A Guide to Determining the Ideal Salary for a Repair Business Owner

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Business in the repair services industry in the US is booming due to high consumer demand. Appliances and electronics are becoming increasingly important in our daily lives, increasing the need for repair services. Repair service business profit margins are higher than those in other industries. Businesses that provide cell phone repair services generally have 10-15% profits.

Read on if you’re considering starting a repair business or want to make money in this field. The average salaries earned by repair business owners and some factors influencing their earnings are listed below. But remember, your business needs attention and investment. First, invest in well-related marketing services to earn more, such as investing in expert computer repair shop digital branding services that can ultimately boost your CRO with proven strategies.  

Reasons To Open A Repair Shop

Financial Control

Running your own repair business has potential financial benefits (which is why you’re here, right?), and if done well, you can make a good income doing something you’re passionate about. Most individuals cannot afford this luxury, and it is one of the primary benefits of taking the risk of starting your own business.


A repair business can provide great freedom and control to the right person, which can be worth the added responsibility. Your company will be run according to your schedule, not someone else’s, and you’ll get to choose where, how, and “who” your business will be run by. 

What is the Average Annual Income of Repair Business Owners in the US?

Aspiring owners of repair businesses should be aware of the possible revenue stream from their company. Several factors, including the type of repair business, geography, expertise, and business size, affect the average yearly income of owners of repair businesses in the United States.

For Appliance Repair Business

According to Salary.com, the median salary for appliance repair is $49,890, ranging from $28,980 to $81,470. Field Complete mentions some states with higher median salaries for owners, like Alaska at $72,230 and Massachusetts at $60,240.

For Mobile Phone Repair Business

According to Indeed, mobile phone repair technicians earn an average of $49,370 annually as of February 2024. ZipRecruiter reports a broader range of $26,879 to $70,509, depending on factors.

For Auto Repair Business

ZipRecruiter shows an average of $82,367 nationally, but it jumps to $87,148 in New York. Consider industry reports or associations like the National Automotive Technicians Association (NATA).

Small Engine Repair Business

Computer repair technicians earn an average of $54,162 per year, according to the Bureau of Labor Statistics (BLS) data from May 2023. Like other industries, ZipRecruiter shows a broader range of $31,720 to $92,653.

Ways to Pay Yourself as a Repair Business Owner

Owner Draw

Business owners of pass-through entities like sole proprietorships, partnerships, and many LLCs can take money from company profits for personal use, known as a draw of an owner. 

While taxes aren’t paid on each draw, business owners must still pay applicable self-employment taxes when filing quarterly or annual tax returns. This allows owners flexible access to company earnings while ensuring taxes are eventually settled on the total amount.


Business owners can pay themselves a salary from their company just like they would an employee. When deciding on an appropriate salary amount, research comparable positions in your repair industry to use as a benchmark. The IRS may evaluate if the salary is reasonable for that role. 

This salary approach is common for owners of corporations, who face personal income tax on their wages and separate corporate taxes on company profits. By setting a reasonable salary based on market data, owners can fulfill IRS expectations for their compensation and the company’s declared earnings.

Factors Affecting the Revenue of a Repair Business

Years of experience

The profits of older repair shops with many years of experience tend to be higher than those of new shops. Business owners typically earn more money as they remain in business longer. In any business, but particularly those in the repair industry, this factor is unlikely to change from the beginning. Your repair shop will earn you more money if you stick with it.

Management Style

The owner’s management style impacts the repair shop’s earning potential. Good managers or shop owners pay close attention to detail, provide excellent customer service, and aggressively market their business through newspapers, internet ads, radio, and, for larger firms, television. They rely primarily on a reliable repair digital marketing agency with an established track record.


A vast target audience is less available to those in rural or low-income locations than large cities with thriving economies. Establishing your garage business in a poor neighborhood or too far out of town reduces your capacity to make money, even in a city with a strong economy.

Bottom Lines

While paying yourself a salary doesn’t have to be complicated, if you’re still in the early stages of growth and becoming profitable, you should know how much money you’re taking out to pay for yourself. The salary you pay yourself should not bankrupt your business, but you should not live on someone else’s couch.

If you want to run a successful repair business and maximize your earnings, consider contacting RepairGrow. Our team of experts can provide valuable guidance and strategies to help you optimize your management style, target the right audience, and ensure your salary is reasonable and in line with industry standards. Contact RepairGrow today and take your repair business to the next level.

Frequently Asked Questions

When can you start paying yourself?

When your company turns a profit and makes enough money to cover its costs, you may start paying yourself. Before paying yourself, ensuring that your company is financially sound is critical.

This implies you want adequate cash to pay off any outstanding debts or loans and your regular operating expenses, such as rent, utilities, and labor.

How do you calculate income for business owners?

Make sure to figure out your entire income. You should deduct your business’s expenses and operating costs from your total revenue. This determines your company’s earnings before taxes. Subtract taxes from this sum to determine your company’s net income.

Why do business owners pay themselves a salary?

By doing this, you can maintain your company’s finances stable and prevent financial surprises. Paying oneself a salary also facilitates the financial separation of your personal and corporate affairs, which is beneficial for record-keeping and tax purposes.