how does a cell phone store make money?

[(RL)Ian]

I just curious, how does a cell phone store make money?
They give out free cell phone or close to free.
the customer subscribe to a cell service,
does the store getting paid every month from the cell service?
after the contract expires (about one year or two years) do they
still get the money?
Does anybody own a cell phone store on this board?

[rajsunrise]

Originally Posted by tom9801

does the store getting paid every month from the cell service? after the contract expires (about one year or two years) do they
still get the money?

You bet!

While I'm sure there are plenty of people making money selling hardware and accessories, there's even more money to be had in selling the service.

This is no different from shaving companies that will give away a "Free Razor" because they know you need to buy replacement blades for it, or from ink jet printer companies who practically give away their printers in hopes you'll be buying ink from them for years to come.

We have a merchant who has one - actually he is a friend of my business partner. The store always seems to be pretty busy. Getting a cell phone - usually it is pretty easy but sometimes people like to see them in action and make sure the phone is compatible before just buying it.

[(RL)Ian]

I heard that the store only needs to sell one contract per day to make a profit.

I am curious to know more about the operation, break even point, number of contracts per week/per day.
How do I find more info?

Have you considered maybe talking to one of the store's owners? They might be helpful if you are upfront and not considering opening a store close to them

[StivRichardOff]

I have a cousin who has a celphone store that has everything. From selling to repair services. The repair service he makes the most money from.

[Jkucgvsw]

agents get paid a commission based on different factors: price plan, data bundles, spiffs, etc.

your up front costs are really high as you have to purchase all the equip up front for the retail price. when you activate someone, you get a commission on it.

ie

razr --- $250

customer pays ---$0

Agent Commission---$350

Net Profit---$100

its a good deal if you get setup in the right location. most of the time you can undercut the corporate stores by matching and/or beating their prices. your best bet is to contact one of the carriers and they will sit you down and discuss their plans.

[RebeldeShi]

Originally Posted by bizwiz

I have a cousin who has a celphone store that has everything. From selling to repair services. The repair service he makes the most money from.

Why would the repair service be profitable if its so easy to get another phone?