cellular phone store income from activations?

Question

Does anyone know what is the income potential that can derived from a single cell phone activation? I am evaluating to purchase a cell phone store and they said they do about 35 auctivations per month. Thanks

Answer 1

Part of your income would be margin on the sale of the phone and part would be "spiff", spiff amount depending on carrier and the agreement negotiated. In any case at just over 1 phone a day, the income potential is not very encouraging.

Answer 2

Depends.

Ive worked at both a store and a kiosk in a mall...

In a store the bulk of your money is going to come from accessories, not necessarily activations.

In a mall kiosk, we averaged 100 acts' a month (t-mobile) and the owner bought a 05( new at the time) Corvette cash after the Christmas season.

You need to find out where the bulk of the money is being made. A car charger normally will run the owner about $2.50 but sell from $30-$40.00 the phones them self you will make VERY little money on. The activation...depends on the deal with that carrier and how much volume you do as a store.

But over all, look at the ENTIRE history of the store, if sales have been going down, like most cell stores, over the past 12 months then walk away. If you can see an increase in profit, not sales but profit, then jump in.

Why is the current owner selling...would be my first question. To answer your question, for our deal, it was about $250 per act' but then you must subtract the of the phone.

if you paid $200 for the phone and sold it for say $175, then you are left with $250 - $25(lost proffit from selling th phone for less then you paid) = $225. BUT most of the time the phone company has a "spiff" on the phone, which is if you sell phone model "x" we will give you a $25(or what ever) spiff. which lets you do one of, 1, sell Model X for 25 less then the compitition, or take that $25 then add the car charger and phone carrier for $60 which you have paid $5 and now your at $225 + $60 - $5 (, if you sell your acc at $30 each, cost of the charger and carrier) = $280.00 per act IF you sell phone X..

It also depends on if this is a "corporate" , Exclusive store (you ONLY that service provider t-mobile, cingular... or an Authrorized dealer. The corporate stores make the most, then exclusive and then authorized but auth dealers can make more because your not stuck to one provider...

hope this helped.

Answer 3

i have never paid for a cell phone from the store. You call an 1 800 number and they will send you a free phone with a two year contract. I got mine through Cingular

Answer 4

no