Wireless Dealer Magazine Reagan Wireless by Wireless Dealer Magazine

INSIDE:

Wireless Dealer Magazine Official Reports: Retailer & Dealer Opportunities: WDM Research Reports! 40 pages of new ideas!

10 Winning Wholesalers

Talk Strategy, Quality, & Success! Exclusive Interviews Inside...

REPAIR - Profi ts & Verticals Phones, Gadgets & Drones

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Letter from The Publisher

PUBLISHER’S NOTE

ear Readers, This edition of Wireless Dealer Magazine is called the “Special Opportunities” Edition. You’ll find an in-depth 32pg summary of the repair industry. We cover the pros and the cons of each business venture. This report researched the state of cellular repair, as well as new profitable verticals and opportunities businesses can take advantage of to grow in new directions. Our team interviewed TEN successful wireless companies winning exciting market share. Each company CEO shared their business strategy and how you can partner with them. The most active revenue and profits happening today are in the used & new mobile phone sector of the wireless marketplace. Both used & new phone sales are booming! Inside this edition you will find excellent companies you can speak to. DRONE REPAIR. Your competition is already gearing up for this new repair business and tremendous revenue generator. On June 26, 2016, the government passed legislation allowing the operation of commercial unmanned aviation vehicles (drones). This legislation cancels out previously passed legislation that stalled the drone industry to a large degree for the past couple years. The commercial drone business is now ready to fly and projected to expand significantly. Repair techs that attend higher level drone repair training will generate higher revenue streams and profits. As a bonus, techs that opt to take a more advanced drone repair training course will gain skills to fix the next-generation of smart devices, robotics, and a whole host of other new devices! “If you’re a retail store owner that has been waiting for the perfect opportunity to offer training courses to your client base, then drone flight training is the hottest, most well-received business opportunity your store can offer.” Inside this issue of Wireless Dealer Magazine, you will find valuable research to open up additional business opportunities and ideas for your wireless business! Stay tuned and keep growing your business! Kathy Katcher CEO/Publisher Wireless Dealer Magazine & EXPO 1-800-862-2609 x222 Kathy@WirelessDealerMagazine.com

PS. We will be releasing new industry developments Nov 1st inside our online edition of Wireless Dealer Magazine. If your company has news or product release, contact us today.

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EDITORIAL INDEX

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EDITORIAL INDEX

Liquipel: Making a Splash p.22-29

Patriot Mobile: Stand Behind America p.40-44

b2b Soft: How Proper Reporting Can Help p.64 OEM Ghostek: Living Up to Its Name p.60-63

WDM Exclusive: DRONE Repair-Why Now? p.48-53

LUX Wireless: Accessories Don’t Make the Outﬁt p.68-71

Cell Phone Repair: Why Your Customers Want You p.74-77

WeSell Cellular: Finding Big Proﬁts p.80-83

YourCellParts.com: Stepping up to the Plate p.86-89

Mobile Source: Breaking the Asia Supply Chain p.92-94

B-Stock: Using Technology p.100-103

CarbonKlean: Space Age Mobile Cleaning p.106-108

Wireless Dealer Magazine Headquarters Houston, Texas For advertising or subscription inquiries, please call toll free 1 (800) 862-2609 or visit WirelessDealerMagazine.com

WDM Exclusive: Big Proﬁt Future p.112-145

Valor MyBay: Uncommon Valor p.30-34

p.108

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Liquipel is Making a Splash

Liquipel Is Making a Splash in Waterproof Technology! So long to the days of water damage and cracked screens! If youâ&#x20AC;&#x2122;ve ever waited patiently as your mobile device marinated in a bag of rice, you may understand the anxiety of water damage. Donâ&#x20AC;&#x2122;t worry; most of us have been there. Hoping for a successful rice bath resurrection is, unfortunately, a common occurrence in the tech world. Water damaged electronic devices can be a huge pain in the neck, not to mention very costly to replace. However, you can now breathe a sigh of relief and rest assured that the rice in your cupboard will never again be used for anything but dinner, thanks to technology from Liquipel. Liquipel is a California based company which created a specialized process to keep electronic devices WaterSafe. This means saying adios to the dreaded rice revival!

Liquipel is Making a Splash

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“...you can now breathe a sigh of relief,”... [ By Meghan Lafferty, Staff Writer, Quantumrun.com ] 23

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Liquipel is Making a Splash

[

]

This compelling technology sprouted from a single idea

Liquipel’s WaterSafe technology process involves placing the electronic device into a special proprietary machine which creates a vacuum. Once the vacuum process is complete, the Liquipel formulation that is injected turns from a liquid to a gas as it enters the chamber. The final step involves plasma, which decomposes the liquid repellent molecules, polymerizing them to themselves. Liquipel becomes the new surface of your device, and its components. Basically, this complicated high-tech process results in providing electronic devices with a safe haven from water damage.

This compelling technology sprouted from a single idea, which came about from two partners. Liquipel co-founders Kevin Bacon, and Danny McPhail owned a previous company that dealt with applying military grade films to electronics to prevent them from scratching. There was a special solution necessary for applying the film, and as phone designs changed and evolved, the process started to water damage the phone. This was when Bacon and McPhail’s idea for waterproof protection began to take hold. Development for Liquipel began in 2009, and Bacon and McPhail left no stone unturned as they searched to assemble the perfect team to commercialize their technology. By 2011, they built the first machine and landed in the US. Liquipel launched during the 2012 CES and overnight the company exploded.

“We were listed in publications ranging from Forbes to the LA Times,” Bacon said, “it was very exciting for us.” 24

Liquipel is Making a Splash

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Their success didnâ&#x20AC;&#x2122;t stop there. Liquipel gained even more momentum as they received media recognition from the BBC, CNN, and even the Today Show. All that media attention, matched with a top notch executive team, made it easy for Liquipel to expand their product offerings. 25

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Liquipel is Making a Splash

THE FUTURE OF LIQUIPEL Liquipel is now beginning to apply their technology in areas outside the electronic devices department. Liquipel has recently begun working with clothing manufacturers, using their waterproofing technology to allow fabrics to dry faster and resist odor. Liquipel QuickDRY is an eco-friendly way of applying a water repellent to fabrics. It also has zero water or solvent usage, very little power consumption, no hazardous waste generation, and no storage needs. This new water repellant technology quickly caught the attention of big brand clothing manufacturers. Liquipel has recently teamed up with O’Neill to launch the fastest drying board short in the world. Customers will no longer need a towel to dry off; the shorts will be dry by the time they reach their car. If you want an inside look at Liquipel’s strategic vision, CEO, Rod Nakjavani, has your answers. “We are focusing on three main verticals. First are consumer electronic water safe technologies.” Liquipel is currently working with several original equipment manufacturers and handset refurbishing houses to expand their business. The next focus is on “major apparel brands.” Liquipel wants to offer their eco-friendly water-resistant technology, allowing fabrics to dry faster and resist odor, without sacrificing performance. Finally, “complete mobile device protection;” you can easily find this in the SafeGuard and Liquipel 360 packages. Liquipel is always looking for strategic partnerships. Their business model can effortlessly span across the globe, and they are always interested in partnering with big businesses, military, or commercial clients.

If you are interested in potentially partnering with Liquipel, please visit www.liquipel.com.

Liquipel is Making a Splash

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Liquipel is Making a Splash

Liquipel is always looking for strategic partnerships. Their business model can effortlessly span across the globe, and they are always interested in partnering with big businesses, military, or commercial clients.

If you are interested in potentially partnering with Liquipel, please visit www.liquipel.com. Sales@LPprotection.com USA Toll Free: 888.622.4888 International Tel: 949.391.4700

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Liquipel is Making a Splash

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JOIN THE LIQUIPEL NETWORK 2

Liquipel’s success is spreading like wildfire as many major online and big box retailers have picked up the Liquipel products. Liquipel products are now offered in over 1,600 Radio Shack stores, hundreds of wireless dealers and online on www.amazon.com. In a short period, Liquipel has turned a single idea into a well-established success story. But how did they do it? What was the key to this success? As the old saying goes, you’re only as strong as your weakest link, and it would appear that there are no weak links in the Liquipel team. “If there is anything I’ve learned in watching our company grow, it is about having the best possible management available,” Bacon said, while talking about his exceptional executive team. Liquipel assembled their team from across the globe. This is why it should come as no surprise that their team is the driving force behind this company. Whether you’re an everyday, accident prone customer, or a retailer just looking to expand your offerings, Liquipel is your new saving grace against damage. Never again will there be a need to worry about a cracked screen or a water-clogged phone. The future is bright (and dry) with Liquipel.

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Valor: MYBAT Wireless Accessories

Don't Let Your Phone Go Naked.® The wireless tech industry is an overcrowded battleground where established brands compete with disruptive upstarts for market dominance. That’s why it takes a special kind of company to rise above the fray. 30

In fact, it takes a company that has both an established brand and an innovative spirit to stand out above all others. Valor fits this bill perfectly. Within a wireless industry that’s set to grow to $101 billion by 2020, Valor’s superbly designed products give the tech-obsessed peace of mind. They treat their retail partners with respect, work ahead of market trends, and develop protection for the newest gadgets under the MYBAT name.

How does Valor accomplish all this? It’s simple: They focus on innovation. Valor’s philosophy is to deliver premium quality and innovative cell phone accessories with great customer service. To this end, they have hired an expert team of designers and engineers dedicated to bringing brilliant protective solutions to market. They draw inspiration from everywhere, from Milan’s runways to the trending topics on Twitter.

Valor: MYBAT Wireless Accessories

And the impact is immediately visible in their products—from diamond-studded luxury cases to boardroom-ready leather wallet covers, MYBAT’s offerings are effortlessly versatile. No small feat. But for their covetable beauty, MYBAT cases are designed to combat life’s unexpected accidents. The thinness and beauty of today’s luxury phones make protection non-negotiable, and that’s where Valor steps in. At a fraction of the cost, their cases offer unrivaled quality and eye-popping craftsmanship.

Sound too good to be true?It isn’t. Here’s how they pull it off.

THE PROCESS Unlike others who are content to slap their logo on massproduced 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. They don’t outsource to multiple parties, meaning they can decrease

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production lead-time and leverage capacity, all while increasing their quality. In straightforward terms, it means Valor can get better products in your hands faster. Your mobile device can thank us later. It all begins in Shenzhen, China. Valor’s eagle-eyed quality control teams perform diligent inspections, and that results in two things: First, it ensures that everything’s legal with

Valor treats its tr their retail partners with respect, work ahead of market trends, and develop protection for the newest gadgets. 31

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Valor: MYBAT Wireless Accessories

Challenger Hybrid Protector Cover The future of style and protection in one sleek and solid design.

international regulations. Second, it saves money by avoiding costly defects. The MYBAT product that lands in your hands (or on your shelves) will meet all its specifications and quality standards before leaving the factory. Unsurprisingly, Valor’s 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.

THE PRODUCT

If you’ve ever stepped foot into a wireless kiosk at your local mall, you’ve already encountered a MYBAT product. They are carried across the globe by electronics and wireless retailers, by wholesalers, and by distributors. And thanks to Valor’s far-reaching distribution infrastructure, they can manage any quantity without sacrificing quality. That’s no exaggeration: Valor carries more than 16,000 products at any given time, and their U.S. and Chinese teams are creating 100-plus items every single week. Are you a Samsung fan? Do you have an iPhone? A Nexus? No matter. Valor’s products span 300-plus phone models for 20plus carriers, including Verizon, T-Mobile, AT&T, Boost Mobile, Metro PCS and more. If you have

Valor: MYBAT Wireless Accessories Valor: MYBAT Wireless Accessories

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Sheer Glitter Electroplated Sheer Glitter Electroplated PremiumCandy Skin Covers PremiumCandy Skin Covers Luxurious style and padded Luxurious and padded protectionstyle - all packed in one protection all packed in one glistening case. glistening case.

Brushed TUFF Trooper Hybrid Brushed TUFFProtector Trooper Hybrid Cover Protector Cover Brilliantly brushed metallic finish with Brilliantly brushed metallic finish with a hint of modern sophistication. a hint of modern sophistication. a phone, it’s likely Valor has a a phone, it’s likely Valor has a protective solution. protective solution.

PATENTED, PROTECTED PATENTED, AND PROUDPROTECTED ANDmasterfully PROUD engineers their Valor Valor masterfully engineers their designs. That’s why they patent designs. That’sas why they patent these designs part of their these designs as part of their

Verge Hybrid Protector Cover

promise to making style-forward, promise to making style-forward, one-of-a-kind products for those one-of-a-kind products for those who are serious about their who are serious aboutthan their200 tech. They have more tech. Theydesigns have more than 200 patented for Mybat to patented designs for Mybat to ensure their products are often ensure their are often imitated but products never duplicated. imitatedflagship but never duplicated. Valor’s ? The TUFF, Valor’s flagship ? The TUFF,

Brushed TUFF Trooper Hybrid Protector Cover

TUFF Vivid, TUFF Trooper, TUFF Vivid, TUFF Function Trooper, and VERGE, Skullcap. VERGE, Skullcap. and form—with Valor’sFunction Mybat brand, form—with Valor’s you can have themMybat both. brand, you can have them both.

TUFF Vivid Hybrid Protector Cover

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Valor: MyBat Wireless Accessories

Stocking inventory in a snap at www.2valor.com • Valor expertly designed their website for a balance of creativity and power-user functionality. • Interactive features help you shop for the best-selling goods. • Customer support is a phone call away during business hours. • Real-time inventory management helps you pre-plan releases and restock hot items. • Multiple payments options make orders easy.

Valor is more than a hub for premium wireless must-haves. They also have a wealth of industry expertise to help retailers ﬁnd new opportunities to grow. Their big picture is to earn the loyalty of their partners, and they achieve that through supporting them—in every aspect—as true business partners. When Valor shares the same vision as their clients, everyone wins. Join Valor today!

