The High Cost of Repair

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When talking to the staff at BEST, Inc., there’s one key message: Not much has changed in the repair business, except for all the things that have changed. We spoke with Dan Patten, general manager; Laura Ripoli, customer service manager; and Nash Bell, president, to learn just how much the cost-benefit analysis is changing for their clients and their business. It’s safe to say that change for the good is in the air at BEST.

Nolan Johnson: What is the overall economics of having to do repair?

Dan Patten: One of the biggest challenges is the cost of repair. Unless it's the higher-end, Class 3 product, repair usually exceeds the value the manufacturers wish it would be. Ultimately, they want it not to need repair because they designed it that way. Usually, if there's a justification for repair, it means that the value is high, which means the parts are unavailable, or it will take too long to rework the boards. It's a time factor they're paying for—not necessarily the value—because the initial value of a robot throwing a bunch of parts on a board correctly is pennies. Anytime you open a repair, it starts at hundreds of dollars.

We find that no one is repairing Class 1 electronics. They're throwing them away and waiting for more, or they're replacing them with something higher—Class 1 or 2 plus. Automotive, medical, and aerospace usually hit Class 3. Everything below that is headed for the garbage can, or the manufacturer is using their own technician to touch it up.

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This article first appeared in the January 2024 issue of SMT007 Magazine.