Wireless Repair Magazine - IFIXIT UNITES THE REPAIR COMMUNITY by Wireless Dealer Magazine

INSIDE 32

SOLARCOMM

Pre-owned phones can be like new

B-STOCK

Sourcing trade in devices in re-sale?

69 VALOR

How to drive revenue with phone accessories

PRYME

What communication products will end users need next?

72 DRONE

Third-party drone repair takes off!

RIGHTING THE BALANCE IN CELL PHONE REPAIR

53 GHOSTEK

Ghostek is living up to it’s name

LUX WIRELESS

Accessories don’t make the outfit, they make the phone!

87 WE SELL CELLULAR Finding big profits in selling used phones

IFIXIT

IFIXIT unites the repair community

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SOLARCOMM: PRE-OWNED PHONES CAN BE LIKE NEW

“we sell what we

say ”

PRE-OWNED PHONES

CAN BE LIKE NEW By Arlene Hauben

Pre-owned cellular phones are big business, with the global market expected to reach $14 billion in 2017, according to a survey by Gartner. Properly tested and graded for functionality, used phones can be A-stock, like new condition devices, offering an excellent value when compared to new phone costs. Solarcomm Wireless, now entering its 21st year as a wholesale cellular phone distributor, sells many types of leading brand cellular phones and tablets that can be new, certified preowned or used, to retail stores, other dealers, MVNOS and insurance companies. They are one of the biggest suppliers of certified pre-owned phones to customers that are in need of an alternative to the skyrocketing prices of the new phone market. They offer a wide variety of models from all the major manufacturers, Apple, Samsung, LG, etc., primarily devices that are compatible with the Verizon network. Solarcomm also deals with most other carriers as well as unlocked phones. Erik Molden, owner and president of Solarcomm, spoke from Tempe, Arizona, about the strong growth of the business since its start in 1996. He attributes Solarcomm’s strong industry reputation to its commitment of their motto “We sell what we say” and unmatched customer service.

SOLARCOMM: PRE-OWNED PHONES CAN BE LIKE NEW

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TESTING AND GRADING UPHOLDS STANDARD “We want to uphold that time-honored standard by testing and grading every phone that leaves our facility,” said Molden. Cellular phone testing and grading services by Solarcomm’s professional quality-control team has been the basis for their success in the wholesale industry. This commitment to excellence has Solarcomm conducting business in several countries. “We are proud that we test and grade everything. There should not be any other way of selling fully functional pre-owned devices. They are used devices but because of our quality control team’s process the customer receives a thoroughly tested, like new device,” added Molden. Molden started Solarcomm over 20 years ago activating phones and has watched the industry grow from the simple brick phone to today’s highly sophisticated devices. Integrity and long term relationships have allowed Solarcomm to keep pace with the competition.

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SOLARCOMM: PRE-OWNED PHONES CAN BE LIKE NEW

CERTIFIED PRE-OWNED CELLULAR PHONES (CPO’S) Since 80 percent of the products they sell are used, Certified Pre-Owned cellular devices -- Solarcomm concentrates on tried-and-true testing and grading services. Molden remembers when an “A” stock used to mean like new. That’s his goal when it comes to bringing Pre-Owned phones back to life. He believes in “selling with integrity.” To meet the increasing demand for high quality CPO’s, Solarcomm Wireless has brought testing and grading services into the 21st century. Solarcomm’s quality control team checks the functionality of every pre-owned device using a 20 point inspection process to eliminate any defective units. The team grades all devices into the standard A-Stock, B-Stock, or C-Stock categories. This ensures that customers receive what they paid for. Solarcomm uses certified software to conduct functionality testing. The certification process confirms make, model, memory and OS version. Testing is performed for hardware functionality, including but not limited to, WiFi, Bluetooth, charge ports, batteries, front and back cameras including flash, video recorder, lcd, microphones and speakers. The software also verifies if a device has google or Apple ID locks and checks IMEI’s to eliminate black listed devices.

