified without permission.

Published September 30, 2026. Last updated September 30, 2026.

How much should a tech repair shop charge for labor? Your tech repair shop labor rate is a math problem, not a market guess. Add monthly fixed costs to your technician's loaded cost, divide by the hours that actually land on tickets, then add the margin the shop needs. That is your floor, and the shop down the street does not know it. Part 3 of the nine-part Fix the Shop First series, with a free calculator.

Fix the Shop First · Part 3 of 9

By Rob Link, Founder & CEO, Tech Care Association · September 23, 2026 · 20 min read

What's in this post

  1. Key takeaways
  2. The short answer: how to calculate a tech repair shop labor rate
  3. What shops are saying
  4. Why the shop down the street is the wrong input for your labor rate
  5. Input 1: What does the shop cost to open every month?
  6. Input 2: What does an hour of technician actually cost?
  7. Input 3: How many hours actually land on a ticket?
  8. Input 4: What margin does the shop need?
  9. The floor rate, worked: a repair shop hourly rate from four inputs
  10. The Repair Labor Rate Calculator
  11. When the ceiling is below the floor
  12. From rate to price: how to price repair labor
  13. The TCA's Take
  14. What to do Monday morning
  15. The floor is yours. The presentation is where you compete.
  16. Quick summary
  17. Common questions about repair labor rates

Key takeaways

  • The floor rate comes from four inputs the shop already has after Part 2: fixed costs, loaded technician cost, paid hours, and utilization.
  • Billable hours, not paid hours, are the denominator. This is where most rates go wrong.
  • Margin is added on top of the floor, not hoped for underneath it.
  • When a competitor caps your price below your floor, the options are overhead, utilization, service mix, or exit, and the calculator shows which.
  • The rate is one number. How it is presented (flat, per repair, tiered, minimum) is a separate decision, covered briefly here and in Part 4 next week.

The short answer: how to calculate a tech repair shop labor rate

Direct answer
Your labor rate is a math problem, not a market guess. Add your monthly fixed costs to your technician's loaded cost, divide by the hours that actually land on tickets, then add the margin the shop needs. That is your floor. The shop down the street does not know your overhead. If their price is below your floor, you have a cost problem or a mix problem, not a pricing problem.

The TCA Labor Rate Formula
Floor rate = (monthly fixed costs + loaded technician cost) / billable hours / (1 - target margin)

The labor rate formula as a flow Fixed costs of $9,000 plus loaded technician cost of $3,600 equals $12,600 a month to cover. Divided by 88 billable hours gives a break-even rate of $143.18. Divided by one minus a 20 percent target margin gives a floor rate of $178.98 per billable hour. Illustrative numbers. Four inputs in, one floor out Monthly fixed costs $9,000 + Loaded technician cost $3,600 = Monthly cost to cover $12,600 / Billable hours 88 160 paid hours x 55% utilization Break-even rate $143.18 / 1 minus target margin 1 - 0.20 = 0.80 = FLOOR RATE $178.98 per billable hour Illustrative example carried over from Part 2. Not a benchmark. The TCA has not published a labor-rate benchmark. Source: Tech Care Association.
The formula as a flow. Fixed costs and loaded labor go in, billable hours divide, margin is added, the floor comes out.

What shops are saying

Observational evidence from TCA Repair Community Listening. Method and limits are in the footer.

In the online discussions the TCA reviewed over two weeks, repair professionals stated their labor prices freely and argued about them constantly. Not one described how the number was built. Shops know their price. Almost none described knowing their rate.

In one discussion of flat screen labor, stated floors clustered between $85 and $100, with a low of $40 from the only shop in a small town and a high of $150 or more. The structures varied: a $100 minimum that drops to $60 when the job turns out quick, a flat amount plus a multiple of the part cost, a list price with a capped coupon. Two participants said the chain store in the next town caps what they can charge; one said he cannot go above $85. Another has held the same price for two years.

The sharpest split came over a liquid-damaged console. Several participants priced from the device's replacement value, on the reasoning that customers will pay a certain amount to fix anything that costs $600 to replace. One argued the device's value is irrelevant and that hours times rate, plus parts, is the only honest method. Stated prices for that one job ran from $50 to $299.

The community is arguing value against cost without a shared vocabulary for either. This chapter supplies the cost half.

Why the shop down the street is the wrong input for your labor rate

When you copy a competitor's price, you copy one number and none of the things that produced it. You do not get their rent. You do not get their payroll, their loan balance, or whether the owner takes a paycheck. You do not get their utilization, which Part 2 defined as the share of paid bench time that lands on a ticket. You do not get their mix, and a shop living on short, repeatable jobs has different economics from a shop doing board work.

You also do not know if their price works. Why Tech Repair Shops Fail laid out the closure record. Some of the prices you are matching belong to shops that will not be open next year. In the discussions the TCA reviewed, undercutting stories were common: a competitor at $75 for a current flagship screen, another at $19.99. No participant described actually losing a customer to one.

The TCA has to own a piece of this. In 2025 the TCA published Simplifying Your Tech Repair Shop Pricing, which set the minimum hourly rate as monthly expenses divided by available work hours, and described $60 to $100 an hour as an industry standard. This chapter supersedes both points. Available hours is the wrong divisor, for reasons input 3 makes plain. And the TCA has no source for that range that meets its current evidence standard, so it is withdrawn. It takes four inputs to find the rate that is right for your shop.

There is no correct national labor rate. There is a correct labor rate for your shop.

Input 1: What does the shop cost to open every month?

Monthly fixed costs, excluding bench technician pay.

This is the denominator of Part 2's number five, months of cash reserve, used again. Pull the last three months of bank statements and average them: rent, utilities, software and POS, insurance, phones and internet, loan payments, marketing you are committed to, counter or admin payroll.

One adjustment from Part 2. Part 2's fixed cost list included base payroll. For this formula, take bench technician pay out of the fixed cost number, because it goes in as its own input next. Count it once.

What shops are saying. One participant put combined housing and shop lease costs above $6,000 a month beside an $80 labor charge and observed that it only works at one repair every ten minutes. That is input 1 meeting the price with nothing in between. The rest of this chapter is the in between.

Input 2: What does an hour of technician actually cost?

Loaded technician cost = wages x (1 + employer taxes and benefits percentage).

A technician paid $20 an hour does not cost the shop $20 an hour. The employer's share of Social Security and Medicare is 7.65 percent of wages by federal statute. State and federal unemployment insurance and workers' compensation come on top and vary by state and by your claims history. Paid time off, if you offer it, is a wage you pay for an hour nobody works. Your payroll provider can give you the real percentage in one phone call.

What the federal data says. There is no federal wage category for an independent phone, tablet, and computer repair technician. The closest occupation in the Bureau of Labor Statistics Occupational Employment and Wage Statistics program is Computer, Automated Teller, and Office Machine Repairers (SOC 49-2011). According to the Bureau of Labor Statistics May 2025 estimates, released May 15, 2026, the national median wage for Computer, Automated Teller, and Office Machine Repairers (SOC 49-2011) was $22.99 an hour, or $47,810 a year. Read it for what it is: the closest federal occupation, not a repair-industry wage survey. It includes ATM and copier field technicians, and it excludes the self-employed, which leaves out a large share of this industry.

On the gap between wage and cost, the BLS Employer Costs for Employee Compensation release for June 2026, published September 9, 2026, put average private industry compensation at $46.89 per hour worked, with wages at 70.0 percent and benefits at 30.0 percent. That is all private industry, not repair, and a small shop with no health plan or retirement match will run well under 30. The part that does not go away is the legally required piece. For full-time private industry workers it averaged $3.76 an hour against $36.97 in wages, or about 10 cents on every wage dollar. At the $22.99 median, that alone puts the loaded hour above $25 before a single paid day off.

What shops are saying. In a discussion of roughly 40 comments about technician pay, stated hourly pay clustered at $15 to $20 for entry technicians and $20 to $25 for experienced ones, with commission or tips commonly added. One skill-tiered scale ran $15 for screens and modular work, $20 for soldering and refurbishing, and $25 for technicians who also handle unlocks. These are figures participants stated, not a wage benchmark. They sit close to the federal median, and they are wages, not costs.

If you are the only technician. Several participants across the discussions said they do not pay themselves or have no employees. No participant described putting a value on the owner's own bench hour. Use the on-paper rate from Part 2: what you would have to pay someone else to do your bench work. Enter zero and the formula hands you a rate that only works as long as you work for free.

Input 3: How many hours actually land on a ticket?

Billable hours = paid technician hours x labor utilization.

You pay for every hour a technician is in the building. You only get paid for the hours that land on a ticket.

This is Part 2's number three, and it is the input everyone skips. A full-time technician is paid for roughly 2,080 hours a year. The shop cannot sell 2,080 hours. Technicians answer the phone, check customers in, look up parts, wait on deliveries, clean the bench, redo the occasional job, handle warranty returns, and talk to the customer who wanted twenty minutes. All of it is paid. None of it lands on a ticket.

Look at what utilization does to the cost of labor alone, before a dollar of rent. Take the worked example's loaded technician cost of $22.50 an hour (illustrative):

UtilizationTechnician cost per billable hour
100 percent$22.50
75 percent$30.00
55 percent$40.91
50 percent$45.00

Illustrative arithmetic, not a benchmark. The TCA has no sourced industry range for repair shop utilization. Measure yours.

