how2start  says:
11 months ago

Nizam,

Thanks for your comment.

If you're interested, check out my other Hubs on How to Start a Cell Phone Store.

To start the business, you're looking at inventory costs ($100~500 a phone), retail location rent/deposit, and other normal start up costs like stationary, employee, accountant, professional costs, etc...  

I would recommend you write a business plan to see how much the whole business will take to start you up.  If you already have a retail location, it may only cost you the money it takes for inventory, which can be as low as $1,000.  If you don't have a location, then you will need to account for everything, plan meticulously, and have enough financing to keep you alive for at least 3-6 months.  If you don't do this, you will likely fail as I have seen many people fail in this business due to the lack of planning in this competitive market.

Remember, the cell phone business does have a negative cash flow model, where you need to spend first to buy your inventory, and commission will come back to you in 1-2 months. You better plan to have enough cash and credit to not let this cash flow model affect your business.

The cell phone business is now relatively mature and saturated, so planning and working with a niche market is key to your success.  

Good luck!

toketaz  says:
11 months ago

Wow, thats all i can say, i have been cracking my brains for a long time to find this, and never expected to get this complete guide...

the best infomative place i have been so far, have still yet to go all the different site...

you the best.

thanks

T

how2start  says:
11 months ago

toketaz,

Thanks for your comments and compliments.

Let me try to answer your questions as to the multi-carrier approach.

First of all, there are (or used to be) master dealers that do have multiple carriers that they handle.  However, with all the recent mergers of big carriers, I would think that there are very few master dealers that do offer multiple carriers in terms of post-paid contracts today.  Brightpoint maybe one, and I think they offered Sprint, Verizon, and Virgin Mobile, last time I checked.

Second, with regards to the multi-carrier approach is a good investment or not.  From my personal experience, we always had at least two major carriers that we offered to our customers.  Primary and secondary carriers in our view. And we probably switched our primary carrier around at least once a year. The reason why we kept having to switch was that the carriers have the power to cut your commission dramatically in a month's notice.  I remember at one time a carrier was offering $250 in commission, and next month down to $125 or so.  It was a big hit, and a lot of the dealers offering the carrier's service went under.  We fortunately always had two carriers, so we would switch over to the other to stay alive.  It is sort of an insurance plan to have multiple carriers for your business.

Thrid, after talking about the points above, some carriers like TM actually rely heavily on their indirect dealers to bring them business.  So they will treat you well, pay you well, and hopefully value the relationship enough to not cut you off like the other carriers.  It maybe a requirement to sign an exclusive agreement to get paid the higher commission, and it will up to you to sign it or not. Other carriers have enough store on their own that they don't value the small volume that indirect dealers bring in, and will be pretty fast to cut you off.

In terms of multiple carriers, it works best if you have enough volume each month to offer it to your customers.  If your store isn't booming, like many of the cell phone stores out there, it is probably best if you concentrate on selling one carrier.  That way, you do earn a higher commission, and probably get a lot of collaterals to build your business on.

From my personal ideals, it would be awesome to be able to open an independent store with T-Mobile, AT&T, Sprint, and Verizon, and act like an insurance agent to your customers to shop out the best service for them.  However, since the carriers have all the power in this industry, and they hate it when you switch a customer when their contracts are up, this ideal will not come true in the near future.  

The only way you can do an independent store with multiple carriers is to build some bargaining power yourself.  That means sell like crazy and establish enough volume to a point where a carrier sees value in you.  And this will likely mean selling in the high hundreds and even into the thousands each month.

And lastly, the commission matrix is something you need to ask your master dealer for since it changes around once a month.

Good luck to you and your new business!

KANWALJEET SAHOTA  says:
10 months ago

hi, thanks very much for this valueable infomation that how to start phone business.we are selling just accessory and we always in this process to have some reliable sources for supply of phone with reasonable price, as you know everybody is scared about the price and authincity of the products.your comments regarding business and suppliers are remacable .....thanks

kanwaljeet_sahota@yahoo.ca

Toronto,canada

aShraf  says:
10 months ago

One of the best site for information on how to start a cell phone business. You left out one of the better master dealer for t-mobile. which is www.2wwi.com, they are located in atlanta, ga.

@Nizam. Roughly speaking, You would not need that much to start a retail cell-phone store. This is a minimum investment business. I'll give you few examples:

Lease: $3000. $1500/month (1 month security, 1 month rent)

Display showcases: $ 500-1000 (usually need 2-3)

Business license : $200-300

Phones: $2000-4000 (I'd get 7-10 different phones, and 3 qty each)

Accessories: $500-800 (don't go crazy over accessories, keep it limited)

When you sign a lease, negotiate, they must give you atleast 2 months free of rent. For a 3 year lease, they should give you atleast 2 months free rent. For a 5+ yr lease, they should give you 5 months free rent. You won't get your commision till after 2 months, so hold on to your cash to pay for replenishments.