SOLARCOMM: PRE-OWNED PHONES CAN BE LIKE NEW

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THE GRADING PROCESS, CHECKING INSIDE & OUT Solarcomm inspects for cosmetic grades, making sure that devices are free from scratches. Those devices that have cosmetic imperfections, are then put into a B or C stock category; again, ensuring the customers gets what they expect. A-Stock devices are considered to be like new, the B stock phones will have minor scratches or blemishes and their C-stock will have excessive signs of use. All devices can be sold as handset only or may be kitted in the OEM or white box with accessories. As the market continues to grow, cellular phone retailers and end users are continually searching for a less expensive option to the increasing high cost of a new phone. Overall growth in the wholesale cellular industry is rapidly expanding, because one in four people will have their cellular phones lost, stolen or damaged in one year. Solarcomm will continue to offer high quality, lower cost alternatives to an ever expanding market. Remember, they sell what they say.

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Valor: How to Drive Revenue With Phone Accessories

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THE SUPPLIER While it is important to manage your customers’ expectations with readyto-go phone accessories. It is also important to find the right accessories supplier to help you meet those expectations with durable protective solutions that can withstand future accidents. Valor offers exactly that: innovative products that offer daily users some peace of mine. Valor designed-cases combat life’s unexpected accidents. The thinness and beauty of today’s luxury phones make protection nonnegotiable, and that’s where Valor steps in. At a fraction of the cost, their cases offer unrivaled quality and eyepopping craftsmanship. Sound too good to be true? It isn’t. Here’s how they pull it off.

contacts for everyone we know, to entertainment and to health monitors - the list goes on. With high-tech phones also come higher price tags, fragile screens and expensive replacement components. The good news is, consumers are more likely to turn to professional repair shops to recover the broken (and expensive) device rather than buying a new one. It is also likely for consumers to walk away with some type of phone accessories after the repair is done. Why? Because the last thing they want is to come back again for another repair job. Therefore, having a solid selection of add-ons phone accessories, such as hybrid phone cases or tempered glass screen protectors, in the store is no secrets for repair store owner who wants to drive more revenue to their business.

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Valor: How to Drive Revenue With Phone Accessories

VALOR CARRIES MORE THAN 16,000 PRODUCTS AT ANY GIVEN

P 40

THE PROCESS Unlike others who are content to slap their logo on mass-produced items, Valor makes its own products. Call it an upsized family business: They combine manufacturing, distribution and their creative work under the umbrella of a single company. In straightforward terms, it means Valor can get better products in your hands faster. Your mobile device can thank us later. Unsurprisingly, Valor is a demonstrable leader in the wireless industry. They have spent years perfecting their supply chain, and it’s matured into a thing of beauty—from the inception of a product, to research and development, to factory operations, to their headquarters in sunny California, to the tech they use for inventory management. Valor is proud of their products, and they are diligent about protecting their development with patents and copyrights. Now, they are focusing even more on brand awareness— the reason, perhaps, that you’re reading this—to carve out an unmistakable corner in the marketplace.

TIME, CREATING 100-PLUS NEW ITEMS EVERY SINGLE WEEK.

Valor: How to Drive Revenue With Phone Accessories

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THE PRODUCTS If you’ve ever stepped foot into a phone accessory kiosk at your local mall, you’ve already encountered a Valor product. Their most popular brand, MYBAT, is carried across the globe by electronics and wireless retailers, by wholesalers, and by distributors. And thanks to Valor’s far-reaching distribution infrastructure, they are able to manage any quantity without sacrificing quality. That’s no exaggeration: Valor carries more than 16,000 products at any given time, creating 100-plus new items every single week. Do your customers come in for iPhone repairs, Samsung galaxy repairs or LCD repairs? No matter. Valor’s products span 300-plus phone models including Apple, Samsung, LG, HTC, ZTE, Alcatel, Sony, Google and more. If you have a phone, it’s likely for we have a protective solution.

THE QUALITY Valor’s MYBAT line of designs are masterfully engineered. Their cases are patented and military drop-tested to meet the U.S. Department of Defense’s testing procedures as part of their promise to making style-forward, one-of-a-kind products for those who are serious about their tech. They have more than 20 patented designs for the MYBAT brand to ensure that their products are often imitated, but never duplicated. Valor’s flagships? The TUFF, TUFF Merge, TUFF Trooper, TUFF Cosmic Space, Skullcap, NeoUrban MyJacket and 3-in-1 Storm Tank, which includes a rugged hybrid case, fitted holster and screen protector in one indestructible combo. Function and form—you can have them both.

