Retail

How To Set Up A Wireless Phone Store | Cell Phone Sales

Your Future Is Calling

Do you want to open your own store specializing in mobile phone technology or a mobile repair shop? Do you want to start your own business selling smartphones and tablets? Do you want to take the leap and become your own boss? But what is a wireless/phone store worth in terms of profitability? How do you choose the ideal location to set up your store? Should you open a store independently or through a franchise network? Find out below.

How To Open A Wireless Phone Store?

Thankfully, several choices are available to you. You can create your store from scratch or take over an existing one. If your prospective store is already successful, choosing an existing store could be an exciting and profitable opportunity.

Franchising is another reliable option for getting started. Some franchise networks have existed for over 15 years, so their franchisees benefit from their parent company’s branding and marketing strategy. Inquire about multiple brand options before settling on a solid idea.

Experts estimate that nearly 275 million Americans own a mobile phone. Among middle and upper-class Americans, the cell phone market is completely saturated. And while some believe there is no market for new cell phones, this is a false notion. Like all electronic equipment, features are constantly upgraded; they come with more functions, are lighter, and are easier to use. Plus, cell phones do not have a long shelf life; cell phones are lost, stolen, and often break when they fall- which is a widespread occurrence. Experts anticipate that the average American user will require a new cell phone every 2-3 years. Plus, there are dozens of accessories that operate with a cell phone. Thus, anyone wishing to open a wireless phone store can expect to see a profitable business for the foreseeable future.

Get Some Training

While you may not be a technical expert, you should still have sufficient knowledge about the latest phones, their functionality, the different brands, deals, and their differences. Customers will almost always ask why they should buy one brand and not another- and you should know the answer to those kinds of questions. Additionally, you should know the inner workings of all brands of mobile phones. We recommend that you spend some time as an intern with an established mobile phone shop if you do not.

Who Can Open A Mobile Tech Store?

There are no specific training requirements to open a phone store because the business is still relatively new and continually developing. However, having a technical background or, ideally, a degree in electronics would give you a great head start.

Another critical point is having a good sense of customer service standards. Providing quality service ensures that your customer will return and refer your company to their co-workers, friends, and loved ones.

You should also possess a solid understanding of your customer’s needs. Your customers will have specific requirements depending on their age. Seniors will need long explanations about essential functions, while younger people will know about features and costs. In short, showing patience and offering valuable instruction is critical.

Can I Repair Phones?

Yes, knowing how to repair mobile phones is a great way to boost your income. Mobile phones break and malfunction all the time for a variety of reasons. If you can repair them, you will increase business.

Can I Sell Cell Phone Plans?

Yes, most mobile phone stores also sell cellphone plans. However, you need to contact the different carriers (e.g., AT & T, Sprint, Virgin Mobile, Verizon Wireless, T-Mobile, etc.) and apply for a reseller’s account. In most cases, you will be signing up with a distributor of the carrier. However, you can also sell phones without a carrier plan.

What Are The Negatives Of Operating A Mobile Phone Business?

Sales can fluctuate depending on the economy
Intense competition
Difficulty keeping up with new trends and technology
New competition

Phone Store Business Plan

If you want to understand the mobile phone business, it is essential to make a business plan which should contain the following:

Where will I open my store?
What are the startup costs for the store?
Do I need a license to operate a mobile phone store?
What kind of profit margins are with mobile phone stores?
How can I increase profits for my mobile phone store?
What types of phone accessories should I sell?
Should I buy a phone franchise?

The smallest wireless phone store startup costs might reach $20K-30K, but larger stores can cost five times that amount.

Check out these few links on cell phone business plans

Wireless Store Legal Entity

Anytime you run a business, creating a legal entity like a corporation is wise, saving you a significant headache if a lawsuit occurs. Forming a corporation is not difficult and only costs a few hundred dollars but needs to be renewed each year.

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Do I Need A License To Operate A Mobile Phone Business?

Yes, you will need a business and a reseller’s license. You will need to visit the local Chamber of Commerce to determine what else will be required to operate your store.

Register for state and federal taxes
Obtain an EIN
Open a dedicated bank account

Here are a few of the standard business banking options available online

Cell Phone Store Insurance Policy

Anytime you operate a business, it is essential to have business insurance to protect the store from theft, vandalism, or fire. Also, it would help if you also had liability insurance. For example, a customer may buy a phone charger from your store that causes a fire. To protect yourself from a lawsuit, you need liability insurance.

Here is a list of some standard insurance companies

How Will I Finance My Mobile Phone Store?

Because of intense competition in the mobile phone business, many banks are unwilling to finance their development. However, some private lenders may be willing to lend you the money if you have a good credit score, at least a 20% down payment, and a solid business plan.

You can also apply for a small business loan, but these also come with intense bureaucracy, and the process may take a long time.
You can ask a venture capitalist or your friends to help out.

The last option should be your home if you are on a limited budget and cannot afford to lease a store. However, you will first need to find out the zoning laws because the local government will not permit you to run a business from home in many instances. Plus, you also increase the risk of theft in your home.

Is A Mobile Cell Phone Store Profitable?

