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Thread: I want to open a cellphone store on the 2nd floor vs 1st floor

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    I want to open a cellphone store on the 2nd floor vs 1st floor

    Hi, I am looking to open a prepaid wireless store like T-Mobile/Cricket/Metro PCS on the second floor of a shopping center (5 stores on the bottom 5 stores on top). Only the second floor is available. I have never seen a cellphone store or any retail store on a second floor and so I do not want to go through with it. I really like the area as it is just by the road with a lot of cars moving by.I just want to know if I am just paranoid or are there actual drawbacks to opening a store on the second floor. Are there any benefits?

    Thank you

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    Quote Originally Posted by soumikcha View Post
    Hi, I am looking to open a prepaid wireless store like T-Mobile/Cricket/Metro PCS on the second floor of a shopping center (5 stores on the bottom 5 stores on top). Only the second floor is available. I have never seen a cellphone store or any retail store on a second floor and so I do not want to go through with it. I really like the area as it is just by the road with a lot of cars moving by.I just want to know if I am just paranoid or are there actual drawbacks to opening a store on the second floor. Are there any benefits?

    Thank you
    About the only benefit I can think of is a lot of quiet time alone by yourself.

    I cannot remember the last time I went to the second floor of a shopping center, and my memory goes back for decades.

    What is on the second story of strip malls? "Massage parlors", and low rent businesses.

    Just my humble opinion, maybe you can make it work.

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    It depends on the type of businesses on the second floor. If you list them, we will be able to give you an answer.

    Is there a parking lot?

    Is viability better on the second floor? How is visabiliy in general?

    Is this location enclosed in anyway (like a miniature mall)?

    How much is rent versus the rents paid at other Metro/Cricket stores nearby? The rent difference you need to calculate into additional phones needed to pay the increased rent in the center.

    How close are these other Metro Cricket stores?

    How fast is the traffic on this road at this location? If it's a 35mph zone they are less likely to stop.

    How easily can they get in and out of the center.

    What was in the vacant location that closed?

    Bus Stops or other transit, Check Cashing Stores, Fast Food nearby?

    Pull some income demo for that immediate area. If there wasn't a store servicing the area, there could be a reason. I use the one below that's free and can give you a income number.

    http://www.esri.com/data/esri_data/ziptapestry

    You need to calculate the total potential customers where your the closest store. It's generally good to be near a ton of homes. If it's a center near a ton of homes it's much better. Use numbers and don't go with just your gut. If it's not a home-run, or the rent is more then $1500 more then other stores are paying, your breakeven will hurt you if Metro opens more stores. Metro would gladly open another store nearby you in the future and take some of those sales.

    Find out how many boxes Metro and Cricket are selling monthly at nearby stores. See if there is enough sales to support the location.

    Lastly, Metro and Cricket are like Realtors, they love shopping centers even when their store density's don't support them. It can attract a better clientele, but they are going to sell you on opening the store. I've seen Cricket and Metro open in some high rent stupid locations where the guy didn't know any better. They will take advantage of a sucker. If you open and close down, Metro is still ahead of the game. Take their advise with a grain of salt and do your research.

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    Quote Originally Posted by MoreSpeed View Post
    It depends on the type of businesses on the second floor. If you list them, we will be able to give you an answer.

    Is there a parking lot?

    Is viability better on the second floor? How is visabiliy in general?

    Is this location enclosed in anyway (like a miniature mall)?

    How much is rent versus the rents paid at other Metro/Cricket stores nearby? The rent difference you need to calculate into additional phones needed to pay the increased rent in the center.

    How close are these other Metro Cricket stores?

    How fast is the traffic on this road at this location? If it's a 35mph zone they are less likely to stop.

    How easily can they get in and out of the center.

    What was in the vacant location that closed?

    Bus Stops or other transit, Check Cashing Stores, Fast Food nearby?

    Pull some income demo for that immediate area. If there wasn't a store servicing the area, there could be a reason. I use the one below that's free and can give you a income number.

    http://www.esri.com/data/esri_data/ziptapestry

    You need to calculate the total potential customers where your the closest store. It's generally good to be near a ton of homes. If it's a center near a ton of homes it's much better. Use numbers and don't go with just your gut. If it's not a home-run, or the rent is more then $1500 more then other stores are paying, your breakeven will hurt you if Metro opens more stores. Metro would gladly open another store nearby you in the future and take some of those sales.

    Find out how many boxes Metro and Cricket are selling monthly at nearby stores. See if there is enough sales to support the location.

    Lastly, Metro and Cricket are like Realtors, they love shopping centers even when their store density's don't support them. It can attract a better clientele, but they are going to sell you on opening the store. I've seen Cricket and Metro open in some high rent stupid locations where the guy didn't know any better. They will take advantage of a sucker. If you open and close down, Metro is still ahead of the game. Take their advise with a grain of salt and do your research.
    I decided to not look into the 2nd floor. Doing some research and thinking, it will be too risky.
    I found another location that is suitable but it is 2 miles off the middle of the city but gets almsot same traffic, since its on the same road. Only major is issue is not alot of parking. I liked this spot since I have Verizon opposite side of me and they are extremely busy all the time. It is not a mall and I dont want to go to mall ether. I prefer front of the road with good visibility. Cricket and metro far away. I only have like 4 verizon, 2 att, 1 t mobile, 1 sprint within 6 miles on the same road to compete with. I am the only prepaid. This area is a high income area, I actually opened another store in another high income area last year. Actually posted it on this forum. People thought, it wont succeed. But so far, its all good.

