How Much Does It Cost to Start an Appliance Repair Contractor Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 19
- 3 min read
Updated: Aug 22
Starting an appliance repair contractor business can be a profitable and flexible venture, especially in today’s service-driven economy. Whether you're planning to repair refrigerators, ovens, washers, dryers, or dishwashers, understanding the startup costs is essential to building a successful business.
In this blog, we’ll break down the typical expenses involved in launching an appliance repair business and explain how Wexford Insurance can help you protect your investment with specialized appliance repair insurance.
What Are the Typical Startup Costs?
Launching an appliance repair business doesn’t require a massive investment, but it does involve several key expenses. From tools and transportation to licensing and insurance, here’s what you should budget for:
1. Tools and Equipment
You’ll need basic hand tools, multimeters, and diagnostic kits. Depending on the brands and quality, expect to spend between $1,000 and $5,000.
2. Service Vehicle
A reliable van or truck is essential for traveling to job sites. If you don’t already own one, purchasing a used service vehicle may cost $10,000–$20,000.
3. Training and Certification
While not always mandatory, certifications like NASTeC can boost your credibility. These programs typically cost $500–$2,000.
4. Business Licensing and Setup
Registering your business and obtaining the necessary licenses can cost between $100 and $500, depending on your state and business structure.
5. Marketing and Branding
To attract customers, you’ll need a website, business cards, and possibly local advertising. Budget $500–$2,000 for initial marketing efforts.
Streamline Your Marketing with Contractor Back Office
Contractor Back Office supports appliance repair contractors by handling website creation, email and calendar coordination, and social media management. These services help free up time to focus on branding, marketing, and client relationships.
Insurance Coverage You’ll Need
Protecting your business with the right insurance is essential. At Wexford Insurance, we specialize in helping appliance repair contractors find tailored coverage. Here are the five key types of insurance you should consider:
Covers third-party claims for bodily injury or property damage—such as damaging a customer’s appliance or home.
Protects your work vehicle in case of accidents, theft, or damage while traveling between job sites.
Covers your office space, tools, and inventory from risks like fire, theft, or vandalism.
Provides coverage for specialized tools and diagnostic equipment if they’re lost, stolen, or damaged.
Offers broader protection for high-value machinery and repair tools, including accidental damage and breakdowns.
Summary: Estimated Startup Costs Table
Expense Category | Estimated Cost Range (USD) | Description |
Tools & Equipment | $1,000 – $5,000 | Hand tools, multimeters, diagnostic kits, and repair tools |
Service Vehicle | $10,000 – $20,000 | Purchase or upgrade of a van/truck for job site travel |
Training & Certification | $500 – $2,000 | Optional certifications like NASTeC |
Business Licensing & Setup | $100 – $500 | Legal registration, business license, and entity formation |
Marketing & Branding | $500 – $2,000 | Website, logo, business cards, local advertising |
Insurance Coverage | $1,000 – $3,000 annually | Liability, auto, property, equipment, and tool coverage |
Final Thoughts
Starting an appliance repair business doesn’t require a huge investment, but it does require smart planning and protection. With the right tools, training, and insurance, you can build a reliable and profitable service business. Wexford Insurance is here to help you get started with coverage tailored to your needs.
