I noticed 6 months ago a guy up the street opened an appliance repair place. He
has bringing in tons of refrigerators and washers. It also appears he has been
hauling away tons of them. Then, after several months, he went out of business.
Can anyone tell me...what in the world he was doing? Why so much hopeful
activity, what generated all that, and then...POOF why suddenly go out of
I'm wondering if...he was selling the used washers for scrap steel as the price
has skyrocketed? Also, I wonder if he bootlegged the R-Whatever refrigerant out
of the old refrigerators and sold the refrigerant on the gray market as new?
moved in from another junk business location... he probably was selling
parts from old refrigerators/washers/dryers... these guys go out and
pick up junk appliances and then keep them and when a customer comes
over and needs a motor or some other item they strip it off a free
washer they got and sell it for like $50 or so and its all profit.. the
only trouble is if no one comes over to them they still have to pay rent
on the place and if they dont get enough customers they have to leave
the business.. i dont think that they recycle any freon as its too much
trouble... and in most cases they can get an appliance for free and then
work on it and the parts from the other units are fee, so if they know
what they are doing they can make a pretty good profit from this no
overhead business, alot of labor.. also the problem of most startup new
businesses: the owner thinks that he is gonna make a fortune, and does
not make any money and then gets out of the business to get a job to
feed his family....
the owner thinks that he is gonna make a fortune, and does
This is Turtle.
I think you got it there. You can't expect to make good money on second hand stuff
for only 1 in 10 peoples will buy second hand
anything in today's way of thinking.
Years ago with a big S on years I would rebuild refrigerators, Window units, and
Central Condenser units during the slow time in the
winter here. We don't have any real cold weather and things get real slow. Over the
winter I would rebuild maybe 30 window units, 35
refrigerators & freezers , and maybe 20 condenser units and keep them till April 1 ,
Or April Fools day and sell them. All the units
was left at the shop for the customer did not want to fix it and would just leave
them there. When I sold them -- Everything was
$100.00 Refrigerator little and big, Window units Little and big , and condenser
units little and big but I got paid to install the
condensers. I probley got $10K out of all winter but $10K for slow times was $10K
more than i had before. This guy probley figured
out they AIN't no money in second hand stuff. It looks like it should be but it is
not and got a lesson in Second Hand Refrigeration
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A guy I use to work with use to take home a wheel-barrel full of sand from
castings a couple times a week. The boss didn't mind, since it was hauled
away anyway. I always wondered what he was doing with all that sand.
Bagging it and selling it for kids sand boxes? making concrete? Finally one
day I asked him. "Aw, hell, I just dump it in the ditch along the road!"
was his reply. "But say, wanna buy a good wheel-barrel?!
He'll be out in 5-10.
Moral of the story - maybe the guy's "appliance repair" business wasn't
exactly on the up-and-up!
On 26 May 2004 01:51:21 GMT, email@example.com
Its a very clear case of "there's no money in consumer appliance
repairs." If you can't charge at least $75 an hour and have more than
enough repair business that there is never a slack moment in the shop
then you don't have a viable business. Consumer appliances are so
inexpensive these days its just not worth fixing. Furthermore the
latest models are almost always better, cheaper, have more features
and are more reliable than last year's model. If it has any
electronics, its unrepairable (large sacle integration, no schematics
and teensy unidentifiable irreplaceable components.)
If this guy received tons of fridges I have a feeling his "customers"
used him as a convenient dump rather than have to cart them all the
way to the city dump.
Not enough value-added for the brains and effort required.
The real way to make money is a *non*-repair shop. You charge a $75
"diagnosis fee" to fix X, where X = VCRs, DVDs, TVs, etc. Many problems
are trivial, but you make it sound hard, and you have a happy customer.
Otherwise, the diagnosis is some horrific price for parts and labor that
will be declined. These always seem to do well.
Because, he didnt understand what it took to STAY in business.
He probably did not take into consideration the overhead, insurance,
licences, etc that it takes to do this, didnt set his prices high enough to
satisfy those with a hand out and folded.
It happens several thousand times a year.
LOL...as cheap as 134a is, there is NO gray market for it, and since R12 has
several cheaper replacements, the answer is still no.
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