CUSTOMIZED OPPORTUNITIES

Valor recognizes that their customers don’t have massproduced needs, and accordingly, they allow their retail partners to create custom designs and packaging. Valor offers ODM (Original Design Manufacturing) that allows them to build things tailored to client needs. You know your customers. You know your retail environment. Valor’s here to help—and to help you boost your revenue potential. Building a unique product with Valor is a journey. They will guide you, side by side, through product planning, design conception, manufacturing, and delivery. Ask around: Valor has a stellar reputation in delivering private-label programs for some of the biggest American chains 34

around. But don’t worry—they can also scale down to meet the needs of local and regional merchants. Have a question? Don’t be afraid. Just ask!

CUSTOMERS FIRST

A big part of Valor’s commitment to their customers is their commitment to service. That is why Valor has invested so heavily into growing a dedicated account team to support new and established clients. For convenience, they offer phone, email, and instant online chat support. And for peace of mind, Valor offers online RMA service, as well as, an optional SMS/ text messaging feature which provides friendly updates on your order status.

THE VISION

Now 18 years in the making, MYBAT is more than just a brand for phone accessories – it has become a brand for the adventurous thrill-seekers, savvy business professionals, on-therun moms, swanky fashionistas and happy-go-lucky people. It is customers like you that inspire Valor to do what they do every day. They don’t just make phone cases; they take pride in each product they bring to the table as it is a reflection of their customers and their passion for design. Innovative, fashionable and quality products, coupled with amazing customer support – that’s Valor’s promise. ■

877.369.2088 Sales01@2valor.com www.2valor.com

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Valor: MyBat Wireless Accessories

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877.369.2088 Sales01@2valor.com

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Patriot Mobile: Stand Behind America

STAND BEHIND AMERICA! Patriot Mobile offers the simplest plans and services provides quality services at competitive prices.

Support your American Values with Patriot Mobile, and give your customers an option with great value and great values... plans, commissions and residuals available! Why can’t choosing a cell phone service provider be easy?

owadays, there are dozens of cell service providers across the United States offering hundreds of plans that are difficult to differentiate. Worse, each plan is attached to long-winded, irritating terms-of-service novellas that often leave your customers scratching their heads, wondering if their money would be better spent on carrier pigeons or Morse code machines instead. From the perspective of your customers, all these annoying plans, and the companies offering them, seem all too similar. There’s a sea of gray out there.

[By Greg Murphy}

Your customers want something different, and they deserve to know that every dollar spent on a cell service plan is worth the investment. That’s where Patriot Mobile plans to break through. Patriot Mobile is a new cell service provider that offers a simple, well-priced and convenient suite of services your customers will want to get behind,

Patriot Mobile: Stand Behind America

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“Your customers want something different...”

while supporting the ideals they cherish. This is the ultimate win-win cell service provider! Patriot Mobile began in November 2013, in Southlake, Texas, where they sold their first phones and service plans that have since attracted throngs of consumers impressed by the value of what they are buying. And part of that

value is the added bonus of knowing their money is being donated to groups and organizations committed to protecting the underpinning values that have made America great.

Glenn Story, the company’s CEO and co-founder, who spoke from Patriot’s head office in Southlake.

“We’re an afﬁnity company. What we want to do is build upon the values of this country while offering a service that end users love,” said 41

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Patriot Mobile: Stand Behind America

THE NUTS AND BOLTS “...they also offer a free, full-suite point of sale package that includes posters, brochures, counter mats and other takeaways for your customers.”

he company takes freedom of speech—pun deﬁnitely intended!— quite seriously. It offers five core prepaid plans, each giving consumers options of unlimited talk, text and different amounts of data; nationwide coverage; 4G LTE data; and a portion of each bill goes to support pro-American organizations, all while scrapping hidden fees, overages and contracts. They offer a “bring-yourown-device” arrangement that will not only allow your customers to keep using the handsets they love but will also allow handsets already in your store to be easily brought onto the Patriot Mobile network. Also, their bundled handsets allow your busy customers to get started with Patriot’s service while on the move. This means they will be able to pick up a new phone that has already

been pre-activated to start functioning in the territory your store is in, which is perfect for those out-of-town customers looking to stay connected while they travel. “Let’s say, for example, that we’re in Miami Beach, Florida,” said Don Hendrickson, Patriot’s Executive Vice President of Sales, who joined our interview by phone from the company’s office in Long Beach, California. “You walk into a dealer’s store. You want to grab a phone. If you ﬁnd a Patriot Mobile boxed bundled phone program on the shelf, all you have to do is pick it up, open it and make your ﬁrst call”. You’ll get a Welcome from Patriot Mobile that

will allow you to start using the service right away. You can’t get much simpler than that! But their offerings don’t end there. For you, the Dealer, Patriot Mobile operates an online portal you can use to track your sales, your associates’ sales and the sales of anyone under your distribution umbrella. And they also offer a free, full-suite point of sale package that includes posters, brochures, counter mats and other takeaways for your customers.

Patriot Mobile: Stand Behind America

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“Up to five percent of the company’s revenue is donated to pro-American movements.” “Our end users are...impacting causes that help first responders stay safe, veterans find meaningful employment...” ~Don Hedrickson

WHAT’S BEHIND THE NAME A

side from offering the most efficient cell services and plans out there, Patriot Mobile has come to be known as a company of integrity, supporting pro-american movements.

Glenn Story says the consumers they serve feel as though they are a part of something greater the moment they switch to Patriot Mobile. “Our end users are operating something every day that is impacting causes that can help ﬁrst responders stay safe!” Veterans find meaningful employment after war and so on. Glenn Story says, “I see that our afﬁnity play brings so much to the table”.

“There’s a market out there that’s hungry for what we’re doing.”

Hendrickson added, “There’s a different feeling when you’re talking about Patriot Mobile. When people hear the name, when they see our logo, you can see the smile on their faces.” Up to five percent of the company’s revenue is donated to pro-American movements.

Hendrickson likes to think that Patriot Mobile is a company with great values that provides great value. We agree!

“I can’t stress enough how important it is for us to contribute to groups supporting American values. It’s not about corporate proﬁt within our organization, but it’s about doing good to help America,” said Hendrickson.

“I can’t stress enough how important it is for us to contribute to groups supporting American values. It’s not all about corporate proﬁt within our organization, but it’s about doing good to help America,” said Hendrickson.

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Patriot Mobile: Stand Behind America

ROOM TOGROW Patriot Mobile is looking to establish itself as a company that employs cutting-edge technology to serve cellphone users better by building meaningful partnerships with other forwardthinking companies. “We’re constantly looking for opportunities to build and diversify as far as our offerings and suite

“Patriot Mobile has recently partnered with Fortress, an innovative mobile protection, security and insurance company, to provide excellent value plans to go with their phones and services.”

of services go. But we’re also looking at ways of offering more products and technologies,” said Hendrickson. Patriot Mobile has recently partnered with Fortress, an innovative mobile protection, security and insurance company, to provide excellent value plans to go with their phones and services.

About Fortress, Hendrickson said, “They provide the end user complete peace of mind through a unique app that is loaded on the device. They’ve strategically aligned with Patriot Mobile to offer their products and services to not only the end user but to the dealer distribution channel.” So, to sum everything up, Patriot Mobile is a company not only offering consumers plans with great values, a wide range of phones

and services, but they’re also offering Americans the chance to give back to their neighbors, community and country. From supporting its consumers to first responders and veterans, Patriot Mobile is a company that places a stalwart hand across the heart of the nation while connecting it one phone at a time. n

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Exclusive Drone WDM: Exploring Drone Repair Repair

EXCLUSIVE

The Next Blockbuster Revenue Category!

Drone Repair Why Now? Here’s why; Before June 2016, any for-profit entity flying a drone required all operators to have a pilot’s license from real estate agents to farmers.

THIS RULING GROUNDED THE MAJORITY OF COMMERCIAL DRONE USE IN AMERICA. The FAA changed their decision in June 2016 and now requires a drone operator to take a knowledge test and secure a certificate specific to flying a drone. The FAA’s green light to fly commercial drones opens the flood gates allowing companies a much cheaper, faster, and simpler path to getting in the air.

“A MAJOR DEVELOPMENT FOR THE FUTURE OF DRONES IN AMERICA.” 48

This means that businesses, farmers, government agencies, academic researchers, advertising agencies, photographers, realestate agents, roofers, inspectors, and many more industries and professions can put drones to work without having to get an airplane pilot’s license or follow other onerous rules.

Is your business ready for drone repair?

WDM: Drone Repair Exclusive

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WHY DRONE REPAIR IS A NATURAL FIT FOR WIRELESS REPAIR SHOPS 1. Less experienced drone operators are entering the drone industry. 2. Drones purchased before the FAA grounded commercial use of drones are now out of warranty. 3. America’s dependence on drones will become similar to the dependence we have on our smart-phones today. By 2025, America is expected to have an $89.1 billion drone industry. JOSH SEVICK, President of the electronics repair giant, Cell Phone Repair, agrees. “Do we see drones as being a relevant technology in the next few years? Absolutely! … We see it as an opportunity

Basically, as with any form of technology,

that we have to be prepared for (for when

issues will occur when using drones. Whether

drones become mainstream). … We are

it’s due to human error or faults in the software

piloting a whole drone repair process,

or hardware, it’s essential for consumers to

and we’re partnered with an early-stage

know that there’s someone who can fix these

company that’s looking to create a

problems. And for the average consumer, the

professional, secondary market for drones

local electronics and wireless repair shop owner

in the U.S. and Canada. ... Do I think this is

is the natural first contact they will turn to when

going to have a significant financial impact

something goes wrong with their drone.

in our stores in 2016? No. But we’ve been

For this reason, alongside the droneindustry’s

seeing, certainly, as we get into 2017, 2018,

booming growth mentioned earlier, drones

and 2019 that drone repair will become a

represent the next frontier of revenue for

significant portion of our revenue.”

wireless repair professionals.

Congratulations CPR for integrating drone repair!

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WDM: Exploring Exclusive Drone Drone Repair Repair

KATHY KATCHER, CEO OF THE WIRELESS DEALER MAGAZINE AND EXPO PREDICTS WE WILL SEE A LOT OF DRONE REPAIRS SERVICED IN PHONE REPAIR RETAILERS BEGINNING IN 2017.

JOHN PATTERSON, Head of Digital Content Production with Heliguy, a CAA approved supplier and drone trainer based in the UK, adds, “There’s definitely money to be made as more and more people turn to drones for both recreational and professional purposes. Clients will range from amateur filmmakers who try (and fail) an overly ambitious shot to companies who require regular maintenance on their equipment, especially those using drones in challenging environments such as offshore surveyors. Patterson goes on to forecast that this market is only going to grow year over year, especially as mainstream media outlets continue to both report on and use drones. This media exposure is compounded by the proliferation of amazing and viral drone videos taken by everyday consumers, then uploaded to sites like YouTube. As such, the amount of repair work required will ride along this upward trend.

This forecast is shared by WESLEY FLIPPO, Co-Founder at Buy the Best Drone, a fast growing drone startup based out of San Diego, US. He says, “We believe that drone repair will become a very profitable business, much like computer repair companies and auto shops. As drones become more popular, more people will be flying them and even with increased training, by a sheer percentage factor, there will be more mistakes that lead to necessary repairs. I predict we’ll see a major company pop up in the near future, similar to the automobile industry’s AutoZone or Jiffy Lube that specializes in drone repairs.”

Two Popular Drone Only Repair Shops already in the Game.

WDM: WDM: Exploring Drone Repair Drone Exclusive Repair

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A NEW AIR TRAFFIC CONTROL FOR DRONES? THAT MEANS PREPARING YOUR REPAIR BUSINESS IN ADVANCE FOR THIS FORTHCOMING REVENUE CHANNEL IS VITAL.

Thankfully, the FAA’s $63.4 billion modernization plan of the country’s air traffic control systems will also expand to accommodate the commercial use of drones. And once the current regulatory constraints are modified, the FAA forecasts that commercial markets will quickly develop, generating demand for additional hobbyist and commercial drones, as well as their accessory market. Commercial drones are “currently the most dynamic growth sector within the aviation industry.”

Meanwhile, in the US, the FAA estimates small, hobbyist drone purchases will grow from about $1.9 million in 2016 up to $4.3 million by 2020. Commercial drone sales are expected to grow from $600,000 in 2016 to $2.7 million by 2020. And keep in mind, these growing sales levels are being generated during a period when the government is actively limiting select forms of drone sales due to there not being enough laws to regulate them.

In fact, a market study by the Teal Group forecasts the global market for drones will grow to $89.1 billion by 2025. 51

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WDM: Exploring Exclusive Drone Drone Repair Repair

Most common types of drone repair issues According to experts in the field, the most common types of repair issues that affect drones include: 1. Outer shell replacement, due to general wear and tear that causes dents or gashes. 2. Motor maintenance, as these components are often one of the main points of contact during a crash. Additionally, drone motors are prone to overheat when propellers are incorrectly positioned, thereby creating additional motor stress. 3. Mainboards & ESCs (Electronic Speed Control), as crashes and contact with water are likely to damage these intricate electronic components. 4. Aircraft leg replacement, due to the wear they endure after frequent landings. 5. Gimbal replacement, as their usual placement beneath the drone ensures they are likely to be the first thing to hit the ground in accidents Josh Larson, founder of the drone consultancy, Breakover Services, adds that the majority of drone crashes leading to drone repair business tend to occur from two sources: ● FLYAWAYS: This is where there is a software or GPS problem, and the drone just flies away from the operator. ● OPERATOR ERROR: This is where the operator crashes the drone due to an error while flying. These crashes usually result in a range of potential damage cases, including damage to the propellers, the motors, the aircraft body, the landing gear, the gimbal and the camera. Larson adds, “Due to the increase in drone use by hobbyists, as well as commercial operators, there will subsequently be an increase in drone crashes and a higher demand for drone repairs. That’s why right now is the best time to look into getting a drone repair company going.”

