The Competitor Pricing Trap
The most common pricing method for new repair shops: look at what nearby shops charge, price similarly or slightly below, and hope it's enough.
This approach has a fundamental problem: you don't know if your competitors are profitable. Their prices might be sustaining a good business — or they might be barely breaking even, running on the owner's labor at below-market rates, or subsidized by other income.
When you copy prices without knowing the underlying cost structure, you're gambling that their math works for you too. Often it doesn't.
The Cost-Plus Framework
The correct starting point for repair pricing is your own costs, not your competitors' prices.
Step 1: Calculate Your Parts Cost
For each repair type, your parts cost is straightforward: what did you pay your supplier for the replacement part?
Example — Samsung A54 screen:Step 2: Calculate Your Labor Cost
This requires knowing your technician's cost per hour and how long the repair takes.
Technician's total employment cost:(Note: for experienced technicians, this repair may take less time, reducing labor cost further.)
Step 3: Allocate Overhead
Your overhead — rent, utilities, software subscriptions, internet, supplies, marketing — must be recovered through your pricing.
Monthly overhead:Step 4: Add Your Target Margin
Your margin is the profit above all costs — the return for owning and running the business.
A healthy repair shop targets 30–50% gross margin. Let's target 40%.
Total cost so far: Parts (৳1,800) + Labor (৳108) + Overhead (৳147) = ৳2,055 Target price for 40% margin: ৳2,055 ÷ (1 - 0.40) = ৳3,425 You round to ৳3,500. This is your cost-based floor price.Now compare to the market: if similar shops charge ৳2,800–৳3,800, your price is competitive and profitable.
If similar shops charge ৳2,000, you have a problem: either your costs are higher than theirs (explore why), or they are operating at a loss (don't follow them down).
Premium Pricing: When You Can Charge More
Several factors justify prices above the market average:
Part quality: Original / OEM-equivalent screens cost more than after-market. If you use higher-quality parts, price accordingly and explain the difference to customers. Faster turnaround: A 2-hour screen replacement commands a premium over a 2-day queue time. Speed is valuable. Location: A repair shop in a premium mall justifies higher prices than a market-basement shop. The customer's willingness to pay is higher in a premium environment. Specialization: An Apple-specialist shop, a niche water-damage recovery specialist, or a shop that handles rare devices can charge more for specialist expertise. Reputation and reviews: A shop with 200 5-star Google reviews can charge more than an unreviewed competitor. The reviews are social proof that the extra cost is worth it.Pricing Display: Transparency Builds Trust
Displaying your prices — on a board at the counter, on your website, in your Google Business Profile — removes the price anxiety many customers feel before entering an unfamiliar repair shop.
"Will it be expensive?" is a question that stops potential customers from walking in. A visible, reasonable price list removes the uncertainty.
Transparent pricing also reduces the time spent on price queries ("how much to fix an iPhone 15 screen?") and filters out customers whose budget is genuinely not compatible with your pricing before they walk in.
Reviewing Prices Regularly
Parts costs change. Supplier prices increase. Your own cost structure changes as you hire more staff, move to a larger space, or expand services.
Set a quarterly reminder to review your major repair prices:
Prices that made sense 18 months ago may no longer make sense today. Regular review keeps you profitable as your cost environment evolves.
Pricing is not a set-and-forget decision. It's an ongoing calculation that keeps your business financially healthy.