Undercharging is the #1 reason repair shops fail in their second year. Parts get more expensive, rent goes up, but shops that set prices reactively (matching the shop down the street) can't keep up. Here's how to price for margin from day one.
The 3x parts rule (with a labor floor)
Simple, defensible baseline: price = max(3 × parts cost, parts cost + $50 labor floor). A $30 screen sells for $90. A $5 charging port sells for $55, not $15, because the labor is the same regardless of part cost.
Tiered pricing by warranty
Offer two or three tiers based on part grade: aftermarket (30-day warranty), premium (90-day), OEM (lifetime). Most customers pick the middle tier, which is usually your highest-margin option. This also protects you against the 'cheap shop down the street' — you're not competing on price, you're offering a different product.
Charge a diagnostic fee
A $20–40 non-refundable diagnostic fee (waived if repair is authorized) filters price shoppers and pays for tech time. Without it, price shoppers turn into unpaid bench time.
Rush and after-hours pricing
If a customer wants a repair in under 2 hours, that's a 25–50% surcharge. If it's an after-hours callout for field service, that's 1.5–2x. You're selling scarcity of your time.
How to raise prices without losing customers
Raise prices annually, 8–12%, effective on a fixed date (Jan 1 works well). Announce it once, don't apologize, and don't grandfather existing customers on individual repairs. Customers overwhelmingly stay — they picked you for reasons other than being the cheapest.
Know your break-even per repair
Every ticket in Repair Hub Pro shows what you plan to charge against technician hours and parts cost, and what's left over. If you can't answer 'what's my average profit per iPhone screen repair,' you're flying blind. Track it monthly and drop repair types with sub-$40 net margin unless they drive add-on sales.