Drone accessories! Yes! The Repair Upsell! As any store operator knows, the real money is in the upsells. Drone repair is no different. The most popular upgrade that people opt for when purchasing a drone are gimbals, the mechanism which attaches the camera (and other gear) to the drone. Other upgrades include antenna upgrades, speed modifications, and first-person view (FPV) cameras that allow pilots to operate the drone through the drone’s visual perspective beamed into a video display or VR goggles—these upgrades will become ever more popular once recreational drone racing grows in popularity. Conversely, the most frequent accessory repairs also happen to be gimbals and FPV mods. With gimbals, any issues with their alignment can spell disaster for an aerial filmmaker trying to get their perfect shot. Meanwhile, FPV cameras often get damaged in a nose-first crash. What all this means for the wireless repair technician is that profit can be made twice: first by installing these add-ons for customers and the again when these add-ons require servicing.

WDM: WDM: Exploring Drone Repair Drone Exclusive Repair

WHAT IT TAKES TO GET STARTED IN DRONE REPAIR Just as you wouldn’t try and fix your car without any background mechanical knowledge, you shouldn’t try and work on a drone without a basic understanding of engineering and electronics. “Getting started in drone repair requires an interest in electronics, as well as a passion for the machines themselves,” says Patterson. Luckily, these interests and passions are commonplace amongst wireless repair professionals. In fact, being a smartphone repair technician may give you a leg up on the general drone repair business. Patterson explained, “The large majority of popular drones on the market right now actually use smartphones to stream and sync their devices. Having a strong understanding of how this technology works can help troubleshoot issues users are experiencing.

WHAT KIND OF TOOLS WILL I NEED? Patterson adds, “Also, when it comes to the tools you’ll need, the basic tools required include a range of hex and torx screwdrivers, soldering irons, wire cutters and strippers, as well as a number of devices able to run the necessary software to perform analytics on the drones you’re repairing. Aside from these essentials, if you’re looking to scale your aspirations within drone repair, then you may also consider purchasing a 3D printer that can print high performance drone parts.”

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Speaking of spare parts, companies within the Phone Repair industry will quickly become vertical, not only selling drones, but also drone parts, software, accessories, and extended warranties.

For this reason, it’s important to stay abreast of which companies are producing the top selling drones, and build relationships with their parts offices to secure good rates on spare parts.

Drone Repair Exclusive Brought to you by

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WDM: Exploring Drone Repair

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WDM: Exploring Drone Repair

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WDM: Exploring Drone Repair

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WE ARE LOCAL—NOT OVERSEAS We offer the same competitive advantages within close proximity of your core markets here at home. Offering the most comprehensive suite of services at competitive prices. TSSI is a full service remanufacturing company. In addition to being a true reverse logistics partner, we offer a wide variety of recovery solutions specific to Mobile, IT and consumer electronics industries. We provide lean, low-cost solutions that allow you to focus on your core business. Our team has over twenty years of experience dealing with… • High Volume Product Refurbishment • Processing & Sorting of Customer Return Merchandise • Failure Analysis, Data Collection & Reporting • Recalls, Reworks & Re-kitting • EOL Disposition & Management • Customized IT Solutions • Scrap Management & Recycling

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OEM: Ghostek is Living Up to It’s Name

Ghostek is living up to its name

The cellular accessories manufacturer produces smartphone cases that are waterproof, durable and barely-there.

ith phones becoming thinner, sleeker and more expensive,

finding the right phone case is crucial. Sometimes it’s not enough for people to find a case that just covers their phone— now it has to be slim enough to show off the phone’s style while still protecting it from water, drops and scratches. Ghostek, a manufacturer of cellular accessories, focuses on creating cell phone cases that cover all of the above. “We provide cases for the high-end phones,” said Vadim Abramov, senior distribution manager at Ghostek. “We try to come up with the best design and the slimmest case. Our waterproof cases are the most durable.”

OEM: Ghostek is Living Up to It’s Name

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Great cases at great prices Ghostek puts great emphasis on making sure the look of their cases are slim and attractive. A big part of their focus is working with engineers to come up with a product that customers want to buy. They describe themselves as the source for rugged mobile accessories, built with the toughest materials to protect your smartphones. They use the latest in phone case technology, making them competitive in the hot, overcrowded market. Their waterproof cases use IP68 protection, which shields against dust and deep submersion in water, while their TPU cases contain a thick, durable frame that makes the phone drop-resistant. They fit all of these features while maintaining a thin, sleek design. The best part? While most waterproof cases in the market sell for over $100, Ghostek keep their cases at a reasonable $50-$65, depending on the phone model. “Our goal here is to make sure the customer sees an affordable product that, obviously, looks good and has a nice design, but that’s not too bulky, so it can fit in their pockets. It also has to protect their phones,” Abramov said. 61

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OEM: Ghostek is Living Up to It’s Name

A unique brand and

an established track record Ghostek has been around for five years and recently started branding their cases two years ago. Since they started, they’ve found success and remain popular on Amazon, consistently getting good reviews from customers. But perhaps what makes them so unique is their branding. There’s a theme behind the company’s

products— a fun and creative way to attract customers. They treat each customer as if they were agents, like James Bond or a part of the CIA, and the buyers need to find the perfect accessory to protect their phone to maintainan “air of undetectability” while they’re on a mission.

Where you can find Ghostek The company’s products are available on their website, GhostekProducts.com, and on Amazon and eBay. They are also aggressively expanding their brand. Right now, they are available in the U.K., Mexico, Canada, and Asian countries such as Korea and Japan, but they are also trying to get into stores. They hope within the next year or so their products will find their way into retail. 62

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The top sellers Ghostek sells three models of cell phone cases: the Cloak, the Covert and the Atomic series. Both the Cloak and Covert are slim cases that protect the phone while showing off each smartphone’s unique style. The Atomic series is waterproof. They are coming out with new cases all the time for upcoming phones, such as the iPhone 7. They also offer warranties ranging from one year to lifetime limited. Moreover, Ghostek offers a variety of products outside of cell phone cases. They sell chargers and book bags, which were, at one point, ranked in the top 20 and 50 on Amazon under the bag/outdoor categories. Ghostek also sells the NRG bag. By September 2016, five different colors are due for release. This backpack is water resistant, contains a rechargeable battery pack, and includes USB cables for charging any device including laptops, iPads and smartphones. The next NRG bag will include a solar panel for recharging purposes. It’s a great item for those who love the outdoors.

Why customers keep coming back Finally, Ghostek’s excellent customer service is one ofthe company’s biggest secret weapons and why people keep returning. They always seek feedback and answer people’s questions and concerns. Consumers consistently praise their customer service. “We have lots of returning customers. They tell their friends, tell their buddy, the store owner, they buy a case and they love it,” Abramov said. “Overall, our customer service, and our affordable pricing for retailers is what separates us from the competitors.”

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CPR: B2B Soft Join Cell Phone Repair

HOW PROPER REPORTING CAN HELP YOU BETTER RUN YOUR BUSINESS

f you are looking for tools and techniques to manage the inventory of your cellular store, calculate commissions, identify your key performance indicators and keep track of your customers and their needs, look for a POS system built for wireless retailers. A POS system designed for cellular stores has built-in product and service categories and reports that respond to the needs of wireless retailers. These reports can help you save time, better respond to your client needs and increase your profits. Real-time inventory reports provide an accurate up-to-the minute count of current items in stock at every location. By combining inventory reports with sales reports, you can set auto-replenishing levels to reorder phones and accessories before they sell out. If you use these reports, your best selling products will always be available. With sales reports you can identify your greatest selling products and services, calculate carrier commissions and recognize your most effective sales agents. Sales reports can pin-point high traffic times and the most profitable locations. You can use this information to set staff schedules, making sure you have enough employees on the

sales floor during peak times so you can serve more customers. Cellular stores are in the business of selling services, and understanding your customers, allows you to better respond to their needs. A cellular store POS system with a built-in customer relationship management system is a tool for harnessing valuable information. By developing loyalty programs and using the information gathered, you can paint a picture of your customers, identify their preferences and respond to their needs. With this information displayed in customer reports, you can develop targeted marketing campaigns that sell the services your customers are looking for. In a multi-store wireless retail setting, analyzing the performance of individual stores is critical in developing an idea of the overall health of the business. In sales reports you can break down data and drill into individual locations. In B2B Softâ&#x20AC;&#x2122;s system, your reports are available in real-time, all of your most important reports can be placed on your dashboard. You can share your dashboard with others in your organization, allowing you to easily communicate sales trends and key performance indicators. All key individuals in your organization can view the reports from anywhere they login. â&#x2013;

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LUX Wireless: Accessories Make the Phone

CCESSORIES DON’T MAKE THE OUTFIT, THEY MAKE THE PHONE!

[Authored By Meghan Lafferty]

Get accessorized with Lux Wireless

oday, the smartphone has integrated into nearly every aspect of our modern lives. Whether we use them for calling, texting, emailing, or even just playing a game, we’re living in a generation of smartphone owners. However, people don’t just own a phone; they own phone accessories. When a phone is purchased, so are charging docks, screen protectors, cases, holsters, and more.

When business booms for smartphones, it booms for smartphone accessories, and that’s exactly what’s happening at Lux Wireless. Any phone retailer knows that phone accessories are the driving force behind the retail up-sell. Accessories make up a generous portion of sales and demand is high.

Whether customers want to be practical and protect their phone, or just want to spice it up with a fashionable case, Lux Wireless has everything under the sun when it comes to cell phone accessories. The cell phone accessory industry is huge and with so many competitors trying to get a piece of pie, how does Lux Wireless stay ahead of the game?

SUPPLY & DEMAND We had the chance to speak to Sean Davis, the Director of Sales at Lux Wireless. As Davis explained, aside from carrying a massive selection of cell phone products and accessories, for a variety of different carriers, Lux Wireless also has an impressive track record of having products as close to launch as possible, sometimes even before. That means you aren’t waiting to carry the most popular and sought after accessories on the market; Lux Wireless is always working hard to supply the demand. But this is only scratching the surface. Davis explained that he believes Lux Wireless is a fierce competitor in the cell phone accessory industry because of they have a solid grasp of their customer base. Lux Wireless currently carries products for all the big players such as ATT, Verizon, Sprint, and T-Mobile, but specializes in prepaid carriers such as Boost Mobile, Cricket Wireless, Metro PCS, and Open Mobile. If one of these carriers takes on a new phone, you can bet your bottom dollar that Lux Wireless will have accessories for it. 68 70

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PLACING AN ORDER Lux Wireless understands that their customers’ time is valuable, so they strive to deliver everything in a “neat, organized fashion.” As Davis explained, when you place an order, “every item you receive will have its own unique SKU, as well as its own unique barcode.” These unique bar codes and SKUs makes matching the packing slip to your shipment a piece of cake. Lux Wireless also links their website to their inventory software, so if an item is no longer in stock, it will show up on the website – say goodbye to tracking down backorders! Many of Lux’s competitors have multiple warehouses and while this might seem like an advantage, products coming from multiple warehouses only hike up shipping costs, not to mention shipping products from multiple warehouses is a recipe for disaster. Lux Wireless can ship to virtually any address on the planet and all shipping is centralized. They have one warehouse, based out of Atlanta, Georgia, where they mail out all shipments. This organized method keeps your shipping costs low. Davis told us that Lux Wireless pride themselves on having a strict shipping policy: “All shipments are made no later than one business day after you place an order.”

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LUX Wireless: Accessories Make the Phone

STAYING AHEAD OF THE GAME Lux Wireless is constantly looking to add new products to the mix. They work hard to have new products stocked as soon as they hit the market. Lux Wireless also doesn’t ‘cherry pick’ the phones they support.

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WHAT DOES THE FUTURE HOLD? Lux Wireless is currently looking to expand their product offerings and take on some new products

“If Boost Mobile, for example, is going to carry the phone, we are going to carry products for it,” Davis said.

due to hit the market in the following months. They

Moreover, retailers rarely come to Lux Wireless for a one-time purchase. Lux Wireless works hard to build lasting business relationships by making sure their customers are satisfied with every purchase made. In fact, not only will you be getting the hottest products on the market, Lux Wireless is going to help you show them off. They offer a store fixture program that provides fixtures at a subsidized rate, or even no cost, to clients who commit to easily obtainable monthly spending minimums.

the pack by continuously offering new and more

see and understand that the market is constantly evolving, and they want to remain at the head of advanced products to suit their customers’ needs. At CTIA 2016, Lux Wireless plans to demonstrate some new and advanced devices that they are adding to their product line. Lux Wireless comes backed with an impressive track record of consistency and exceptional turnaround times. This is what keeps their customer base growing. If you are a pre-paid cell phone retailer, Lux Wireless should be your first point of contact for all your accessory needs. With fast shipping, prompt delivery, and a sea of products to choose from, you won’t find a better, or more reliable, wholesaler than Lux Wireless.

Lux Wireless makes getting in contact with them easy. As previously mentioned, their website is built for ease, all products are linked to their inventory software, so the website always shows exactly what Lux Wireless currently has to offer. This technology will save you the time and hassle of dealing with back orders. You can order directly from the website, or you can get in contact with them by phone at 1-855-589-9473, or by email. As Davis explained, “whatever method is easiest for you, is easiest for us.” 70

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LUX Wireless: Accessories Make the Phone

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THE SONNE PRODUCT FAMILY

Lux Wireless carries a wide variety of cell phone accessories and is the main distributor of Sonne products. Sonneâ&#x20AC;&#x2122;s snazzy products and accessories add a personal touch to any phone. While on first glance, Sonne products may look similar to the competition, each of their products goes above and beyond their competitors. Whether it is better materials or better functionality, Sonne provides the best of the best. The Sonne product line includes chargers, cases, hands-free sets, and more. Their slick and stylish products turn heads and make a great addition to any storefront. Lux Wireless carries a wide variety of products but takes pride in being the main distributor for Sonneâ&#x20AC;&#x2122;s posh product line.