Same technician, same paycheck. The cost of a sold hour doubles between a full bench and a half-full one. Now do the same thing with the rent.

Why dividing by paid hours produces a rate that loses money. Divide the month's costs by paid hours and you get a rate that assumes every paid minute is sold. It never is. Charge that rate for the hours you actually sell and the unsold hours come straight out of the owner's pocket. The worked example below shows the size of it.

What shops are saying. Shops already hold the data for this input without using it. One participant described screens on four recent phone generations at $120 to $170 in labor and about 20 minutes of bench time. Arithmetic on that one participant's stated numbers implies $360 to $510 per bench hour on that job. It is not a benchmark, and most participants had never framed it that way. Short, repeatable jobs were described as easy money, not as a rate. A separate discussion of technician metrics showed the target state already exists in the community: owners there named rework rate, net hourly productivity, and a direct labor efficiency ratio. One added a fair caution, that the best technicians spend unbillable time cleaning up other people's failures, which no ratio captures.

Input 4: What margin does the shop need?

Rate with margin = break-even rate / (1 - target margin).

Break-even is not a business plan. A shop that exactly covers its costs has nothing for the cash reserve from Part 2, nothing for the tool that breaks, nothing for the slow month, and nothing for growth. Margin goes on top of the floor, not hoped for underneath it.

The arithmetic trips people up. To keep 20 percent of every dollar, you do not add 20 percent to your cost. You divide by 0.80. A $100 cost with 20 percent added is $120, and $20 of $120 is 16.7 percent, not 20. Divide $100 by 0.80 and you get $125, and $25 of $125 is 20 percent.

Setting a target: the TCA set targets in Part 2 the same way it sets this one. It is your own. There is no sourced operating margin benchmark for independent tech repair, and the TCA will not invent one. Start from what the shop has to fund in the next twelve months: the reserve target you named in Part 2, equipment, debt paydown, a raise for your lead technician. Turn that into a percentage of labor revenue. The 20 percent used below is illustrative.

The floor rate, worked: a repair shop hourly rate from four inputs

Floor rate = (monthly fixed costs + loaded technician cost) / billable hours / (1 - target margin).

A worked example (illustrative numbers carried over from Part 2, not a benchmark). One technician, paid for 160 hours in the month. Direct technician labor of $3,600, which was $30 a ticket across Part 2's 120 tickets and is $22.50 per paid hour here: a $20.00 wage plus 12.5 percent in employer taxes. Utilization of 55 percent, so 88 billable hours. Fixed costs of $9,000 a month, which in this example covers rent, utilities, software, insurance, a loan payment, and counter payroll, but not the technician. Target margin of 20 percent.

  1. Monthly cost to cover: $9,000 + $3,600 = $12,600
  2. Billable hours: 160 x 55 percent = 88
  3. Break-even rate: $12,600 / 88 = $143.18 per billable hour
  4. Floor rate with margin: $143.18 / 0.80 = $178.98 per billable hour

Now the mistake. Divide the same $12,600 by 160 paid hours and you get $78.75. Add the same margin and you get $98.44. That looks like a sensible labor rate. Charged across the 88 hours the shop actually sells, it brings in $8,662 against $12,600 in costs, and the shop loses about $3,940 a month while the bench looks busy. In the TCA's illustrative example, the floor rate built on 88 billable hours ($178.98) is 82 percent higher than the rate built on 160 paid hours ($98.44), and the entire difference is labor utilization.

The paid-hours rate versus the floor rate Bar chart of three rates from the same $12,600 monthly cost. Dividing by 160 paid hours with a 20 percent margin gives $98.44, which loses about $3,940 a month. Dividing by 88 billable hours gives a break-even of $143.18 and a floor with margin of $178.98. Illustrative numbers. Same costs, same margin, two denominators Divided by 160 paid hours (the mistake) $98.44 loses about $3,940 a month Divided by 88 billable hours: break-even, no margin $143.18 Divided by 88 billable hours, with a 20 percent margin: the floor $178.98 Illustrative example: $9,000 fixed costs, $3,600 loaded technician cost, 55 percent utilization. Not a benchmark.
Paid hours and billable hours produce two very different rates from identical costs. Only one of them pays the rent.

What the floor is, and is not. The floor is what every billable hour has to bring in after the part is paid for, however the shop collects it: a labor line, a parts markup, a flat price, or some of each. It is not a command to print $178.98 on a rate sheet. To see where you stand, take last month's repair revenue, subtract parts cost, and divide by billable hours. That is what you collect per billable hour today.

Run that on Part 2's example shop. Revenue of $14,400 minus $5,200 in parts leaves $9,200. Across 88 billable hours that is $104.55. Break-even is $143.18. The gap, $38.63 an hour across 88 hours, is $3,400 a month, which is exactly what that shop is losing. Part 2 showed a gross margin of $46.67 per ticket and said it had to cover everything else. This is what "did not cover it" looks like as a rate.

If you post an hourly labor rate and earn parts margin separately, the calculator has an optional line to credit a conservative monthly parts gross profit. Run it without the credit first. Parts margin is real, and it is the subject of the October 7 chapter. It is a cushion, not a plan.

The Repair Labor Rate Calculator

Free, no signup, and nothing you type leaves the page. Enter last month's numbers. The math is shown line by line so you can check it.

The Repair Labor Rate Calculator

Enter last month's numbers. The math is shown line by line so you can check it. Nothing you type leaves this page.

Line 1: Fully loaded labor cost
Line 2: Total monthly cost your labor must cover
Line 3: After the parts gross profit credit
Line 4: Required labor revenue at your target margin
Your labor rate floor

The floor is what last month's numbers say you need per billed hour before your target margin means anything. If your market ceiling sits below this floor, the math has not failed. It has told you something nobody else will.

Open the calculator in its own tab

When the ceiling is below the floor

This is the objection from Part 2, and it is a fair one. Two participants said a chain store in the next town caps what they can charge. One cannot go above $85. If the math says your floor is above what your market will pay, the math has not failed. It has told you something nobody else will.

A ceiling below the floor leaves four levers. Each one points to a chapter in this Guide.

  1. Fixed costs. Renegotiate the lease, downsize the footprint, cancel software nobody opens, refinance the loan. In the worked example, taking fixed costs from $9,000 to $7,500 moves the floor from $178.98 to $157.67.
  2. Utilization. Part 2, number three. In the worked example, moving from 55 to 75 percent moves the floor to $131.25. Twenty points of utilization did more than $1,500 a month of rent. Both together bring it to $115.63.
  3. Service mix. The October 14 chapter covers what earns bench space. The highest implied hourly figures in the discussions the TCA reviewed came from short, repeatable jobs: charge port cleaning, which four participants named as the pure-labor ticket, a console port repair named most often as the ideal repeat job. If the capped repair cannot clear your floor, the question is how much of your bench it should occupy.
  4. Exit the category. If a repair cannot clear the floor after the first three levers, stop offering it, or offer it only as a way to fill hours that would otherwise sell for nothing, knowing that is what you are doing. Part 2 said the same of program work: a filler, not a foundation.

"Match the chain" is the one option that is never on the list. The chain has a different rent, a different parts contract, a different payroll, and a parent company. You are not matching their price.

Matching the chain means adopting their price with your costs.

Four levers when the ceiling is below the floor Bar chart of the worked example's floor rate under different levers. Today $178.98. Fixed costs cut to $7,500: $157.67. Utilization raised to 75 percent: $131.25. Both: $115.63. A dashed line marks the $85 ceiling one participant described. When cost levers are not enough, the remaining levers are service mix and exiting the category. Illustrative numbers. Which lever moves the floor $85 ceiling one participant described Today $178.98 Lever 1: fixed costs from $9,000 to $7,500 $157.67 Lever 2: utilization from 55 to 75 percent $131.25 Levers 1 and 2 together $115.63 Still above the ceiling? Lever 3 is service mix. Lever 4 is exiting the category. "Match the chain" is never on the list. Illustrative example, 20 percent target margin. The $85 figure is one participant's stated ceiling, not a market rate.
The calculator shows which lever matters most for your shop. In this example, utilization moves the floor more than rent does.

From rate to price: how to price repair labor

The customer never sees your hourly floor. They see a price. Getting from one to the other is a presentation choice, and every structure described in the discussions the TCA reviewed can sit on top of the same floor.

Per-repair pricing. Estimate ticket time by repair type, multiply by the floor, add the part. Ticket time is not bench time. A 20-minute screen still has intake, inspection, a ticket to write, testing, reassembly checks, a call to the customer, and checkout. If that adds 15 minutes, it is a 35-minute ticket. At the illustrative floor, that is about $104 after the part. One shop in the discussions quotes a 45-minute turnaround on screens; at the illustrative floor a 45-minute ticket is about $134. Time ten of your own before you trust either number.

A minimum charge. Every ticket carries the same intake and checkout no matter how short the repair. A minimum protects the floor on small jobs. The participant with a $100 minimum that drops to $60 on quick jobs is running this logic already. What the floor adds is a way to check whether $60 still clears it.

Tiers. Part 2's listening found one shop with three tiers on a single model, roughly $65, $95, and $145, separated by warranty and turnaround. Tiers are presentation. The test is whether the bottom tier clears the floor after the part. If it does not, it is not a budget option. It is a subsidy.

