Quote:
Originally Posted by Gin 'n Tonic
Your main issue with reselling to the end user is testing and warranty. You gonna soak test every phone for battery life? Your gross might be better, but it will take a lot more time and give you more hassle than selling to the trade.
Quote:
Originally Posted by grizy
On a larger scale you're competing directly with Apple's iPhone trade-up program, Gamestop, and Verizon's upgrade program.
This is just from the perspective of a consumer regularly upgrading and having to dump old iPhones.
You bring up good points. I have those bases covered: I'm purchasing the phones wholesale from the company that triages them (water tests them) and gives them a "grade". This company is where Apple and Verizon send their phones-- they've already contracted "residual" values, as they are the supply chain fulfillment company that does both the forward and reverse supply chains.
Their grading process won't be perfect, but I'll offer a 30 day warranty as that's what the competition is offering.
I'll only be purchasing A or B grade phones. A grade is "like-new" while B grade would be a floor model with regular wear/tear.
My tactics would be staying away from iPhones, because the competition is very high, thus low margins on resale market-- Apple products hold their value well.
The less prestigious phones have reasonable margins. For example, a Moto X Pure can be purchased for $155 and sold for ~$200 if it's A grade. The GS6's and 7's margins are smaller, but not razor thin like Apple products.
I might go ahead, and list them on Amazon for a couple dollars less than the competition, and see if it'll move the phones. Going to put in my first purchase order for 50 phones. I'll put them on Amazon/Ebay and price them a couple dollars less than the market.
50 phones isn't a lot, but it's only a $10k investment which should be turned around in month. This business should scale well, but I prefer to keep the purchase orders under 6 figures.
I'm more interested in coming up with creative sales solutions that would improve on what the competition is doing (e-commerce). Some ideas I've been kicking around are exporting to BRIC countries to wholesale, loading the phones with ads and undercutting competition, or acting as an affiliate for a carrier (no idea if that's feasible). What creative sales solutions can BFI come up with?