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Valor: How to Drive Revenue With Phone Accessories

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THE PACKAGING Creating a memorable first impression is one of the most critical elements in building a brand. Whether you’re a kiosk owner, retailer or online repair shop, you want that initial “handshake” with the customer to be firm yet pleasant. You want to have not only an innovative and unique selection but also a presentable brand appearance across all products. And it all comes down to packaging. At Valor, you can get effective and innovative packaging designs that is both protective and easy to display. They recognize that their customers don’t have mass-produced needs, and accordingly, they allow their retail partners to create custom designs and packaging.

Valor: How to Drive Revenue With Phone Accessories

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Tips on How to Accessorize Your Repair Stores: REVIEW YOUR TOP REPAIR PHONE MODELS Chances are these will be the phones that need cases for improved phone protections! KNOW YOUR NEIGHBORHOOD Be familiar with nearby pre-paid and post-paid phone stores. Research their top-selling smartphones - these may be the phone accessories you want to start off with for your repair store. DON’T OVERSTOCK It is more important to have a variety of options for your customers rather than too many accessories of the same brand and style. Only get what you think can sell within 3-4 weeks, then re-order as needed.

THE BIG PICTURE Accessories are an important revenue source for cell phone repair businesses. Stocking only the best selection of phone accessories will generate the most revenue for the amount of space in your store. Valor has over 20 years of experience in helping mobile phone accessory stores to build up their business. Their mission is to help independent B2B owners bring in the right selection of accessories for their businesses and grow in parallel with them as partners in the industry. Quality products. Wonderful variety. Extensive catalogs. Low RMA returns. Killer customer service. Prompt shipment (and same-day shipment prior to 2:00 p.m.). That’s Valor’s promise. Join the team of Valor distributors and retailers today! For more information on wholesale opportunities, contact us at 877.369.2088 or Sales01@2valor.com. To learn more, visit us at www.2valor.com

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THIRD-PARTY

DRONE REPAIR

TAKES OFF

A Perfect Fit for Wireless Repair Experts By Arlene Hauben

rones are on the rise, appealing to hobbyists, technology startups, and photographers. Almost every type of company, including real estate agents, farmers, and energyfirms, has found uses for drones.

In the can-dowireless sector, phone and computer repair experts are gravitating to drone repair where they see potential for building revenue. Kathy Katcher, publisher of Wireless Dealer Magazine, has watched firsthand how retailers have learned to stay afloat and prosper by adapting their technical skills to new trends and innovation. In 2007, when Katcher got involved in the ‘repair’ wireless business too, she believed that retail operators had to learn how to repair cell phones as a means of increasing profitability. She believed then, and now,that customers are inclined to bring their phones to trusted and reliable phone repair technologists. Katcher became an advocate for wireless retailers and computer stores, helping them learn repair skills and connect with repair schools and part suppliers. She watched as phone repair became a solidway to make a living. As repair trade caught on, Katcher noticed that some shops were too focused on repair. These stores were uncluttered, perhaps too stark, with little to nothing displayed in the front. Some owners said they didn’t want to look like a jack of all trades, preferring to be phone repair experts. The challenge continued to be about increasing the revenue stream. Repair retailers need to integrate new wireless products and services to their repertoire. Besides offering repair, it’s important your store is considered a place customer’s can buy accessories such as cases, speakers, headphones, and Bluetooth gadgets. During the years when a lot of repair retailers were almost solely focused on phone repair, the network continued to grow across the US. Skill levels surpassed the level needed to perform basic phone repairs and moved into providing phone circuit board repairs, data recovery, and more.

Just as Katcher had advocated wireless service stores to provide phone repair, she began to advocate for repair shops to repair more things, like tablets, laptops, smartwatches, hoverboards, waterproofing devices, and selling their own warranty repair package. What else?

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GETTING INTO DRONE REPAIR

hen along came a game changer. The FAA lifted the regulation on drone use. Hobbyists and techno start-ups rejoiced when they could use drones commercially without a pilot’s license. “Drones had always been on my mind,” said Katcher. “I was convinced the technical ability for repairing drones could lead the repair industry into another higher technical skill level, providing more vertical opportunities in an industry where just about everyone is a start-up.”