Difficulty surcharges. Shops that do board work described base-plus pricing: a base plus an amount per torn pad after a failed DIY attempt, or a regular price plus an amount per ripped trace. The reasoning participants gave is exactly right: extra time costs money because it displaces other billable work. That is the floor rate, stated in an owner's words.

Effective labor rate, the monthly check. The posted rate is a promise. The effective rate is what happened: repair revenue minus parts cost, divided by billable hours. Discounts, bundles, warranty redos, and underbilled jobs all leak out between the two. Put the effective rate beside the floor every month. It is the sixth number, and it belongs on the same sheet as Part 2's five.

Two things are deliberately short here. Whether to charge for diagnosis, and how much, is next week's chapter. Parts markup is October 7.

The TCA's Take

This section is the TCA's position, not a finding from the community evidence above.

A shop that prices below its floor is paying customers to come in. The TCA's position is that the floor is non-negotiable and the presentation is where the creativity goes. Flat, tiered, hourly, minimum, surcharge: all fine, on top of the floor. None of them fine underneath it.

Every objection the TCA heard this week has the same answer.

"The chain in the next town caps my price." Then you know your ceiling, and the only open question is your floor. If the floor is under the ceiling, you have room and did not know it. If it is over, you have four levers, and matching is not one of them.

"Customers will pay $175 to $200 to fix anything on a $600 console." Maybe so. Value-based pricing is a fine way to decide how far above the floor to go. Without a cost-based floor underneath, it is a guess with a rationale attached. Know the floor first, then charge what the repair is worth.

"The device's value is irrelevant. Hours times rate plus parts." Half right, and the better half. But only if the rate was built and not borrowed. An hourly method running on someone else's number is still a guess.

"There's a guy doing it for $19.99." There always is. You do not know his costs, whether he pays himself, or whether he will be open in a year. His price is information about him.

"I've held my price for two years." Your landlord, your parts supplier, and your payroll provider did not hold theirs. A price held against rising costs is a pay cut you gave yourself quietly.

"I'm solo. I don't pay myself." Then your rate is subsidized by the most skilled technician in the building working for free. Put a number on your hour and run the formula again.

"Those quick jobs are easy money." They are your best rate, and you should know it as a rate. That is the first fact you need for the service mix chapter.

The discussions showed that some owners already run labor as a ratio. The target state is not theoretical. It is in the community today, and it is four inputs away for everyone else.

What to do Monday morning

  1. Run the calculator with last month's numbers. Fixed costs without technician pay, technician wages, your employer tax percentage, paid hours, utilization, and a target margin. If you did not measure utilization after Part 2, use the 55 percent placeholder, then go measure it. Do not chase precision on the first pass. Chase completion.
  2. Find what you collect per billable hour today. Last month's repair revenue, minus parts cost, divided by billable hours. Put it beside the floor. Write the gap down, in dollars per hour and dollars per month.
  3. Time your next ten tickets of your most common repair, door to door. Intake to checkout, not just bench time. Divide what you collected after the part by the minutes. Compare it to the floor. That one number tells you whether your most common job is carrying the shop or being carried by it.

The floor is yours. The presentation is where you compete.

Every owner in the discussions the TCA reviewed could state a price. Not one described how it was built. The build is four inputs you already have, one division most shops get wrong, and one more for margin. After that, the number is yours. It does not move because someone across town ran a coupon. It moves when your rent, your payroll, or your utilization moves, and you will be the first to know.

Next Wednesday, September 30, the series turns to the diagnostic fee: whether to charge one, how much, and when to credit it. A technician is not worth zero dollars an hour because they are finding the fault instead of installing the part. Bring your floor rate. You will need it.

Start here. Free, no signup.

Run the Repair Labor Rate Calculator

How healthy is your shop, really?

TCA ShopCheck is a free two-minute health check built for independent repair shops. Your Run It Well score is the fast read on how the operational side is functioning. This chapter and the calculator are the detail behind the pricing part of it.

Run TCA ShopCheck Free

Quick summary

  • A tech repair shop labor rate is calculated, not copied. Floor rate = (monthly fixed costs + loaded technician cost) / billable hours / (1 - target margin).
  • Loaded technician cost is wages plus employer taxes and benefits. The employer share of Social Security and Medicare alone is 7.65 percent of wages.
  • Billable hours are paid hours multiplied by labor utilization. Dividing costs by paid hours produces a rate that loses money on every unsold hour.
  • Margin is added by dividing by (1 minus the target), not by adding a percentage on top.
  • Federal wage anchor: $22.99 an hour median for SOC 49-2011, the closest federal occupation to a repair technician (BLS OEWS, May 2025, released May 15, 2026). It is a wage, not a cost and not a rate.
  • If a competitor caps your price below your floor, the four levers are fixed costs, utilization, service mix, and exiting the category. Matching is not one of them.
  • The TCA has published no labor-rate benchmark and withdraws the $60 to $100 range from its 2025 pricing article.

Common questions about repair labor rates

How do I calculate a labor rate for a tech repair shop?

Add monthly fixed costs to your loaded technician cost (wages plus employer taxes and benefits). Divide by billable hours, which is paid technician hours multiplied by utilization. That is your break-even rate. Divide it by one minus your target margin to get the floor rate. The TCA's free Repair Labor Rate Calculator does the arithmetic and shows each step.

What is a good hourly labor rate for a phone or computer repair shop?

The TCA has not published a labor-rate benchmark and does not recommend using one from an unsourced list, including the $60 to $100 range the TCA itself cited in 2025, which is withdrawn. Two shops with different rent, payroll, and utilization need different rates. Calculate your own floor. It is the only rate that is right for your shop.

Why use billable hours instead of paid hours?

Because you only get paid for the hours that land on a ticket. Dividing costs by paid hours assumes every paid minute is sold, which never happens. In the TCA's illustrative example, 88 billable hours out of 160 paid produces a floor rate 82 percent higher than the paid-hours rate, and charging the lower number loses about $3,940 a month.

Should I match a competitor's or a chain store's repair price?

No. A competitor's price tells you nothing about their rent, payroll, utilization, or whether the price even works for them. If a competitor caps your price below your floor, the options are lower fixed costs, higher utilization, a different service mix, or leaving that repair category. Matching is not on the list.

I am a solo owner with no payroll. What do I enter for technician cost?

Enter what you would have to pay someone else to do your bench work, plus employer taxes. If you enter zero, the formula produces a rate that only works while you work for free, and it will break the day you hire.

Should a repair shop charge hourly or flat rate?

Either works. The floor is an hourly figure, but customers can see it as a flat price per repair, a minimum charge, or tiers by warranty and turnaround. Multiply the floor by realistic ticket time, including intake, testing, and checkout, then add the part. Check monthly that your effective rate, repair revenue minus parts cost divided by billable hours, stays above the floor.

More from the TCA Blog

Rob Link is the founder of the TCA. He built and ran a multi-location repair chain in an earlier era of this industry, and he'd tell you today's operators have it harder. The TCA is independent of carriers, manufacturers, and insurance companies, which is exactly why it can tell shop owners the truth about growth.

Sources and methodology

  • Technician wage: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025 estimates, released May 15, 2026 (USDL-26-0725). Occupation: Computer, Automated Teller, and Office Machine Repairers, SOC 49-2011. National median $22.99 hourly, $47,810 annual. This is the closest federal occupation to an independent repair technician, not a repair-industry wage survey. OEWS estimates exclude the self-employed. Confirmed September 19, 2026.
  • Employer compensation costs: U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, June 2026, released September 9, 2026. Private industry: $46.89 total compensation per hour worked; wages and salaries 70.0 percent, benefits 30.0 percent. Full-time private industry workers: wages $36.97, legally required benefits $3.76. The "about 10 cents on every wage dollar" figure is the TCA's arithmetic on those two numbers. All private industry, not repair specific.
  • Employer share of Social Security and Medicare (7.65 percent): federal statutory rate under the Federal Insurance Contributions Act.
  • Earlier pricing guidance from the TCA: Simplifying Your Tech Repair Shop Pricing, April 2, 2025. This chapter supersedes its hourly rate formula and withdraws its $60 to $100 range.
  • Worked examples in this chapter use illustrative numbers carried over from Part 2 to show the formula. They are not industry benchmarks, and the TCA has not published a benchmark for labor rate, utilization, or operating margin.
  • Stated prices, times, and pay figures from Community Listening are reported as participants stated them. Arithmetic on stated figures is labeled where it appears.

About this data: The TCA reviewed approximately 230 comments from repair professionals across 12 online industry discussions about repair pricing between September 9 and 19, 2026. These discussions were voluntary and were not collected through a representative survey. Findings describe the comments reviewed and should not be interpreted as estimates for the entire repair industry. Comments from parts vendors and service resellers were excluded. Individual participants are not identified without permission.

Published September 23, 2026. Last updated September 23, 2026.

Revenue tells you the shop is busy. Five numbers tell you whether it survives: gross margin per ticket, average ticket, labor utilization, callback rate, and months of cash reserve. Most owners track none of them consistently. Each can be captured in under an hour a week, and together they show exactly where the shop is leaking money. Part [N] of the nine-part Fix the Shop First series.