Data indicates that mobile cell phone shops make a profit between 7% and 20% on daily sales, but unfortunately, many mobile stores close for various reasons. A good portion of profits comes from selling accessories to the phone. However, given that there are no restrictions on opening a cell phone business, the competition is intense. You can find mobile phone stores on almost every street in the USA, but at the same time, those shop owners who manage to keep up with the latest trends and accessories in the wireless phone business do exceptionally well.

How Can I Market My Mobile Phone Store Business?

Create a website, share your services, and specify if you do phone repairs and what type of phone accessories you sell. Do not forget your contact information and location
Distribute flyers to the local community
Distribute your business card to retail stores
Place ads in the local paper

Here are a few marketing ideas for your cell phone store

Build Your Own Wireless Store Website

Your domain name protects your website address on the internet. You can register a domain name with any hosting company you choose.

Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

What Are Some Startup Costs Of A Wireless Phone Business?

Startup costs depend on many factors and including the following.

Leasing fees for the store- which can be significant
Inventory- can quickly run in $10K-$20K
Insurance
Marketing
Furniture
Remodeling or design of the store
Utilities

Mobile Phone Shop Location

Today, cell phone stores are everywhere; you’ll want to open up a shop in an area with the least amount of competition. Another option is to buy an existing phone shop. However, before you sign any paperwork, spending time physically observing the store for customers, speaking to people on the street, and getting an accountant to assess the shop’s financial status carefully will ensure your business has a good start. The more you know about the mobile phone store, the better you will make an informed decision on the purchase.

Here is a list of some popular commercial real estate companies:

Check out some of these retail design companies

Open A Cell Phone Store: Independent Or Franchise?

In business, a large part of success comes from the confidence you inspire in your customers. Forging links with the neighborhood and providing fantastic service to regulars will increase your enterprise and turnover.

The franchise brings an inbuilt customer base to your store, but it will be up to you to maintain it. Your franchise network will expect you to respect the concept to the letter.

Opening an independent store will save you from paying monthly royalties. You will not have access to a central purchasing body, which allows you to benefit from a floor price on your products.

Whether you open a branch, independent, or franchise, the key to success is keeping a hefty dose of motivation and passion for your job and keeping abreast of all the technological developments since phone designs are constantly changing. Here again, franchising represents a definite advantage because it offers initial training, followed by refresher modules, making it possible to meet customers’ needs, whatever they may be.

Here are a few online franchise ideas

Franchising – Cellular Phone Franchise
Wireless Zone Franchise – Cellular Phone Franchise
Franchise Help – Cellular Phone Franchise
Franchise Clique- Wireless – Cellular Phone Franchise
Franchise Opportunities- Wireless – Cellular Phone Franchise
Franchise- Wireless Business

Verizon, AT&T

Verizon and AT&T are leading independent networks. They provide quality service in mobile telephony, internet, multimedia, accessories, etc.

Affiliated brands do not ask for entry fees or personal contributions; instead, you’ll pay a low monthly fee. They also offer you an efficient and inexpensive store concept.

The Verizon and AT&T products sold in the phone stores are solid and dependable thanks to clear and effective merchandising.

Both Verizon and AT&T offer several services for their affiliates:

A distribution area.
Online product sheets.
The provision of flyers for more intensive local communication.
A sales plan is developed by their respective marketing teams.
Operator, service partner, and manufacturer challenges are organized annually to boost affiliate sales.
Commercial follow-up, technical information, network events, access to a dedicated Hot Line, a distributor’s extranet, etc., are all the strengths that Verizon and AT&T offer to boost your sales.
As an affiliate, you will also benefit from: attractive multi-network offers, access to efficient logistics, a wide range of accessories, and multiple services of the brand(s) you choose.

Here are a few handy links for your business plan

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Well, Should I Buy A Mobile Phone Franchise?

Yes, there are several phone franchise vendors, and each has its own rules and regulations. For example, T-mobile does not require any franchise or royalty fee, but you need to buy the franchise outright. Others offer training support and field levels of training but tend to have royalty fees. Purchasing a franchise phone shop is very lucrative if it is a well-established business. But it would help if you did your homework; some franchisors require you to buy the franchise outright, and there is no guarantee that it will make a profit. The cost for a franchise can vary from $25K to $300K

Cell Phone Store POS Software

Here are a few links to some useful software

What Mobile Accessories Will I Need?

Here are some links to supply networks

When you run a mobile phone store, you’ll need to have a variety of accessories that include the following:

Anti Loss keychain
Battery cases
Bluetooth Earbuds
Bluetooth keyboard
Body films
Bumpers to protect the phone
Cables
Camera lens attachment
Car mount
Cases
Chargers
Combination case and stand
Drop and shock protection
External battery
Fitted cases
Flip cases
Headphones
Gimbals
Headsets
HDMI Cables
Holster
Kickstand
Leather case
Memory cards
Phone charms for decoration
Portable chargers
Pouch case
Screen protection
SD slot cards
Selfie stick
Shells
Skins
Sleeves
Smart lenses for photography
Tripod
USB storage device
USB OTG Flash Drives
Wallets

You will procure the primary value of a mobile phone store from selling phone accessories. Thus, it is vital to have the store stocked up with these accessories at all times.

Conclusion

The mobile phone business has crested in phone sales, but because phones often break and newer phones come with more features, most people will shop for a new phone every 2-3 years. The business is profitable as long as one also makes a wide range of phone accessories available. The key is to try to stay clear of competitors and get to know your local demographics.