[Progress] Growing an Internet Business

[kebertt]

For years now I've had an interest in smartphone repair; specifically iPhones. I've been repairing iPhones locally for some time, and decided a couple months ago that I wanted to take it to the next level. I am now ready to launch my mail-in iPhone repair business, and am starting to focus on my marketing. Just like most businesses, the hardest part for me is going to be marketing and getting customers.

I know that my services are needed, and there are similar businesses offering similar services. To set myself apart, I am offering a free iPhone case with every repair, and a 90 Parts and Labor warranty. I am hoping that this will increase my conversion rates, and encourage customers who are comparing my services to competitors to jump aboard.

What I've done so far:

• Create custom website (Shopify)
• Design Branding (logo, graphics, etc.)
• Toll-free number, using OpenVBX and Twilio
• Email set up using Google Apps
• Social Media - Twitter and Facebook
• Blog - Repair blog that covers iPhone hardware defects
• Merchant account - Google Checkout
• Find supplier of quality parts located in US

Essentially everything is set and ready to go. It is now time for me to test the water, and determine if this venture is going to be profitable. I don't mind losing profit on the initial orders, and am ready to invest money into advertising. I have set aside a budget so that I can accomplish gaining my first round of customers. Thus far I have invested in banner ads through buysellads.com, and purchased a few tweets from niche related websites. All of which came with no success. I am now starting to invest in Adwords, and am contemplating if it's worth it.

What would you recommend for an up-and-coming business in the iPhone repair niche? Obviously, with a mail-in repair service I'm going to have a smaller conversion rate than most online businesses; but I know the money is there once I start getting established. The mark up on my work is high enough in that I can spend a decent amount of money on each customer without being disappointed; $12-15 for each customer would be reasonable to me.

My website is www.FixBrokeni.com. Where should I go from here? I would love to hear your feedback!

 

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[Vick]

Slow down your banner speed in your Theme Options. It's way to fast. Haven't had a good look at the site yet. But that's the first thing I noticed. 6 or 7 seconds should be good.

 

[Epictetus]

Change the banner speed AND the text on that banner. That blue text looks like Office WordArt.

Also, how much leverage do you have with this? How long does it take you to do a repair and how much do you make off that?

 

[kebertt]

I'll have my web guy make those changes on the banner speed asap.

Also, how much leverage do you have with this? How long does it take you to do a repair and how much do you make off that?

Depending on the repair, it takes roughly 20-30 mins. For example, a screen repair on an iPhone 4S would cost $25 in parts, $8 in return shipping, and the rest is profit. I charge $89.99 for that repair, so that's $56.99 into my pocket.

 

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[kebertt]

Slow down your banner speed in your Theme Options. It's way to fast. Haven't had a good look at the site yet. But that's the first thing I noticed. 6 or 7 seconds should be good.

Appreciate the feedback @Vick - I'd like to know your overall opinion on the site when you get a chance.

 

[ewH]

I agree that the banner speed is too fast. There is also something about the banner picture with the 3 steps that makes the site look too cluttered. The other banner pics with the blue background look clean and professional, but the first one needs some work.

I'm also interested in why you are giving out free cases with repairs? Do you think you will see a proper ROI? I don't think that would be the deciding factor on whether I used your service or not. If I don't currently have a case, I would more likely want to go shop for one that I wanted. Perhaps the free case would be better served as a limited time promotion to see if it increases sales. It's also a prime candidate for A/B testing.

Don't give money away if you don't have to!

 

[mentalic]

Hello kebertt,
Since you ask for people to ship a valuable product to you it is important to make the trust you somehow and this cannot be done with a Facebook page with zero likes. You have to use social media to build trust with people and market your products. Try to attract as many real likes as possible at your facebook page and if you can show the number of likes at your original page.
You can also try to market your services locally since it will be easier for someone that does not know you to trust you
It might help if you could upload some repairing videos on youtube etc
After attracting some customers you can ask them to write some testimonials for you that you can publish on your website.
I wish you all the bst.

 

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[kebertt]

I agree that the banner speed is too fast. There is also something about the banner picture with the 3 steps that makes the site look too cluttered. The other banner pics with the blue background look clean and professional, but the first one needs some work.

I'm also interested in why you are giving out free cases with repairs? Do you think you will see a proper ROI? I don't think that would be the deciding factor on whether I used your service or not. If I don't currently have a case, I would more likely want to go shop for one that I wanted. Perhaps the free case would be better served as a limited time promotion to see if it increases sales. It's also a prime candidate for A/B testing.

Don't give money away if you don't have to!

The cases are more of a way of showing my customers that I care enough about their phones, that I'll include a free case that they can use to protect their device from further damage. I don't expect it to be a deciding factor, but more of a positive build on the view of my services. Regardless, the cases only cost $1-2!

 

[kebertt]

Hello kebertt,
Since you ask for people to ship a valuable product to you it is important to make the trust you somehow and this cannot be done with a Facebook page with zero likes. You have to use social media to build trust with people and market your products. Try to attract as many real likes as possible at your facebook page and if you can show the number of likes at your original page.
You can also try to market your services locally since it will be easier for someone that does not know you to trust you
It might help if you could upload some repairing videos on youtube etc
After attracting some customers you can ask them to write some testimonials for you that you can publish on your website.
I wish you all the bst.