Fix the Shop First · Part [N] of 9

Key takeaways

  • Busy and profitable are different things. Shops close with a full bench, and the closure record shows it.
  • Five numbers cover the whole picture: gross margin per ticket (finance), average ticket (pricing), labor utilization (capacity), callback rate (quality), and months of cash reserve (survival).
  • Each one has a one-line formula, and every input already exists in your point of sale, your payroll, or your bank statement.
  • Capture all five for last month as a baseline. Pick one to improve. Re-measure next month.
  • If you take insurance claims or third-party warranty work, run the five numbers for that channel on its own. Program jobs produce gross revenue; they do not always produce margin.
  • TCA ShopCheck gives you the same baseline in about two minutes. This chapter gives you the detail behind it.
The five numbers every tech repair shop must track A scorecard listing five metrics with their formulas: gross margin per ticket, average ticket, labor utilization, callback rate, and months of cash reserve. The five numbers one hour a week 1 Gross margin per ticket What you keep on each repair before overhead (revenue minus parts minus direct labor) / tickets Source: POS, invoices, payroll 2 Average ticket Watch the trend month to month, not the figure revenue / tickets Source: POS 3 Labor utilization Share of paid bench time that lands on a ticket billable hours / paid hours Source: POS, schedule or timeclock 4 Callback rate Count disputes too; they cost bench time either way warranty returns / completed repairs Source: POS, warranty ticket type 5 Months of cash reserve How long the shop runs if revenue stopped tomorrow cash on hand / average monthly fixed costs Source: bank statements
The five numbers, their formulas, and where each input already lives in your shop.

What shops are saying

Observational evidence from TCA Repair Community Listening. Method and limits are in the footer.

In the online discussions the TCA reviewed this week, repair professionals argued about price in nearly every thread: what to charge for labor, what to charge for a screen, what to pay a technician. Almost none discussed what the shop keeps after the repair. Across the discussions reviewed, one participant stated a margin figure. No participant mentioned reserves, runway, or months of expenses in the bank.

That is not a lack of interest. Price is the number on the receipt. Margin is the number nobody handed them.

The most contested topic was economy LCD screens versus OLED, which surfaced in four separate discussions in one week. One camp argued that installing economy screens damages a shop's reputation for a small one-time profit, and that the customer who "never comes back" went somewhere else. Another camp, including an owner who once sold OLED only, argued that customers choose the economy option when it is offered, that people who break phones break the next screen regardless, and that shops should stop running each other down. A third position, held by several, was that the choice is fine as long as the customer understands what they are buying.

Every side argued from anecdote. Nobody cited a warranty-return number. Hold that thought for number four.

Why "busy" is the most dangerous word in repair

Busy feels like safety. The phone rings, the bench is full, the deposit goes in every day. Then a shop that was full every day closes, and everyone who knew the owner says the same thing: they seemed to be doing fine.

The TCA has written about this twice. Why Tech Repair Shops Fail laid out the closure record. Bureau of Labor Statistics data, as analyzed by Commerce Institute in 2025, puts first-year failure for retail businesses at 15.8 percent and five-year failure at 41.7 percent. The TCA's own estimate for independent tech repair is worse: first-year failure close to 30 percent, nearly double the retail figure, and an annual failure-or-exit rate of 30 to 40 percent. That article also listed what survivors do differently, and one habit on the list was tracking their numbers. This chapter is the how.

First-year business failure rates compared Bar chart. Retail businesses 15.8 percent, all U.S. industries 20.4 percent, both from Bureau of Labor Statistics data via Commerce Institute. Independent tech repair close to 30 percent, a TCA estimate. Share of businesses that fail in their first year Retail businesses 15.8% All U.S. industries 20.4% Independent tech repair close to 30% (TCA estimate) Sources: U.S. Bureau of Labor Statistics data via Commerce Institute (2025) for retail and all industries; Tech Care Association internal research (2026) for independent tech repair. Bars are to scale.
Tech repair's first-year failure rate, by the TCA's estimate, runs nearly double the retail figure.

Nobody knows the exact number of independent tech repair shops in the U.S. The TCA works from roughly 40,000, give or take. At a 30 percent annual exit rate, that is more than 10,000 shops closing every year, and as Why Tech Repair Shops Fail put it, "The industry is running a 100% replacement rate. Every year. Just to stay flat."

The Data Gap explained the cost of running a shop on numbers you do not have. The TCA's estimate there was that the average independent shop leaves $50,000 to $75,000 on the table every year through pricing errors, dead inventory, missed repeat business, and supplier problems it never measured. You cannot fix pricing you never measured.

The wider small business data says the same thing in a different accent. Across all U.S. industries, Bureau of Labor Statistics data puts first-year business failure at 20.4 percent and five-year failure at 49.4 percent. In a February 2026 Bluevine survey of 785 small business owners, 56 percent said they hit significant cash flow problems within their first three years, 26 percent said financial tasks take more time than they expected, and bookkeeping was the biggest weekly time drain for 42 percent. And when CB Insights analyzed 431 venture-backed startups that shut down since 2023, 70 percent had run out of capital, but the report's own conclusion was that running out of money is where the story ends, not why it ends. Unsustainable unit economics, meaning the business cost more per customer than it earned, showed up in 19 percent of those post-mortems. Those were funded startups, not repair shops. The lesson transfers anyway: the bank balance is the symptom. The five numbers are the diagnosis.

The community discussions this week put faces on all of it.

One participant described holding the same labor price for two years, considering an increase, and summed up his shop as not high-volume but consistently busy. Busy but flat, in one sentence.

Another participant, in a discussion about whether $80 is too little to charge for a screen replacement, put his overhead beside that figure. With combined housing and shop lease costs above $6,000 a month, he observed, $80 labor only works if the shop turns a repair every ten minutes. That is the whole chapter in one comment. The price is not wrong on its own. The price is wrong for that shop, at that overhead, at that throughput. You cannot know which one you are until you do the math.

A third participant, replying to a thread full of stated labor prices, asked in effect whether anyone was getting paid at all. It was a joke. It got a lot of agreement.

And two participants said the chain store in the next town caps what they can charge. One said he cannot go above $85. When the ceiling is set from outside, the only thing left to control is the floor, and the floor is set from inside. That is what the five numbers are for.

Number 1: What am I actually keeping on each repair?

Gross margin per ticket = (ticket revenue minus parts cost minus direct labor cost) divided by number of tickets.

This is the number that separates a busy shop from a profitable one. Revenue is what the customer paid. Gross margin is what was left after you paid for the part and paid the person who installed it, before rent, software, insurance, and everything else that keeps the lights on.

Where each input lives:

  • Ticket revenue: your point of sale. Total repair revenue for the month, excluding retail and accessory sales if you can separate them. If you cannot, note it and be consistent every month.
  • Parts cost: your supplier invoices or your POS if it tracks cost of goods. Use what you actually paid, including shipping.
  • Direct labor cost: payroll for technician hours only, at their loaded rate (wages plus employer taxes). If you are the technician, pay yourself a rate on paper for this line, or the number lies to you.
  • Tickets: your POS count of completed repair tickets.

A worked example (illustrative numbers, not a benchmark): a shop closes 120 repair tickets in a month for $14,400 in repair revenue, spends $5,200 on parts and $3,600 on direct technician labor. Gross margin is $5,600, or $46.67 per ticket. That $46.67 has to cover every other cost in the shop before there is a dollar of profit.

Where an average $120 ticket goes in the worked example A single bar for a $120 average ticket split into parts $43.33, direct labor $30.00, and gross margin $46.67 per ticket. Illustrative numbers. One average ticket in the worked example: $120.00 Parts $43.33 Labor $30.00 Gross margin $46.67 The $46.67 has to cover rent, software, insurance, loan payments, and your own pay before there is a dollar of profit. At a 3.3 percent callback rate and a $90 average callback, about $3 of it is already spoken for by your warranty. Illustrative example: 120 tickets, $14,400 revenue, $5,200 parts, $3,600 direct labor. Not a benchmark.
Revenue per ticket is the whole bar. Margin is the part on the right, and some of that is already promised to warranty callbacks.
What shops are saying

In the discussions the TCA reviewed, nearly everyone stated a price. One participant stated a margin: economy screens earning roughly $80 to $120 per repair and premium screens with a lifetime warranty earning roughly $150 to $220. That is one shop's figure, not an industry number, and the TCA is not offering a benchmark here. Another participant, in a separate discussion about economy screens, characterized the economy install as a one-time profit of about $30. If that is your margin on a ticket, a single callback erases it and the next one puts you underwater on the repair.

The more common pattern was quoting by formula. One participant described charging a flat labor amount plus a multiple of the part cost as the only shop in his town, and was surprised to learn others charge roughly double. Others described part cost plus a labor rate, a pricing matrix, or a bespoke database. None described checking margin before giving a quote.

One owner said most of his pricing is outdated, that he updates a price only when he happens to order or sell that part, and that keeping every price current as supplier costs move is not realistically possible. He is right that it is not realistic. It is also The Data Gap in an owner's words. The fix is not updating every price. The fix is knowing what a ticket leaves behind, on average, every month, so that when the number drops you find out before the bank does.

Subtract what your own warranty costs. Gross margin per ticket is what a repair leaves behind on the day. Some of that money is already spoken for, because a share of tickets will come back under warranty and you will do the second repair for free. The expected cost is simple: callback rate (number four) multiplied by what an average callback costs you in part, labor, and counter time. On the illustrative example, a 3.3 percent callback rate against a $90 average callback is about $3 per ticket, which is manageable. On a $30 economy install with a higher return rate, the same math can eat the whole ticket. Write the number down; it is the price of the promise on your receipt.