“Wireless repair stores are continually seeking new avenues to profitability. On our side of the industry, we are seeing prepaid wireless providers adding repair services to keep up with consumer demand,”

Robin Tobias President

After the federal regulation was lifted, there was an audible rumbling for drone repair. “I think the whole drone industry felt that drone repairs were a problem, but first and foremost, it needed a business lift,” noted Katcher. There was an open spot in the drone industry for drone repair, much the same way that phone repair developed from the consumers dependence on smartphones and their livelihood. At one time,it took a week to replace a broken phone, then days, and now hours. Consumer dependence drove the repair industry and changed where, who, and how repairs are provided. The Prepaid Expo. “With drone sales increasing at a staggering rate, it makes perfect sense for these repair operators to take a serious look at drone repair. Looking ahead, drone repair could be a significant differentiator for these providers, and a way to keep a step ahead of the industry.”

hen it comes to damage control, phone repair professionals fit right into the drone universe. After all, there’s no question that drones will crash – and need repair.

Katcher’s clients had started to ask how to expand into the drone sector. Compared to what is shipped back overseas for repair, there were almost no third-party drone repairers in the US. Up until recently, a repair retailer who wanted to become a certified OEM drone repair retailer had to agree to a drone buying commitment contract on new sales, and then fly overseas for a five to 5 to 10-day repair class for that drone manufacturer. Katcher responded to the demand for drone repair education by working with the Houston College and other Colleges nationwide. She hired a DJI certified drone repair technician and created a hands-on course to teach how to repair the top five most popular drone repairs customers will bring to your store.

“Phone repair experts have the infrastructure already in place. Natural progression is for them to get into drone repair.”

Drone Repair University in Houston is the first third-party drone repair school for independent repair retailers & techniciansin the US. Glenn Wilkins, a certified DJI drone repair technician and instructor for Drone Repair University, explained, “Phone repair experts have the infrastructure already in place. Natural progression is for them to get into drone repair.” There are more than 15,500 repair stores in the US that could prepare to provide drone repair services. The profit margins per repair after parts on most drones is $99 to $165. Meanwhile, the phone repair profit margin is diminishing, compared to the early days of the industry.

Glenn Wilkins

Ccertified DJI Drone Repair Technician

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“Drone repair is part of a ground f oor opportunity. It’s an emerging market, actually a multibillion industry that we are tapping into,”

Brad Lovell, regional sales manager at Mobile Defenders, said that third-party drone repair makes perfect sense. “We believe there will always be a need for electronic repair. That is a need that cannot always be fulfilled by the OEM. Why should you have to take your car to the manufacturer to get a belt changed when the locally owned shop down the street can do it faster and for the same price or less, and will stand behind their work? The same applies to drones, phones and any other electronic device. Mobile Defenders can provide a turn-key solution for all repair avenues.” Wireless repair and replacement parts is what Mobile Defenders is known for at its core, but they realized that they must grow and evolve with their customers. Most repair shops will repair just about anything from wireless devices to computers and even gaming consoles. Drones are a natural extension for the repair community to diversify their revenue streams. Drone sales in 2016 have doubled from 2015. The projected value of the drone industry by 2025 is $90 billion, according to DMR Stats. Lovell said that drones will begin to diversify into different fields. As they grow in popularity, we can full expect the technology to improve and the price point to drop. As this adoption increases, the number of accidents will increase, which will also make the repair industry more lucrative. To learn more about repairing drones visit www.DroneRepairUniversity. com or call 1-800-862-2609. Drone Repair University & Drone Repair EXPO is produced by Wireless Dealer Magazine. To learn more about repairing drones visit DroneRepairUniversity.com or call 1-800-862-2609 x1.

Kathy Katcher, CEO & Publisher of Wireless Dealer Magazine & Wireless Repair Magazine.

Drone Repair University & Drone Repair EXPO is produced by: Wireless Dealer Magazine.

BREAK OUT HANDS-ON WORKSHOPS!

TAP INTO A MULTI-BILLION DOLLAR INDUSTRY!

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We Sell Cellular: Finding big profits in selling used phones GHOSTEK: Ghostek is living up to itâ&#x20AC;&#x2122;s name

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We Sell Cellular: Finding big profits in selling used phones W R M

GHOSTEK: Ghostek is living up to itâ&#x20AC;&#x2122;s name

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GHOSTEK: Ghostek is living up to itâ&#x20AC;&#x2122;s name We Sell Cellular: Finding big profits in selling used phones

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GHOSTEK: Ghostek is living up to itâ&#x20AC;&#x2122;s name

We Sell Cellular: Finding big profits in selling used phones

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Righting the Balance in Cell Phone Repair Ed McKinley

