How You Can Start a Profitable Cell Phone Retail Business
Cell phone business is going to be a profitable opportunity in growing electronics markets with huge potential to earn. With continuous innovation in the field of electronic goods and telecommunication, more people are now becoming gadget savvy. This generates enormous demand for cell phones among people. Different telecom companies are targeting prospects to increase their revenue. They are offering different varieties of cell phones to cater for the demand of different customers with varied incomes. This makes cell phone retail business a profitable choice among others.
To start a retail business of cell phone you need to have a space in market area easily approachable to customers. You can buy or rent the space according to your financial budget. Electronics companies distributed their products through franchisee channel or dealership channel. You can become a dealer to any of the company as per mutual understanding. You can display different cell phone of different companies also to suit customer demand. Proper display counters need to be installed in the retail counter to attract the customers. Advertisement of different cell phones must be placed where it catches customer’s eye. Various marketing campaigns are provided by the cell phone companies to attract more customers and achieving their sales targets. They provide facilities to associated distribution channels to gain sales.
Different Categories of Cell phone
· Wireless Mobile Phones
Wireless mobile phones are the most selling gadgets, easily available and easy to sell. These phones generate a profitable business too. Companies provide certain discounts for the distributor and dealers varied from 5% to 20% on each product. Different models with different price bands are available in this category. Customers have a choice to purchase according to their need.
- Smart Phones
Smart phones are the latest technology in the telecommunication market targeting the tech savvy people to make their communication simple with additional features to enjoy. Smart phone becomes a huge success in teenagers and youths favorite choice and develops a market for companies to target the youth population. They are ready to spend extra money to buy extra features along with normal communication features. This category has huge potential to earn for the retailers as smart phone manufacturers pay big margins to retailers.
Tablet is large screen version of smart phones; provides large display to enjoy the features more clearly. Various companies are trying their hand to launch affordable product to the consumers in existing tablet market to increase their market share. You have an opportunity to earn a lot from this category also as market for tablet buyers is increasing rapidly. Tablets are considered to be the replacement of laptops with ease to carry anywhere.
Cell Phone Accessories
Cell phone accessories are required to enhance the cell phone for better performance, safety and design. Different types of accessories are available in the market for the consumers. Some profitable accessories are given below:
- Screen Guard
Screen guard is used to protect the cell phone screen from scratching, dust and rough handling. Various screen guards are available in the market for every model of smart phones and tablets. It generally ranges from Rs. 100 to Rs.300 depending on the size and model of the phones. Screen Guard manufacturers give discount for retailers on bulk booking which gives you a profit.
· Mobile Cases
Mobile cases provide the safety to cell phone along with handy features to carry with ease. It protects phone from sudden drop or damage. These cases are available in different colors and design to suit your phone and need. Different model has different price tags and manufacturers provide discounts to the retailers for bulk booking.
· Colored Body Covers
Colored mobile covers give a new attractive look to your cell phone. Covers are available in different material, colors and shapes for various mobile phones. People generally look for a new color and design with time and provides an opportunity for manufacturers to explore. Discount packages are available for retailers for bulk booking. Some manufacturers give these cases at very cheap price which gives a huge margin to retailers.
Headphones are necessary part of cell phone as it provides hands free properties to consumers. It gives a new experience to listen to music from cell phones or talk with someone on hands free mode. Customers are looking for best sound quality with compatibility. Earphone is also a type of headphones mostly used while travelling. The market is huge for headphones among the cell phone and computer users. It becomes a hit among music lovers and travelers. Many electronic companies give various choices in this category depending on sound quality and compatibility. Bulk order gives huge discounts and sale is not a problem as demand is enormous.· Memory Card
Cell phones have options to upgrade its memory according to the requirement of users. Memory cards of different storage capacity are available in the market ranges from 250 MB to 8 GB. These memory cards increase the storage capacity of the phone enable users to store more data in their cell phone. Different sourcing companies are providing memory cards with cheaper rates and huge margin to earn. With increase in usage and storage of information, the market has huge potential to grow.
- USB Cables
USB cables enable the user to connect cell phone to other external devices like computers, laptops, LCDs, Music systems, Speakers etc. It is used to transfer the data and information from one device to another. Its properties include quick data transfer, easily to use and carry. Depending on the model and company, consumers use desired USB cable. This is also a best choice for retailers to increase their profitable product portfolio.