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CPR: Join Cell Phone Repair

BY GREG MURPHY

WHY YOUR CUSTOMERS

WANT YOU TO JOIN CELL PHONE REPAIR Join the Cell Phone Repair family, give your customers the service they need, stay ahead of the tech curve! Let’s stop pretending we aren’t completely dependent on technology.

ith over 300 million cell phones in the United States, it’s fairly safe to assume that for every cell phone there’s at least one camera, tablet or personal computer. And almost every household—let’s be honest here—has at least one gaming console. Tech devices are becoming much less disposable than they were a few years ago because they’re increasing in value to consumers. For this reason, the days of offering repairs and service for just one type of device have ended. Put yourself in a customer’s shoes: you wake up to discover your cell phone, laptop and iPad have all gone kaput, and you don’t have time to run all over town on your lunch break to have them fixed. Your customers need a one-stop shop to have

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their gadgets serviced and fixed quickly, and at a price they can afford. It’s time to think seriously about what your customers need. Joining the Cell Phone Repair (CPR) family is an excellent start!

CPR: Join Cell Phone Repair

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Introducing Cell Phone Repair

ell Phone Repair is America’s largest mobile device repair franchise, with more than 260 locations. The CPR family prides itself on being an asset to their communities, offering what it calls a fast “while-youwait” service that specializes in repairing cell phones, tablets, mp3 players, computers, gaming consoles and much more. They are even setting their sights on fixing space-age-y new toys, such as drones—but we’ll get to that later. We spoke at length with the president of the company, Josh Sevick, who says joining the family—becoming a franchisee—is a smart move for independent mobile device repair shop owners. “From the start, CPR has had a great franchise concept, one that connects with people. There aren’t many things more important to people today than their devices. But just having a great concept isn’t enough, you need to execute well. We have a really strong corporate team that believes heavily in reinvestment. For us, it’s all about creating value for franchisees,” Sevick said, adding that the company’s size, web presence and reputation offer a distinct advantage future franchisees should be aware of. “The larger you are, the more locations you have, the more leverage you can provide to everybody in your system. We make the best deals with point of sale providers and supply chain partners, and we’re able to pass these along to franchisees.” 75 71

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CPR: Join Cell Phone Repair

Onboarding with CPR G

Getting started with Cell Phone Repair is easy. The company has structured its “Discovery Process” to be extremely personal and to truly help candidates determine if this is the business for them. In addition to weekly calls with CPR’s development team, and a discovery call held by a senior member of the CPR management team, candidates are strongly encouraged to travel to CPR’s headquarters in Cleveland, OH, to meet with the management team. This isn’t a typical discovery day meeting filled with corporate sales people and a ton of other candidates, this is a one-on-one session with the management team. The purpose of the “CPR Discovery Day” is help the candidate learn as much as they can about the business opportunity and to allow them to assess the corporate management team. “While we’re looking for the best possible franchisees, the last thing we want is for someone to become a member of the CPR team and then later realize that they aren’t cut out for the job. Most franchise organizations in our space are primarily focused on getting candidates to commit to buying a franchise. Candidates end up feeling like they’re at a used-car dealership. But with us, franchisees get an opportunity to truly evaluate the offering and to understand what it’s going to be like being a CPR franchisee,” said Sevick.

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Once candidates decide to join CPR, that’s when they begin to experience the value of being with the industry leader. Candidates are guided through a 52-step onboarding process with one of the CPR Onboarding specialists. In addition to help with finding your store location, training at the corporate office in Cleveland, local launch support onsite at the store location, and regular coaching calls along the way, new franchisees are currently being given $6,000 worth of inventory so you won’t have to sacrifice your wallet to stock your shelves! What’s not to like?

HIGH STANDARDS WHEN IT COMES TO TRAINING So what else is there to know about Cell Phone Repair? Well, they recycle parts to keep perfectly good electronics out of landfills; they have been the number one franchise in the electronics repair category on Entrepreneur Magazine’s Franchise 500 list for four years running; and they have the only ISO (International Standards Organization) 9001:2008 certified training program in the retail electronics repair industry. ISO articulates the standards a company must meet to fulfill the needs of customers through its services and products. Globally, over one million tech companies have ISO certification, which makes it the trusted standard for technical training in the industry. So, in other words, your staff will have the best training the industry can offer, hands down. The list goes on!

CPR: Join Cell Phone Repair

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Grasping the newage bull by the horns

nd then there’s this deal with drones. Sevick says the company has set its sights on being ahead of the curve for when drone technology explodes in the next few years. “Do we see drones being a relevant technology in the next few years? Absolutely. We are piloting a drone repair process, and we’re working with an early-stage company that’s looking to create a professional, secondary market for drones in the U.S. and Canada.” There’s a whole nation out there—figuratively speaking—of gadgets needing your expertise. The challenge over the coming years will be to stay relevant and in line with emerging tech trends. Sevick says Cell Phone Repair is a company that works tirelessly to keep up with changes in consumer interest.

“We’ll see ourselves continue to shift toward this relevant technology focus,” he said.

The bright horizon

he world is CPR’s oyster and the company has big plans ahead. It’s now operating internationally in several countries around the world: India, Kuwait, Nigeria, Mexico, and Guatemala. In addition to these countries, CPR is planning to launch in Bangladesh before the end of the year. At home, in the US, the company is focused on growing its certified refurbished device sales program and expanding its K-12 school service and repair offerings.

What makes this company so great at what it does? Sevick says it’s all about the team. “I couldn’t be more proud of our franchisees and our corporate team. Our business is as healthy as it’s ever been. We see opportunities all over the place, and for us, it’s about focusing on the right opportunities and making sure we continue to grow in the same fashion we have over the years.”

Tomorrow’s world relies on you.

e’ve all heard people grumbling over how addicting our cell phones, tablets and computers can become. But, when you think about it, this future we’re moving into—with drones taking aerial wedding videos at 25 feet, smartphones capturing world-altering news in real time and eReaders allowing you to carry a library of knowledge in your backpack—is a marvelous thing. Most new technologies are arriving on the scene from drawing board to launch within the same amount of time it takes to complete high school. The future is coming sooner rather than later. So what will tomorrow’s tech trends be? We’re excited to find out. Whatever tomorrow’s world looks like, rest assured that as a member of the Cell Phone Repair family, you’ll be an integral part of it—an asset to the community. n

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We Sell Cellular: Finding Big Profits in Selling Used Phones

We Sell Cellular: Finding big proﬁts in selling used phones As buyers and retailers, there’s always some risk associated with purchasing used electronic products – particularly cell phones. Depending on where you buy it, the product could be defective, of poor quality, missing parts or just not what you expected.

uckily, there are companies out there whose top priorities are selling highquality products and providing excellent service. We Sell Cellular, a mobile supplier company with origins in wholesale distribution, along with its parent company uSell. com, an online technology company, focuses on providing service that’s transparent, honest and flexible.

“We are very clear about what we’re selling. We don’t mislead our customers, and we’re very flexible about the quantities they can buy and the manner in which they buy,” said Nik Raman, CEO of uSell.com.

Established reputations that work best together Both uSell.com and We Sell Cellular were separate companies in the used cell phone industry. uSell.com, founded in 2010, is one of the largest online consumer trading platforms. They specialize in acquiring devices directly from consumers and then selling these devices to professional buyers. We Sell Cellular sources both new and used cell phones and accessories from carriers and bix box stores, and then sells them to retailers and dealers at a competitive price. In October 2015, uSell.com acquired We Sell Cellular. By combining these two companies, small retailers, dealers and brokers can purchase products either online or through an experienced sales rep, creating an easier way for them to receive phones in the amount they want and in the conditions they need.

Quantity of choices backed by a guarantee of quality Nik Raman, CEO USell.com

The company purchases cell phones from most of the major retailers and carriers. With more

than 15 years of experience working with these top suppliers, it has access to large quantities of devices. With so many products coming in, sometimes it can be hard to maintain the quality of each product. However, We Sell Cellular guarantees quality by triaging each item according to a stringent methodology they’ve established. According to their website, all devices are serialized, and personal data destroyed to R2 (Responsible Recycling) standards. Each is then tested for functionality using a 45-point checklist, and minor repairs are conducted to extract maximum value. Once the testing is complete, all the devices are cleaned and graded based on the company’s strict cosmetic criteria. Finally, 10 percent are randomly selected for quality control. This thorough testing process to maintain quality is what makes the company successful and attractive to their customers.

We Sell Cellular: Finding Big Profits in Selling Used Phones

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We Sell Cellular: Finding Big Profits in Selling Used Phones

“We have a very, very low rate of return because we’re very stringent in our testing process,” Raman said. “When buyers buy from us, they’re going to be happy with the quality. They’re going to come back because we’re very transparent about it.” Another benefit of working with the company is consistency in supply. By leveraging long standing relationships, the company provides a steady source of a variety of devices.e.

“The real benefits of working with us are consistent quantities and consistent quality with no surprises. [Our clients]

come to us for a steady supply of whatever kind of devices they’re looking for,” said Raman. In addition to second-hand products, the company also sells new devices and carries the top cell phone models dealers might need so they can service their customer’s base.

Reselling phones for proﬁt With new cell phone models coming out every year and people always wanting to have the newest and flashiest devices, there are high volumes of used and trade-in devices coming in from carriers through leasing and early upgrade programs. This creates tremendous amounts of unnecessary waste that can be recycled through second-hand selling. We Sell Cellular, being a supplier of reused cell phones, helps

in reducing that waste. They have an R2 certification and can purchase phones in bulk while meeting thedownstream environmental requirements of major carriers and big box stores. Perhaps what’s great about We Sell Cellular and uSell.com is that they are establishing their place in the growing used cell phone industry. Raman says there’s a greater need for used devices, and his company can gain a “tremendous number of those from the major carriers and retailers and package them in a way that the dealers can use.” In the future, Raman says they plan to continue to grow their volume and variety of supply to make it easier for retailers and dealers to buy from them. To get in touch with the company, visit their website at wesellcellular.com. ■

We Sell Cellular: Finding Big Profits in Selling Used Phones

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Meet the Team After earning his degree in Finance from Hofstra University, Brian immediately invested in the wireless sector, opening retail stores and helping to launch a telemarketing company in the New York metropolitan area. Brian founded We Sell Cellular with his brother Scott Tepfer in 2002, and has been leading the team with a keen eye on strategy and innovation ever since.

After earning his degree in finance at Towson University in Baltimore, Maryland, Scott Tepfer began working within the wireless world, with a primary focus on sales and staff management. He currently manages the We Sell Cellular Sales and Purchasing Divisions, utilizing his years of wireless experience to mold an inventory and service environment that is among the best in the business.

Before joining We Sell Cellular in 2009, Kathy assisted various organizations streamline their operations through automation and refinement of processes. With an undergraduate degree from The George Washington University and an MBA from Dowling College and 24 years of distribution experience, Kathy has streamlined We Sell Cellularâ&#x20AC;&#x2122;s operations while cementing a workflow process which has helped to push the company to its current heights.

Justin began working with We Sell Cellular in 2005 after earning his degree in economics at the University of Connecticut. Justin uses his years of experience and unmatched knowledge of the industry to develop new sales channels for We Sell Cellular. He continues to expand his worldwide client base while offering a level of service that existing clients rave about.

Before joining We Sell Cellular at its inception in 2003, Philip worked for a major computer manufacturer managing both sales & operations. Having spent the past 13 years in the mobile handset industry, he has developed a deep knowledge of industry trends and has developed a large base of clients worldwide. Philip spends his time both developing new business relationships and working with large international and domestic clients.

After earning his degree from the School of Economics and Business at Oneonta State University, Daniel joined We Sell Cellular in 2013. Since then, he has managed all ecommerce stores and has been an integral part in the growth and success of those channels. He also assists with purchasing for We Sell Cellular and is responsible for developing and maintaining business relationships with multiple vendors.

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YourCellParts.com: Stepping up to the plate

Authored by Greg Murphy

Modernizing the wireless parts industry:

YourCellParts.com Stepping up to the plate

Leave it to YourCellParts.com, the new kid on the block, to modernize the wireless parts industry! Imagine you, the wireless repair shop owner, have been playing for the losing team. These days, it’s arduous work running a repair shop when orders take too long to set up and deliver, knock-off replacement parts and accessories permeate cyberspace, and competitive pricing is becoming more and more difficult to come by. You need someone to play for your team who can win the game. Meet YourCellParts.com, the industry’s newest, most forward-thinking supplier of high-quality parts and accessories for the hottest phones, tablets and more! Their objective is to make your life easier by modernizing the wireless parts industry, to change the way “the game” is played. It’s time for the old boys to move down in the dugout—there’s a new kid up to bat.

From bench to batter’s box In a few classic baseball movies, there’s a scene in which some young colt from the losing team proves he has more muscle in his swing than expected, hitting a stunning home run in the bottom of the ninth inning.

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That young up-and-comer is YourCellParts.com. Founded in Los Angeles just two short years ago in 2014, YourCellParts.com has already proven that thinking outside the box to modernize the industry will hit the curveball time and time again, saving you the enormous headache of worrying about your supply chain while giving the customers the attention they deserve. YourCellParts.com left the bench, determined. “We saw an inefficient use of the distribution channels that currently exists. We wanted to change the industry to make

ordering parts and inventory management easier for repair shop owners so they can focus on their business,” said the company’s CFO, Hayk Tarkhanyan. He stressed that the 21-years combined experience in the wireless and retail industries between the company’s founders allows them to see business from the retailers and repair shop owners’ perspective. In other words, they know what you need to run a successful repair shop: quality parts, competitive pricing, reliable service and—most notably—fast, efficient ordering.

