$8.8M 2015 Sales of iPhone Repair Parts with CEO Chris Koerner

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In Episode #462, Nathan is joined by Chris Koerner, founder and CEO of LCDcycle – a company that recycles broken iPhone screens and supplies wireless repair shop with wholesale electronic parts. Aside from being a motivational speaker and winner of the Entrepreneur of the Year award, Chris is a guy who appreciates the haters.

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Famous Five:

  • Favorite Book? – Delivering Happiness
  • What CEO do you follow? – Elon Musk
  • Favorite online tool? — Flipboard
  • Do you get 8 hours of sleep?— I try but I don’t
  • If you could let your 20-year-old self know one thing, what would it be? – “Tell myself to appreciate the haters”

Time Stamped Show Notes:

  • 01:46 – Nathan introduces Chris to the show
  • 02:31 – LCDcycle was founded in 2013
  • 02:43 – Chris opened a smartphone repair shop in college in 2010
    • 02:51 – Sold it for $ 30,000
  • 03:50 – They started in Alabama
  • 04:10 – They got more customers in the Texas market
  • 04:45 – The supply parts to repair shop
  • 04:58 – First year revenue
    • 05:08 – Did $ 2.1 million for the first full year
  • 05:13 – For 2014, they did $ 4.8 million and $ 8.8 million in 2015
  • 05:36 – They are doing cold-calling to get customers
  • 05:57 – Uses a lead generation tool to scrape the repair shops details
  • 06:25 – Gross margin average is 31%
  • 06:55 – Team size is 12
  • 07:08 – They are self-funded
    • 07:31 – Started with $ 30,000
    • 07:41 – Chris asked his family and friends for a loan
  • 08:16 – Total volume of parts shipped
    • 08:27 – About million parts
  • 08:45 – Most of their shipments are iPhone screens
  • 08:53 – Average price point for the shops
  • 09:17 – Spending $ 23 for raw material
  • 10:15 – 8% net margin
  • 10:30 – Supplies are coming from China
  • 10:49 – LCDcycle sells new screens and buying the broken screens from the repair shops
    • 11:05- Broken screens are being sent to China
  • 11:27 – Their revenue is shrinking this year to $ 6.5 million
  • 11:41 – There’s a shortage in supplies last year so there was a spike in sales
  • 12:25 – They’re supplying to 700-800 unique shops
  • 12:36 – Reorder rate
  • 13:45 – Chris raised money last year
  • 14:21 – Chris would sell to a bigger company
  • 15:20 – Connect with Chris through his Facebook
  • 17:30 – The Famous Five

3 Key Points:

  1. You have a good chance of developing a great company—you just need to be willing to navigate through the failures. Believe in yourself.
  2. Expansion—even in the face of risk—is worth it.
  3. Always appreciate the haters.

Resources Mentioned:

  • Toptal – Nathan found his development team using Toptal  for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to quality of Toptal  developers.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Leadpages  – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
  • Assistant.to – The site Nathan uses to book meetings with one email.
  • Facebook – Chris’ personal Facebook account.
  • Show Notes provided by Mallard Creatives

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