The best cell phone store concept for a cellular dealer is one that offers multiple prepaid airtime services along with an assortment of phones and accessories.
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The main reason for this is that prepaid no contract cell phone plans are replacing long term post pay contracts. This trend will continue for the next five years at least.
And obviously, the more plans you have in your cell phone store, the more customers you can satisfy!
Cell phone wealth has been happening at least since 2003.
We’ve developed a cell phone store business model that allows approved dealers to offer over 30+ different prepaid wireless services nationwide to your customers.
This cell phone model has revolutionized the cell phone industry.
These plans require no credit checks, no contracts and no cancellation fees to your customers.
Cell Phone Dealer Benefits
Low start up costs
Personal credit does not disqualify you
No monthly royalty fees
No drawn out process-fast start up
Freedom to own and run your business with limited restrictions
Flexibility to offer other products and services
Access to phone and accessory online portal for ordering new and used inventory
You own your customers
No carrier exclusivity requirement
No more minimum inventory requirement
and more…
You determine your income level!
Here are some of the revenue streams to owning your own cell phone store
Phone sales
Activations
Accessory sales
Residual monthly phone bill commissions
Repair
Flashing
Insurance plans
Some dealers also get involved with other profit centers not mentioned here.
Request more information about these and the cell phone store program by submitting your information on this page.
Cell Phone Wealth Shifts From Cellular Post-pay to Pre-paid Plans
How can a cell phone dealer capture shares of this multi-billion dollar cell phone wealth redistribution opportunity?
Over the next 5-years, cell phone wealth will continue to shift from the long term contract cell plans to the pay-as-you go pre-paid types.
This shift in wealth will lead to new opportunities for some players in the wireless industry.
In order to appreciate this fact, we’ll compare two different markets.
{But before hand, listen to the video below from a 31 year telecommunications retiree who talks about plans that corporate executives were discussing back in 2003 about the future of cell phones.}
Comparing cell phone market distribution between Europe and North America
Looking at the numbers below, we can see that the cell phone wealth distribution differs between these two markets.
In Europe, 80% of the mobile cell market is pre-paid (flat rate)
Only 20% in the North American market is pre-paid.
There are some 300 million current subscribers in the USA. And projections are that more of these clients will change to pre-paid services as their contracts come to an end. As this happens, billions of dollars will be up for grabs as competition and economic hard ships continue to drive this market dynamic.
This cell phone wealth transition boom will happen with or without you!
Two survey results conducted by PEW in 2006 supports cell phone wealth re-distribution:
TOTAL WHO HAVE A CELL PHONE
A total of 4,274 participants were surveyed. Of those, 2,334 had cell phones which equates 55% of this sample group. This was four years ago. Obviously, the numbers are higher now and trending upward.
Key survey question: I HAVE OCCASIONALLY BEEN SHOCKED AT THE SIZE OF MY MONTHLY CELL PHONE BILL.
This question applied to 1,539 of the participants and 41.7% of them stated yes to this survey question.
Conclusion: Once my post-pay contract ends, I’m changing to pre-paid services where I know what bill will be and yet have the same level of service and consumer choice.
Cell phone wealth redistribution is here and will continue for at least the next five years.
Are you looking to become a cell phone dealer some day?
Okay, lets assume that you have all your business basics in place and that you’ll be taken seriously by a cell phone company and that your chances of becoming a mobile phone dealer are very good.
Even so, you’ll have decisions to make that will determine which cell phone dealer model is best for you.
Cell Phone Dealer Questions & Choices:
1. Should you offer exclusive services with one carrier or
2. Is it better as a cell phone dealer to offer multiple carrier plans?
1. Should you offer post pay-credit based contract services with terms? or
2. Should you go with monthly pay-as-you-go plans? You should consider the current market trend before deciding?
1. Do you want a franchise which has more requirements, is more expensive and has more restrictions? Or
2. Should you be an independent cell phone dealer because you need freedom and flexibility to run your business according to your decisions? Under certain licensing programs, you can offer similar products and services as an authorized dealer-but not have the headaches and restrictions placed on franchisees.
1. Should you have a physical location such as a stand alone retail, as part of an ongoing business, a kiosk or possibly a mall location?
2. Or would operating as an online cell phone dealer be a better strategy?
Of course this is a very short list of questions and choices that you as a cell phone dealer will have to decide on.
Daily, I hear enthusiastic entrepreneurs requesting a cell phone dealer application who have no idea about how to approach this competitive process.
It’s a cell phone dealer representative’s job to find qualified new cell phone dealers. However, understand that starting from your first contact with the company, you are under scrutiny. They do expect that you would have done your homework and at least understand what their application prerequisites are.
When you make contact with a cell phone company requesting a cell phone dealer application, avoid asking obvious questions that you should know the answers to. If you’ve done any research on the industry and a particular cell phone company, you should position yourself as an asset. Save the “how much do I make as a cell phone authorized dealer questions for later in the process.
And before any cellular company is going to give you a chance to ask for a cell phone dealer application or their secret sauce, you’ll have to go through a qualification process and likely have to sign a non-disclosure agreement. Lets face it, the cell phone business is lucrative and every player is attempting to protect their cell phone market share.
Be prepared by having these basic steps completed before starting the cell phone dealer application process.
Here are the first pre-cell phone dealer application steps to take
Set up a business entity with your state. My recommendation is choose an LLC.
Afterward, visit the Internal Revenue Service website to get a business Tax ID number at www.irs.gov
Take your state certificate and new Tax ID number to a bank of your choosing and open a business bank account
Start looking for several possible high traffic physical locations
Put between $5,000 to $25,000 together for start up capital
Successfully start your mobile cell phone business on a shoe string budget.
Get your cell phone dealer application accepted by having these basic steps completed before the application process begins.
