Logan’s Repair Service Business Model Canvas
Key Partners
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Computer Part Suppliers - The most important partners in this business would
be the companies who supply me with parts. The business relies on the sale
and assembling of parts and our business simply could not function without
them. In most cases, these parts would be imported from China.
Local Businesses including the University- With our repair services it would
be wise to get in contact with businesses who may need technical assistance.
The school does offer IT services as is, but our store would be more than
happy to provide whatever help is necessary for the customer. These
businesses may also purchase whole computers from us.
Software and Security Providers- Along with hardware computers also need
software for them to run and keep the computer safe. An antivirus software as
well as productivity tools would be the most popular. We could also bundle
these services with the purchase of a computer or product.
Local Advertisers- As a new business we will need to advertise our name as
far and wide as we can. This would include physical ads like billboards and
newspaper ads, as well as online ads and a social media page. With us
focusing on tech it would be to our advantage to use social media to promote
our products and services.
Recycling Services - When customers return faulty products or unwanted old
systems, we need a way to properly dispose of them. The best way to
accomplish this would be to partner with an electronic recycling service which
could also bring in eco-friendly customers.
Key Activities
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Figure out where we will source our inventory from
Order the correct amount of products
Rent a space to run our business out of
Set up all the shelving and signage in the store.
Set up a POS system
Create a website that is in sync with our in-store inventory
Create flyers and other advertisements for social media
Order the necessary parts for a technology repair workstation
Build some computers to be available for purchase when the store opens
Acquire the correct permits and certifications
Hire technologically inclined staff members
Key Resources
Human Resources: For my business, in terms of staff I will need myself, a sales
associate, and a repairman. I will oversee the business and assist with the most urgent
matters. The sales associate will be in charge of helping customers find products,
answering any questions they have, stocking shelves, and checking customers out. The
repairman will handle any of the broken items the customer brings in. Depending on
how many items need serviced they may only work a couple days out of the week.
Capital Resources: To start my business, I'm going to use $15500 of my savings. I'll
break down the costs as follows
Inventory ~ $6000
Rent and Utilities for 1st month ~ $2000
Advertising ~ $3000
Tools and Equipment ~ $2000
Permits and Insurance ~ $1000
POS System ~ $500
Shelving ~ $1000
Intellectual Resources:
Repair Certifications: CompTIA A + Certification. This is a widely known certification for
beginner IT technicians, and it covers hardware, software, and security. If we were
interested in servicing any Apple products, we would need to acquire an AppleCare
Hardware Certificate which covers Mac hardware and OS troubleshooting. Aside from
these certificates, we would like our associates to have a good grasp of the current
products we carry.
Value Proposition
For my business, I would highlight two value propositions. These would be our personalized
computer service as well as our specialization in repairs and custom-built computers. To
elaborate on our personalized computer service, the second a customer walks in the door we
would greet them and ask if they need help finding anything or if they are looking to build a
computer. Our staff will be required to know the newest products available as well as out-of-date
ones. In this case, our team members would be able to direct the customer to exactly what
product they need as well as give them all the necessary info. All walks of life find themselves in
the computer market and we want to make sure they have the system catered to their needs.
Our second value proposition is our ability to repair and assemble computers. We will have a
dedicated set of staff that are capable of diagnosing issues as well as fixing them. This
knowledge also carries over to the ability to build computers part by part.
Customer Relationships
It is our upmost importance to keep the customers first and develop healthy lasting
relationships with them. When a customer feels comfortable coming to our store on their
first visit, they are much more likely to return. We want to offer the best customer
service in all areas to build the largest community possible. To upkeep this, we will do a
number of things.
Greet customers at the door
Offer them personal assistance
Offer one on one consultations for repairs and custom builds
Create a loyalty program that rewards customers for shopping often
Create an email listing letting customers know when we get the newest products
Be active on multiple social medias and engage with customers
Manage a website with our inventory and helpful information
Offer a return policy on most items
Channels
Distribution Channels:
In-Store Purchases: Our main means of distribution will be all the computers and
accessories we sell in-store. Here we can also provide any additional information
customers may need on the spot.
Online Orders with In-Store Pickup: Our entire inventory will also be displayed on our
website allowing customers to browse without having to come in-store. They will also be
allowed to pay for their items online and pick them up whenever works for them.
Shipping: As we gain a customer base, we would also like to be able to sell our
products entirely online. This will give us a much larger market to sell our products to
and we could even partner with a distributor.
Repairs: All our repairs will be done by us in-store so this service will only be offered to
in-person customers. Possibly in the future, we will allow people to send in items that
require repairs.
Marketing Channels:
To reach as many people as possible I will need to use as many marketing channels as
available to me. I will need to create social media pages for the main sites like
Facebook, Instagram, and Twitter as well as a dedicated website for the business. I
would also like to run an ad on a billboard somewhere along Kingshighway and if this
isn't possible, I would place signs/flyers around town. I would also contact the university
to see if I can offer my products or services to the school.
Customer Segments
My business would service any person in need of a computer or repair, but I would break down
the segments into a few categories. One market would be the casual computer user who uses a
standard device that needs a basic repair or would like to purchase accessories for their
system. We can't expect frequent visits from these customers, but they visit the store a couple
of times a year. The next market we target is PC enthusiasts and gamers. These customers
would be looking for higher-end computers and are more likely to use our computer building
services. These would also be the customers we expect the most business from. Finally, we
would like to focus on students and teachers in the area. Being located in a college town we
would like to make a relationship with the student body since they make up so much of the
population. Virtually all students need a computer of some kind, and we would be able to cater
to anything they need. Computers are an essential part of living in today's world so we can
expect customers from every single demographic. A customer could walk in the door needing
any number of services, so we need to be prepared for each situation. Identifying these 3
customer segments will help us understand their needs and adjust our services accordingly.
Cost Structure
Fixed Costs
Rent and Utilities $1500/month
Advertisements - $200/month
Domain Fee and Software Subscriptions - $150/month
Phone and Internet - $150/month
Security System - $50/month
Total Fixed Costs - $2050
Variable Costs
Inventory - $2000-$5000/month
Wages - 1 full-time salesperson @ $15/hr and part-time repairman at $20/hr
Shipping Costs - $250-1000/month
Repair Equipment/Tools - $100/month
Total Variable Costs - $6000 - $10000
My average monthly cost to run my business would range from $6000-$10000 per
month. Depending on how much product we sell and services we complete this number
will change month to month. With my estimations, I would make $4950 a month and it
would cost around $6000 to run my business on a cheaper month. To be profitable I will
have to increase my number of sales, builds, and repairs each month. I may also have
to consider increasing my prices more or reducing the hours of employees and
increasing mine.
Revenue Stream(s)
Computer Repair Services - This service's cost varies depending on what needs to be
repaired. If something simple like antivirus needs to be installed the customer would be
charged the price of the software plus $10 labor so approximately $100. If a major
component like a graphics card were to malfunction that part could cost upwards of
$1000 alone not even factoring in a $50-100 repair fee.
Custom PC Builds - In this case, the customer pays the market price on any parts they'd
like to use in the computer, and we charge a $100 assembly fee.
Retail Sales of Computer Parts & Accessories - We will offer a wide range of products
and make small profits on every product sold. The cheapest item in our inventory would
be a $5 USB cord and the most expensive will be a prebuilt computer costing up to
$2500.
Here is an estimated revenue for the first month:
Computer Repairs (10 repairs @ $125 avg) - $1250
Custom PC Builds (5 builds @ $100 fee + Parts Profit Margin) - $2500
Retail Sales (20 orders @ $60 profit each) - $1200
Total Revenue- $4950