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Thread: Stores closing/New Managements/switching carriers??? What's going on???

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    Stores closing/New Managements/switching carriers??? What's going on???

    Past couple of months I been seeing a lot of changes in the stores around me and where I live. Two stores have closed down near me and another one have changed management. Three MetroPCS dealers near my house have all changed to SimpleMobile. Is MetroPCS closing these doors down?

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    No, they reduced commissions (on 3G phones) and expect you make up the difference on fees on to the customer (and the reason is something like, well Verizon is doing it!), you frequently sell the phones at cost or below, they reduced phone subsidies, they want you to buy this fancy corporate look furniture, Tampa Bay is saturated with stores (so you need to own like 10 of them so you can make living off them) and there is no real guarantee that won't let some dude plop down another store down the street, also they make rules like you are corporate (I can't even sell wifi tablets during Christmas for instance), but you take all the risks.

    Some people just don't think it's worth the effort. That's partly why we are closing instead of selling the store. First, we were told we are only allowed to sell to four preapproved dealers. Those dealers are playing it real cautious. Now we have been allowed to ask other dealers and even entertain offers from outsiders. The issue with non-MetroPCS noobs, is that the approval process can take months and my wife just doesn't feel like waiting.

    If dealers switched to Simple Mobile, it might be that the rules are less stringent and you get paid more... just speculating on that. I just read up on Simple Mobile, I think the fact that you bring a phone to them reduces the chance of losing money on a phone you sell.

    If I posted this with out closing my business, I am sure I'd be in big trouble right now, but who cares at this point...
    I like what MetroPCS has, they give you unlimited everything for a decent price.
    Last edited by HandyWireless; 06-02-2012 at 06:37 PM. Reason: ranting
    In the land of Roshan and AWCC cellphones.

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    I would have to agree with the said above, those miller zel kits r freaking expensive.

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    Virtually all Dealer stores will be closed or re-branded over the next 90 days. There just isn't enough business to go around. Some stores reduced operating hours (open at 12pm and go to 6pm), some just close or switch to Multi-Carrier (where the money is). Some are just money laundering and don't care how many sales they get. Lots of times they are closed at random times. Dealers figure screw it and leave if it's slow.

    You don't see GameStop put a store every mile or half mile. The reason you don't is you cannibalize the sales and reduce profitability, and in Metro's case, brand as a low-income product. The more stores you have in an area, the more Metro has to pay dealers to keep them in business. Metro/Cricket never had the management that understood that. They are not really management types (Leap included). They don't understand that the dealer income comes from them (like a direct employee). Dealer store expenses are really part of their budget but they don't know it. If you put a second store in an area, compensation has to grow by 140% to keep both stores profitable and in business. The breakeven might be 100 Phones or higher for a store. If you add a second store in the area, you cut sales to 50, but breakeven is still 100. Now you must pay 140% percent more per phone to keep them in business (due to downside risk since your doing lower volume the dealer has to make extra as a reserve when business is bad). With a slower market, a botched plan strategy and hiring management locally who will work cheap caused the collapse. Dealers are setup to only survive if business is very good. Even when business is good, most dealers just get by. Never go exclusive with a prepaid company.

    If's funny, Metro and Leap could be paying $20 per new customer with much nicer dealer stores and spent the savings on advertising, and have 40m customers combined right now.

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    Quote Originally Posted by HandyWireless View Post
    No, they reduced commissions (on 3G phones) and expect you make up the difference on fees on to the customer (and the reason is something like, well Verizon is doing it!), you frequently sell the phones at cost or below, they reduced phone subsidies, they want you to buy this fancy corporate look furniture, Tampa Bay is saturated with stores (so you need to own like 10 of them so you can make living off them) and there is no real guarantee that won't let some dude plop down another store down the street, also they make rules like you are corporate (I can't even sell wifi tablets during Christmas for instance), but you take all the risks.

    Some people just don't think it's worth the effort. That's partly why we are closing instead of selling the store. First, we were told we are only allowed to sell to four preapproved dealers. Those dealers are playing it real cautious. Now we have been allowed to ask other dealers and even entertain offers from outsiders. The issue with non-MetroPCS noobs, is that the approval process can take months and my wife just doesn't feel like waiting.

    If dealers switched to Simple Mobile, it might be that the rules are less stringent and you get paid more... just speculating on that. I just read up on Simple Mobile, I think the fact that you bring a phone to them reduces the chance of losing money on a phone you sell.

    If I posted this with out closing my business, I am sure I'd be in big trouble right now, but who cares at this point...
    I like what MetroPCS has, they give you unlimited everything for a decent price.
    Agreed. MetroPCS's insistence on driving it's independent dealers, the backbone of it's sales force, to unprofitability is the reason I left within a year of "Wireless For All." Having to sale the phones at or bellow cost only to wait for commissions is ridiculous (especially when we previously made about the same profit upfront from phone sales). If I wanted to deal with the headache of commissions, I'd rather be doing postpaid where at least it was $100-200 profit per line. PREPAID services needs to be simple for customers and dealers. I switched to working with more profitable carriers and never looked back.

