Mobile phone repair market is valued over 4 billion dollars and employs over 20,000 people in USA, growing about 3% every year. Approximately one out of every four smartphone users crack their screen. Once the phone is out of warranty or has no insurance, people often turn to 3rd party repair shops who provide cheaper service than the authorized service centers.
Although equipped with hi-tech technology and a glass touch screen, still the smartphone’s outer body is not all that robust, making it prone to cracks and water damage. Apart from screen replacement and repair services, nearly all smartphone repair shops also sell smartphone accessories like screen protectors and smartphone cases. In USA, iPhone and Samsung are the two most popular brands.
All mobile phone repair shops demand upfront payment of the work done on the device. However many customers are unable to fully pay the high cost of repairs done and opt for payment plan in form of installments. Many customers default on these payments. This can result in a loss of hundreds of dollars for the business owner. A typical owner has very limited options, all he can do is making a few reminder calls and re-sending invoice.
If the payment has been due for over 60-90 days, it is better to have a collection agency take care of recovering your past-due payment. Although a Collection Agency will take a cut/fee on the amount recovered, it is far better that getting at least 60% of the recovered money back rather than writing it off as a 100% loss.
Collection agencies require business-owners to have copy of invoices or contract that was signed with the customer when the work was performed.
Every year billions of dollars of amount is written off, a significant portion of which could have been recovered if it was assigned to a debt collection agency in a timely manner.