4 ms·

Is this model scalable and profitable? I have serious doubts. I see too many similarities to onsite pc repair services of the past like nerd on site, etc. This

by akg_67 14y ago

Is this model scalable and profitable? I have serious doubts. I see too many similarities to onsite pc repair services of the past like nerd on site, etc. This is at best a lifestyle business opportunity. About 10 years ago, I operated a business of onsite pc service for small businesses. The largest cost was unbillable time spent on traveling from one customer to the next or sitting idle. The article mentions tech, on contract, making $70,000-100,000 (seriously doubt these numbers from my own experience). Generously assuming each repair generates $100 in revenue, a tech has to fix 700-1,000 devices per year to make the reported number. With 350 tech on contract and iCracked eying "eight figure" (~$10 million) in revenue of which 50% from repair. At $5 million dollar in repair revenue, each tech is only generating about $14,000 in revenue. Assuming tech works 8 hours a day 5 days a week, that means repair at least 3 devices a day. It is unlikely any organization can generate 3 calls every day for each tech within a short area. IMO, this business is a dud.

SenatorSquires 14y ago
Just to comment on your comparison to PC onsite service company... I think if they really market this thing everywhere as 1 trendy new semi-immediate, reliable iphone repair, it could do pretty well vs. the many small onsite pc repair businesses. From my own experience, people are consistently posting pictures of smashed IPhone screens on facebook. (and i've even driven over my own iphone myself, don't ask). I think it's a lot more common for a typical 16-30 yr old smashing their Iphone, wanting to get it fixed immediately vs. their computer not working for who knows what reason being much more serious/complex issue.
kenrikm 14y ago
Funny things with startups, it's always the ones you least expect that hit the ball out of the park... let's not forget there are a half a billion iOS devices out there and lots of butterfingers
MarcBodnick 14y ago
If you look through iCracked's fix-my-device menu, there aren't many options -> 3 devices (iPad, iPod, iPhone), 3 problems (Screen Replacement, Water Damage, Battery Replacement). If iCracked techs can repair these problems quickly, maybe 3+ service calls per day isn't crazy. In other word's the company's core repair call seems more straightforward than Geek Squad's.

by akg_67 14y ago

SenatorSquires 14y ago

Just to comment on your comparison to PC onsite service company... I think if they really market this thing everywhere as 1 trendy new semi-immediate, reliable iphone repair, it could do pretty well vs. the many small onsite pc repair businesses. From my own experience, people are consistently posting pictures of smashed IPhone screens on facebook. (and i've even driven over my own iphone myself, don't ask). I think it's a lot more common for a typical 16-30 yr old smashing their Iphone, wanting to get it fixed immediately vs. their computer not working for who knows what reason being much more serious/complex issue.

kenrikm 14y ago

Funny things with startups, it's always the ones you least expect that hit the ball out of the park... let's not forget there are a half a billion iOS devices out there and lots of butterfingers

MarcBodnick 14y ago

If you look through iCracked's fix-my-device menu, there aren't many options -> 3 devices (iPad, iPod, iPhone), 3 problems (Screen Replacement, Water Damage, Battery Replacement). If iCracked techs can repair these problems quickly, maybe 3+ service calls per day isn't crazy. In other word's the company's core repair call seems more straightforward than Geek Squad's.