    I have some speculation as to why they did what they are doing. MetroPCS over saturates an area with dealers so that they might have leverage on competing dealers. If one dealer is not willing to do something they want, they give favor to the other dealer that is (For instance, through phone allocations). Eventually, dealers that don't follow suite are slowly forced out of business... Those that remain are tightly controlled. It sucks to have to shell out for "fancy corporate look furniture" and purple paint, yet have no guarantee that MetroPCS will continue to do business with you tomorrow... like what the heck are you supposed to do with purple furniture!? Did MetroPCS make it's dealers pay to redecorate just so it can prime itself for acquisition? Then what do you do when MetroPCS is sold off? Are you gonna have to pay to redecorate again with yellow (i.e. Sprint) or magenta (i.e. T-Mobile) furniture?

    Again, JUST MY SPECULATION.
    Be on your guard. There are older and fouler things than trolls in the deep subforums.

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    wow, I had no idea this was going on.

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    Down the street from me, there was a metroPCS dealer, who closed after a robbery (inside job, per the local paper). The location was vacant for a few months, then recently reopened, but it is now offering metroPCS, Boost and Simple Mobile.

    If someone who has existing metroPCS service, goes into a dealer and wants to upgrade a phone, will they pay the same price for the phone as posted in a corporate metroPCS location or the web site, or can a dealer charge whatever they want? The last time I went into the local corporate metroPCS location, I wanted to get a car charger. There were some 20 people in that corporate location at the time, so I felt that the wait would have been too long (at least one hour!), so I left. They usually have only two or three employees working at any one time, based on my past visits there.

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    Quote Originally Posted by drunkenmojo View Post
    Agreed. MetroPCS's insistence on driving it's independent dealers, the backbone of it's sales force, to unprofitability is the reason I left within a year of "Wireless For All." Having to sale the phones at or bellow cost only to wait for commissions is ridiculous (especially when we previously made about the same profit upfront from phone sales). If I wanted to deal with the headache of commissions, I'd rather be doing postpaid where at least it was $100-200 profit per line. PREPAID services needs to be simple for customers and dealers. I switched to working with more profitable carriers and never looked back.

    I have some speculation as to why they did what they are doing. MetroPCS over saturates an area with dealers so that they might have leverage on competing dealers. If one dealer is not willing to do something they want, they give favor to the other dealer that is (For instance, through phone allocations). Eventually, dealers that don't follow suite are slowly forced out of business... Those that remain are tightly controlled. It sucks to have to shell out for "fancy corporate look furniture" and purple paint, yet have no guarantee that MetroPCS will continue to do business with you tomorrow... like what the heck are you supposed to do with purple furniture!? Did MetroPCS make it's dealers pay to redecorate just so it can prime itself for acquisition? Then what do you do when MetroPCS is sold off? Are you gonna have to pay to redecorate again with yellow (i.e. Sprint) or magenta (i.e. T-Mobile) furniture?

    Again, JUST MY SPECULATION.
    LEAP Does the same thing.

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    metro pcs

    you are totally right there is no room for profit in metropcs . cause some corrupted corporate management members are trying to screw small dealers and feed the master dealers

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    Now working for a huge phone company. I learned a lot from former workers. Many of the Metro stores (not leap), are not in business to sell phones at all. They only need enough sales to pay the rent if the wealthy owner even cares. Master dealers advertise in foreign papers to wealthy people who want to come to the united states. They "sell" them a store where they are obligated to sell it back for a $100,000.00 loss after 2 years. INS will visit the store to prove that the owner truly owns the store and is physically there. Citizenship is granted because of the investment. Metro has to put other stores around to get the sales up. They see a huge spike when a second store goes in, because the first store was a zombie store that could care less if they sell any phones. They proceed to do it everywhere. Not in any business textbook lol. Maintain Same store sales? What's that? Metro goes out, many of these dealers will still be in business, selling nothing!

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    I think the things mentioned by the posters above are happening all over the prepaid industry. Add the fact that we keep hearing rumors about who will buy who and what deals are in the works, and it is simply an unpredictable investment at this time. Greed is going to kill off everyone at some point. Once companies started to demand that dealers go exclusive with one company or another, that's when things changed for the worse for dealers. I feel that if companies can get a way with having Best Buy and Radio Shack sell their phones without having to deal with small dealers, they would do so in a heart beat. For my fellow dealers out there, know that it's not just you or the brand you sell, it's everyone right now. We're all struggling to do our best. Hopefully, things will go back to the way things were and we all can make money again.

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    To be honest I am glad to see some of the metro stores closing by me (sorry for the legitimate business owners). I like metro as a service but the lack of service at the independent dealers are ridiculous. In one store the clerk offered to sell me cocaine (true story), in another store the kid behind the counter too over 15 mins to ring up a screen protector, another store tried to sell me a phone without an sd card. What happened to standards; I'll now gladly drive 40 mins to a corporate strore.

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    Some dealers get them cheaper than others...

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    What is very disturbing is that MetroPCS in Boston is not allowing exclusive dealers to become sell other services like DirecTV or Comcast as they perceive it as a threat. Nothing in the agreement says we cannot sell these services. We are losing profits and nobody at Metro seems to care. The GM and VP mouth off: We are wlling to help you out, just ask? "Can I sell Comcast?" - "NO - they are in bed with Verizon..." What a crock. Tn they threatened to turn me into sub. (Making my phones more expensive and making me share my payment stream with the master).

    I have invested a lot of money and really am not seeing an ROI at this point. I think I may go the sub-route just to avoid closing stores and add cable and satellite to my offerings.

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