    This is the location, I might be signing the lease by next week. Next to the Chinese carry out.
    https://www.google.com/maps/@39.4365...7i13312!8i6656

  5. #5
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    Quote Originally Posted by soumikcha View Post
    I decided to not look into the 2nd floor. Doing some research and thinking, it will be too risky.
    I found another location that is suitable but it is 2 miles off the middle of the city but gets almsot same traffic, since its on the same road. Only major is issue is not alot of parking. I liked this spot since I have Verizon opposite side of me and they are extremely busy all the time. It is not a mall and I dont want to go to mall ether. I prefer front of the road with good visibility. Cricket and metro far away. I only have like 4 verizon, 2 att, 1 t mobile, 1 sprint within 6 miles on the same road to compete with. I am the only prepaid. This area is a high income area, I actually opened another store in another high income area last year. Actually posted it on this forum. People thought, it wont succeed. But so far, its all good.

    This is the location, I might be signing the lease by next week. Next to the Chinese carry out.
    https://www.google.com/maps/@39.4365...7i13312!8i6656
    As long as there are places to park, people will stop. As long as you can see 2 spaces out there at a time, your fine. The only time it's really bad is when there is no parking and the store just dies because of it. People will find the spaces if they can be found easily.

    Sales are always higher with a parking lot. But the rents are higher too. If there is another parking lot nearby for someone else, that's even better.

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    Quote Originally Posted by MoreSpeed View Post
    As long as there are places to park, people will stop. As long as you can see 2 spaces out there at a time, your fine. The only time it's really bad is when there is no parking and the store just dies because of it. People will find the spaces if they can be found easily.

    Sales are always higher with a parking lot. But the rents are higher too. If there is another parking lot nearby for someone else, that's even better.
    Dunkin Dounut parking right next to me. I will get about 10-20 customer daily. So unless I can figure out a way to attract all the customers the verizon opposite side of me gets....It should not be a problem. Or I can get Valet. lol

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    Why would people go to your store? Just get a cricket sim from Target or online

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    Quote Originally Posted by vartanarsen View Post
    Why would people go to your store? Just get a cricket sim from Target or online
    Something like 80% of cricket business is done in dealer doors. Most people are not sophisticated enough to get their phone ready for everything they want to do. Store reps give it to you straight when you try to buy a crappy phone. The website just tells you "thank you for your purchase." On-line is only appropriate for people who deeply understand the products and could basically work in one of the stores. Churn is higher on-line also. Customers are less satisfied.

    Most of the people I know who ordered phones on-line after talking to me say... whoa, I wish I went to the store instead. There are online reviews (lies sometimes) but the feel you get from the sales people who want you to keep service gets you in the right phone. People find out that they bought the wrong phone for what they needed and could have gotten the right phone had they talked to someone.

    Would you buy a car online without driving it?

  9. #9
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    I want to open a cellphone store on the 2nd floor vs 1st floor

    Quote Originally Posted by MoreSpeed View Post
    It depends on the type of businesses on the second floor. If you list them, we will be able to give you an answer.

    Is there a parking lot?

    Is viability better on the second floor? How is visabiliy in general?

    Is this location enclosed in anyway (like a miniature mall)?

    How much is rent versus the rents paid at other Metro/Cricket stores nearby? The rent difference you need to calculate into additional phones needed to pay the increased rent in the center.

    How close are these other Metro Cricket stores?

    How fast is the traffic on this road at this location? If it's a 35mph zone they are less likely to stop.

    How easily can they get in and out of the center.

    What was in the vacant location that closed?

    Bus Stops or other transit, Check Cashing Stores, Fast Food nearby?

    Pull some income demo for that immediate area. If there wasn't a store servicing the area, there could be a reason. I use the one below that's free and can give you a income number.

    http://www.esri.com/data/esri_data/ziptapestry

    You need to calculate the total potential customers where your the closest store. It's generally good to be near a ton of homes. If it's a center near a ton of homes it's much better. Use numbers and don't go with just your gut. If it's not a home-run, or the rent is more then $1500 more then other stores are paying, your breakeven will hurt you if Metro opens more stores. Metro would gladly open another store nearby you in the future and take some of those sales.

    Find out how many boxes Metro and Cricket are selling monthly at nearby stores. See if there is enough sales to support the location.

    Lastly, Metro and Cricket are like Realtors, they love shopping centers even when their store density's don't support them. It can attract a better clientele, but they are going to sell you on opening the store. I've seen Cricket and Metro open in some high rent stupid locations where the guy didn't know any better. They will take advantage of a sucker. If you open and close down, Metro is still ahead of the game. Take their advise with a grain of salt and do your research.
    Yes and make sure they pay you enough for activations. $100-300 per line would not be unreasonable. Take that amount times the day you only have 3 customers and not your 10-20. Also figure out if number transfer and phone switching is going to be free or an added fee. Also, having phones in stock is good as long as you can get rid of them at a good profit. Once again that needs to be $100-$300 profit on each handset.

  10. #10
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    Quote Originally Posted by techfranz View Post
    Yes and make sure they pay you enough for activations. $100-300 per line would not be unreasonable. Take that amount times the day you only have 3 customers and not your 10-20. Also figure out if number transfer and phone switching is going to be free or an added fee. Also, having phones in stock is good as long as you can get rid of them at a good profit. Once again that needs to be $100-$300 profit on each handset.
    Those are not an issue. the main issue I face is trying to let the consumer know cricket uses att network. QUit being stupid and paying soo much to att and verizon. I went to both att and verizon close by that location. I never seen busy store like that out of a mall.

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