Run it by channel. If any of your tickets are paid by someone other than the customer in front of you, split the number. Walk-in repairs, insurance claims, third-party warranty program jobs, and business contracts each carry different revenue, parts rules, labor, and admin time, and a blended average hides which one is carrying the others. The section after number five walks through why.

Setting a target: the TCA is not going to hand you a margin target from a source that does not exist. Set your own: take last month's gross margin per ticket, then multiply by your monthly ticket count. If that total does not cover last month's fixed costs with room to spare, your target is the per-ticket number that would.

Number 2: What is my average ticket, and is it moving?

Average ticket = repair revenue divided by number of tickets, by month.

This is the easiest of the five to pull and the one most owners already half-know. Track it monthly and watch the trend, not the figure. Flat average ticket with rising parts cost is falling margin, even when revenue looks fine.

Where it lives: your POS. Same revenue and ticket count as number one.

What shops are saying

In a discussion about how to answer the phone when someone asks the price of a screen on a common model, quoted all-in prices for the same repair ranged from about $80 (part, labor, tax, and a one-year warranty) to about $140 (one-hour turnaround, lifetime warranty). One shop described three tiers on that one model, roughly $65, $95, and $145.

The same repair, on the same device, at nearly double the price. What separated the higher tickets was not a better negotiator. It was a warranty, a turnaround promise, or an extra question. One participant asks every caller whether they had a tempered glass protector and want one priced in, on the reasoning that a question creates the upsell that a flat price never does.

A different discussion, critiquing a shop's screen-tier flyer, went the other way: several participants argued for a single tier on the grounds that good OLED is now inexpensive enough that a budget option no longer earns its complexity. Some shops move average ticket by removing the bottom option.

Both are levers. Which one is right for your shop depends on your margin per ticket (number one) and your callback rate (number four). The December case study in this Guide is built around exactly this number, so record it now.

Number 3: How much of the day is billable?

Labor utilization = billable technician hours divided by paid technician hours.

You pay for every hour a technician is in the building. You only get paid for the hours that land on a ticket. The gap between them is diagnostics that did not convert, waiting on parts, counter time, cleanup, and the customer who wanted to talk for twenty minutes.

Where it lives: paid hours from payroll or your schedule; billable hours from your POS if it records time per ticket, or from a simple estimate per repair type multiplied by tickets completed. A rough number tracked every month beats a precise number tracked never.

Why 100 percent is impossible: nobody bills every paid minute. A technician who is at the bench all day still has intake, reassembly checks, part lookups, and the two-minute questions that turn into ten. Utilization is not a grade. It is a ratio you watch so you can tell whether a slow month was slow because the phone stopped ringing or because the bench got inefficient.

Setting a target: the TCA does not have a sourced industry range for repair-shop utilization and will not invent one. Measure yours for three months. The best of the three is your first target.

A worked example (illustrative): a technician is paid for 160 hours in a month. Tickets completed, at the shop's own time estimates, add up to 88 billable hours. Utilization is 55 percent. At that shop's labor rate, the owner can now see what the other 72 hours cost.

Labor utilization in the worked example A bar for 160 paid technician hours with 88 billable hours filled in, showing 55 percent utilization and 72 unbilled hours. Illustrative numbers. One technician, one month: 160 paid hours 88 billable hours (55%) 72 unbilled hourspaid for, not paid back Utilization is not a grade. It tells you whether a slow month was the phone or the bench. Illustrative example. The TCA has no sourced industry range for utilization; measure yours for three months and set your own target.
The gap between paid hours and billable hours is where the technician-pay math either holds or breaks.
What shops are saying

In the discussions the TCA reviewed, shops price around billable time all day without measuring it. One participant described the last two shops he worked in billing like auto mechanics at $80 an hour, which he said should now be closer to $100, with roughly half an hour charged on an older model. Another sets a $100 minimum and drops to $60 when the repair turns out to be quick. That is utilization logic without the vocabulary. In a discussion about phone scripts, one shop quotes a 45-minute turnaround as part of its intake conversation, which is a per-job time input if the shop chose to record it.

The largest discussion in the set, roughly 40 comments, was about technician pay. Stated hourly pay clustered around $15 to $20 for entry technicians and $20 to $25 for experienced ones, often with commission or tips added. One owner in a $15 minimum-wage market described paying a technician $17.50 and a manager who can solder $19.75. Another pays two leads about $22 with retirement matching and three weeks of paid time off. One tiered scale ran $15 for screens and modular work, $20 for soldering and refurb, and $25 for soldering, refurb, and unlocks. Two owners described profit-split arrangements. These are the figures participants stated. They are not a wage benchmark, and the next chapter will use the federal wage data for that.

Put the two threads side by side. Stated pay near $20 an hour. Stated labor near $85 an hour. That math only works if the technician is billable most of the day. No participant described tracking whether that is true.

If you are the only technician: several participants in the pay discussion were solo operators. One wrote that he does not pay himself. Another asked whether people really have employees. Utilization still applies. The paid hours are your hours in the shop, and the number tells you how much of your week is actually earning.

Number 4: How often does a repair come back?

Callback rate = warranty returns divided by completed repairs, over the same period.

A callback is not one cost. It is the second part, the second block of bench time, the technician pulled off a paying ticket, and a customer who now tells the story at dinner. On a thin-margin ticket it removes the whole margin. On a premium ticket it removes a slice of the margin and adds a slice of doubt.

Where it lives: your POS, if you flag warranty work as its own ticket type. If you do not, start Monday. Count every device that returns for any reason related to a prior repair, whether or not you decide it was a defect.

Count the disputes too. In a discussion about customer excuses for damage, owners cataloged post-repair blame: a screen that cracked on a short drop onto carpet attributed to a cheap part, battery and charging-port trouble attributed to a screen repair, a phone that supposedly fell off a nightstand arriving with damage consistent with being run over. Those are not defects. They still cost bench time, and the callback rate should capture them. Split the number into "our fault" and "not our fault" later if you want; get the total first.

What shops are saying

This is where the economy-versus-OLED argument from the top of the chapter comes back. Four discussions in a week. Strong positions on both sides. In one discussion the dominant view was that economy screens are suitable only for devices about to be traded in. One owner gave a same-day example of a customer who insisted on an economy screen against advice and whose screen misbehaved immediately. The owner who once sold OLED only argued the opposite.

The TCA is not going to settle that argument, and neither are you, until warranty returns divided by completed repairs is a number your shop tracks by part tier. At that point it stops being an argument.

Number 5: How long could the shop run on what is in the bank?

Months of cash reserve = cash on hand divided by average monthly fixed costs.

This is the survival number. It answers one question: if revenue stopped tomorrow, how many months would the shop stay open? A slow season, a lost lead technician, a landlord who does not renew, a supplier who changes terms. Each one is survivable with a reserve and fatal without one.

Where it lives: cash on hand from your business bank balance (not counting money already owed to suppliers or payroll due this week). Money an insurer or warranty program owes you is not cash on hand until it lands; track it separately as receivables, with the days it takes to arrive. Fixed costs from the last three months of bank statements: rent, utilities, software, insurance, loan payments, base payroll. Average them.

What shops are saying

Nothing. In the discussions the TCA reviewed this week, no participant mentioned reserves, runway, or months of expenses in the bank. That is the most telling silence in the set.

The idea is not foreign to repair owners. In a discussion about buying used devices that later turn out to be lost or stolen, owners described assuming every purchase will go bad and pricing accordingly, collecting ID and a signed bill of sale, or buying only unlocked devices. That is risk pricing, and shops already do it on intake. The reserve is the same idea applied to the whole business.

Setting a target: there is no sourced industry figure for how many months a repair shop should hold, and the TCA will not invent one. In Why Tech Repair Shops Fail, the TCA's self-assessment asked whether a shop has three months of operating expenses in reserve. Treat that as the TCA's rule of thumb, not a benchmark, and treat your calculated baseline as the number that matters. If the answer is under one month, that is the number to fix before any other project in this Guide. Set a target you can name, and put a fixed amount toward it every month before you spend on a new tool or a new location.

A worked example (illustrative): $18,000 in the business account against average fixed costs of $9,000 a month is two months of reserve.

Before you say yes to insurance and warranty program work

Somebody offers you volume. A device protection program, an insurance carrier's repair network, an extended warranty administrator, a mail-in fulfillment partner, a corporate fleet. Claims get routed to your shop, the bench stays full, and monthly revenue jumps. It looks like the thing every owner wants.

It can be. It is also the fastest way the TCA knows to build a busy shop with no margin, because program work quietly removes several of the levers you just read about.

