If you’re in the market for starting a new business, then you may want to consider starting a cell phone accessory store. It’s an extremely lucrative industry that is only going to grow as mobile technology continues to advance. You are going to need to decide on your market niche, what you will sell and how you will get the word out about your business before it starts making money. Cell phone stores have a lot of competition in this industry so you want to find an area that can be profitable for both small and big businesses. The accessories market is likely one that has not been tapped into yet which means there may be less competition in the beginning stages. There are many factors involved with running a successful phone accessory store, so this blog post will be exploring just some of them.
1. Consider the type of products you want to sell
You need to make sure you are comfortable selling a variety of products before you jump in and start a cell phone accessory business. Cell phone accessories come in all shapes and sizes and the profit margin could be similar or even higher for certain types of products. Consider developing products that have a long shelf life and don’t require you to make too many trips to the store to replenish them. You may want to start off selling only your top selling items to see how profitable that type of business really is. Also keep in mind that your typical customers might need to be at different stores which could cut into your sales. A good way to avoid that is to offer a store that’s only open during certain hours so that you can maintain customer loyalty.
2. Find a supplier that will meet your needs
Because you will be working on the designing and manufacturing of your phone accessories, you will need to have a manufacturer that will provide the materials you need to create your products. Buying the raw materials in bulk means you are able to get better pricing. The more supplies you purchase in advance of opening your business, the less cash flow you will need in the short-term. But, it’s also important to understand that you can start off small and wait until you can afford to buy enough raw materials to cover your costs.
3. Research your competition and find out what they’re doing well and not so well
In the early stages, it’s not important how you compete but that you do compete. This does not mean that you should not try to be the best and biggest in your niche but rather that you want to learn about your competition. What do they have that you don’t and do they have a couple of competitive advantages you do not? One way to find out information about your competitors is to research them on Google or by doing a Google search. Read articles on your target market niche from different sources and then try to decipher the key points that they are making. Find out what services your competitors offer and the prices they are charging for these services. Once you know what your competitors are doing well, what do you need to do to better your own business?
4. Create a business plan outlining how you’ll be able to compete with them
Of course, you’re going to need to become part of the market before you can begin competing. What’s the best way to make a plan for competition? You want to think outside the box here. People like a challenge so how can you come up with a profitable method for being competitive in the cell phone accessory business? You can do it by creating a business plan.
5. Figure out all the costs associated with starting up before investing any money
There are many expenses associated with starting up a cell phone accessory business. That includes business rent, product costs, inventory and selling supplies like brochures and business cards. It can take a lot of time to put together the inventory, hiring a sales team, putting together promotional materials, marketing the business and learning the ins and outs of the industry. You should figure out exactly how much money you need to invest into the business before launching. Don’t invest too much into the start up costs because it may cause you to be unable to recover from the start up costs if the business doesn’t turn out as profitable as you anticipated.
6. Register with all necessary websites such as Amazon, eBay, and Paypal
Your first step is to find some companies that provide phone accessories for a fair price and register with each website. You will need to pay each company for their products but once you are registered with them, you can start selling on their platforms. You will have to set up a way for customers to purchase your products. This is why registering with PayPal is so important. You don’t want to take any chances with counterfeit items. You may also be required to register with stores like Amazon, Walmart, Target, Costco, and Walgreens. Make sure you register with each store and not one company. This way if one of the websites you have registered with does run into any issues with counterfeits, you won’t have any problems since you will already be registered with another retailer.
7. Decide on the best way to advertise – social media sites or word of mouth
When it comes to advertising, it’s important to set the expectation at the start of your business and gauge your customer base’s reaction to that. Social media sites are relatively easy to establish, but how can you gauge whether or not customers are even looking for these types of product? A new store’s first customer is the one that they are trying to market to, but their customer base is likely to react negatively to a new retailer on social media. Word of mouth can be a powerful tool to market a business, especially in this industry. Many people don’t like social media, but they have to know that they will be bombarded with ads on these platforms and will spend the time that they do on their phones shopping.
8. Create an inventory list and price sheet for potential customers
Because most cellphone accessories like cases, chargers and the like are used, you will want to keep track of how many of each item you have in stock. Since this is a new business venture, you will need to put together a schedule that has you coming into town for the products that you have in stock. This will help you build a good inventory and will allow you to bring in the supplies you don’t have at the time you need them. This will also allow you to have a clear and good idea of what you can expect to sell in your first month.
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