YourCellParts.com: Stepping up to the plate

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“...they’re the first among their competitors to introduce a mobile app for you to order what your customers need while on the go.” Modernizing the industry What is YourCellParts.com doing differently to win their clients? How are they thinking outside the box? Well, for starters, they’re the first among their competitors to introduce a mobile app for you to order what your customers need while on the go.

you need fast so you won’t waste valuable time in your already too-short day. But more than anything, wireless dealers want the best parts on the market. But how do you know you’ll get the best?

“We anticipate our app to be one of the most used resources in repair shops, and we think that’s going to help out repair stores a lot,” said CEO Adam Jaratanian.

YourCellParts.com has gained the respect and trust of some of the most reputable repair shops and franchises out there. They trust YourCellParts. com with their inventory because they sell replacement parts for all of the top brands, including Apple, Samsung, LG and Motorola.

Aside from the app, the company has set up an easy-to-use website designed to make finding and ordering the parts

Moreover, the parts and accessories YourCellParts.com supplies are direct from the manufacturers, and are

thoroughly double checked for defects, thanks to strict quality control measures both overseas and at the company’s facility in LA. That said, the wireless parts and accessories market varies across the country for what’s needed. Sometimes, your customers may not want or need the highest quality LCD screen or iPad battery on the market. Jaratanian noted that YourCellParts.com has developed a threetier “Hot List” of parts and accessories you and your customers can choose from. “We offer three qualities for the most popular products that cater to each of those markets. But all of the products we carry are of the highest grade in their respective quality tiers,” Jaratanian said. Also worth noting is that transparency is a huge deal with the company.

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YourCellParts.com: Stepping up to the plate

“We saw that in the past there was a huge lack of transparency in the industry,” Jaratanian said. “You never knew what you were going to get. So we decided we’re going to be very transparent and tell all our clients exactly what they’re going to receive. That’s why we clearly indicate the quality of each item and the manufacturer that they came from on each order.” So, to recap, we’ve covered the company’s approach to efficient ordering, quality control and transparency. But those are like stealing first, second and third base. Their competitive pricing is like stealing home. Jaratanian insists his company offers the best prices without jeopardizing product quality. “We go straight to the manufacturers to lower cost. We have a very complex

inventory management and ordering system, which allows us to pitch our sales properly to make sure we’re buying parts at the most competitive prices.”

different vendors to find one item here and two items there,” he said, adding, “We’re constantly looking for new items to add to our inventory range.”

Hitting the curveball

As a proud owner of a hard-working wireless repair shop, you should be keeping your eyes open for suppliers that are using brains to change the way you’ll do business for the better.

Wow! We tip our hats to YourCellParts. com for accomplishing what they have in such a short span of time, for taking on some of the business’s toughest challenges—for hitting the curveball. We asked what’s in store for the company moving ahead, what their plans are to become the best at what they do. For one thing, they plan on being the most respected name in the wireless repair parts industry, offering what Jaratanian calls a “one-stop shop” to their clients. “We use customer feedback to carry any item that has a demand. We don’t want people constantly going to three

Baseball pitching legend, Bob Feller, once said, “Everyday is a new opportunity. You can build on yesterday’s success or put its failures behind and start over again. That’s the way life is, with a new game every day.” How true this is for YourCellParts.com. The company has seen opportunity where the industry has faltered and from that has built a second-to-none business that repair shop owners have been waiting so patiently for. ■

“We go straight to the manufacturers to lower cost. We have a very complex inventory management and ordering system, which allows us to pitch our sales properly to make sure we’re buying parts at the most competitive prices.” Repair kits and tools on offer

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YourCellParts.com: Stepping up to the plate

SAMSUNG

Replacement parts are available for all cell phone models from the Mega to the Galaxy S7 Edge.

Replacement parts are available for the cell phones Nexus 4 and 5, and the G2, G3 and G4.

BATTERIES YourCellParts.com provides batteries for iPhones and iPads, the Samsung Note series and the S series, and the LG G series.

MOTOROLA Replacement parts are available for the XT1080, with more coming soon.

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ACCESSORIES YourCellParts.com supplies charging solutions, screen protectors, tempered glass, cases and SD cards.

APPLE Replacement parts are available for all iPhones from the newest iPhone 6s Plus to the iPhone 4. For iPads, replacement parts are available for the Mini series and the Air series, as well as the iPad 2, 3 and 4. For iPods, replacement parts are available for the iPod Touch 4 and 5. 89 71

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Mobile Source Relieves Headaches

[ Written by: Greg Murphy ]

BREAKING THE ASIA SUPPLY CHAIN That means repair and refurbishment centers can say adios to OEM parts distribution headaches!

rdering spare parts for mobile devices comes with a fair share of hiccups. The international spare parts trade is oversupplied with cheap knockoffs, low quality standards, trademark infringement risk, and no one likes waiting weeks-to-months for delivery. It’s also frustrating to have to tell customers the parts they want—need—for their phones are too difficult to source. They get upset. You lose business. There’s an old saying that tells us the grass is always greener on the other side of the fence—you just need a ladder

Time to smell the roses Brisbane, Australia, based Mobile Source is your ladder. They’re also your picnic basket and lemonade for when you recline on that “greener grass.” Figuratively speaking, of course! Willem van Daalen Director, Mobile Source, Parts And Service That You Can Rely On

• 100% OEM • Increase your profit margins • Reduce material cost & product waste No more quality concerns •92 • Because your reputations matters • Instantly improve your supply chain • Complete Bill of Materials per device

Here is how you can reach us ! Phone +61 7 3139 1559 Website www.mobilesource.parts Email sales@mobilesource.parts

Mobile Source supplies 100 per cent original spare parts sourced from trusted

Mobile Source Relieves Headaches

manufacturers for Samsung, Sony, Microsoft, LG, Motorola, HTC, and Alcatel mobile devices, to name a few. They specialize in facilitating large orders, shortening delivery times, and finding those hard-to-get parts. Their objective is to increase your profit by delivering the parts your customers deserve on time. We spoke with the director of Mobile Source, Willem van Daalen. He brings 15 years of experience in the mobile industry to his company, which is the new kid on the block in the mobile market; Mobile Source has just finished its first full financial year, generating an enormous ten-digit revenue!

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An American warehouse in Delaware makes it easy for American clients to get their stock fast.

Why you need Mobile Source There are advantages to buying from an Australian company in the U.S. “From a price point perspective, we are extremely competitively priced, cheaper than our American and asian competitors,” van Daalen said. “In fact, our CTIA slogan is ‘breaking the Asia supply chain.’ And because we work with original products, there is no trademark infringement risk.” Van Daalen knows how important timeliness is for your business.

www.mobilesource.com

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Mobile Source Relieves Headaches

www.mobilesource.com

“A warehouse in Delaware makes it easy for American clients to get their stock fast. This also means there’s no risk of import or trademark infringement letters from customs.” And there is no concern that stock will run out! Mobile Source has three warehouses around the world—in Australia, Netherlands, and Delaware— stuffed to the roof with what you’ll need to grow your business and profit.

“Mobile Source carries the most popular mobile parts with plenty of stock for direct dispatch. Items not in stock can be ordered on short lead times,” van Daalen said. The company’s customers include handset remanufacturers, insurance companies, distributors, wholesalers, large repair and service centers, major retailers, and online stores. 94

Fantastic! . . . Where do I sign? Placing an order is a cakewalk. Just send an email to sales@mobilesource. parts to get started. Or, you can register on the company’s Webshop (www. mobilesource.parts). For your convenience, payments can be made in U.S. dollars. So, let’s recap: competitive

prices for OEM mobile parts, check; Zero risk on trademark infringements, check; source hard-to-get parts from trusted manufacturers, check; warranty on parts, check; fast deliveries, check; fullystocked warehouses, check; easy to place orders, check; payments made in U.S. dollars, check; what more can you ask of a parts supplier? ■

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B-Stock: Using Technology

Using Technology to Tackle Excess Wireless Inventory When it comes to trade-in, returned, damaged and otherwise obsolete wireless inventory slated for the secondary market, itâ&#x20AC;&#x2122;s extremely important for retailers to understand the true value of it and reassess whatever program(s) they have in place. Often there is an opportunity to recoup more simply by ditching traditional, manual methods and instead applying technology to the process. Consider this: If youâ&#x20AC;&#x2122;ve historically sold your wireless inventory to one or two buyers your recovery value is probably low as these buyers - who know they are not being forced to compete - are really good at negotiating prices down in order to maximize their own profits. Time spent negotiating deals for every lot of merchandise takes away from core, strategic business activities. By eliminating dependence on a handful of buyers and applying technology to your B2B program you can increase return, in some cases by triple digits.

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B-Stock: Using Technology

effective Technology

Letâ&#x20AC;&#x2122;s expand on this last bullet a bit. The most effective technology-driven program comes in the form of a web-based solution; this type of solution allows thousands of buyers to compete for the wireless inventory, pushing prices up versus a handful of buyers negotiating them down. There is already a robust secondary market and buyer base for wireless inventory, in fact, in every major city around the globe there are businesses that purchase excess and returned wireless inventory for resale. So how do you go about gaining access to this buyer base? A private business-to-business, online auction marketplace platform thatâ&#x20AC;&#x2122;s customized, integrated and scaled based on your unique needs is one way to make this happen. Another option is to leverage an established B2B marketplace like B-Stock Supply (www.bstocksupply.com) that has a built-in buyer base for wireless inventory across all condition codes.

Applying this type of technology not only delivers the highest price your buyer community is willing to pay right now, but it also automates the sale process, delivers a faster sales cycle and generates proprietary market intelligence in the form of real data on market prices. Hundreds of wireless dealers ranging from Fortune 500 wireless carriers to SMB retailers have used these techniques to increase recovery from 30 to 80 percent and in some cases much more.

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B-Stock: Using Technology

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Keep in mind while applying technology to the process will have a big impact on the bottom line, sometimes leveraging expert knowledge will provide the most effective outcome. By combining world-class, purpose-built technology with a highly experienced team that understands dynamic pricing, online marketplaces and demand generation, you’ll have a winning formula. In today’s wireless landscape that is riddled with returns, trade-ins, damaged and obsolete devices, it literally pays to rethink whatever B2B program(s) you have in place for the handling and remarketing of this merchandise. Every dollar increase in recovery value, or reduction in expense, equals another dollar of profit.

B-Stock Solutions powers the largest network of B2B liquidation marketplaces for Fortune 1000 retailers and manufacturers. Hundreds of organizations, including one of the nation’s largest wireless carriers, have leveraged B-Stock Solutions’ technology and service offerings to sell billions of dollars in consumer returned and excess inventory. For more information please visit http://bstocksolutions.com.

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CarbonKlean: Mobile Cleaning Tech

CARBONKLEAN INTRODUCES THE WORLD TO SPACE-AGE MOBILE CLEANING TECHNOLOGY! Throw away your microfiber cloths and sprays, and join millions in the future of mobile cleaning technology.

t’s pretty easy to look at a grimy smartphone or tablet and grumble over the thought of cleaning it—again—with the corner of an undershirt.

But if you feel inclined, you might be disgusted by what you’d see: thousands—no, billions—of microbes enjoying themselves on the device you hold to your face.

You don’t have to look through a microscope to see the oil, fingerprints, dust, and debris muddying up your smartphone.

We use and share our phones when we’re sick, and some of us use them in the bathroom. Smartphones and tablets are filthy.

Luckily, CarbonKlean has what the mobile world needs! The Dublin, Ohio, based company has created the perfect, space-age screen and lens cleaning device every mobile user must have, using an advanced technology currently employed by NASA—in space, at the International Space Station—and the U.S. military!

SMART KLEAR The one-two punch of cleaning

CarbonKlean’s proven, safe, all-natural, and effective screen and lens cleaners work at the molecular level, using the carbon molecule, to clean mobile device surfaces while killing bacteria. It’s a one-two punch! How does it work? To start, the carbon molecule is a potent cleaner, thanks to the molecule’s chemical structure. CarbonKlean devices use carbon in their “molecular formula,” which coats the devices’ cleaning pads. There are two parts to each device: a recharger and a cleaning pad. After using the device, you insert the cleaning pad into the recharger. While the device is recharging, an electronic reaction takes place that alters the position of the carbon molecules in the formula, restoring the cleaning pad. You can use it hundreds of times! Also, a “green” antibacterial solution has been added to ensure each clean also sanitizes your phone.

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CarbonKlean: Mobile Cleaning Tech

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THE BRAINS BEHIND THE BRAWN “This is the closest thing to magic you’ll ever see,” said Daniel Patton, CarbonKlean CEO and one of the two entrepreneurial minds behind this revolutionary idea. From hotels and restaurants to biotech and retail, Patton has brought years of experience working in multiple industries to the drawing board. He says advances in technology have allowed his company to dominate the market.

“What we did was supercharge the carbon molecule. We reinvigorated it. . . . On the molecular level, we’re able to clean any screen and do it better than anyone else,” he said. The other mastermind behind CarbonKlean is Kevin Harrington, the inventor of the Infomercial, and the Original Shark from the hit TV show, SharkTank. “Everyone with a smartphone knows how gross a phone or tablet screen can get . . . CarbonKlean has, through its revolutionary cleaning technology, made killing bacteria on your screen and cleaning your device fast, easy, safe, and effective.”

