Trade guide
Appliance Repair Business
$89 to walk in the door โ and $89 you hand straight back the moment the customer says yes to the repair. Do that forty-one times a month and you've worked about a week for nothing.
The numbers that matter
$85โ$160 a call. $265 average ticket. One decision worth $26,000 a year.
Whether the diagnostic fee applies to the repair is the single line in your pricing that separates a shop that's profitable from a shop that's just busy.
The diagnostic fee is the whole argument
Almost every new shop applies the diagnostic to the repair, because it feels fair and it makes the phone call easier.
What it means is that the customers who buy from you get diagnosed for free, and the ones who say no are the only people who ever pay you for what you know.
A diagnostic that stands on its own costs you some conversion. It costs less than you think.
Run both months side by side โ Dayton, OH
62 service calls in a month. Average completed repair: $265.
Applied โ $89 diagnostic, credited on repair. 41 convert (66%). Revenue: 41 ร $265 = $10,865, plus 21 unconverted diagnostics at $89 = $1,869. Total $12,734.
Not applied โ $95 diagnostic, kept. Conversion drops to 34 (55%). Revenue: 34 ร $265 = $9,010, plus 62 diagnostics at $95 = $5,890. Total $14,900.
$2,166 more, on eleven fewer repairs. That's $25,992 a year and about 132 hours you didn't spend on your knees behind a dryer.
The shop that applies the fee is busier. It isn't richer.
Rates at a glance
| Job | Time on site | Common price |
|---|---|---|
| Service call + diagnosis | 20โ40 min | $85โ$160 |
| Labor rate after diagnosis | per hour | $95โ$165 |
| Dryer repair, completed | 45โ75 min | $135โ$310 |
| Washer repair, completed | 60โ110 min | $165โ$425 |
| Dishwasher repair, completed | 60โ100 min | $170โ$390 |
| Oven / range repair, completed | 50โ100 min | $165โ$420 |
| Refrigerator, non-sealed repair | 60โ120 min | $210โ$465 |
| Refrigerator, sealed system | 2โ4 hr | $450โ$900 |
| Parts markup over your cost | โ | 1.6xโ2x |
How to build your own labor rate instead of matching the shop across town is in the pricing guides.
The second trip is where the ticket dies
A repair you finish today at $265 and one you finish Thursday at $265 are not the same repair.
The second one cost you 40 more minutes of drive time and a customer who had four days to price a new machine.
Van stock isn't a nice-to-have. It's the difference between a $265 ticket and a $265 ticket that cost $340 to produce.
Never order a special part before the customer has paid for it. Control boards, inverters and most electrical parts are non-returnable, and a $214 board sitting on your shelf for a machine nobody owns is a $214 loss you take alone. Collect the part cost up front, in full, every time โ including from the neighbor, the repeat customer and your cousin. The one you make an exception for is the one who buys a new washer while the part is in transit.
The replace conversation โ Sacramento, CA
A front-load washer, seven years old, dead control board. Board cost $214, six-day lead time, sells installed at $349. With the $89 already collected, the customer's total is $438.
A comparable new front-loader is about $780 delivered.
Here's the whole call: "The board is $214 and it's a six-day wait, so you're at $438 all in. A comparable new one runs about $780. At seven years on a front-loader I'd tell my own mother to think hard about it โ and either way, today's $89 covered my time."
The customer bought the new machine โ then called back for the dishwasher four months later and passed the number to two neighbors. A $349 ticket lost, a customer worth several of them kept.
What you genuinely need before the first call
- EPA Section 608 certification before you touch refrigerant โ federal law requires it to buy or handle refrigerants, and it's what lets you take sealed-system refrigerator work. Check the EPA's own site for current requirements.
- A city or county business license, plus whatever your state requires of appliance or electronic service dealers โ this differs by state, so confirm with your state licensing agency.
- General liability insurance, because you are working next to water lines, gas lines and 240-volt circuits in somebody's kitchen.
- A written diagnostic policy, in one sentence, that you say the same way on every phone call.
- About $1,200 of van stock: common belts, pumps, thermistors, igniters, valves, capacitors, door switches and hoses.
- A parts account with a distributor, so you're not paying retail and waiting behind consumers.
- An LLC and a separate bank account before the first payment lands.
Every completed call goes out on paper the same day with the free invoice template.
Read next
Common questions
How much does appliance repair cost per call?
$85 to $160 for the call and diagnosis. Completed repairs land between $150 and $450 depending on the machine and the part. Sealed-system refrigerator work runs $450 to $900.
Should I apply the diagnostic fee to the repair?
Usually no. Applying it means the customers who buy get diagnosed free โ on 41 repairs a month at $89 that's $3,649 of work given away. A standalone diagnostic costs a few points of conversion and keeps around $2,100 a month.
How much does it cost to start an appliance repair business?
Roughly $4,500 to $12,000 โ a used van, meters and hand tools, recovery machine and gauges for sealed systems, EPA 608 certification, liability insurance and about $1,200 of parts on the shelf.
Do you need a license for appliance repair?
Most states don't require a trade license for general repair, but a city business license is normal and some states regulate appliance service dealers. Federal law separately requires EPA Section 608 certification to handle refrigerants. Confirm with your state licensing agency and the EPA.
Is appliance repair a profitable business?
Six calls a day at a $265 average is about $1,590 gross, with parts at 25% to 35%. Your diagnostic policy, your parts markup and your second-trip rate decide what's left.
How much should I mark up appliance parts?
1.6x to 2x your cost โ a $58 pump sells at $95 to $116. Quote one installed price instead of itemizing the part, or you've just sent the customer shopping.
Write your diagnostic sentence down today and say it out loud twice before the phone rings tomorrow. If it takes more than one sentence, it's the wrong policy.
Ranges here are compiled public ranges for residential appliance repair operators as of August 2026 โ a starting point, not a quote or a survey result. Licensing and certification statements are general; requirements differ by state and by federal rule, so confirm with your state licensing agency and the EPA.