With the rapid increase in the demand for smartphones and tablets worldwide, a corresponding opportunity is being created for smart entrepreneurs that have the courage and initiative to act.
Are you interested in learning how to buy and sell used phones for cash? Do you need a sample cell phone retailing business plan or feasibility template? Do you want to start a business in the technology industry? Then read on. The trend is on and the demand for smartphones at an affordable rate is on the rise.
Phones and tablets such as the BlackBerry, iPhone, iPad, Samsung Galaxy, HTC, etc are now being mopped up by a tech crazy generation in countries like Nigeria, Ghana, USA, U.K, south africa, India, etc. Now for those who are interested in making money of this technology crazy kids, you are welcome on board.
Buying and selling used mobile cellphones is good business because a lot of people cannot live without phones but only a few can afford brand new mobile phones, especially the latest models and expensive brands. You can give people with a tight budget an option by offering them used mobile phones.
There are a number of tips on how to buy and sell used phones. You have to take note of these tips especially if this is your first time to do this.
Purchasing and selling used cell phones may seem difficult or challenging, but immediately you understand where to get your supplies and how to do it, the business will becomes much easier. Purchasing and selling used cell phones could be very profitable if you are serious, honest and diligent in your efforts.
Beside the profitability, trading phones is a great way to earn some extra cash in your free time or leisure hours. The steps highlighted below are the ways to buying and selling used of used phones.
How to Make Money Buying and Selling Used Cell Phones
1. Have some capital set aside for the business
To start this kind of business, a certain amount of money is required. The amount should not be that much, but it should be something substantial in order to acquire the basic requirement for the business.
Based on financial strength and capabilities, an average person in this business should think of starting the business with a minimum of N200,000 (two hundred thousand naira) or approximately $1500USD depending on the level you want to operate on.
2. Do your market research and feasibility
It is very essential that you know which used cell phones are selling in the market and their prices. You can visit local retail shops that do sell used and refurbished cell phones. Compute a list of what they are charging for popular phones and take note of the number they have for each type of phone. This will surely give you some indication of their popularity in your own area.
You must also choose your target market. Are you targeting youths, teenagers, civil servants or salary earners, students, etc? You should also visit tech forums or better still, carry out a survey to find out what phone is most popular among your targeted users.
3. Learn about the features of the phone
One important tip to buy and sell used phones is to understand the features of the phone well. What this means in essence is that you must be technology inclined or oriented. It would be easier to sell a used phone if you can market its features to your potential buyers. Buyers would also have questions about the phone’s features, so be sure to prepare for the right answers.
You also need to know the features of a used phone before buying one to determine whether the phone will be easy to sell or not. You can ask about the features from the seller or you can research about the phone’s features and specifications over the internet.
4. Find a source or supplier
You can visit online classified websites such as Craiglist, eBay and Alibaba.com or AliExpress.com to see if there are used cell phones that you can buy and resell in your area. Do not pay more than what you think you can resell the phones for. Note that you can sell used cell phones for what retail shops can sell.
Or you can look for local pawn stores for used cell phones. Pawn stores are good places to purchase items with the intention to resell them, as they always pay little to buy items to start with. Frequently, they will sell them to new buyers for half of the original retail prices.
5. Consider the price
Another important tip on how to buy and sell used phones is to consider the price. When buying a used phone, make sure that you are getting the best deal in terms of quality and price especially since you are planning to resell it afterwards. Make sure that you will still get a good profit when you resell the used mobile phone.
6. Check for defects
Used phones sometimes have defects which could affect the price, especially if it is a major defect. Do not buy a used phone with major defects like damaged LCD screen because this will be too expensive to repair and you may end up with a useless mobile phone that nobody wants to buy. It is better to buy used phones in person than online, so that you can better check the condition of the phone.
7. Make sure that the phone is not stolen
One very important tip to note when buying and selling used phones is to ensure that the phone is not stolen. What you can do is to get a checkMend certificate. This is a database that has all the list of lost and stolen properties. Having a certificate proves that the phone is not stolen. IMEI or the international mobile equipment identity number is needed for you to check the phone in the checkMend database. You need to pay a small fee for the certification.
8. Advertise your business
People always sell more costly phones such as iPhones and Blackberries this way, as there is usually a little charge to place the adverts. Online classified websites like Craigslist do not charge any fee, and most of the buyers will come to you to pick the items. Paying for an ad will decrease your total profit.
Check resources for other classified sites that are free. Another way to sell your products is to place your phones in a display glass and position it in high traffic centers such as streets, road intersections, shopping malls, markets, etc
9. Write your ad making use of concise and clear languages
It is important that you give a clear description of the exact model and condition of the phone and the price which you want it to be sold. Do not forget to give your customers description of scratches on the screen or any other problems with the phone.
Remember that the best marketing tool for this kind of business is word of mouth marketing and referral. But no one will refer their family and friends is the quality of the phones you sell is very poor.
10. Be prepared for the downside
As a novice or beginner in this business, it is inevitable that you will end up buying dead phones or very low quality phones at the initial stage. This is a necessary loss as it will help you gain more experience in the selection and pricing of used phones. Another way you can reduce the effect or loss arising from this risk is to learn how to repair and reconfigure phones.
In conclusion, you should always expect to get up to 75percent of the retail value of used cell phones that are in good condition. Smart phone’s such as Blackberries and iPhones could have a bit more value depending on the area. For phones that are more than two years of existence, just expect to have about 40 percent of the original retail cost.
Finally, buying and selling used cell phone is a lucrative business. This is a business that requires smartness, intelligence, swiftness, vibrancy, socialization, good persuasion skills etc. It is profitable and encouraging if properly managed.