May 2012 YOY Numbers

**starfish00** · 05-20-2012, 09:51 PM

I'm looking for your feedback out there - how is your May turning out? We are down 25% in boxes - is the upgrade fees impacting us? Lack of new devices? Any thoughts?

**AT&T Snatcher** · 05-21-2012, 04:20 PM

There is almost no buzz. Phones are stale. People ask about the Note and the 4G iphone.

VZW is not helping with the Maxx BS, the upgrade fee and the announcement about the loss of unlimited. Whatever street cred we have gained from the 4G roll out has been washed away by the negative publicity. Think about it how many conversations include the phrase, "I hate Verizon."?

Having said that, YTD boxes are OK. But this month is not good so far (still time to recover). These things tend to run in cycles, but we need a catalyst heading into summer beyond "upgrade now before we take away your unlimited."

**VZWINDIRECTGUY** · 05-21-2012, 07:13 PM

Originally Posted by AT&T Snatcher

There is almost no buzz. Phones are stale. People ask about the Note and the 4G iphone.

VZW is not helping with the Maxx BS, the upgrade fee and the announcement about the loss of unlimited. Whatever street cred we have gained from the 4G roll out has been washed away by the negative publicity. Think about it how many conversations include the phrase, "I hate Verizon."?

Having said that, YTD boxes are OK. But this month is not good so far (still time to recover). These things tend to run in cycles, but we need a catalyst heading into summer beyond "upgrade now before we take away your unlimited."

You are going to continue to see numbers decline, Verizon has now teamed up with comcast to kill a few markets off for indirects. In addition Verizon is telling customers who do not want to loose their unlimited data to not upgrade but instead buy a device at full price. Just additional reasons for the customer not to walk into your store to buy, and more reason for the customer to come into your store for free tech support.

**vzwinagent** · 05-21-2012, 07:27 PM

The month is horrible here. New activations have been down all year too. This has been a bad 4 month stretch on new lines... Worst stretch ever. Upgrades are down somewhat too.

**anandsandy** · 05-23-2012, 03:05 PM

Originally Posted by vzwinagent

The month is horrible here. New activations have been down all year too. This has been a bad 4 month stretch on new lines... Worst stretch ever. Upgrades are down somewhat too.

I have seen a number of stores owned by smaller indirects (5 stores or less) closing down around us. Our sales are down too.

I have a feeling that Verizon wants to consolidate their sales channels around Corporate, Online and large multi regional indirects who have franchise model. It is probably easier for them if they consolidate it this way.
Any thoughts?

**VZWINDIRECTGUY** · 05-23-2012, 04:18 PM

Originally Posted by anandsandy

I have seen a number of stores owned by smaller indirects (5 stores or less) closing down around us. Our sales are down too.

I have a feeling that Verizon wants to consolidate their sales channels around Corporate, Online and large multi regional indirects who have franchise model. It is probably easier for them if they consolidate it this way.
Any thoughts?

Not true, verizon is actually pushing away from the franchise model because it is costing verizon way too much to have a middle man. Opening costs, activation compensation, residuals, etc. are WAY higher with the big players and verizon is trying to save every single penny now more than ever. It is also harder to control the bigger guys than smaller players, the small guys will put up with more crap like operating a store without profit than the bigger guys. They are trying to push their website more than anything else. They are also contacting customers directly via email and text to upgrade directly, you will see a lot more of that.

**_KC_** · 05-24-2012, 11:31 AM

They are bad. Can't wait to see the new comp structure next week thats getting ready to launch. Hope its good but expect it not to be.

**vzwinagent** · 05-24-2012, 09:53 PM

Originally Posted by _KC_

They are bad. Can't wait to see the new comp structure next week thats getting ready to launch. Hope its good but expect it not to be.

I heard speculation of upgrade comp going down considerably and probably iPhone comp too. New acts probably up. If they do that I just hope they raise the smartphone compensation considerably. I understand lowering comp for regular upgrades on basic devices but smartphone comp needs to go WAY up.

**Downtown** · 05-25-2012, 07:31 AM

We should be receiving the details within the next week. I definitely cringe when opening those envelopes from hq.

**_KC_** · 05-25-2012, 09:31 AM

Originally Posted by vzwinagent

I heard speculation of upgrade comp going down considerably and probably iPhone comp too. New acts probably up. If they do that I just hope they raise the smartphone compensation considerably. I understand lowering comp for regular upgrades on basic devices but smartphone comp needs to go WAY up.

What I was told was basic phone commission going down, smarthphone going up. I will not complain with that as long as the overall money does not go down. Hopefully it goes up. I will not be happy if iPhone comp goes down.

**VZWINDIRECTGUY** · 05-25-2012, 10:29 AM

Originally Posted by _KC_

What I was told was basic phone commission going down, smarthphone going up. I will not complain with that as long as the overall money does not go down. Hopefully it goes up. I will not be happy if iPhone comp goes down.

The way I see it is we are already barely making it, if a change brings our overall gross profit down it will not be worth operating anymore. The iphones are the majority of the sales for everyone, if verizon brings that down and increases everything else to what ever they want it will not help. You can pay us $800 per blackberry activation and it will probably not help much so I do not care how they play with the numbers, there are some things that cannot be compensated for with something else.

**_KC_** · 05-25-2012, 03:06 PM

I agree with that. If iPhone comp stays the same and they raise other smartphones up some (which currently pay decent with all the spiffs that are running) then I will be happy. I sell more smartphones than regular phones, so will not complain if they just bump up the PDA comp across the board. Especially with the share data plans coming, as my smartphone rate should go up even more.

**_KC_** · 05-29-2012, 10:53 AM

Saw the new comp structure today. Was about what I expected. Will not be bad for anyone doing at least 55-60% smartphones. Over that and will be quite a bit better.

**VZWINDIRECTGUY** · 05-29-2012, 11:15 AM

Originally Posted by _KC_

Saw the new comp structure today. Was about what I expected. Will not be bad for anyone doing at least 55-60% smartphones. Over that and will be quite a bit better.

I hope so, with the current phone prices we are getting screwed.

Are there any changes to the iPhone comp?

**_KC_** · 05-29-2012, 01:33 PM

Originally Posted by VZWINDIRECTGUY

I hope so, with the current phone prices we are getting screwed.

Are there any changes to the iPhone comp?

Only thing I saw was a example sheet comparing old vs. new for basic and smartphones. Was no mention of the iPhone on it and I forgot to ask specifically about it.