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CarbonKlean: Mobile Cleaning Tech

WHAT THIS MEANS FOR RETAILERS CarbonKlean devices have your entire smartphone and tablet covered. SmartKlear cleans your phone screen while killing bacteria, CellKlear cleans the camera on your phone, and ScreenKlean will clean your tablets, iPads, and eReaders! Oh yeah, and CarbonKlean also offers an endless supply of replacement cleaning pads for each product. Not bad! “The average mobile store selling our product experiences an 80–90 percent sales rate when demonstrating the product to customers,” said Patton. “That can translate to upwards of $50,000 in annual profit for a screen cleaning accessory in your store.” We certainly think the team at CarbonKlean has hit the nail on the head with this one! n

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WirelessDealerMagazine

XPLORING THE TRENDs EXPLORING THEREVEAL TRENDs N WIRELESS REPAIR W D M Future Trends in Wireless Repair W D M WirelessDealerMagazine

IN WIRELESS REPAIR REVEAL

A BIG PROFIT FUTURE A BIG PROFIT FUTURE

Exploring the trend that will shape the ext the next big business opportunities Exploring the trend that will shape the in wireless next the next big repair. business opportunities in wireless repair.

Executive Summary Executive Summary

Staff Writer at Quantumrun.com [ By Dan Mieczyslaw, ] repair. revenue generator: smartphone the next 10 years, the wireless repair

try will drastically change as the Phone repair emerged as a significant vertical revenue generator: smartphone repair. Over the next 10 years, the wireless repair net expands into the developing world, in the wireless industry. The amount of industry will drastically change as the Phone repair emerged as a significant vertical dband speeds reach 4G and 5G levels infinite products that will develop between Internet expands into the developing world, in the wireless industry. The amount of oreign manufacturers flood the market 2016 – 2025 is most likely to create gateway broadband speeds reach 4G and 5G levels infinite products that will develop between ower-cost electronic parts and budget opportunities to a whole suite of new and foreign manufacturers flood the market 2016 – 2025 is most likely to create gateway phone models. verticals for the repair industry. with lower-cost electronic parts and budget opportunities to a whole suite of new tphone saturation will reach its McKinsey and Company, reports that IoT’s smartphone models. verticals for the repair industry. st point in the developed world. potential economic impact could range Smartphone saturation will reach its McKinsey and Company, reports that IoT’s g disposable incomes and low price between $3.9 to 11.1 TRILLION a year by 2025, highest point in the developed world. potential economic impact could range phones will incentivize replacinginstead or 11 per cent of the world’s economy. Rising disposable incomes and low price between $3.9 to 11.1 TRILLION a year by 2025, pairing damaged phones. And Repair professionals are uniquely positioned smartphones will incentivize replacinginstead or 11 per cent of the world’s economy. echnologies are making the latest in the wireless industry to skyrocket revenues of repairing damaged phones. And phone models near indestructible. Repair professionals are uniquely positioned new technologies are making the latestif they strategically take steps now to stabilize in the wireless industry to skyrocket revenues e trends among others will inevitably smartphone models near indestructible.and future-proof their business. if they strategically take steps now to stabilize o an erosion of the wireless repairlargest These trends among others will inevitably and future-proof their business. lead to an erosion of the wireless repairlargest

Future Trends in Wireless Repair W D M

WirelessDealerMagazine

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The following report outlines the present and future of the wireless repair industry. This report is a roadmap wireless repair professionals can follow to generate new 113

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Future Trends in Wireless Repair

WIRELESS BURST ONTO THE SCENE. Sometimes the beginnings of a booming industry emerge well below the radarâ&#x20AC;&#x201D;the niche wireless repair industry is no exception. Wireless repair entered the marketplace around 2009-10, not long after Apple released the first iPhone on June 29, 2007. Since then, this industry has ridden the wave as smart-phones quickly became the must-buy gadget for the young and the professional. 2010 to 2014 were the boom years for wireless repair as anyone with a technical background, and entrepreneurial spirit could jump in and open their repair shop or kiosk. These business owners started their repair business with minimal start up and marketing investment and found near immediate business success from customers looking to repair damage and accidents. However, are these boom times meant to last? Whatâ&#x20AC;&#x2122;s the future of wireless repair over the next five to 10 years? As the basic smart-phone repair is reduced, several new product and service opportunities appear to be an easy and profitable transition for wireless repair professionals.

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Before we answer where the wireless repair industry is going, letâ&#x20AC;&#x2122;s fi rst establish the flow of it today.

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REPAIR GROWTH 2010 TO 2015 The device repair industry as a whole generated over $4 billion in revenue in 2014â&#x20AC;Ś$1.4 billion in the United States alone. The demand for phone repair stores grew largely because of the negative impact felt by consumers without a smart-phone became much higher. As smart-phones and tablets flooded the market in the last decade, they became a primary factor for growth in the wireless repair industry. However, perhaps more important, the cost and fragility of

these devices impacted the rise in repair services. With price tags between $400-$800, every drop or fall of a phone or tablet results in immediate business for repair shop owners from customers looking to avoid paying for a full replacement. Wireless Dealer Magazine, owner of WirelessRepairEXPO.com and producer of the Wireless Repair EXPO (2014 & 2015) found that phone repair services retailers commonly provide the following:

TOP 3 PHONE REPAIRS 2014

62% broken or damaged screens 31% accidental water damage 7% of repairs resulted from data/ ashing or faulty keys/buttons

31%

62%

This chart matters because 97% of smart-phone repair revenue hinges largely on two repairs: Broken screens and water damage. Compiled statistics from WRE attendee registration information.

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WHAT ACCOUNTS FOR THIS INCREASE IN PHONE REPAIRS IN THE RETAIL MARKETPLACE? Wireless Dealer Magazine reports the following driving factors: 1. Easy market entrĂŠe into a booming business, low startup cost, easily added to existing businesses, and fast return on investment 2. e number of phone repair training courses nation-wide has surged & course a ordability has remained low (ranging from $1000 â&#x20AC;&#x201C; $2,000) 3. Consumers demand for immediate smart-phone repairs, increased number of devices per person, and device repair becoming a

8,117 Independent wireless repair shops

common-place service.

Newtonâ&#x20AC;&#x2122;s 3rd Law: Every action has an equal and opposite reaction. Stay ahead of the curve and seek the next opportunity.

21,758 in 2014 Employed

A recent study from Square Trade shows that Americans have spent a whopping $23.5 billion on repairing or replacing damaged smartphones (all brands) in the seven years. Consider the possible reaction based market research done by Wireless Dealer Magazine in 2015 - 2016 Wireless Dealer Magazine, reports 30% of independent wireless service and repair retailers stated they had some overstock for immediate sale. When asked if they were interested in buying products in bulk, at a reduced priced, 80% answered yes. Beginning

March

2016,

Wireless

Dealer

Magazine

14,500 Wireless Retailers Providing phone Repair

provided

telemarketing research on behalf of one of the top 3 national carriers. e

Note:

goal of the 2016 campaign was to prequalify repair retailers interested

Wireless Dealer Magazine is a provider of telemarketing research and marketing campaigns.

in learning how to become an exclusive carrier dealer store. 67% repair retailers answered yes to the question. 116

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B2B Repair

Smart Phone Growth

Retail Competition Steps to Thriving in Price Wars. Inevitably, phone repair retailers are experiencing more competition from neighboring repair retailers. is competition drives repair cost down and pro ts lower.

5 STEPS TO RETAINING CUSTOMERS WITHOUT LOWERING YOUR PRICE. 1.

Leverage the in-store repair retail experience to your advantage - the customer relationship is priceless.

Provide high quality repairs and promote your stores reputation.

Strategic In-store accessory merchandising

4. Be a go-to expert, be your own wireless Genius Bar. 5.

Follow-Up, be proactive in your reputation. A follow-up call stands behind your work, building customer confi dence in your brand.

2016 - 2020 It is no surprise that mobile phones are the core of the wireless repair industry, that is why it is important to review the continued viability of the industry – •

A total of 2.04 billion mobile phones will be shipped globally in 2016 to 2017

•

By 2017, over a third of the world’s population will own a smartphone— that is roughly 4.77 billion smart-phone users

•

Global revenue from smartphones is expected to total $401.3 billion in 2016.

•

By 2020, it is projected globally that there will be 6.1 billion smart-phone users

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DISRUPTIVE TRENDS THAT WILL DRIVE GROWTH IN WIRELESS

OVER THE NEXT 10 YEARS While smartphone sales sound very impressive, they are the tip of the iceberg compared to what’s coming next.

The mobile and wireless industry is about to experience massive growth worldwide due to the rapidly increasing global internet connection rate. This will have a significant and surprising impact on local businesses over the coming years.

THE INTERNET 2016 - 2021 Of the 7.4 billion people in the world (2016), 4.4 billion do not have access to the Internet. That means 60% of the world population has no connectivity to the Internet. By 2020, research by Quantumrun forecasts that 50% of the world’s population will have Internet access, largely due to a spike in mobile Internet use. The number of mobile data subscriptions will finally see the day they come close to matching mobile phone subscriptions in 2020.

THIS WASHINGTON POST CHART LISTS THE COUNTRIES WITH THE LOWEST INTERNET PENETRATION. 118

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the vast majority of the developing world will become connected. When the world’s poor gain access to the web, we will see an astronomic rise in economic growth. A prime example of this economic impact will debut the first-of-its-kind 5G network during the 2018 Winter Olympics in Korea. By the mid-2020s 5G will spread throughout the developed world. Why is this important? An increase in Internet speed requires an increase in data usage, increasing the dependence on smart-phones. This increased usage and dependence on wireless tech will spur a new surge of wireless sales.

THE INTERNET OF THINGS (IOT) Ubiquitous computing, the Internet of Everything, Internet of Things (IoT), they are all the same. At a basic level, IoT is a network designed to connect physical objects to the web, similar to how the traditional Internet connects people to the web through their computers and smart-phones. The main difference between the Internet and IoT is their core purpose. IoT, is designed to excel at allocating Internet resources—it is designed to “give life” to inanimate objects by allowing them to work together, adjust to changing environments, learn to work better, and try to prevent problems. McKinsey and Company, reports that IoT’s potential economic impact could range between $3.9 to 11.1 TRILLION a year by 2025, or 11 per cent of the world’s economy. 119

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CHALLENGES AHEAD FOR THE

WIRELESS REPAIR INDUSTRY Due to the developing world connecting to the internet, there are areas of concern for independent repair shop owners within the next five years. Between 2016 to 2021, the growth rate of the wireless repair industry will begin to moderate, in comparison to the high growth years between 2010 to 2014.

THIS LOWER GROWTH RATE IS LARGELY DUE TO THE FOLLOWING; •

Lower cost smartphones entering the market – consumers replace rather than repair damaged smartphones.

•

Waterproof and water resistant smartphones – reducing accidental water damage repairs.

•

Longer or life-time warranties on phones and repair services.

•

New, stronger aftermarket LCD phone screens – shock proof, and waterproof.

•

The growing availability of 4G LTE wireless networks – consumers can upgrade to 4G enabled smartphones instead of repairing older 3G phones .

•

The growing saturation of smartphones, meaning less new consumers being introduced to smartphones – at least in the developed world where most of the wireless repair industry is concentrated.

Google’s Ara has inspired other phone, laptop, and tablet developers to build their products modularly. •

OLED smartphone screens projected to hit the market between 2016 to 2020.

•

New repair competition from major companies that are already servicing consumers – DISH

Network recently announced they are rolling out a fleet of phone repair techs that will come to your location and provide smartphone repairs.

These trends are worrying given that smartphones currently represent a sizeable percentage of repair shop business.

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GOOGLE’S ARA HAS INSPIRED OTHER PHONE, LAPTOP, AND TABLET DEVELOPERS TO BUILD THEIR PRODUCTS MODULARLY. • OLED smart-phone screens projected to hit the market between 2016 and 2020 • The growing availability of 4G LTE wireless networks – consumers can upgrade to 4G enabled smart-phones instead of repairing older 3G phones • Manufacturing brands like Samsung stepping into the repair business offering instore repairs for in warranty and out of warranty on smart-phones and tablets • Repair Companies like Geek Squad offering life-time protection & support on repairs. 121

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DISRUPTIVE PRICES OF

ELECTRONICS PARTS AS THE WORLD’S GLOBAL POPULATION CONNECTS TO THE INTERNET AND INTERNET SPEEDS GROW FASTER IN LOCKSTEP,THIS WILL SPUR MASSIVE PRODUCTION LEVELS OF ALL KINDS OF SMARTPHONE ELECTRONICS PARTS AND SMARTPHONE PART HARVESTING PRODUCTION LINES.

As a result, this will drag down the end costs of these components thanks to traditional economies of scale. The disruptive aspect of this trend is that it will also bring the costs down for a variety of other consumer wireless electronics, not just phones.

DISRUPTIVE SMARTPHONE COMPETITION While Samsung and Apple are the current global leaders in smartphone sales, Xiaomiand Lenovo are beginning to make successful in-roads into the USsmartphone market. Meanwhile, brands such as Micromax, Intex, and Lava are planning to build affordable smartphones for the masses. These new competitors are predicted to push heavily into Western markets by 2020, initially serving price conscious consumers.

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NOTE Lenovo recently reported they plan to roll out higher end smartphone models in the US in the near future. These new smartphones will be “the world’s first Project Tango-Powered smartphone” – a smartphone that is capable of 3D tracking around the user.

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FIERCE COMPETITION DOES NOT

SPELL DEFEAT

WHILE COMPETITION IS RISING AND THE MARKET IS RAPIDLY CHANGING, THE DISRUPTIVE TRENDS JUST LISTED DO NOT GUARANTEE A GRIM FUTURE FOR WIRELESS REPAIR PROFESSIONALS. CONSIDER THE FOLLOWING;

LUXURY PHONES ARE NOT CHEAP

ACCIDENTS HAPPEN

Samsung Galaxy and Apple iPhone models are not

Likewise, a high saturation of smartphone owners

priced based on their production cost; they are

does not necessarily mean there will be any drop

priced as an attainable luxury item. Moreover, as

in the number of people handling their phones

more premium phones enter the market, the cost

haphazardly—in fact, it is the opposite. Accidents

of owning and damaging these phones will remain

will continue to happen, and more smartphone

relatively constant, meaning there won’t be a severe

owners will mean more repair business, thereby

drop in phone repair sales in the foreseeable future,

evening out the downward pressures listed above.

at least until 2023.