Where the net goes:

  • You no longer set the price. Reimbursement is fixed by the program's fee schedule. Average ticket (number two) stops being a lever you control, and the add-on question that moves it does not exist on a claim.
  • You may not choose the part. Many programs specify the part grade or the supplier. Your parts cost is what they say it is, not what you negotiated.
  • Admin time does not bill. Claim portals, intake photos, pre-approvals, status updates, disputes, and resubmissions are real hours at the counter that never land on a ticket. Utilization (number three) drops and nobody sees it, because the bench still looks busy.
  • You get paid later. Program terms are often net 30, 45, or 60 days. You have already paid for the part and the technician. Until the remittance arrives you are financing the insurer, and that shows up in months of cash reserve (number five).
  • Claims get denied and clawed back. A rejected claim after the repair is done is a full-cost ticket at zero revenue.
  • You carry their warranty at your cost. Most programs require the shop to honor a warranty on the repair, often longer than the one you offer walk-ins, and the callback is usually on you. Your callback rate (number four) on program jobs is a direct cost with no upside.
  • The customer is not yours. They belong to the program. The repeat visit, the review, the referral, and the accessory sale rarely come back to your shop.

The test is the same five numbers, run for that channel alone. Take a month of program tickets. Reimbursement received, minus program-specified parts, minus direct labor, minus the admin hours at your technician's loaded rate, minus the expected warranty cost (the program's callback rate times what a callback costs you). Divide by program tickets. That is your true margin per program ticket. Multiply by monthly program volume and put it beside the walk-in margin those same bench hours could have earned. Then ask how many weeks of payables you are covering while you wait to be paid, and whether your cash reserve absorbs it.

A worked example (illustrative numbers, not a benchmark): a program pays $180 for a screen claim. The required part costs $95, direct labor is $30, and the technician spends 20 minutes on the claim portal at a loaded $25 an hour, call it $8. That leaves $47 before warranty. If program jobs come back at 5 percent and a callback costs the shop $110 in part and labor, expected warranty cost is about $5.50, so the ticket nets roughly $41. Now hold that $41 against a payment that arrives in 45 days and a walk-in ticket that pays today. Whether that works is not a matter of opinion. It is a matter of which number is bigger for your shop.

What a $180 program claim actually nets in the worked example A step-down chart from $180 reimbursement: minus $95 required part, minus $30 labor, minus $8 unbilled admin, minus $5.50 expected warranty cost, leaving about $41 that arrives in 45 days. Illustrative numbers. A $180 program claim, after everything the program takes off it Reimbursement $180.00 Required part $95.00 Labor $30.00 Admin $8.00 Expected warranty $5.50 Nets about $41 Paid in 45 days. You covered the part and the technician on day one. Hold the $41 against the walk-in ticket that same bench hour could have earned, paid today. Program work is a filler, not a foundation. Illustrative example: 20 minutes of claim admin at a loaded $25 an hour; 5 percent callback rate against a $110 callback. Not a benchmark.
Gross revenue on a program claim looks fine. The net, after the part they chose, the admin they require, and the warranty you carry, is the number to compare.

Do they make enough to support the warranty? Only the channel math answers that. If the true margin per program ticket is positive after admin time and expected callbacks, and the payment lag fits inside your cash reserve without squeezing suppliers or payroll, the work stands on its own and can be a sensible way to fill idle bench hours. If the margin only looks positive before admin and warranty are counted, or if the receivable lag is being carried by your walk-in cash, you are not running a repair program. You are lending the insurer money at zero percent and paying for the privilege with your bench.

The TCA's position: program work is a filler, not a foundation. Take it when it clears its own margin and you have the reserve to wait for payment. Never build the shop's revenue base on it, because the day the program changes its fee schedule or its network, that revenue leaves the same way it arrived.

How to capture all five in under an hour a week

You do not need new software. You need one sheet and one recurring hour. The Five Numbers worksheet is a free PDF with the nine inputs, the five formulas, and a target line for each; print it or fill it in on screen.

The weekly hour: nine inputs become five numbers Diagram. Weekly, about 30 minutes: six inputs from POS, parts invoices, and schedule. Monthly, about 20 minutes: three inputs from bank and payroll. Together they produce the five numbers. Weekly, about 30 minutes POS: revenue, tickets, warranty tickets Parts invoices: parts spent Schedule: paid hours, billable hours 6 inputs Monthly, about 20 min Bank: cash on hand Bank: fixed costs Payroll: direct labor cost 3 inputs 5 numbers margin per ticket average ticket utilization callbacks, reserve Nine inputs you already have. Keep every month's sheet and the trend builds itself.
Under an hour a week, and none of the inputs require new software.

Weekly (about 30 minutes):

  1. Pull from your POS: repair revenue, tickets completed, warranty tickets. Three numbers.
  2. Pull from your parts invoices: parts spent this week. One number.
  3. Pull from your schedule or timeclock: paid technician hours. Estimate billable hours from tickets completed if your POS does not track time. Two numbers.

Monthly (about 20 minutes, on top of the last weekly session):

  1. Pull from the bank: cash on hand and the fixed-cost total for the month. Two numbers.
  2. Pull from payroll: direct technician labor cost for the month. One number.

Nine inputs, five formulas, five answers. Keep every month's sheet and the trend builds itself. If you take insurance or warranty program work, the second page of the worksheet runs the same numbers by channel, with a line for receivables and expected warranty cost. The first month is your baseline. The number you fill in first should be the one you found yourself arguing about this week.

The TCA's Take

This section is the TCA's position, not a finding from the community evidence above.

A shop that cannot state these five numbers is not ready to add a service line, a location, or a hire. Fix the Shop First applies here in full. The TCA has watched owners add data recovery, a second storefront, or a second technician on the strength of "we're busy," and busy is not a number.

Every objection the TCA heard this week has the same answer.

"The chain in the next town caps my price." Then the ceiling is not yours to control, and the floor is the only thing you own. You cannot set a floor you have not measured.

"I can't keep every price current." Correct. Nobody can. You can know, every month, what a ticket leaves behind. When that number drops, you go find out which prices moved.

"Economy screens are fine." "Economy screens are killing your brand." Whichever side you are on, you are guessing until warranty returns divided by completed repairs is a number you track.

"I'm solo, I don't have payroll." You have hours. The number still works.

"Reserves are for bigger shops." You already price for risk on every used device you buy. This is the same discipline, one level up.

"Insurance work keeps my bench full." Full at what margin, paid in how many days, with whose warranty on it? Run the channel on its own. If it stands, keep it. If it only stands on your walk-in cash, it is not income, it is a loan you made.

The next chapter in this Guide is about pricing labor. Do not start it with a labor rate. Start it with these five numbers filled in for last month, or you will be setting a price for a shop you have not measured.

What to do Monday morning

  1. Open the Five Numbers worksheet and fill in last month. Nine inputs, five outputs. Do not chase precision on the first pass; chase completion.
  2. Circle the one number you were arguing about with someone this week. Margin, price, hours, callbacks, or cash. That is the one you improve first. Pick one lever from the matching section above and write down what you will change.
  3. Put the same hour on next Monday's calendar. Re-measure. The second month is where the trend starts and the guessing stops.

Busy is a feeling. Profitable is a number.

Every owner in the discussions the TCA reviewed this week could tell you their labor price. Almost none could tell you what a ticket leaves behind, how much of the bench is billable, how often a repair comes back, or how many months the shop could run on what is in the bank. Those are not accounting questions. They are the difference between a shop that is busy and a shop that survives, and every one of them takes less than an hour a week to know.

Next Tuesday, the series turns to pricing labor. Do not start that chapter with a rate. Start it with these five numbers filled in for last month.

Start here. Free, one page, no signup.

Download the Five Numbers worksheet (PDF)

How healthy is your shop, really?

TCA ShopCheck is a free two-minute health check built for independent repair shops. Your Run It Well score is the fast version of this chapter; the worksheet is the detail behind it.

Run TCA ShopCheck Free

Common questions about repair shop profitability

What is gross margin per ticket for a repair shop?

Gross margin per ticket is the money left on an average repair after the part and the direct technician labor are paid, before rent and other overhead. The formula is (repair revenue minus parts cost minus direct labor cost) divided by tickets completed. It is the number that separates a busy shop from a profitable one.

What is a good callback rate for a tech repair shop?

The TCA has not published a benchmark for callback rate and does not recommend using one from an unsourced list. Calculate yours as warranty returns divided by completed repairs, including disputes that are not defects, then track it by part tier. Your first target is your own best month.

How many months of cash reserve should a repair shop have?

There is no sourced industry figure. The TCA's rule of thumb, from Why Tech Repair Shops Fail, is three months of operating expenses. Calculate your own as cash on hand divided by average monthly fixed costs. If it is under one month, that is the number to fix before any other project.

Should a repair shop take insurance or warranty program work?

Only when it clears its own margin. Run the five numbers for the program channel alone: reimbursement minus required parts, direct labor, unbilled admin time, and expected warranty cost, divided by program tickets, then check whether the payment lag fits inside your cash reserve. Program work is a filler for idle bench hours, not a foundation for the business.

How long does it take to track these five numbers?

Under an hour a week: about 30 minutes weekly for six inputs from your POS, parts invoices, and schedule, plus about 20 minutes monthly for three inputs from the bank and payroll. The free Five Numbers worksheet has the formulas printed beside each input.

More from the TCA Blog

Rob Link is the founder of the TCA. He built and ran a multi-location repair chain in an earlier era of this industry, and he'd tell you today's operators have it harder. The TCA is independent of carriers, manufacturers, and insurance companies, which is exactly why it can tell shop owners the truth about growth.

