If you’re looking to diversify your income, add new products or branch out, then the mobile phone market is a great one to tap into. Yes, making and manufacturing phones is a saturated market, as is, to a large extent, selling new phones and gadgets. However, there is still big money to be made in selling used mobile phones to your customers. This is where wholesale used mobile phones come in.
So if you’re looking for a new income stream for your business read on for our guide of how to wholesale used mobile phones for a profit.
Why sell used mobile phones?
People love the feeling of new, especially when it comes to gadgets such as smartphones. Upgrading a phone brings a whole wealth of new features to explore, increased speed to enjoy and often an upgrade to what they’re used to. However, the price that comes with a new phone is out of many people’s price range. For example the latest iPhone XS can fetch a price of £1,349 brand new. That’s before the consumer has thought the cost of use.
To enable people to still enjoy a phone upgrade, but without the expense, the used mobile phone market is booming. While it doesn’t allow people to enjoy brand-new they can still get excited about ‘new to you’.
For the entrepreneur, selling used mobile phones is a no-brainer. In 2017, smartphone shipments reached 1.46 billion units per year. There remains a hugemarket for mobile phones, especially ones that come at a reasonable price.
However, in order toprofit from the used mobile phone market, businesses need to be savvy about how to tap into the market and how wholesale used mobile phones can help.
Building your used mobile phone inventory
Before you can think about making a profit from used mobile phones you need to have an inventorythat is ready to sell. It is wise to think about the market you want to tap in to and the type of consumer you want to attract.
For example, if you want to offer almost new and almost undamaged used phones to command a higher price, then you need a wholesale used mobile phones supplier that offers highly-graded mobile phones. For example, Phoenix Cellular offer phones which as Grade A Pristine, which means they appear almost new with only a few slight blemishes. While these phones can attract a higher price, they usually cost more to purchase.
If you want to attract those who are looking for a bargain, then Grade B and C phones may be more suitable for your business. These will usually be cheaper to purchase, but will probably not be able to command a price as high as a Grade A Pristine option.
Before buying your inventory, scour the market to see where the gap is. Is it in bulk offers, low grade or high grade? Is there a particular brand you should specialise in or will your business allow you a large inventory with a range of options. Once you identify where your business can sit in the market place, start to gather your inventory.
Wholesale used mobile phones
When purchasing your inventory, go for wholesale. Businesses such as Phoenix Cellular offer wholesale used mobile phones that can give you the best price in order for you to maximise your profit. Before a purchase, look for the mark-up potential. You’ll need to make sure that your business is competitive, viable and successful.
How to make a profit with wholesale used mobile phones
There are three main factors which will all have a part to play in how much profit you can make from used mobile phones. The three main aspects include;
Obviously,the higher the mark-up for each phone, the greater levels of profit you can enjoy. However, the marketplace is competitive. If your mark-up is high, will it still attract customers? Furthermore, is there a specificreason why a customer should choose your business with a higher mark-up compared to someone who is selling for cheaper? If you want a high mark-up, makesure your customers know why you command it. For example, you may offer free shipping, oryou may have the best and latest Grade-A phones.
Selling in volume tends to lower the mark-up you can add, however you can sell more phones. Often bulk buyers will want a discount for large orders and will not be willing to pay a consumer price. However, sellingin volume is usually quicker and easieras you are dealing with one or two customers rather than many.
The way you operate your business will impact your profit. If you’re paying for a website, marketing, employees, storage, travel and postage fees then they can quickly add up to slash your profits. It is important to be aware that selling on sites such as eBay and Amazon will require a cut too. However, if you are savvy with storage and business management, then you can streamline the business and keep expenses low to maximise the profit.
It is well worth factoring your time into your overheads. If you’re working all day and all night to market your phones and respond to queries, are you making enough profit to survive?
Five top tips for selling wholesale used mobile phones to consumers
- Check market prices– Will you be able to make a substantial or viable profit based on market predictions?
- Instil trust– Offer lots of pictures and detail, sobuyer’s don’t hassle you with messages.
- Specialise– If you develop a niche you can be the go-to provider.
- Clevermarketing– Look for where your consumers hang out (Facebook, Instagram, etc) and advertise accordingly
- Develop a process– That way you can leave the business in the hands of someone else when you’re away as well as reducing the time you spend managing it.
If you want to start selling used mobile phones, then get in touch with Phoenix Cellular, who specialise in wholesale used mobile phones for businesses just like yours.