Finance

Phone repair shop margins: how to know yours.

October 2026 · a1RepairFlow

Ask ten shop owners their margin on a screen replacement and you'll get ten confident answers — most of them "price minus part". That number isn't a margin; it's the start of one. We're deliberately not quoting industry-average percentages here, because averages hide exactly what you need to see: your numbers.

The honest margin formula

Per repair type, margin is:

Price − part cost − (labour minutes × your real minute rate) − (warranty rate × average rework cost) − payment fees

Three of those terms are the ones owners skip:

Labour minutes — the real ones

Not "how long the repair takes" but door-to-door: intake conversation, the repair, testing, the hand-back. A 25-minute screen job that comes with 15 minutes of counter time is a 40-minute job. Your minute rate is your monthly staff cost ÷ productive minutes actually available — not ÷ opening hours.

Warranty returns

If 1 in 25 of a given repair comes back under warranty, every unit of that repair carries 1/25th of a rework (part again + labour again). This is also where cheap parts quietly reverse their savings: a budget part with a higher return rate can cost more per completed repair than the premium one. You can only see this if your system links warranty cases back to the original repair.

The overhead line

Rent, utilities, insurance, software, accounting — divided across the month's repairs it's a per-job cost like any other. It doesn't change per-repair decisions much, but it defines your break-even jobs-per-day, which is the number that should drive your opening hours and staffing.

A worked example (illustrative numbers)

Neither number is "good" or "bad" in the abstract. The point is that decisions — pricing, which repairs to promote, which to drop — look completely different at 36% than at an imagined 62%.

1.095 Price −420 Part −240 Labour 40 min −24 Warranty 4% −13 Card fee 398 (36%) True margin
The worked example as a waterfall — "price minus part" hides more than half the costs.

What to do with it

Where the data comes from

Every term in the formula already exists in a shop that runs on one system: parts cost on the ticket, timestamps for labour, warranty cases linked to original repairs, fees on the payment. a1RepairFlow records all of it as a side effect of normal work — the margin report is reading, not homework.

Run your shop on one system.

a1RepairFlow is the full platform for repair shops — POS, tickets, invoicing, inventory, online booking and webshop sync, from €59/month. Try everything free for 14 days, no credit card.

Start free trial Get a personal demo

Related: The 80/20 of repair pricing · Margin VAT on used devices (Denmark)