Ed McKinley is a Senior Writer for The Prepaid Press, an online publication for the prepaid services industry. To learn more about the relationship between prepaid and repair services, and meet the players, attend The Prepaid Expo, produced by The Prepaid Press: August 22-23, 2017, Planet Hollywood, Las Vegas. Visit www.theprepaidexpo.com to register.

weird imbalance prevails in the cell phone business. On one side of the equation, the stores founded to sell prepaid minutes also repair phones. But on the other side, the shops launched to specialize in repairs usually don’t sell minutes. More specifically, about 80 percent of prepaid stores now double as repair shops, while perhaps 10 percent of the nation’s 15,000 or so repair centers are selling minutes, according to Avi Yosopov, CEO of PhonePartsDistributors.com, a wholesaler of repair parts and used cell phones. Despite their resistance to selling minutes, the repair specialists have been growing in number for the last five to seven years, observes Sean Michaels, president of MaxBack, a company that buys and sells used electronic devices, including phones. That growth shows little sign of abating, he says. Meanwhile, however, the repair marketplace is becoming more confused as big box office supply stores get into the business, says Lee Terkel, vice president of sales and marketing for cellhelmet, a phone accessories supplier. “Things are juxtaposing in all sorts of odd and strange ways,” he observes. The fragmentation of the market also includes incursions by small shops selling that specialize is selling barely related products – like battery stores, notes Matt Roldan, chief customer officer at Sourcely, a company that provides internet services and repair parts to the cell phone industry.

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t’s natural for prepaid centers to offer repairs simply because people walk in with phones that have problems, says Ramin Heydari, CEO of The Preferred Prepaid, a company that provides wireless products and services to retailers.

Prepaid stores are also attracted to the repair business because it represents another revenue stream in an industry with compressed margins on its core products, observers agree. Offering repairs keeps customers coming back and thus reduces attrition, they note.

Embracing repairs;

rejecting minutes

Conversely, repair specialists often choose not to sell minutes even though industry observers admonish them not to turn their backs on an opportunity. “If you’re just offering one thing in your business, you’re really cutting yourself short,” says MJ Nale, who operates an online phone repair school called Phonlab. Repair shop owners often shun minutes because they’re not familiar with the business, says Yosopov. “They’re just not educated in the exact details of how it works,” he adds. That fault lies with a lack of training and support from the carriers and distributors, according to Heydari. Those omissions leave repair shops with a “hodgepodge” when it comes to selling minutes, he says. It might also be contrary to the nature of many repair shop owners to take on a sales role, Roldan says. “A lot of times, they’re repair guys. They’re not business guys,” he notes. “They’re tinkerers. They build things.” Besides, about 90 percent of repair shops operate with only one person working on the premises so spending time selling doesn’t work well, says Heydari. “They’re making $100 on a thirty-minute repair and don’t want to waste time answering the customer’s questions on various prepaid services,” he says. “They don’t see the benefit.”

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In addition, some repair people regard the retail side of the business as a lower-end pursuit that’s lacking in sophistication and is usually confined to poorer parts of town, Yosopov says. “They think of a cluttered, non-corporatelooking store with a thousand different banners in front of it from a hundred different companies,” he maintains. “A lot of people take a step back from that.” Instead, lots of repair people aspire to opening shops in white-collar areas and catering to consumers who have postpaid accounts, Yosopov says. “Do I agree with their decisions?” he asks rhetorically. He answers himself by saying no. Combining repair with selling minutes and accessories makes more sense, Yosopov contends, adding that those who fail to bring together all the elements of the business will be left behind by competitors.

Whatever the volume and whatever the shop chooses as its main function – prepaid minutes or repair – they find themselves replacing a lot of cell phone screens, says Roldan. In fact, screen repair accounts for about 80 percent of the repair business, he says. Remember that it’s mainly component-level repair, cautions Heydari. Hardly anyone in the cell phone stores or repair shops is changing out chips or modifying circuitry, he says.

Ninety percent are module changes – either a speaker or microphone – big components, he contends. Replacing major components that way usually requires 30 minutes to an hour, Heydari estimates. If the shop tells a customer a repair will take longer, it’s just because the shop has a backlog of work, he notes.