I appreciate the feedback, you brought up some great points. I haven't really done much with the Facebook as of yet, so perhaps you're right in that I should start getting some likes on that page, or remove it from the header all together for the time being.

My local business is doing great, and this mail-in repair is really my effort in trying to tap into the nationwide market. Testimonials are definitely going to be done once I can get some purchases.

YouTube videos would also be a great way of marketing and getting some exposure, so I'm going to put that on my to-do list.

 

[klh6686]

if your local business is doing great, get those satisfied local customers involved in your facebook asap.

 

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[kebertt]

With the mentioned design tweaks underway, my next big question is how should I market this business?

Obviously I'm not running into this venture blind, and did my due diligence with advertising on a small scale before proceeding. A few weeks ago I tested a Craigslist campaign and had great success. The only problem was that it was incredibly difficult for me to scale that marketing method nationwide and keep my ads from getting ghosted or flagged. I would receive 2-3 phone calls for every 5 ads posted, which is great. But eventually my ads got taken down, and my PVA's were revoked. If I could find a way to receive paid traffic, such as PPC it would be much more reliable and direct.

The past 2 days I've been testing Adwords, and haven't been having the best results. I've done PPC and SEO in the past, so I have some experience in this field. I've spent about $10 so far, and haven't had any conversions; although I did receive an email. I've just implemented live chat (Zopim), so that should help with the process and increase conversions when I'm online.

I'd love some feedback on how to gain some more traffic to the site, paid or not. I have a budget established for paid advertising and am prepared to test and tweak until I find something that works.

 

[Vick]

Appreciate the feedback @Vick - I'd like to know your overall opinion on the site when you get a chance.

Sure no problem very busy today. I'll have a good look at it tonight

 

[Epictetus]

So you're at $100 or so an hour if you've got enough iPhones to be constantly fixing them. Not bad, but what is your plan to scale it?

What separates you from the hundreds of asian dudes with little booths I can find at markets who'll do iPhone repairs for $50 and do a kickass job? I had my work phone fixed last month, perfect quality, picked it up 45 minutes later.

With your service I have to be without my phone for at least a few days, that's a nightmare for a lot of people these days. I pay $40 than the guy working 10 minutes down the road from me. For that money I get what, an iPhone case that isn't worth nearly $40. Plus I already have a case. I don't think the free case is a good selling point for people.

You're asking them to pay for something that feels a lot riskier, is less convenient and is more expensive. That's a hell of a tough sell.

 

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[kebertt]

So you're at $100 or so an hour if you've got enough iPhones to be constantly fixing them. Not bad, but what is your plan to scale it?

What separates you from the hundreds of asian dudes with little booths I can find at markets who'll do iPhone repairs for $50 and do a kickass job? I had my work phone fixed last month, perfect quality, picked it up 45 minutes later.

With your service I have to be without my phone for at least a few days, that's a nightmare for a lot of people these days. I pay $40 than the guy working 10 minutes down the road from me. For that money I get what, an iPhone case that isn't worth nearly $40. Plus I already have a case. I don't think the free case is a good selling point for people.

You're asking them to pay for something that feels a lot riskier, is less convenient and is more expensive. That's a hell of a tough sell.

I've done extensive research on the market, and the customers are there. There are hundreds of thousands of people searching Google every month for iPhone repair services, many of which who don't have access to a local repair shop. The problem with local repair shops, and those guys you meet at the coffee shop, is that they use low-quality parts. When it comes to iPhone screens quality makes a HUGE difference.

Unfortunately, if you paid $40 for a repair, I'm almost positive you are a victim. This is probably a selling point I should make more vocal on my website, as its widely unknown. Also regarding the case, like I've stated previously it's more of a brand and trust builder, than a selling point.

With all of that said, I completely hear where you're coming from, and you brought up some very valuable points. I'm really testing the water right now, to see if this is something I should pursue. My competitors are succeeding greatly, and I don't see why I can't too.

 

[Epictetus]

I dunno, screen feels exactly the same as the old one, looks like a perfect repair job (my day job is as a warranty tech) and I have a 3 month warranty on it. I drop my phone a hell of a lot since I'm in and out of the car all day and it's stayed perfect since the repair.

But yeah, if that is the case that people are getting ripped off with low quality parts, make that a massive selling point of your site. People do distrust those little shop stands, so if you can do everything in your power to make them trust you then you'll get some business.

It seems like a crowded market though, there are so many people and their dogs doing iPhone repairs that it seems like a rough market to be able to a carve out a space for yourself. Not only that, but a hell of a lot of your business is relying on another company in this market. You'll have to be prepared to adapt very quickly to the moves Apple make. The technology side of phone screen development is also inadvertently trying to put you out of business, the glass keeps getting tougher. All it'll take for your business to plummet is for Apple to decide to put a bezel around their screens or for some new kind of phone screen glass to come out that's practically shatter proof.

If I was entering a market with that much risk I would not like to be surrounded by competitors as well.