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Q: I need a business model for an "authorized agent" cellular store ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: I need a business model for an "authorized agent" cellular store
Category: Business and Money
Asked by: teillon-ga
List Price: $100.00
Posted: 21 Jan 2003 10:41 PST
Expires: 20 Feb 2003 10:41 PST
Question ID: 146574
cellular stores

Clarification of Question by teillon-ga on 21 Jan 2003 10:43 PST
I am interested in starting an "authorized cellular/wireless" store. 
The kind that you see in every strip mall.  I want to know more about
the business model, the costs and revenue expectations.

Any history and/or advice from managers or owners of these stores
would be great!

Request for Question Clarification by jbf777-ga on 21 Jan 2003 12:43 PST
Hello -

I've done some preliminary research and have discovered the business
models may vary depending upon what kind of store you're looking to
create.  Some questions along these lines include: Are you looking for
a specific franchise opportunity?  Any franchise opportunity?  You're
looking to be an aurhotized cellular/wireless store for who?  Thanks
for any additional information.

jbf777-ga
GA Researcher

Request for Question Clarification by jbf777-ga on 21 Jan 2003 12:55 PST
Btw, that would be "authorized" above, not aurhorized. ;)

Also, this is important: what location are you looking to do this in?

jbf777-ga

Clarification of Question by teillon-ga on 21 Jan 2003 13:57 PST
Location would be North Metro Atlanta.  Duluth, Lawrenceville,
Norcross, Suwanee, GA.

I have already found and am requesting info from @wireless
(https://www.shopatwireless.com/); but I would be interested in
finding other franchise ops in this field.

Other than that, I want some hard numbers from other mom-and-pop type
cellular stores.  By "authorized agent" I mean not the true SprintPCS
store or the Verizon Store, but the store that says "Authorized
Cingular Agent" and that signs up people for cell phone accounts and
sells accessories.

I got interested in this venture by reading a Forbes article several
months ago which sited the average yearly margin on these stores as
being around $100k.  Since then, I cannot re-find that article online
and am looking for other sources of experiences and revenue models to
find out if these things can really generate that kind of profit.  I'm
not looking for a venture that I personally have to labor at. 
Instead, I want to buy one, then two, then three, staff them with good
labor and then manage them in the area.

Hope this helps...

Request for Question Clarification by jbf777-ga on 22 Jan 2003 08:37 PST
teillon-ga

I've got some contact in to 3 of the majors and am working to get a
business model.  Thanks for your patience thus far.

jbf777-ga

Request for Question Clarification by jbf777-ga on 22 Jan 2003 17:47 PST
Hello teillon-ga,
 
There are not too many wireless franchise players in the field. 
You're looking at basically Wireless Toyz, @Wireless, and
Wirelesszone.com.  There's also supertelwireless.com, but their email
doesn't seem to be functioning.
 
Wireless Toys seems to have a bona-fide ready-to-go layout.
 
"WIRELESS TOYZ has designed a franchise package that has
revolutionized the retail cellular industry. A WIRELESS TOYZ franchise
opportunity requires an estimated minimum of $85,110 in total startup
costs. A franchise owner may not be a full time employee for their
franchises to make money. However, the owner is expected to take an
active role with the store, developing the franchise and marketing the
product. We will train the store manager and staff while providing
ongoing assistance.
 
Financially, each WIRELESS TOYZ store will achieve different results,
depending on location and size. The gross profit margins before
overhead costs are approximately 45% of sales on average. Depending on
your overhead costs, inventory, management, wages, salaries and
location, your profits will vary. Several WIRELESS TOYZ franchises
have recouped their entire investment in their first year of
operation."
 
It's more like $100K to $200K in startup.  Becoming a rep for them
will afford you authorized agent status with Sprint, AT&T, Nextel, and
T-Mobile.
 
Expenditure, revenue and earnings numbers will vary a bit depending
upon  the store.  But here are some hard averages:

You can expect to see $360,000 per year in gross revenues from a store
that's on the low end of the $600K per year average, and $1.5M per
year on the high end.

Total costs average about 55%.  So $198,000 on the low end and
$825,000 on the high end.

Rent will be anywhere from $3K-$5K per month.

Advertising is typically 5% of your sales.  

Wages vary too much to even consider a general figure.

Can you expec to make $100K/year?  Not unreasonable, if you keep an
eye on your costs.

You want to contact Richard in the Franchise Division of Wireless Toys
at 866-get-toyz or on his cell at 248-562-4097.  Once you've expressed
interest in having a store, they will share more particulars with you
[it's undisclosed until that time].

As far as obtaining numbers from mom-and-pop cell stores directly, I
don't see how that's possible, because a store has no idea if they're
charitably giving this information to a potential competitor.

I'm still waiting to hear back from some of the "biggies," although
I'm unsure as to whether or not they will have hard numbers. I'll be
sure to post any info I receive.

I've also located a Alliance Wireless as having some sort of
open-a-store
-in-30-days program.  You can see this at
http://alliancewireless.biz/estore.asp.  They have a working phone
number at the bottom of their site, but other aspects of the site as a
whole are missing/dysfunctional.

