Have you ever wondered how cellphone stores make their money? Well here is a quick look at how much money you shouldn’t spend at an indirect wireless store. Cell phone dealers make the majority of their money off of activation commissions and performance commissions from wireless carriers like T-Mobile, Verizon, Sprint, and AT&T. So how much do they make? Well that depends on a couple different factors; the plan, the phone, the additional services (txt messaging, data), and accessories (car charger, bluetooth headset).
Now these values vary depending on the market, carrier, and performance and contract between the dealer and the carrier but on average you can expect the dealer to make around $220 on a $59+ a month plan. In addition they make $$ on data plans, usually $20-$35 per activation, and a ton on accessories. The average aftermarket car charger costs the dealer $1.00 but you’ll pay $20 and the average bluetooth headset costs $30-$50 but you’ll pay at least $70.
Of coarse your thinking “they have to make a profit right?” and your right, then need to but as a prior wireless store manager and district manager for a major wireless carrier you need to understand that the real deals take place at direct carrier stores and carrier owned retail stores (Verizon owned store, not authorized dealer for Verizon - BIG DIFFERENCE).
When it comes to accessories your always going to get ripped off unless you go direct to a distributor. Obviously for convenience that may be an issue but next time you need a car charger, leather case, or bluetooth headset check out QDI Wireless located in Phoenix, Arizona. This is one of the largest cellular and accessory distributors in the USA and they allow customer public walk-ins and online orders.
Now one thing I did not mention is indirect wireless dealers (who are private owners authorized to sell for the carriers) is that they make can make deals based on how much you buy and how high of a rate plan you sign up with. The best way to get the most out of your cellphone and accessory purchase is to sign up with a plan over $75 per month (they get more commission and are able to discount the phone more) and add data, insurance, and whatever else you don’t need. Doing something like this will can get the phone for cheaper and/or get free accessories.
Just ask for the deal, let them know you’ll sign up for the high plan, the data, and the insurance if you can get some free accessories for it, they’ll go for it most of the time. Once you leave the store just call your new service provider and let them know you want to lower you plan and don’t need the data or insurance, don’t worry because all carriers allow at least 30 days for you to do that. Now you got the best possible deal without paying for it monthly, morally wrong maybe but they still make money.
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