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KEY TACTICS TO PROFITABLY;

FUTURE-PROOF YOUR

REPAIR BUSINESS Analysts at Quantumrun.com, in partnership with Wireless Dealer Magazine, have identified a few key tactics independent repair shops can use immediately to ensure they continue to thrive well into next decade:

NEW REPAIR SUPPORT SERVICES. Consider offering a range of annual contracts or monthly subscription support services that go beyond the one-off, smart-phone repair transaction.

For example, StayMobile promotes services such as:  Warranty and device protection solutions  Mobile device management services  Data and identity protection  Mobile security and management for or apps. devices  Annual maintenance enance services available for K-12 and B2B  Child safety app. protection  Lifetime warranty on all services. As devices and apps. evolve, so will the services repair entrepreneurs can offer. A popular aftermarket service is Smart-phone Waterproofing. For example, Liquipel actively licenses its WaterSafe machine, allowing repair professionals to easily, quickly and permanently waterproof new and used smart-phones. Investing in a licensing relationship with waterproofing providers is on track to be a sizable new revenue generator. Especially if your store establishes a reputation for waterproofing smart-phones and other devices/products. 124

Bundle your accessories in a RX care package and consider offering a device management/care warranty program. Both provide additional sales after the phone repair.

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WHY OFFER

PHONE CLEANSING PRODUCTS? By putting cleaners on your counter like Whoosh or Screen Cleaner gives your customer the impression you care about keeping their phone clean. You are showing that it is important to clean and protect phones after they are repaired. In addition, current reports paint a vivid picture of the average amount of germs on the surfaces of phones. 125

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CARRIER SERVICE OPTIONS

Carrier service options are not difficult to offer in a retail location. Consider BEST BUY BUY, Target or other retailers who dedicate a section of their store to carrier services. Offering wireless service options does not require an upfront financial investment or have product loss issues. Customers look to you to provide quality repair services, and they consider you an expert on phone technology. Your recommendation of a phone plan or a specific provider has weight. Smart repair business owners should evaluate every 3 to 6 months how much referral repair business they are receiving from other carrier service provider stores. It is likely that there is a profit to be made by providing the service yourself, instead of relying solely on referrals.

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DISPLAY FUTURISTIC DEVICES It is important that repair professionals show customers that they are knowledgeable about future products. One way to visually emphasize this is to display futuristic products (think mini-drones and VR headsets) inside the repair shop even if they are not stocked. Why? Because the customerâ&#x20AC;&#x2122;s perception of the repair professional as a tech professional is important for their future business. By showing that you are future-focused, customers that may not need to return to your establishment for an extended period of time will remember your store as having savvy device professionals. As your customer matures into those devices your repair store remains repair relevant to the customer instead of outdated â&#x20AC;&#x201C; two years down the road.

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Build new, non-repair walk-in business Displaying a new device or two is a wonderful way to test out the sales of these products before having to stock anything. You may find yourself creating relationships with certain vendors as resellers and drop shipping products displayed in your store. Ideally, you will find a few products that will sell in your store and you can begin to stock that product and buy in bulk, which will give you a higher profit.

Create standards in your store for merchandising Merchandising is all about presentation. If you

consider hanging one display rack on the wall

need an excellent example of mobile presentation,

of accessories – don’t leave half the display rack

check out the Apple Stores or an AT&T store. They

empty. That is telling the customer that you can’t

limit their merchandise displays, but they are laid

afford to stock your display rack or don’t care to

out in a manner that is sleek and pleasing to the

do it. And, if you don’t care enough to display all

eye and the experience. It is your job to create the

of your products, restock them, or at least properly

standards for merchandising in your store in order

arrange the shelf, customers usually disregard the

to positively impact your clients.

products as not worth buying, or they may conclude

Here’s an example of good merchandising: if you

that you are careless with your business. This is a

want your store to look clean and uncluttered,

costly mistake.

This perception will drive more customers to your business, even if your customers choose not to buy from your clean, orderly merchandise selection.

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YOUR SALES SKILLS PARTNER WITH

M AT T E R DEALERS

Your repair store staff is in a perfect position after

Many independent repair shops already do this,

the repair to discuss options on keeping their phone

but it is important to re-emphasize the importance

safe from the damage you just repaired. Your tech

of partnerships with local smart-phone dealers.

can now turn into a merchandising expert guiding your customer to purchase a couple more items to keep their phone safe like a phone case, protective screen, waterproof treatment, or a repair service

Both parties offer complimentary services (selling phones and repairing phones) that can be cross promoted and sold as an up-sell bundle (phone plus repair warranty) to the end buyer. This form of local business development represents a new

plan. By adding 2 more items to each repair you

revenue stream from which both parties can

are typically adding $30 to $50 more in profit with

benefit.

each customer. Do the math.

Partnerships with computer repair shops could also be fruitful, as there are many independent

TIP:

Offer incentives and/or a contest to your

and franchise computer repair shops eager to

employees for after-repair sales. Give praise

enter the wireless repair business they largely

to employee of the month and consider

ignored. Pawn shops are also an option as some

other rewards for accomplishments.

regularly buy used electronics that may benefit from refurbishing for resale.

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PARTNER WITH OTHER

REPAIR SHOPS As mentioned earlier, an interesting aspect of

would make it possible to increase buying power

the wireless repair industry is how fragmented it

against

remains. The top four players in this space account

increase marketing capability, and improve profits

for less than 10 percent of industry revenue in

across the board.

2014. This means more than 90% of the repair retail

Franchises in the USA typically excel â&#x20AC;&#x201C; independently

industry is made up of independent wireless repair

owned businesses that are part of a larger company

shop owners.

such as Game Stop, GNC and a host of others. It

Capitalize on your ability to make fast decisions

is a psychological acceptance that individuals are

and become even more entrepreneurial by either

more likely to patronize an establishment that is a

banding together into trade associations or merging

recognizable brand or has a name that they have

with one another to claim market share This tactic

seen other places.

wholesalers,

reduce

overhead

costs,

By joining forces with other small stores, you have the opportunity to build a brand name together. 129

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OUTFIT YOUR STORE WITH PHONE CASES

AND ACCESSORIES The mobile accessory market is actually a larger market than smart-phones, with a forecast of $121.72 billion by 2025, and a revenue of $81.5 billion already in 2015. This robust market is mainly reliant on protective covers and power banks. Both of these accessories are healthy for a repair shop to carry, since the safety and lifetime of your customersâ&#x20AC;&#x2122; phones should be your top priority.

REMEMBER Clients want to protect their investment, especially after experiencing the fear of breaking their device.

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Trade in or buy new? Phone trade-in programs are used to help off-set the cost of putting your customer into a new phone or provide a trade-in cash option. It also gives repair professionals access to parts and the possibility of refurbishing items for resale. Or, a bulk amount of cell phones could be sold to a trusted reseller. By the 2020s, as the market for smart-phones in the developing world begins to escalate, it may be worthwhile to begin buying up used smart-phones to sell to bulk buyers. Keep a pulse on your stores surrounding areas. NOTE: Since the use of home phonelines and other connected phone lines continues to plummet, it is likely businesses will offer cell phones to each employee in the near future. This matters because employee job hopping is likely to increase the amount of extra smart-phones rolling around in your stores community. Especially if your store is located in a prime business area of town.

Part sourcing Phone parts are set to fall in price considerably by the early 2020s, due to the trends outlined earlier. Until then, independent repair shops need to remain strategic about where they source replacement parts to reduce their overall costs. Find trusted wholesalers with access to overseas parts manufacturers, as well as consider partnering with other independent repair shops to pool funds and make lowercost bulk electronics orders.

Harvest parts Parts from a defective product are profitable especially given the shortages at times in the parts industry Those parts are in high demand in the resale parts device marketplace.

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SMART-WATCH

BUY BACKS The current models of smart-watches (and other wearables) have faced mixed reviews from the public. There are some who love them, especially the health and fitness obsessed, and then there are others who tried to be smart-watch early adopters but found little practical use for these devices in their everyday lives. It is projected that 70% of smart-watch owners do not use their devices. Smart-watch trade-in programs can be implemented to help consumers reduce the price of a new wireless phone. Meanwhile, your store partners with a buyback company for cash revenue. You can create your own buyback program and decide to try and retail the smart-watches yourself. Actively promote a smart-watch buyback program to those consumers who currently let their smart-watches and wearables collect dust. This can be done through a noticeable sign, such as

â&#x20AC;&#x153;We Buyback Smart-watches and Activity Trackers.â&#x20AC;? Once bought, these smart-watches can be sold to more price-conscious consumers at a profit, as well as in bulk to online buyers. Overall, a smart-watch buyback service can represent a substantial and easy source of revenue for wireless repair shop owners.

WHAT ABOUT SMART-WATCH REPAIR? Smart-watch faceplate repairs are very profitable. A smart-watch LCD repair could produce a 50 percent profit margin, depending on the smartwatch brand. In addition, buying broken smart-watches, repairing them in your store, and retailing the newly repaired smart-watch offers an even bigger profit model depending on the smart-watch brand. This means that a newly repaired smart-watch is a very affordable (low risk) product with a high profit turn around. 132

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BUYBACKWORLD OFFERS AN EXTENSIVE SMART-WATCH BUYBACK PROGRAM. Here are some recent examples of offers; Apple Watch Hermes Cuff 42mm Stainless Steel Case with Fauve Barenia Leather Band MLCC2LL

BROKEN BUY BACK $40 AVERAGE CONDITION BUYBACK $575 FIRST PURCHASED BRAND NEW $1175 Apple Watch Hermes Single Tour 38mm Stainless Steel Case with Capucine Leather Band MLCN2LL/A

BROKEN BUY BACK $40 AVERAGE CONDITION BUY BACK $475 PURCHASED BRAND NEW $1250

NOTE: Fossil made it clear they are serious about their wearables strategy heading into 2016. In the next year, they plan to have on hand more than 100 wearable devices. Those range from fitness trackers to all sorts of gadgets. Leading the charge in their wearables is the Fossil Q Founder. NOTE: Many smart-watch repairs will require training and certification classes. Cell Smart POS Training Center is offering individual smart-watch training now and formal group classes in August 2016.

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Laptops-Tablets-Computers The tablet market is undergoing a great deal of change as of late. On one hand, the market is growing remarkably, with the Yankee Group estimating that tablet shipments will grow from 233 million in 2013 to 1.094 billion in 2017. However, the IDC is reporting that worldwide sales of the traditional standalone tablet (popularized in the early 2010s) has been falling 13.7 percent for the past two years.

SO WHAT’S ACCOUNTING FOR THIS DISCREPANCY? While sales of traditional tablets are declining, sales of the new detachable tablet devices are booming. Currently, the leading detachable tablet devices are Microsoft’s Surface Pro and Apple’s iPad Pro—tablets that can stand alone, but that are sold to snap into an accompanying keyboard.

CONSIDER THE FOLLOWING 1. Higher component costs may force wireless repair providers to charge more for servicing this niche – 2. Tablets and smart-phones are very similar – the learning curve involved with repairing these devices is quite low, which will allow repair professionals to keep costs low By limiting your repair services to smart-phones, you will miss out on the robust computer market. You also run the risk of becoming too obsolete in your services. Remember pager stores? Consider the slowed growth in smart-phone shipments in the developed world, combined with the rapidly advancing smart-phone design into stronger, cheaper materials. This change within the market is similar to the personal computer market that is increasingly smaller due to mobile devices – mobile-only Internet users now exceed desktoponly Internet users in the USA.

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Historically, computer repair stores that failed to diversify their services with the changing market have gone out of business, in part because they appear to be a thing of the past. This is why in the previous section it was recommended that stores display future devices. Repair professionals who merge phone and computer repair together (including tablets and laptops) become more stable.

DIGITAL CAMERA REPAIR This is due to the higher profit margins and increased repair business especially in larger urban areas.

Digital cameras similar to television

become sufficient and powerful enough

sets, digital cameras (not including

formost common usage. For this reason, we

cameras in phones and tablets) also

advise wireless repair entrepreneurs to be

present an interesting repair niche. The

cautious before entering this repair niche.

market for digital cameras is set to grow

The components of top quality digital

to approximately $20 billion by 2020.

cameras are expensive, they are delicate

However, much of this growth is expected

to handle, and repairing these devices

to concentrate in developing countries,

requires specialized training. However,

whereas in the developed world the growth

the tools needed to repair digital cameras

of digital camera sales is declining. While

are similar to those used to repair smart-

higher-end cameras remain profitable

phones, and the large base of camera

due to a large market of photography

enthusiasts and the high cost of quality

enthusiasts, industry reports are finding

cameras mean that it is possible to charge

that for the average consumer, the cameras

a premium to repair these device.

REMEMBER

90% OF REPAIR SHOPS ARE INDEPENDENT STORE OWNERS.

baked into the modern smart-phones have 135

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Smart-phone Product Leasing The

vehicle

some

the growing disconnect between older technology

consumers cannot afford or are not qualified

and improved networks raise the likelihood of

to outright buy a vehicle. Instead of losing the

millennials upgrading far more frequently than in

customer, sales people present another method of

the past.

vehicle ownership â&#x20AC;&#x201C; leasing or leasing-to-own.

Consider a leasing or lease-to-own contract for

While payments are monthly, similar to most car

smart-phones, laptops, tablets, televisions, gaming

payments, leasing allows the customer the option

consoles, audio, smart-watches, fitness trackers,

of upgrading his or her car at the end of the lease

and wearables.

instead of worrying about selling the vehicle.

The above mentioned products could present

Or, the customer may choose to purchase that

your business with a sizable profit, especially since

vehicle, recognizing the capital that they have

the used devices can be recycled back into your

already invested against the end price.

business for parts or resale.

The

smart-phones.

