Mobile Phone Business - How do the make money?

[Freelancer87]

Hello,

How is it that mobile phone shops make money? Is there a commission paid from the service providers? I became curious after the last Secret Shopper program.

I have to assume that there is a small mark-up on accessories, but phone prices are usuall cut rate (a loss even?). What kind of money do they pay for selling a contract?

Any input, as always, is appreciated!

Cheers,

Dave

 

[mconridge]

Hello Dave,

Very tough marketplace to make money. I'd recommend getting a couple copies of the trade magazines. Also have a look at the Phone Dealer Forum (I think it's called that).

Good Luck!

 

[leemason]

You are correct about phones. They are very often sold at less than cost by mobile phone operators. The mobile phone sellers get large kickbacks from the phone providers. This can be the equivalent of several months line rental. It's is generally accepted that when a new phone and contract are sold the mobile phone company needs the subscriber to stay with them for at least 18 months before they make anything. Or at least this was the case when I used to work with Talkland a few years back.

 

[Freelancer87]

Hello,

I can understand how markup on phones would be minimal, but what is the structure for the plans you sell from each of the suppliers (i.e. 02, Orange, Virgin, etc)

Thanks for the input!

Cheers,

Dave

 

[peterbirganza]

Mobile marketing is a very tough and panic market specially for them who are new and who haven`t knowledge that how to deal? Making money is not so easy in it but after getting experience or study from the forums you can understand it`s terms and conditions that how to start and carry on a mobile business?

Peter