North Bay appliance repair shops get boost from the pandemic economy

A lingering shadow effect of the pandemic on spending is showing up in a state fourth-quarter tax report.

Household goods repair and maintenance topped the statewide list of business categories providing goods and services with the most sales and use tax growth in the fourth quarter of last year, the California Department of Tax and Fee Administration reported Jan. 26.

A use tax is applied on goods that are not subject to the sales tax, including goods purchased from California retailers. They may also involve purchases shipped to California consumers from another state.

Out of the total $20.1 billion collected in the period ending Dec. 31, the industry that keeps your furnace humming and microwave cooking brought in $242.7 million, up over 18% year over year.

January 2022 had the highest increase in sales and use taxes collected, with a 44% gain compared to the first month of 2021.

All business categories brought in over 6% more in sales and use tax in the fourth quarter from a year before.

But for an industry that often operates under the radar but is expected to deliver over-the-top responsiveness at a moment’s notice, the amount it rakes in comes as no surprise to its business owners.

This is especially true now, according to Eric Summers, who owns Affordable Appliance Repair in Santa Rosa.

Since the pandemic began in March 2020 and brought flocks of staffers home to work in their pajamas and whatever else, Summers has noticed an uptick in calls for service.

“I think that has played a part. We’ve seen an increase,” he said.

In the last few years, Summers averages about seven to eight field visits in a typical workday. That’s an increase of about 5% compared to pre-pandemic years, he estimated.

And when disgruntled homeowners call because their appliances stop working, they mean business.

“If the fridge breaks or if the washer breaks, they need that right now,” he told the Business Journal.

Once in the home, his industry expertise requires a little engineering know-how and a lot of psychology. Dealing with the general public, especially if fraught with a broken appliance, can be challenging. He’s been physically attacked on the job by a woman who looked like she just rolled out of bed and threatened with bad reviews for something he’s wrongfully accused of, he said.

In theory, Summers agreed that with more people home using the appliances more, they only have so many hours of operation before they need some type of attention.

And there is no “if,” there’s only “when” it will be fixed by either he or his two workers. It also helps to have two employees answering the phone in a day and age in which many companies don’t. Plus, it doesn’t hurt that “affordable” is in the name, even if money is no object to have a smooth-operating home, he indicated.

“They will put whatever money into it to fix it,” he said. “This business has been recession proof.”

Susan Wood covers law, cannabis, production, tech, energy, transportation, agriculture as well as banking and finance. For 27 years, Susan has worked for a variety of publications including the North County Times, Tahoe Daily Tribune and Lake Tahoe News. Reach Wood at 530-545-8662 or susan.wood@busjrnl.com