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Starting small in minutes

ven though repair shops can place themselves in a better competitive position by offering minutes, they don’t have to break the bank to do it, Yosopov suggests. They can start small by stocking just a few SIM cards, he notes. Once they have that capability to sell minutes, they can begin to strike up conversations about how they can beat competitors’ rates, Yosopov suggests. “Then, ‘Boom!’ they’ve got a sale,” he exclaims. But starting small can result in remaining small, Heydari warns. Repair shops that sell minutes tend to lag far behind in the prepaid category compared with stores that consider minutes their main reason to exist, he notes. Marketing and location can hurt repair shops when it comes to selling minutes, he says. Marketing and location can hurt repair shops when it comes to repairs, too, cautions Yosopov. In fact, prepaid centers probably perform more repairs than the repair specialists do, he says. “They’ve been around longer and have an existing clientele base that they’ve accumulated over the years,” he notes. Still, some repair shops in prime retail locations handle a lot of repair business – about the same volume retailers achieve, Yosopov observes. Other repair shops pay a thousand dollars a month rent for a neighborhood space and thus have little foot traffic to drive business, he notes. “It really varies,” he says of repair shop volume. “It’s all over the place.”

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Starting a repair shop

eople who aspire to launching their own repair shops often have a computer background and start by repairing phones for friends and family, Yosopov says. Then they see the demand, scrape up some capital and open a shop, he says. Some computer-repair shops simply branch out into cell phone repairs, notes Roldan. Then there are the phone repair-stores that begin working on computers, too. “There is definitely some cross-pollination,” he observes.

Inventory should include screens, charging ports, earpieces, buttons and lots of other small parts, Roldan notes. And the parts vary from model to model. “You need to have a few of everything just to make sure,” he says. Besides inventory, repair shops should have marketing plans, Roldan emphasizes. “You have to know how you’re going to acquire customers,” he advises. His company provides ways of marketing online, he says.

However, it’s easier to enter the phone repair business than the computer repair industry because computers come in a wider variety of models and thus require a larger parts inventory, Roldan says.

Perhaps 20 percent or 30 percent of repair people choose to become franchisees, although no one really know the true numbers, notes Roldan. Of those who do take franchises, some remain low-level with just a few locations while others operate hundreds of franchised shops, he says.

The investment in parts varies for phone repair shops, Roldan continues. It’s tough to say how much inventory the business requires because it differs depending upon location and marketing, he contends. The parts bill for typical repair shops ranges from $2,500 to $5,000 monthly, he says.

A Google search yields numerous franchisors, many with names that conjure medical images. In no particular order, they include CPR, Cellairis, DrPhoneFix, LifeLine, Staymobile, iCare and uBreakiFix. Some entrepreneurs have grown their businesses into regional operations with multiple stores.

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The imperative of accessorizing A

lthough repairs shops often exhibit a reluctance to sell minutes, most show enthusiasm for selling accessories, says Terkel. “You walk into a well-heeled repair shop today, and you will see all of the ancillaries that are sold in wireless,” he says. Customers often wait in the shop for an hour or so for a phone repair, giving them plenty of time to peruse whatever accessories the repair shop chooses to display, Terkel notes. At the same time, prepaid retailers are attracted to the accessory business because their margins are squeezed on activations, renewals and devices, Terkel says. “The profitability of the accessory side of the business is becoming more and more paramount,” he declares. What’s more, prepaid retailers are going upmarket with the accessories they offer as their clientele becomes more middle class as families learn they can cut their wireless expenses by switching from postpaid to prepaid, Terkel maintains. “Chargers, tempered glass – those are going to be their opportunities,” Roldan says of accessories. “The No. 1 upsell in the industry is tempered glass,” he notes. For consumers, a $30 tempered glass shield protects a screen that could cost $90 to $300 to replace. For repair or retail shop owners, the margin comes to 90 percent, he says.

Refurbished phones R

etailers and repair shops alike can profit from selling new-looking older phones with replacement housings and components, observers agree. But getting into that business can prove problematic because suppliers sometimes insist upon large-scale purchases, says Yosopov. Before becoming a parts and used phone distributor, Yosopov entered the industry by opening a repair shop. He wanted to augment his repair business by offering used phones for sale and soon discovered he had three options. First, Yosopov could buy used units from a wholesaler who charged nearly as much as the phones brought on eBay or Amazon and required a purchase of at least 200 devices. Second, he could buy the ten or 20 phones he needed but would have to pay the wholesaler more than the devices cost online. Third, he could simply buy them on eBay or Amazon.