Sources and methodology

  • Retail failure rates: U.S. Bureau of Labor Statistics data as analyzed by Commerce Institute, "What Percentage of Businesses Fail Each Year?" (2025). Confirmed against the source on September 13, 2026.
  • Tech repair failure and exit estimates: Tech Care Association internal research, published in Why Tech Repair Shops Fail, March 16, 2026. These are TCA estimates, not government statistics.
  • Cost of missing data: Tech Care Association estimates published in The Data Gap, January 19, 2026.
  • U.S. shop count: TCA working estimate of roughly 40,000 independent tech repair businesses. No authoritative count exists.
  • All-industry failure rates (20.4 percent first year, 49.4 percent by year five): U.S. Bureau of Labor Statistics data as analyzed by Commerce Institute (2025).
  • Small business cash flow and time findings: Bluevine, "3 in 4 owners say owning a business is worth it, despite challenges," April 2026; survey of 785 U.S. small business owners fielded by Centiment, Feb. 2 to 11, 2026.
  • Startup failure reasons: CB Insights, "The top 9 reasons startups fail," March 5, 2026; analysis of 431 VC-backed companies that shut down since 2023.
  • Worked examples in this chapter use illustrative numbers chosen to show the formulas. They are not industry benchmarks, and the TCA has not published a benchmark for any of the five numbers.

About this data: The TCA reviewed approximately 290 comments from repair professionals participating in 22 online industry discussions between September 9 and 13, 2026. These discussions were voluntary and were not collected through a representative survey. Findings describe the comments reviewed and should not be interpreted as estimates for the entire repair industry. Comments from parts vendors and service resellers were excluded. Individual participants are not identified without permission.

Published September 16, 2026. Last updated September 16, 2026.

The most dangerous sentence in tech repair might be “I’ve got another idea.” Before you add another service, product, location, or revenue stream, make the repair business work. If you want to grow a tech repair business, this is where you start. Part 1 of a nine-part TCA series on building from strength.

Fix the Shop First · Part 1 of 9

By Rob Link, Founder & CEO, Tech Care Association · September 1, 2026 · 10 min read

Key Takeaways

  • A good idea and hard work are not enough. You also need market demand, cash flow, the right team, operational planning, and timing. Most hard workers who fail run out of money or build something nobody wants to buy.
  • The research is blunt: Bain found only 29% of retail adjacency moves produced profitable growth, and roughly three-quarters of attempts to grow into adjacent markets fail. The winners almost always had a strong core business first.
  • More revenue streams do not mean more profit. Every new offering consumes capital, inventory, training, attention, floor space, and time.
  • Broadening your repair capability is not the same as diluting your business model. Repairing more devices is still one business. Running repair plus resale plus IT services plus recycling plus insurance may be several mediocre ones.
  • Expand only when the core has earned you the right to expand. This series will show you how to know when that is.

What’s in this post

  1. What I heard on the show floor
  2. A week in the life of a distracted owner
  3. The game has changed: everyone has insurance now
  4. Why a good idea and hard work are not enough
  5. What the research says about chasing adjacencies
  6. Broaden your capability, don’t dilute your model
  7. You can’t fix what you don’t measure
  8. Find people who will pick your idea apart
  9. What’s coming in this series
  10. Common questions about repair shop focus

What I heard on the show floor

Two weeks ago I spent two days at booth 835 at AWPE in Las Vegas, where the TCA launched TCA ShopCheck. Between demos, I did what I always do at these shows. I talked to operators. Owners of one shop, owners of five, techs planning their first storefront, and veterans who have been at the bench since the first iPhone cracked. Almost all of them want the same thing: to grow a tech repair business that lasts.

Add in the conversations from Mobile Disrupt in Miami back in July and the ITAD Summit in early August, and I’ve spent a lot of 2026 listening to some of the most capable people in this industry. Here’s what struck me most.

It wasn’t the struggling shops that worried me. It was the successful ones.

Some of the sharpest, most productive owners I talked to this summer are wrestling with focus and direction. They have healthy shops, good reputations, and money in the bank, and they’re restless. They’re eyeing spaces that are already crowded with established players. Or they’re gearing up to build something that others in this industry have already tried and failed at, without any real data on what worked and what didn’t the first time around. They have a good idea, they’re willing to outwork anyone, and they assume that combination is enough.

It isn’t. And the numbers on that are brutal, which we’ll get to in a minute.

First, let me describe an owner I met about six times this summer, under six different names and faces.

A week in the life of a distracted owner

Monday, they’re researching microsoldering equipment. Tuesday, they’re pricing out what it would take to become a managed service provider. Wednesday, a buddy tells them there’s huge money in buying and flipping used phones. Thursday, they’re watching demos of laser machines. Friday, they’re driving past a vacant storefront across town thinking about location number two.

Meanwhile, back at the shop

Back at the shop they already own:

  • The phone rings out to voicemail a third of the time.
  • Google reviews sit unanswered, including the bad one from last month.
  • Repair tickets are aging four days before anyone touches them.
  • Nobody, including the owner, knows the actual gross margin on a screen replacement.
  • Inventory is a drawer, not a system.
  • The website doesn’t show prices.
  • Customers who declined a repair never hear from the shop again.

Graphic showing a repair shop owner researching microsoldering, MSP services, phone flipping, laser machines, and a second location Monday through Friday, while unanswered calls, aging tickets, unknown margins, and uncontrolled inventory pile up back at the shop

I’m not picking on this owner, whoever they are, wherever you are. I ran a thirteen-location chain back in the day, and I was this owner. And I’ll be the first to admit the game was easier then. The industry has changed, and today’s operators face far more competition than we ever did, from combo shops and kiosks to mobile operators, all fighting for the same customers. That’s an argument for more focus, not less. Repair shop owners are entrepreneurs, and entrepreneurs see opportunity everywhere. Accessories. Used devices. IT services. Data recovery. Recycling. B2B contracts. Mail-in. That instinct built this industry.

But every one of those opportunities consumes some combination of capital, inventory, training, marketing, management attention, floor space, and time. And the TCA’s own research this spring showed exactly where that attention should be going instead. Our May report on why repair shops are losing customers to replacement found that shops are bleeding business over the basics: unanswered calls, poor communication, pricing friction, and a buying experience that makes repair harder to choose than replacement.

Before asking what else you can sell, ask how much more repair business you could capture by getting better at the business you’re already in.

The game has changed: everyone has insurance now

Direct answer
The single most talked-about change in today’s repair world is device protection. One-third of US smartphone owners now purchase protection for their devices, according to consumer tracking firm Circana, and nearly all of those plans are sold through channels that route repairs to a handful of giant operators before an independent shop ever sees the device.

Where the protection plans get sold

Sit with that number. A third of the smartphones in your market may already have a repair path decided before they ever break. And look at where those protection plans get sold. Wireless carriers are the leading channel, bundling protection at the point of sale, with those policies serviced almost entirely by two massive operators. Big-box retail and e-commerce make up the next major slice, powered behind the scenes by the same few giants. Device makers hold a smaller share through their own branded care programs. Independent and direct-to-consumer channels? They control under five percent of the market.

Bar chart showing where US device protection plans are sold: wireless carriers lead at roughly 44 percent, retailers and e-commerce near 38 percent, device manufacturers around 13 percent, and independent channels under 5 percent

If you read our Operators in Motion piece, this should sound familiar. The two biggest repair-network exits of the last era both landed inside insurance companies, because those companies need repair capability to deliver what they sell. The protection economy sits on top of our industry and pre-routes an enormous share of the work.

Here’s what that means for the thesis of this series. It does not mean run out and start selling protection plans; that’s the chasing reflex this series exists to interrupt, and you’d be walking into the most consolidated corner of the entire market. It means the customers who are still choosing their own repair shop, the majority who skip protection plus everyone whose plan disappoints them, choose on trust, speed, reviews, and experience. The shops that win them are the ones that fixed the shop first. That is how you grow a tech repair business in a market where a third of the customers are spoken for before the screen ever cracks.

Why a good idea and hard work are not enough

Here’s the uncomfortable truth behind those show-floor conversations. A good idea and hard work are the entry fee, not the win condition. Plenty of hard workers fail every year because nobody wants to buy what they built, or because the money ran out before the market showed up. To succeed, you also need at least four other things:

Market demand

People have to want to buy what you’re selling, in your market, at your price. And not every idea or product plays well in every market: what thrives in a college town can starve in a retiree suburb, and what works in a dense city can flop in a rural county. If the market is too small or simply doesn’t care, working harder will not fix it. This is where “the space is already crowded” and “somebody already tried this here and it died” should be treated as data, not as challenges to your pride.

Cash flow

You need money to pay the bills before the new thing turns a profit, and new ventures always take longer than the plan says. Running out of cash is the most common way a new business closes, and it’s how a healthy repair shop gets dragged down by its own side project.

Timing

Launching too early or too late can kill a genuinely great idea. Some of the failures in this industry weren’t bad ideas. They were right ideas at the wrong moment, and the person trying it again five years later without understanding why it failed the first time is set up to repeat the result.

Smart strategy and the right team

Working hard on the wrong tasks wastes the one resource you can’t buy more of. You need a clear plan, the right skills, and people besides yourself who can run the thing.

Part 2 of this series digs into each of these in detail. For now, hold onto the pattern: the graveyard of this industry is full of good ideas executed by hard workers who were missing one of those four ingredients.

