Mall Kiosk Idea

kebertt

kebertt

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I'm thinking about starting a mall kiosk where I buy used and broken cell phones, and sell them on online marketplaces. I've been doing this locally for over a year now and have made some great side money, but I want to expand my business and take it to the next level.

I understand that to lease a kiosk in a mall with a lot of traffic it is expensive, but for a newer cell I can easily get around $80-100 profit. I also plan on hiring employees to work the kiosk, would this be possible in the buying-and-selling business?

Along with this kiosk I want to sell accessories such as chargers, cases, and screen protectors. I'm also looking into a service that can be used to back-up all of the information on or life (contacts, photos, videos, messages, etc). You receive a card with a code on it and the customer goes online and sets it up - very simple and has a high mark up.


What do you think - Does this business sound like it could be successful or do you think I'd get in over my head? Anyone have any similar experiences with kiosks like this? (Cash for Gold, etc.)
 
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In my country there is a company that does this online and advertises on national tv.
Bcoz of the notority they gained they now have deals with all big cellphone outlets (those that have stores in every city). When u buy a new phone in such a store you get a reduction for ur old phone which is then sold to the buying company. You can also send it in through the mail directly.

Just fyi
 
I don't get it, if you buy old phones, cheap, thats fine.

But what to do with them next ?
Where is the money coming from ?
 
dev_masta said:
I don't get it, if you buy old phones, cheap, thats fine.

But what to do with them next ?
Where is the money coming from ?
Click to expand...

If it's profitable I doubt he will answer that question. I too however wonder about that.
 
saxgod said:
In my country there is a company that does this online and advertises on national tv.
Bcoz of the notority they gained they now have deals with all big cellphone outlets (those that have stores in every city). When u buy a new phone in such a store you get a reduction for ur old phone which is then sold to the buying company. You can also send it in through the mail directly.

Just fyi
Click to expand...

True, i work in a mobile company we have the same thing... The price is really funny too (too cheep,but ppl still think that its great to get price reduction on new phone), we deliver them on monthly base from all over the country to one spot, than i guess they replace missing parts,or damaged parts and sell them on other markets (my guess is Africa or Azia) ; im from Europe...


Now to answer to OP - dont go to mall, find yourself a cheep spot and start building your name, also i recomend u do mobile repairs (very profitable) and focus on gadgets , people like to spend money on gadgets :)) hope it helps
 
There are a ton of these online but the reality is that not many people know about it, and the people that do know how many scams there are out there. The inconvenience of shipping your cell phone in and waiting days to weeks for a payment doesn't compare to the simple task of going to your mall and getting cash on the spot.

As for the source of income think of it like this; The customers selling me their phones are my suppliers. I simply take what they supply and sell them through different connections I have accumulated through doing this business on the side. There is a huge mark up, and I think that I am only going to accept the newest devices to ensure a large profit and less capital and time wasted.

Also, do you really think that getting a store location would be a good idea? I don't see the need for much space at all, and like the idea that a kiosk is a low-risk investment. I also like the idea of foot traffic, and a great target market in the mall. Some things I don't like is the price it costs to lease (especially during the holiday season) and the idea of me sitting at a mall kiosk all day. I would have to have dedicated employees, and wouldn't mind paying them as long as they are keeping profits coming in. Should I offer commission along with a min. wage? Or a steady wage of about $10/hr?

I do have some local connections who are great with local repairs that I can outsource too. That's a great service I think I will offer.

One of my main concerns is dealing with stolen goods. I have an idea of what I could do, but what would you recommend?
 
You can ask them to show their ID when they sell you goods. People with stolen stuff won't want to do that.

Another idea is to print up some cardboard boxes with recycle your old phone- just place it in the box, save the environment type stuff on them, and get all the stores that sell new mobile phones to let you put them inside their store. You could have preprinted bags on the side where people just write their name and any other info needed.
 
kebertt said:
There are a ton of these online but the reality is that not many people know about it, and the people that do know how many scams there are out there. The inconvenience of shipping your cell phone in and waiting days to weeks for a payment doesn't compare to the simple task of going to your mall and getting cash on the spot.

As for the source of income think of it like this; The customers selling me their phones are my suppliers. I simply take what they supply and sell them through different connections I have accumulated through doing this business on the side. There is a huge mark up, and I think that I am only going to accept the newest devices to ensure a large profit and less capital and time wasted.

Also, do you really think that getting a store location would be a good idea? I don't see the need for much space at all, and like the idea that a kiosk is a low-risk investment. I also like the idea of foot traffic, and a great target market in the mall. Some things I don't like is the price it costs to lease (especially during the holiday season) and the idea of me sitting at a mall kiosk all day. I would have to have dedicated employees, and wouldn't mind paying them as long as they are keeping profits coming in. Should I offer commission along with a min. wage? Or a steady wage of about $10/hr?

I do have some local connections who are great with local repairs that I can outsource too. That's a great service I think I will offer.

One of my main concerns is dealing with stolen goods. I have an idea of what I could do, but what would you recommend?
Click to expand...

Stolen goods are real problem - an ID wont help if something is stolen - police will take your phone , ID only helps track those who sold phone to you ... Trust me on this one - first you have to try 1-2 months alone than take employees if its good (stay with them in begining to teach them) also take all broken phones and get in contact with somebody who collect them (we have electronic waste and u get money when you depozit brokne TV-s,cams, phones etc....)

hope you will give a shot on your idea
wish you best luck
 
I negotiate real estate space for my clients during the holidays. We take shuttered space an negotiate 1 or 2 months rental. This would be a good way to test your project without the long term obligations mall landlords require. They also waive signage requirements letting temp tenants put up a banner instead of a sign, etc. We often find fixtures in the spaces that we use. Right now the malls are hungry for cash flow.
 
In all honesty I'm not too worried about the thought of losing profits to stolen goods in the event that the police confiscate a device or two. If I come across a cell phone with a bad ESN (Verizon and Sprint phones can't be activated if reported stolen, or bill not paid - this is called a bad esn) they are still worth 75% of the original value. My only concern with the whole situation is having the police question me on purchasing phones I did not know were stolen, and holding me accountable. To my knowledge it is legal to purchase a device with a bad ESN because it could simply mean that the owner didn't pay their bill and dropped their service, not necessarily that the phone is stolen - they sell on eBay all the time (and we all know how anal eBay is...)

Does anyone here know how long-term the mall contracts were? I thought they were simply a few months, with a deposit and monthly rate and/or 15% of profits? This would be perfect for me in that I could get out quick if necessary and not be held to a long-term contract

The idea of setting up boxes is good, but I have no idea where I would put these. There are some local mobile stores that offer the market I'm targeting, but if I were them I would see my idea and just put the box out for myself.

In your opinion how much capital would you say would be necessary to start this venture?
 
How profitable has it been for you? Do you math and figure out your bottom line operating costs doing the mall kiosk and figure how many "average" phones your gonna have to do to get that target financial goal down....then try to do that without the mall kiosk and see if you can pull it off....

I would make VERY sure you can pull it off before you go signing a contract for a mall kiosk....
 
Is there anyone out there that has operated a mall kiosk or has any inside additional info?

Also, do you as a consumer see this as something you or your neighbors would use?
 
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