WebsiteClosers® presents a 21-year veteran of the IT Support Services Vertical, offering a wide variety of technology-based services, including both on-premises and in-shop capabilities. While offering a full suite of services in their Manhattan, NY location, they also offer Mail-In Device Fixes, Remote Support, and a wide variety of IT Support Services (both remote and in-shop).
Though they have been operating for over 2 decades, they still see strong year-over-year (YoY) growth in top and bottom line, showcasing the brand’s long-term strength and resilience.
Much of their on-premise service is performed directly at clients’ locations, such as businesses, enterprises, offices, and homes. Their in-shop repairs, meanwhile, take place at their Manhattan location, which enjoys low rent and a flexible lease. By operating in New York, they have been able to tap into the large number of businesses and consumers that live and work on the island. This drives growth for not just their existing services, but any ancillary services a buyer may wish to add as well.
They work diligently to provide the quality service their clients have come to expect, and, as such, has kept many coming back for their repair needs. They have many enthusiastic 5-star reviews across Google and Yelp, and since they launched their warranty protection plan in 2021, they have gained nearly 1,600 active recurring customers and a recurring revenue rate of 17%. They also enjoy 33% Net Profit Margins, a 15.32% CAGR, and a minimal churn rate of 3.5%.
The brand sees consistent revenue year-round as IT needs never stop, regardless of the season. Their average contract size sits at around $180 a year, and their subscriber lifetime value is $483.90.
Business Broker Takeaways
1. Organic Marketing. The brand’s website and built-in SEO were crafted by an outside agency, creating a polished foundation that requires no work outside of occasional updates by their in-house staff. Their extensive following has added to their traffic through word of mouth, referrals, and exposure for the customers that use their services.
The brand then supplements this through their TikTok, YouTube, Instagram, and Pinterest accounts for increased organic traffic. Their main paid marketing campaign is done through ads on Yelp.
2. Turn-Key Operations. Their day-to-day operations and services are handled by their capable employees, which has reduced the owner’s workload to roughly 10 hours per week. Current ownership’s main responsibilities include checking in with workers, reviewing service tickets, delegating schedule, and running payroll, and a few other responsibilities. One of their tasks, invoicing/charging on-site customers, could be automated or done by on-site techs if a buyer is interested in cutting their hours down further.
3. Quick Transition. The brand requires little to no working capital requirements, with 95% of services and equipment being paid for upfront upon approval and the rest being net 30 terms from companies. As there is no waiting payment time and their warranty services provide a steady source of recurring revenue, their revenue is more than enough to pay for rent, staff, facilities, and their day-to-day operations.
4. No Special Skills Needed. A buyer will require no special skills to run the brand due to the qualified team already in place. These employees handle customer service, repairs, and sales, and they have on-site/remote techs available to dispatch as needed. A buyer will only need to check in, monitor, and supervise as needed, allowing them to spend their time pursuing potential scale opportunities.
Scale Opportunities
While this brand is a seasoned name of their industry, a buyer will find that there are still plenty of scale opportunities available that could bring them to new heights. They could start by expanding their available services, offering more to new and old clients alike and helping expand their existing client base.
They could refine their customer experience by reformatting their online calendar into an Uber-esque system where clients can see when techs are arriving as well. This hypothetical system could be made more admin-free to let techs take payments on the spot, circumventing the after-the-appointment billing process.
The brand acts as an active vendor for government contracts, which means that, if a buyer invests the proper time and resources to better support these contracts, they could quickly boost their revenue. They could achieve this by utilizing another department or resource.
One of the most effective methods a buyer could pursue, however, would be to invest in a more focused and aggressive marketing campaign. They could hire additional sales representatives and/or additional capable employees for this purpose, and then go on to launch a proactive cold calling strategy or an online advertising campaign.
This improved advertising strategy could be used to market to certain promising targets like bulk repair & company support or promote certain services like their IT onsite support and their warranty protection plan.
Conclusion
Electronic devices are an integral part of modern everyday life, encouraging users to keep them in the best possible condition. This veteran of the Device Repair industry saves clients the money they would spend turning to larger competitors or buying a new device entirely.
Their expertise and polished reputation in the market has made them a reliable alternative to Apple or the Geek Squad and will serve as a solid foundation for the right buyer to expand upon post-purchase.