What the research says about chasing adjacencies

This isn’t just my read from the show floor. The business research on how companies try to grow, and how often expansion backfires, is remarkably consistent, and remarkably grim.

Bain & Company studied nearly 300 adjacency moves by retailers, meaning expansions into products, services, and markets next to the core business. Only 29% produced profitable growth. Only 15% produced significant increases in both revenue and profit. The strongest predictor of success was how close the expansion stayed to the company’s existing customers, capabilities, and cost structure.

A related Bain study published in Harvard Business Review put it even more starkly: roughly three-quarters of attempts to grow into adjacent markets fail. And the companies that did succeed at adjacency expansion had one thing in common. They already had strong core businesses before they expanded.

Then there’s the complexity problem. Research summarized in Harvard Business Review found that most businesses offer more products and services than the profit-maximizing number. Every additional offering creates operational complexity, and the cost of that complexity quietly eats into margins long before anyone notices it on a spreadsheet.

Stat graphic on why chasing adjacencies is a risky way to grow a tech repair business: only 29 percent of retail adjacency moves produced profitable growth and roughly 75 percent of adjacent market expansion attempts fail, per Bain research

Put those findings together and you get the sentence I want every shop owner to tape above the bench:

More revenue streams do not mean more profit.

A shop doing $700,000 of complicated, poorly managed business across six ventures is not healthier than a shop doing $500,000 of highly repeatable repair work at strong margins. The second owner sleeps better, banks more, and is in a far stronger position to grow a tech repair business later, on purpose, from strength.

Broaden your capability, don’t dilute your model

Now, if you’ve been reading the TCA blog for a while, you might be raising an eyebrow. Haven’t we spent the past year telling you the opposite?

We published Beyond Phone Repair, showing that your skills already transfer across ten consumer electronics categories. We published Operators in Motion, celebrating owners who grew from the bench into refurbishment, ITAD, resale, and software. We’ve covered data recovery as an expanding profit center. We stand behind every word of it.

This series is not a retraction. It’s the missing chapter.

Here’s the distinction that resolves it. A shop repairing phones, tablets, laptops, consoles, and wearables is still fundamentally running one repair business. Same skills, same workflow, same customer promise, wider funnel. That’s broadening your capability, and it’s usually smart.

A shop simultaneously trying to operate repair plus prepaid wireless plus used-device retail plus IT services plus eBay resale plus recycling plus insurance sales may be running seven mediocre businesses out of one storefront. That’s diluting your model, and it’s usually how good shops become tired shops.

Comparison graphic: one repair business covering phones, tablets, laptops, consoles, and wearables versus eight separate businesses crammed into one storefront, illustrating broadening capability versus diluting the business model

Ask the uncomfortable questions first

So before you bolt anything new onto the counter, ask yourself some uncomfortable questions. Do your customers actually want additional products and services from you, or do they want you to do more of the core repair work they already trust you with? If you sell them something they didn’t come for, can it hurt the business you already have? Do they want to deal with a salesperson or a repair person? And if you push sales too hard, does it damage the trust that drives your repair traffic in the first place? Every one of those answers decides whether you grow a tech repair business or merely complicate one.

My honest take, after two decades in this trade: people come to you for repair, and repair only. Layering sales on top of that relationship is much harder than it looks, and very few shops pull it off without eroding the thing that made customers walk in.

Every operator in motion we profiled earned the move first. Their pattern was never “chase everything.” It was master the core, systemize it, and then expand from strength into work that used the same customers, skills, and trust they’d already built. Expansion is a multiplier. Multiply a strong operation and you get growth. Multiply a broken operation and you get a bigger broken operation.

Expand only when the core has earned you the right to expand.

You can’t fix what you don’t measure

So how do you know whether your core has earned it? You measure it. Honestly, and from the outside. Nobody has ever managed to grow a tech repair business on numbers they didn’t know.

That’s exactly why the TCA built TCA ShopCheck, the free shop health check we launched at AWPE last month. In about two minutes, it scores your business across the five things that actually determine whether the core is strong: whether customers can find you, whether they choose you, whether you win the job, whether you run the operation well, and whether you’re set up to grow. It’s free, it stays free, and it exists because most owners have never had an objective look at their own shop.

Run it before you spend another hour researching that laser machine. If the score stings a little, good. That sting is the gap between the business you have and the business you could have without adding a single new venture.

And keep an eye on this space. TCA ShopCheck is the first tool in what we’re building into a full suite, with more advanced tools coming that go deeper into analyzing your operations, your numbers, and your readiness to expand. The shops that measure will always beat the shops that guess.

Find people who will pick your idea apart

One more thing before I lay out the series, because it came up in almost every one of those show-floor conversations.

The owners chasing crowded spaces and repeating past failures had something in common: everyone around them loved the idea. Their techs loved it. Their regulars loved it. Their Facebook group loved it. What they didn’t have was a single person with real authority and experience whose job was to pick the idea apart.

Your fans are great at identifying their problems and terrible at inventing your solutions. There’s a famous line, probably apocryphal, attributed to Henry Ford: if he’d asked people what they wanted, they’d have said faster horses. Customers ask for incremental versions of what already exists. Your loudest supporters don’t represent your average customer. And people will enthusiastically tell you they want something right up until you ask them to pay for it.

What you need is hard, honest feedback from people with the experience to know where the bodies are buried. People who will ask what the market demand actually is, what happened to the last three shops that tried it, and what your cash position looks like in month nine. That kind of feedback is uncomfortable, and it is worth more than a hundred likes. Part 5 of this series is entirely about where to find it and how to use it.

What’s coming in this series

Over the next several weeks, Fix the Shop First will build the complete argument, and the complete toolkit:

  1. Stop Chasing the Next Thing: Fix the Shop First (you’re reading it)
  2. The Industry With No Giants: why an industry this big has no dominant players, and what the churn rate is telling us
  3. A Good Idea and Hard Work Are Not Enough: the four ingredients that actually determine success
  4. Do You Actually Have a Profitable Repair Business?: the numbers every owner must know cold
  5. The Boring Stuff Is Where the Money Is (and Facebook Isn’t): the six figures hiding inside the shop you already own
  6. Your Fans Are Lying to You (Kindly): how to get feedback that actually protects you
  7. Everybody’s Right and Everybody’s Wrong: the silo problem, and how to vet the voices you follow
  8. When You Should Add Something New: the TCA Expansion Test
  9. Build Your Repair Machine: the TCA Core-First Growth Model

By the end, you’ll have a framework for knowing exactly when your shop has earned the right to expand, a plan for what to do until then, and a clear answer to the question every owner eventually asks: how do I grow a tech repair business without breaking the one I have?

Common questions about repair shop focus

Should a tech repair shop diversify into new revenue streams?

Only after the core repair business is consistently profitable, measured, and able to run without the owner touching everything. Research on business adjacency moves shows roughly three-quarters fail, and the successes almost always came from companies with strong core businesses first. Expansion multiplies whatever you already have, strong or broken.

Is repairing more types of devices the same as diversifying?

No. Adding tablets, laptops, consoles, and wearables to a phone repair shop broadens one repair business using the same skills, workflow, and customer trust. Diversifying means running fundamentally different businesses, like resale, IT services, recycling, and insurance, from the same storefront. The first widens your funnel. The second divides your attention.

How do I know if my repair shop is ready to grow a tech repair business beyond repair?

Start by measuring the core objectively. TCA ShopCheck is a free two-minute health check that scores your shop on getting found, getting chosen, winning the job, running well, and growing. If the core scores strong and you can answer the market demand, cash flow, timing, and team questions honestly, you’re ready to run the TCA Expansion Test coming later in this series.

Want to grow a tech repair business? The next thing can wait. The shop can’t.

If you walked one of those show floors with me this summer, you saw an industry full of energy, ideas, and ambition. That’s our strength. But energy pointed in six directions moves nothing. The owners who win over the next five years won’t be the ones with the most ideas. They’ll be the ones who built one great repair business first, measured it honestly, listened to people willing to tell them the truth, and then expanded from strength.

Next Tuesday, Part 2 asks the question hiding underneath all of this: why has an industry this large produced almost no giants? The answer lives in our brutal churn numbers, a century-old trade route working against us, and a focus problem nobody wants to name. If you’ve ever wondered why the revolving door of shops opening and closing never stops spinning, that post is for you.

Until then, run your shop through TCA ShopCheck. It takes two minutes, it’s free, and it might be the most honest conversation your business has had in years.

How healthy is your shop, really?

TCA ShopCheck is a free two-minute health check built for independent repair shops. No sales pitch, no strings. Just an honest score and a place to start.

Run TCA ShopCheck Free

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Rob Link is the founder of the TCA. He built and ran a multi-location repair chain in an earlier era of this industry, and he’d tell you today’s operators have it harder. The TCA is independent of carriers, manufacturers, and insurance companies, which is exactly why it can tell shop owners the truth about growth.

Sources: Circana, smartphone protection purchase data (2025). Bain & Company, “Growing Beyond Your Core in Retail” (study of nearly 300 retail adjacency moves). Zook & Allen, “Growth Outside the Core,” Harvard Business Review. Gottfredson & Aspinall, “Innovation Versus Complexity: What Is Too Much of a Good Thing?”, Harvard Business Review. The TCA’s State of Tech Repair 2026 research. The Tech Care Association (TCA) is the leading nonprofit trade association for independent tech repair professionals in North America.