The wholesale used cell phone business is a lucrative opportunity for many entrepreneurs. The basic ways to grow your business are to sell more (find more places to sell or find more customers who will pay the highest prices for what you are selling, for example) and spend less (make your operation more efficient or find cheaper phones, for example).
Here are five levers you can experiment with to find the right way to grow your business.
1. Price Your Phones Correctly
To price your phones correctly, research what the market will bear and where market demand is going. It’s important to know what your customers want and how much they will pay so you are never behind on price. You will want to compare other companies that sell a specific brand, like wholesale iPhones, and set your prices accordingly.
2. Grow Your Customer Base
Growing your customer base means improving your marketing strategy and finding new ways to reach people who want your products.
3. Find a Better Supplier
One way to increase your profits is to find a supplier that can offer reliably graded phones. Buying from a wholesaler with a consistent supply and transparent grading will ensure you know exactly what you are getting. Making it easier to forecast your time and cost in upgrading (if applicable) and reselling the phones.
4. Carve Out a Niche
You can always raise your prices to make more margins. But there is an upper limit to this strategy, and it doesn’t get you far in a competitive business with low margins. The better strategy is to specialize in a certain type of cell phone, a certain type of customer, a special value-add, etc.
In other words, find a niche. For instance, you might want to specialize in wholesale iPhones and market to customers who will pay the highest price for your specialized supply.
5. Streamline Your Processes
Take a good look at your business processes and find ways to cut down on the time and money you spend processing and selling devices. You might want to look at your warehouse operations, customer onboarding process, and sales and marketing processes. You can also look into better ways to bring in new customers and make more efficient use of your advertising dollars.
These are a few ways that you can make a bigger profit by buying used cell phones and selling them. Each strategy has advantages and disadvantages, and only you can decide which one (or more than one!) is right for you. Sometimes, it takes a bit of experimentation to find just the right mix to maximize your profits and bring in cash faster.