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For distributors, used phones pose risks because they might not sell in time to avoid depreciation, Yosopov says. That danger intensifies when repair shops are buying phones one or two at a time, he notes. It’s also difficult to stock all the many varieties of used phones available in their differing brands, models, colors and data storage capabilities, he says. Meanwhile, many of the used devices in the U.S. are shipped abroad for sale in other countries, says Yosopov. “If you’re able to unlock them, they’re worth a lot more there,” he notes because so many consumers get new phones here.

iPhone 6 and thus reduce the cost of the iPhone 7 repair to $150, he notes. Shops can fix the trade-ins and sell them to consumersor sell them online or to wholesalers, Roldan says. Some of the old phones they receive are in good enough condition to resell without repairs, he notes. Providing used phones is becoming a core competency of some repair shops, and Sourcely provides an online platform to expedite buying phones from consumers, he says.

Buy-back schemes provide one way of acquiring old phones in the U.S. and at the same time can subsidize the cost of repairs, says Roldan.

Meanwhile, companies that specialize in used electronics equipment see an impending opportunity in second-hand cell phones, says Michaels. Until now, most of the equipment his company has handled has been has been in good enough shape that it didn’t need repair.

For example, a consumer might go into a repair shop and find that a repair to an iPhone 7 costs $250. The shop can offer that customer $100 for an old

But that’s changing as carriers become more aggressive in their efforts to compel consumers to turn in old phones, Michaels says.

Sometimes they’re offering $200 for trade-ins, for example, which could be more than the market value of the phones, he observes. It’s the carriers’ attempt to gain market share or retain subscribers, he notes. Whatever the goal, that pricing increases the number of phones traded in, Michaels says. But carriers don’t really want to deal with the large numbers of phones that need repairs that will come in as part of the new trade-in policy, Michaels continues. That provides his company with an opportunity to step in and buy the phones that need work. His firm can then make the repairs and sell the devices profitably. With all this emphasis on selling used phones in repair shops, it might seem likely that a move into selling new ones could take hold, too. But repair shops seldom offer new phones to their customers because they’re expensive to buy and to sell Rolden says.

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The importance of repair R

egardless of the approach that repair specialists choose – franchised or not, offering minutes or not – their numbers are continuing to grow and that trend appears likely to continue, Roldan says. “There aren’t any real barriers to entry,” he says. “Anyone can be in cell phone repair.” Even with easy access to the market, repair remains a great, mostly untapped source of income for repair specialists and cell phone stores alike, in Heydari’s view. “These channels definitely have more potential than is being used,” he maintains. And the skills of the repair specialists constitute an invaluable asset for the industry, Heydari says. “They’re pretty intelligent, savvy people – they’re more than just clerks,” he concludes.

A special thank you from the Publisher & CEO of Wireless Repair Magazine, to all of the repair stores around the world. – Kathy Katcher The Prepaid Press extends its appreciation to Kathy for her assistance with this editorial. www.WirelessRepairMagazine.com WRE Office: 1- 8 0 0 - 8 62-26 0 9

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Wireless Repair Magazine Staff CEO & Publisher | Kathy Katcher Kathy@WirelessDealerMagazine.com COO | Laurette Veres Laurette@WirelessDealerMagazine.com CMO | Wayne Oâ&#x20AC;&#x2122;Niel Wayne@WirelessDealerMagazine.com Art Director | Thomas Vela Thomas@WirelessDealerMagazine.com Advertising & Sales Deputy | Amanda Pagan-Glass Amanda@WirelessDealerMagazine.com Research Analyst | David Katcher Lydia@WirelessDealerMagazine.com WDM News Anchor | Chelsea Rogers Chelsea@WirelessDealerMagazine.com Director of Finance | Jessica Hiatt Jessica@WirelessDealerMagazine.com Contributing Authors & Writers Meghan Lafferty Greg Murphy Dan Mieczyslaw Wireless Repair Magazine is published quarterly as an independent, wireless industry publication in Houston, Texas. Written materials and requests may be mailed to: WirelessRepair Magazine, 1217 Prince Street, Houston, TX 77008 [not responsible for any unsolicited materials] For advertising or subscription inquiries, please call toll free 1 (800) 862-2609 or visit WirelessRepairMagazine.com

Wireless Repair Magazine

1217 Prince Street, Houston, TX 77008 1 (800) 862-2609 WirelessRepairMagazine.com

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