Many lease-to-own companies offer commissions

Millennials increasingly upgrade to the latest

up to 20% on the total cost of your customerâ&#x20AC;&#x2122;s

technology as soon as they are able. Faster, sleeker

lease.

same

industry

concept

recognizes

applies

that

and more efficient mobile devices combined with

NOTE 30% of Americans are considered under-banked and have low or average credit scores. Leasing programs typically are not based on your customerâ&#x20AC;&#x2122;s credit history. Most leasing programs advertise 99% of qualified consumers are approved.

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REPAIR TRAINING

REPAIR NEW DEVICE TYPES TO GROW PROFITS There is one last growth tactic that is the most important: updating repair skills to repair new device types. As always, it is important for repair professionals to continually upgrade their technical skills to adapt to changing technologies and be able to resolve an ever larger variety of repair scenarios. If your repair shop begins to see a dip in smart-phone repair customers, consider diversifying the repair services.

BY DIVERSIFYING YOUR BUSINESS OFFERINGS AND SERVICES YOU HAVE THE ABILITY TO STAY AHEAD OF THE MARKET AND CONTINUE TO MAKE A PROFIT. Some of those diversifications include new support services, carrier service options, part sourcing, merchandising, and merging with other repair stores. The following section is a list of potentially profitable products that you should consider adding to your repair repertoire. A limited amount of stores already offer repairs to these products. Because of this limitation, you have the opportunity to reach your community with new offerings first.

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WEARABLES AND HEARABLES

Wearables and Hearables are currently experiencing tepid growth due technological limitations – limited battery life and dependence on a physical (wires) or Bluetooth connection with a smart-phone. However, as the Internet becomes faster and more available over Wi-Fi (and soon Li-Fi), and as electronics become smaller and cheaper, these limitations begin to lessen. By 2019, the world wearable market is set to grow to $25 billion. By the early 2020s, the market will see an explosion of new wearable devices for a variety of uses that can work independently of smart-phones for extended periods of time.

THESE WEARABLES SHOULD INCLUDE THE FOLLOWING; • Smart-watches – early examples include the Apple Watch, Fitbit Blaze, and Samsung Gear • Smart Headphones & Earbuds • Fitness and medical tracking bracelets and smart clothes (i.e. electronics embedded into clothing); this wearable category alone is worth $1.15 billion • Mood enhancing headbands – early examples include Muse and Thync • Notification sharing and/or door opening smart rings Examples of all these wearables already exist. However, they currently only appeal to very specific niches of people. As high-end wearables develop and increase their market penetration, these small, yet expensive devices could present an attractive repair market. Specifically, it will be possible to charge a premium due to the more difficult repair skills needed to fix these smaller devices.,

WHAT ARE HEARABLES? Hearables are smart earbud devices that fit inside your ear. So why in the ear? The ear has been proven to be a much better place to accurately measure the wearer’s core temperature, heart-rate, the amount of calories burned and other lifesaving key biometrics. When it comes to putting tech in our ears, it all begun with the classical earbuds that came with our FM Walkman. Since then, it’s safe to assume that these ubiquitous devices have paved the way for today’s earbuds. Hearables also have the advantage of being more familiar, which means that when it comes to user experience of the product, consumers will not need to change their behavior in order to enjoy the benefits that hearable technology can provide. Early examples of hearables are the wireless earbuds Bragi or Earin and Motorola’s new micro-headset The Hint. Companies that are currently innovating within hearable technology Jabra, Sony, and Samsung, among many others. 138

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HEARABLES-THE PROMISING REPAIR FUTURE By 2018, it is projected that hearable technology will become a $5 billion dollar industry. This market growth also means that by 2020 hearables will represent an attractive repair market for wireless repair shop owners. Additionally, of the three main hearable components—voice

command (microphones), wireless connection (Wi-Fi and Bluetooth), and cloud processing— the first two are common electronic components that most repair professionals have a great deal of experience replacing with smart-phones.

NOTE: Hearing aid repair techs report profits of $200-$450 per device repair. Manufacturers of Hearing Aids like Starkey are joining forcing with the Hearable Industry.

HEARABLE TECH DEVICES: “Consumer Dependence of Tomorrow?” When it comes to the improvements within the field of artificial intelligence functioning as a personal assistant by constantly freeing up cognitive space, the hearable device can become a useful tool that is able to suggest things to you because it has gained capability to correctly second guess your needs. It will be the kind of device that will discretely fitted in your ear and give you the right contextual advice at the right time. Another possible feature is that of an in-ear translator. It will give the wearer the power to break existing language barriers and make it possible for them to converse with anyone no matter the language they speak. 139

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BLUETOOTH SPEAKER

REPAIR By 2019, the humble Bluetooth speaker market will be valued in excess of $7 billion worldwide. Similar to the wearables discussed above, the growth of Bluetooth speakers is largely due to advances being made in improved battery life and component efficiency. This makes installation and connectivity to smartphones and home computers easy and allows for hours of music and video time before the next recharge becomes necessary. Bluetooth speakers present a great new repair service to offer to customers. These devices can be just as fragile as smart-phones, many cost at least $100 or more, and the consumer market for these devices is large and growing. Better yet, the repair tools needed to fix these speakers are cheap, and their primary components (speakers, Bluetooth chips, and lithium batteries) are very common and relatively similar to smart-phones, even if there is a minor learning curve.

NOTE:

There is an increasing demand for wireless audio productsâ&#x20AC;&#x201D;a market that includes myriad devices such as headphones, speakers, wireless headsets, and soundbars. The demand is driven by the continued growth and success of the smart-phone market. 140

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TELEVISION REPAIR Over the last few years, growth in the global

consider adding television repair to their list of

television set market has slowed, largely due to an

offerings, caution is advised. Modern televisions

over saturation of modern flat panel displays that

have

led the switchover from analog to digital. Even so,

leading consumers to replace rather than repair

television sets are still a $100-billion-dollar industry

damaged TVs. Higher-end TVs priced between

that is expected to grow once again in the late

$4,000-10,000 will attract repair business, but with

2010s due to increased demand from developing

two key drawbacks: repairing a television requires

nations. However, this factor is not the only thing

a specific set of skills and knowledge that canâ&#x20AC;&#x2122;t

set to fuel the TV comeback.

easily be self-taught; and repairing these high-end

To generate higher margins, television manufacturers are already well underway in pushing 4K screens as the new standard, with industry analysts expecting 4K up to 42 percent of the market by 2018. Other

become

relatively

cheap

commodity,

TVs requires an investment in an entirely new set of tools, as well as a substantially larger work space than wireless repair operators need when repairing smart-phones.

manufacturers are marketing curved screens as a

Ultimately, repairing high-end TVs can be a lucrative

means to provide a more immersed experience and

niche to enter, but the repair professional must be

reduce glare.

confident that there is a market for this service in

As to whether wireless repair professionals should

their area.

141

WW D D MM

Future Trends in Wireless Repair

VIRTUAL AND AUGMENTED

REALITY REPAIR By 2020, VR and AR will be a $150-billion-dollar industry. The main reason these two related technologies are seeing a resurgence is because the trends mentioned earlier (faster web speeds and cheaper electronics components) are finally making them financially viable to manufacture for the masses. Capitalizing on this market, powerhouse companies like Facebook, Sony, and Google are planning to release affordable VR headsets (Oculus Rift, Project Morpheus, and HTC Vive respectively) in 2016-2017. These devices will represent an entirely new medium and bring realistic and user-friendly virtual worlds to the mass market. Likewise, new models of AR glasses (think nextgeneration Google Glass or AR contact lenses) will also enter the mainstream, but not until the early to mid -2020s, since they still have some technological hurdles to overcome. Overall, with their high initial price tag and delicate first-generation designs, these consumer VR devices present an attractive potential repair market to enter between 2018 and 2020. Better yet, a high percentage of the electronic parts found in these early VR devices have much in common with modern smart-phonesâ&#x20AC;&#x201D; this means the learning curve to repair basic damage or replace defective parts in VR devices will be relatively minor compared to other devices

142

D D M M Future Trends in Wireless Repair W W

GAMING CONSOLES As many readers might imagine, the video game industry is massive. In fact, by 2019, the global gaming market is set to hit $93 billion. Additionally, this industry will likely grow well beyond this figure once the VR devices described above enter the gaming space. Much of the average consumerâ&#x20AC;&#x2122;s video gaming experience is through a console manufactured by the leaders in this space â&#x20AC;&#x201C; Sony, Nintendo, and Microsoft. The most common repair issues plaguing these consoles tend to be a failure with the disc drive, hard drive, fan, cable ports, and power, which are essentially electronic component issues that require a replacement. Luckily, this type of component replacement work is exactly the kind of work that comes naturally to wireless repair professionals due to their experience with smart-phone repair. This is why, with a modest investment in specialized diagnostic software and cables, learning how to repair game consoles can be a relatively easy and profitable business move. However, when it comes to the profitability of this repair type, it depends on the consoles age, so be selective with your projects. Digital cameras similar to television

become sufficient and powerful enough

sets, digital cameras (not including

formost common usage. For this reason, we

cameras in phones and tablets) also

advise wireless repair entrepreneurs to be

present an interesting repair niche. The

cautious before entering this repair niche.

market for digital cameras is set to grow

The components of top quality digital

to approximately $20 billion by 2020.

cameras are expensive, they are delicate

However, much of this growth is expected

to handle, and repairing these devices

to concentrate in developing countries,

requires specialized training. However,

whereas in the developed world the growth

the tools needed to repair digital cameras

of digital camera sales is declining. While

are similar to those used to repair smart-

higher-end cameras remain profitable

phones, and the large base of camera

due to a large market of photography

enthusiasts and the high cost of quality

enthusiasts, industry reports are finding

cameras mean that it is possible to charge

that for the average consumer, the cameras

a premium to repair these device.

baked into the modern smart-phones have 143

WW D D MM

Future Trends in Wireless Repair

HOVERBOARD REPAIR

Often described as Segways without handles, or as a self-balancing scooter, hoverboards have become one of the hottest consumer gadgets since their introduction in 2014. While the market for these devices is still too young to get a sense of its scale, its popularity (especially in the US) is evident, based on media reports, in large markets. We advise caution before deciding to provide repair services for this device type due to the following;



Hoverboards are in the early stages customer engagement. There is no guarantee that they won’t soon fall out of fashion similar to the Segway.

 New Manufactures/ other innovators

capitalizing on their popularity and developing a completely new hoverboard based on different technology.

 Like drones, hoverboards are already facing

strict government regulation regarding their use in public.

 Hoverboards are facing a great deal of 144

backlash over a laundry list of safety and quality concerns related to this product – in the consumer marketplace due the batteries exploding and catching fire. All these negatives aside, consumer are still fascinated by them and for the risk-taking wireless repair professional, these hoverboards do present an attractive opportunity. Like smartphones, these hoverboards are expensive (ranging between $300 and $2,000 per unit), and they are prone to break down (again, due to the product quality issues described above). Additionally, mosthoverboards use a common design and electronic and motor components – locating and purchasing replacement parts from manufacturers should not be difficult. These three qualities—high consumer sticker price, product fragility, and ease of purchasing replacement parts—are the bread and butter of the repair industry. Thus, if a wireless repair shop owner sees a high concentration of hoverboards in their territory, then there is a business case to be made to experiment with offering hoverboard repair services.

D D M M Future Trends in Wireless Repair W W

GAMING CONSOLES HOBKNOB® KIT

FOR SMARTPHONES

WALL MOUNT KIT

NEW

FOR TABLETS

VENT MOUNT KIT

As many readers might imagine, the video game industry CAR MOUNT KIT is massive. In fact, by 2019, the global gaming market is set to hit $93 billion. Additionally, this industry will likely grow well beyond this figure once the VR devices described above enter the gaming space. Much of the average consumer’s video gaming experience is through a console manufactured by the leaders in this space – Sony, Nintendo, and Microsoft. The most common repair issues plaguing these consoles tend to be a failure with the disc drive, hard drive, fan, cable ports, and power, which are essentially electronic component issues that require a replacement. Luckily, this type of component replacement work is exactly the kind of work that comes naturally to wireless repair professionals due to their experience with smart-phone repair. This is why, with a modest investment in specialized diagnostic software and cables, learning how to repair game P A can R T O Fbe T Ha E relatively easy and profitable business consoles move. However, when it comes to the profitability of this repair NEW type, it depends on the consoles age, so be selective with your projects.

Digital cameras similar to television sets, digital cameras (not including MOUNT cameras in phones andMAGNETIC tablets) also

STEELIE

become sufficient and powerful enough formost common usage. For this reason, we

™ FREEMOUNT VENT KITentrepreneurs to be advise wireless repair

NEW niche. The present an interesting repair

cautious before entering this repair niche.

market for digital cameras is set to grow

The components of top quality digital

Where the freedom of portability and universal fit cameras are expensive, they are delicate to approximately $20 billion by 2020. PEDESTAL KIT converge with Steelie magnetic mounting technology, to handle, and repairing these devices However, much of this growth is expected the FreeMount Vent Kit is the most versatile in-vehicle requires specialized training. However, to concentrate in developing countries, mounting solution. Phones of most sizes are secured the tools needed to repair digital cameras whereas in the developed world the growth in the FreeMount and then magnetically anchored to are similar to those used to repair smartof digital camera sales is declining. While the portable Vent Mount, allowing for adjustable phones, and the large base of camera higher-end cameras remain profitable viewing angles and stability. enthusiasts andultimate the high cost of quality due to a large market of photography FOR SMARTPHONES

enthusiasts, industry reports are finding

cameras mean that it is possible to charge

that for the average consumer, the cameras

a premium to repair these device.

baked into the modern smart-phones have

To discover more solutions, visit NITEIZE.COM/STEELIE

145

SAVE THE DATE

August 22-23, 2017 · Planet Hollywood, Las Vegas

For the largest, and most targeted, event for prepaid wireless and services!

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Advertiser Index

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Wireless Dealer 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

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