And you need some cash for displays and slatwalls etc. Which is not that costly.

If you have $10,000 or around there, than you are good to go.

Manpreetc  says:
10 months ago

My friend is in discussions with Tmobile for a new store they are opening. I'm considering partnering up with him. Do you recommend becoming a direct carrier store, or do you think your better off going independent?

What are the things to look for with regards to having a store for a carrier?

samuilgr8  says:
9 months ago

Nice hub, information is very useful......!!

please look into dis http://www.go4funding.com/

lawdog  says:
9 months ago

I am looking at buying a multiple carrier wireless frranchise. Can you tell me more about the multiple carrier stores (pros/cons). I saw a note above about AT&T, what did AT&T do?

Thanks for the help.

guy2122  says:
8 months ago

I just got approve from Verizon but I want to seel t-mobile in my store so I talked to Pinnacle master agent but they will not approve me becuase the corporate store is less then 1 mile away. Will the other master agent approve me?

harry  says:
8 months ago

great service for wholesale and distribution on phones and accessories

SnH Wireless  says:
7 months ago

SnH Wireless, Distributors of New & Factory Refurbished phones

Mike  says:
6 months ago

Great article, I am a wholesaler with great deals on at&t branded phones and bluetooth as well as new and refurbished unlocked phones, we have offices in NY and Miami, Please call me at 305-704-3663 x.101 or email mike@thephoneclubusa.com

Mike

The Phone Club

Jay from SnH Wireless  says:
5 months ago

SnH Wireless offers the highest quality of cellular phones on the market today. Since 1998, we have provided superior service to our customers and have assisted them in achieving their goals. Our years of experience and commitment to excellence have earned us the reputation that we haveOur Values:Leadership: At SnH Wireless, you receive the kind of quality and service you expect from a leader. Our company is always evolving as the needs or our customers change and as new opportunities are created in the market. You can rest assured that, working with SnH Wireless, you will enjoy the latest services, technology and developments in the industryTeamwork: We make it our responsibility to know you and your business. We work closely with you to ensure that the solutions we provide are tailored to meet your unique needs and challenges. We are committed to your success.Customer Relations: At SnH Wireless, our highest priority is satisfied customers. You are important to us and you can expect us to go the extra mile for your business. Superior customer service is the hallmark of SnH Wireless. We are proud to serve you and work hard to earn your business.SnH Wirelss: All our customer service and sales representatives are well trained and ready to serve you, and answer any questions. SnH Wireless is an authorized Motorola dealer. Our direct relationships with the major manufacturers and wireless carriers around the world means that when dealing with us you can be assured that you are receiving the highest quality products at incredibly low prices.We are the fastest growing GSM distributor in the industry, distributing fine mobile handsets world wide. Our enormous warehouse is located in New York, literally minutes away from seaports. Our convenient location is an advantage, making it easy to import and export merchandise.

Why use SnH Wireless :Every storeowner has the potential to become tomorrows success story. SnH Wireless wants to give the agent every possible chance to rise to the top.Call us today @ 718 715 4973 to get started, or email sales@snhwireless.com

ENNIS  says:
4 months ago

how2start,

Saturday I'm headed to Florida to look at a Metro PCS Store for sale. Whats your opinion of the company and what should I pay attention to when I check out the books and store.

Thanks for your wealth of knowledge shared with us.

Ennis

arusmi  says:
4 months ago

NexGen Communications http://www.mynexgenonline.com is really a "home for all cellular needs".

Try them, their price and service is simply the best.

Tom Komar  says:
4 months ago

http://fnin.com/ is also a great list broker. the company offers quality consumer/business/investor lead databases all in specific categories and its really affordable too, so they are worth taking a look at.

Cameron  says:
3 months ago

Hello I am currently in the process of starting my own ATT indirect dealership. This site is amazing and I can really appreciate all the helpful leads. Was wondering if you can send me a personal contact for you to my email so that I can ask you some more personal questions? I dont mean to impose but could just REALLY use the help and advice. My email is cameronbuck1@gmail.com. You can just email me or maybe even a phone number where I could reach you? Either way Thank you for the information on the site and your time reading my post!

-Cameron

Michael  says:
3 months ago

Hi, does anyone know of a Blackberry master agent who is located in the state of Florida, please respond ASAP if so, Thank you. You can reach me at my email MLaw516@gmail.com

Akhtar  says:
3 weeks ago

Can you please contact me at mnydriven818@hotmail.com. I have a new location and would like to have multiple carriers.

Thank you

pompeywireless  says:
5 days ago

you need to signup for pompey wireless they offer dealers 30% from the customers cell phone bill just go to www.pompeywireless.webs.com check it out