Let me know if this suffices as an answer...

Search Terms:
wireless franchise
"wireless franchise"
wireless franchises

Additional Links:
The Wireless Way by Matt Carreon (6/02)
Entrepreneur Magazine
http://www.entrepreneur.com/Magazines/Copy_of_MA_SegArticle/0,4453,299758----1-,00.html

Wireless Week
www.wirelessweek.com

Thanks,

jbf777-ga
GA Researcher
Answer  
Subject: Re: I need a business model for an "authorized agent" cellular store
Answered By: jbf777-ga on 23 Jan 2003 23:07 PST
Rated:5 out of 5 stars
 
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Hello teillon-ga, 

Here is my clarification posted as answer, with some additional info.
  
There are not too many wireless franchise players in the field. 
You're looking at basically Wireless Toyz, @Wireless, and
Wirelesszone.com.  There's also supertelwireless.com, but their email
doesn't seem to be functioning.
  
Wireless Toyz seems to have a bona-fide, ready-to-go layout. 
  
"WIRELESS TOYZ has designed a franchise package that has
revolutionized the retail cellular industry. A WIRELESS TOYZ franchise
opportunity requires an estimated minimum of $85,110 in total startup
costs. A franchise owner may not be a full time employee for their
franchises to make money. However, the owner is expected to take an
active role with the store, developing the franchise and marketing the
product. We will train the store manager and staff while providing
ongoing assistance.
  
Financially, each WIRELESS TOYZ store will achieve different results,
depending on location and size. The gross profit margins before
overhead costs are approximately 45% of sales on average. Depending on
your overhead costs, inventory, management, wages, salaries and
location, your profits will vary. Several WIRELESS TOYZ franchises
have recouped their entire investment in their first year of
operation."
  
It's more like $100K to $200K in startup.  Becoming a rep for them
will afford you authorized agent status with Sprint, AT&T, Nextel, and
T-Mobile.
  
Expenditure, revenue and earnings numbers will vary a bit depending
upon  the store.  But here are some hard averages:
 
You can expect to see $360,000 per year in gross revenues from a store
that's on the low end of the $600K per year average, and $1.5M per
year on the high end.
 
Total costs average about 55%.  So $198,000 on the low end and
$825,000 on the high end.
 
Rent will be anywhere from $3K-$5K per month. 
 
Advertising is typically 5% of your sales.   
 
Wages vary too much to even consider a general figure. 
 
Can you expec to make $100K/year?  Not unreasonable, if you keep an
eye on your costs.
 
You want to contact Richard in the Franchise Division of Wireless Toys
at 866-get-toyz or on his cell at 248-562-4097.  Once you've expressed
interest in having a store, they will share more particulars with you
[it's undisclosed until that time].
 
I also consulted with Wireless Zone, who is expected to move into the
Georgia region in probably 6-12 months.  You can expect to see
$7500-$11,250/month as a typical minimum in gross profits for phones
alone, and then there is a a $5000-$13,000 gross profit potential in
accessories.  Then there are residual income opportunities on phone
usage bills for people you sign up.  These are gross profit numbers
only.  See more info at http://www.wirelesszone.com.

As far as obtaining numbers from mom-and-pop cell stores directly, I
don't see how that's possible, because a store has no idea if they're
charitably giving this information to a potential competitor.
 
I've also located a Alliance Wireless as having some sort of
open-a-store
-in-30-days program.  You can see this at
http://alliancewireless.biz/estore.asp.  They have a working phone
number at the bottom of their site, but other aspects of the site as a
whole are missing/dysfunctional.
 
Search Terms: 
wireless franchise 
"wireless franchise" 
wireless franchises 
 
Additional Links: 
The Wireless Way by Matt Carreon (6/02) 
Entrepreneur Magazine 
http://www.entrepreneur.com/Magazines/Copy_of_MA_SegArticle/0,4453,299758----1-,00.html
 Wireless Week 
www.wirelessweek.com  Thanks, 
 
jbf777-ga 
GA Researcher

Request for Answer Clarification by teillon-ga on 24 Jan 2003 09:52 PST
jbf777,

Thanks for the answer.  You have given me quite a few leads to follow.
 I will rank you well.

I found a contact in Atlanta that knows a lot about the field and
suggested that instead of opening a brand new, capital intensive
store, I look for store that is for sale.  When I open the req, I will
try to send you a note; but it would be to find stores for sale.

Thanks!

Clarification of Answer by jbf777-ga on 24 Jan 2003 10:20 PST
Hey teillon,

Thanks for the rating!  Do let me know if I can be of any assistance
in the future.

jbf777-ga
GA Researcher

Request for Answer Clarification by teillon-ga on 24 Jan 2003 11:42 PST
jbf777-ga, please see my new question: 148060.

Thanks!

Clarification of Answer by jbf777-ga on 24 Jan 2003 13:48 PST
Thanks!
teillon-ga rated this answer:5 out of 5 stars

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