- Power banks
Power banks are the new trends in the cell phone industry which provides battery backup to chargeable electronic gadgets. They have capacity to provide battery backup up to 30 days once charged fully. They are compact in nature and easy to carry. This attracts frequent travelers where they have no time to charge their electronic gadgets and cell phones. Huge margin opportunity is there for retailers.· Chargers
Charger is replaceable internal part of the cell phone. It has some fixed life or expiration time after which it needs to replace. Having chargers is a good option to earn profit as people generally needs these accessories.
Cell Phone retail business is not complete with service and repair centre. With increase in demand of cell phones and usage, there is also an increase in repair cases. In retail business, you must need a fully equipped repair service centre to increase the customer satisfaction and profits. Various repair services packages are available to choose from but some more profitable choices are:
- Chip level Repair
With smart phone coming into the market the cell phone chip level structure becomes more complicated and there is always some issue relating to chip level repairing. You must need some repair service included in the retail shop where customers come and get their cell phone repaired easily without any hassle. People are ready to give good amount to fix their mobile phone as it becomes a necessity. With increase in cell phone users there is also an increase in repair services. This category is profitable to include in retail shop.
· Screen Replacement
Some cell phones are damaged from screen area which looks very bad and you are not able to see anything on screen. It needs replacement immediately. There are several cases coming to service centre with damaged screen. Repairing screen or replacing screen is a good option to include in the service centre portfolio. Every mobile phone has different screens depending on the model of the mobile.
- Battery replacement
Battery has some certain life cycle after which it needs to be replaced. This is a sure shot selling business because everyone who used cell phone needs to replace their battery. Manufacturers of cell phone battery give discounts on bulk purchasing and you get benefits from it.
In cell phone retail business you need to offer different models of every company in demand. You have to upgrade your product portfolio with new models coming up. Some customers wanted used phone due to price constraint so there is also an option available to sell used cell phones. This option has an opportunity to earn a lot of profit. You can also provide exchange offers to the customer to exchange their old cell phone with a new one with some discount features.
How to Finance Your Business
Many financing options are available in the market which gives your business sufficient funds to run it in a profitable way. Some of them are listed below:
· Loan the working capital from the Banks
There are many government and private banks ready to give loans to customers to finance their retail business. You need to put your business plan with all the profit making activities to the bank and bank will evaluate these statements and offer you loan of desired amount. Bank can charge some interest which needs to be paid on monthly basis or on yearly basis as per banks rules and regulations. Many cooperative banks provide loans with less interest rate, so find out best possible option prevailing in the market. There are many private financial institutions that also provides loan to the customers against any security. You can also explore these opportunity also.
- Private Investors
You can explore private investors from the market to fund your business. They generally take some part of the profit coming from your business rather than charging interest on the amount.
How to get dealership license
You need to get dealership license from the manufacturer or distributor of cell phones to start a retail business. These licenses differ from one company to another on the basis of terms and conditions. Many companies provide license for some certain time period or some charge particular refundable amount as security from the dealer. Apart from this, cell phone companies provide backend support to dealers to attract the customers and increase the sales. You need to contact the regional office or any concerned person responsible for allocating dealership and show your interest in retail business. They might asked you to submit documents relating to business and dealership as required. After documentation you get the dealership license of that company. You can now place the order to buy different cell phones manufactured by the company with warranty period. Companies provide the return policy for non saleable and damaged products to their dealers and their representatives visit regularly to assist you in your business. Your license can be renewed on the basis of your performance in the local area.
Support provided by Cell Phone Companies
Companies are responsible to carry out all the marketing campaigning in the region. Placing the hoardings, advertisement, visuals, road shows are financed by the company. Sales Executive and officers visit regularly to assist you in selling products and provides you with information relevant to achieve the targets. Company provides goodies and holiday packages from time to time to dealers for achieving the sales target. Complimentary peripherals and accessories can be provided by the company which is beneficial to you. You have long term benefits associating with any exclusive company retail showrooms. You can choose to sell cell phone from different companies as per your choice and budget. Regular training sessions are conducted for the dealers to train them attain the sale targets and updating them with new technology which are more useful to the budding customers. You are trained to communicate effectively with the customers and generate income from them.
With the rapid development in technology and IT innovations, there is huge potential in cell phone market to grow. Due to growth of the market; the growth in demand is a simultaneous process. Cell phone retail business is a part of this growth and this business has huge potential to earn profits. With emerging markets, people wanted to upgrade themselves with new technological gadgets. Retail business in cell phone category provides an opportunity to new entrants to start a profitable business with continuous income. So, without any delay start preparing to start a profitable business and experience the new technology with huge potential to leverage in the future.