Tuesday, January 6, 2009

Phone can make money

Browse around any market, or town area, or small town, or housing areas. Unbelievably lately I saw TOO MANY phone shops everywhere.

Usually, what they sell:
-mobile phone (of course)
-the cassing or housing
-phone accessories
-TelCo starter pack
-reload coupon (or reload service)
-some shop office repair service.

Let check item by item.(except for service)

Mobile phone
People don't buy it often( I mean not everyday even they use it everyday..haha)...I think the most frequent should be once a year that people change phone... I think so... Me?? I only change when the one I'm using is no longer reliable.
Oh, lets talk about money...
Price = RM70 to RM3000
profit = RM 50 to 500?? maybe... I dono...I don't own a phone shop.

Casing / housing
Once a week? Once a month? few times a year?? something like that...
Price = RM 5 to RM 30?? somewhere there aite??
profit = RM 2 to RM 10.... i guess so..

Accessories
Once for a phone...maybe few...
price = ori 50 to 500....fake 5 to 30??
profit = RM 2 to 100??

starter pack
haha...people buy once in a life time...unless they lost it...Max i think 3...u know, for 3 TelCO, so whoever has more than one phone might use few numbers...like myself, I'm using MAxis and Celcom.
Price = RM 2?? to 15?? special number 500??
profit + I seriously dono what to predict.

Reload
Some people reload everyday. and obviously people using it everyday....
Price = RM 5 to RM 100
Profit = Max of 4% from the original price. so, RM 0.02 to RM4.00

OK. Here is the issue. I'm not gonna talk about those big big ( or even small) shops in town(aka in crowded area). My focus here is, those small shops in housing area.

How they survive is my concern.
By selling phone?? Trust me, people(MOST) will go to the big shops in town to buy a new phone. WHY?? More choice. Usually they'll get better price at bigger shop..How many times per month(or per year) these shops(small) can sell a phone where they get profit around RM100??

By selling casing or accessories?? I doubt it. Look at the profit and frequency. It doesn't make sense.

Reload?? Frequency is very very high. But, profit margin for me is too small.

Lets think it this way, this is just my imagination.We take a time frame of 1 year.

Phone sold = 2per month = 24 = RM2,400
accsory/casing = 5per day = 150permonth = 1800 x RM5 = 9,000
Total for this = +-RM12000a year, = RM1,000 permonth.

What if the shop has shop assistant to pay? Electric bill?
Keep it minimum, salary = 300, bill = 50, total operating cost = 350...assuming they sell it at their house(shop-house)....
net profit = 650 permonth? enough??

I guess, today's living cost for a family should be a minimum of 1500 permonth (outside city area)...
So the seller less of around rm1000 to cover the remaining.

take maximum 4% margin for reload sales.
4% to reach 1000, the seller needs to sell RM 25000 reload(a month)....so RM800 perday roughly...taking the most famous reload is RM10 reload, the shop has to be visited by 80 customers. Hmmm...With such competition around the area, 80 people I think is a big number to achieve. I dono what you think.

I just had this thought in mind about WHY those shops are opened. That's all. CUriousity. There must be reason for it. It must be very profitable that everyone opening it, and the numbers keep going.

Check http://prepaid4u.net/?id=tompoq for surprise answer!!!

1 comment:

  1. WOW TOMPOQ YOU HAVE A BLOG !

    anyway HI its Abby:) happy new year ; see you sooooon!

    ReplyDelete