We sell phones in several of my newsagencies. They’re selling well. A couple of times customers have told us that they came to us because they didn’t want the hassle they get at a phone company shop. We don’t have plans to sell, just simple phones which work with a prepaid account.
There is good evidence around that selling phones drives recharge business. I’d agree with that from what I see. There is also the benefit of bonus recharge commission when you sell the starter kits – the telcos want new accounts after all.
The floorspace allocated to phones is small. The collateral promoting the handsets doubles as a pitch for the recharge business.
We have had phones in our Newsagency for the last 3 years and would strongly recommend it to other Newsagents. This product line brings the gen y custom in and as Mark correctly points out we jag more phone top ups as a result of it. Aust Post is simply no competition and I would guess I sell about 4 phones to every one they sell. To help that along I give away a chocolate bar with every phone sold. Last year I sold close to 500 handsets which I am very proud of.
There is even better money to be made from accessories like chargers, phone & screen covers, batteries and bluetooth accessories etc where the mark ups can be as high as 100%.
I have 4 cabinets in the shop now and stock Vodafone, Boost, Telstra, Virgin & Optus and stock around 20 different handsets as well as pre-paid broadband modems and sim card packs. The older demographic only come to us as we take the time to set up the phone for them, do top ups and take an interest in them.
The main reason I do so well out of it is that we take the time to talk about product and are enthusiastic about selling which they simply don’t get at Aust Post. They don’t get the free chocky either!
If you’re not into phones yet then I suggest you consider it. It is most definitely not a set up and forget line of product and needs constant updating of knowledge and presentation and the devotion of time to sometimes painfully slow customers but the rewards as far as I am concerned far far outweigh the input.
Angelo,
Congratulations This is the way to go in mod communication. Should anyomne have any doubt if you get the chance have a look at the set up in Percy’s Newsagency Cooma.
Excellent job there with full Telstra Agency at the rear of the Shop.
Who do you purchase Telstra phone from? I only seem to be able to find Optus suppliers. We only have good reception from Telstra and most in area want Next G
Graeme, I know Percy’s well and it is an example of what one can do if they want to go the whole hog i.e. do post paid and put people on plans. It’s a good experience to go there and I compliment that part of his operation.
Although I can do the post paid thing I prefer Pre paid product as that is where the strong growth is particularly with Gen Y.
Carol, for Telstra I go through J&M Communications in Vic (03) 9571-1555. I find their customer service, product range & point of sale support excellent and they are very helpful. There is also C-Direct in Melbourne whom I used to deal with but have since found J & M much better.
I agree Angelo, Where Leo has taken it one step further he has identified it as Percy’s Communications thus graually moving toward the communications business rather than news. Leo and I have had these discussions before he started the concept on what to do with the space left over after space allocation. He split the store into individual departments. Cards, Stationery, circulation etc put iN Voda phone originally and also put MBF store inside his newsagency with the staffing it and paying Rent for the floor space.
I think the new concept for newsagencies could be called “Burwood” of “Jones’s” News and Communications Centre or a different break up of the same theme.
This would “graduate” the agency from news to communications in general and thus cater more for the “Y” and yet “Z” generations to come.
thank goodness
i have found what i was looking for
the telstra dealer for phones…happy now..thanksfor the info