I have been on both sides of the small engine repair business.
1) IF your just doing small engine repair you would be hard pressed to make a living at it. In rural areas there just is not enough of it to keep busy on work that will make you money. In larger towns most people just replace it rather than repair it.
2) If your a customer you really do not want to have 60-70% of what a new unit would cost in a used one that may need more work in not that long of a time.
An example of the issue is one I just went through. I have an older Stihl string trimmer. It has gotten hard to start. The compression is at the low end of where it should be. The carburetor need a kit at the least or really replaced as the shaft holes are worn. So to really fix it you would need rings, piston, gaskets and a new carb. The parts alone are within $20 of what a new one costs.
So I think many repair guys make an educated "guess" at what is wrong with small engines. They take very little time to seriously diagnose the problem as they usually will not get paid for the time it takes if the repair is too high.
Some shops are telling customers up front that there will be a charge of $50 to even look at any small engine. That makes it kind of tough on a $75 hand mower.
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