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Thread: My best man is switching his stores to Cricket

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    My best man is switching his stores to Cricket

    I don't know about Boost's future anymore. My friend is switching his 15 stores to Cricket. He said he has to hurry to beat the other exclusive dealers to it. I got great deals from him, and he was gung ho for Boost for years. He said Boost is trying to shakedown the dealers and they can't financially comply. He has to pay out like 40k which has no benefit. Another thing was something about exclusive accessories at 6x the cost. Like he can sell $30 cases on Boost. I thought it was a big change and I really don't think Cricket has a good reputation. He seems to be rushing into a change. Is there anything I can say to him? I noticed Boost just stopped all advertising and his stores are very slow. He asked me for advice as I used to be in cellular, but I don't know exactly what's going on. Anyone with insight? Is Cricket any better then they were? They were Horrible 4 years ago.

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    The is not your grandfathers Cricket. This is the new Cricket on ATT GSM LTE service.
    Get $25 credit by switching to Cricket Wireless! Then $250 by referring others! Same AT&T signal! Click here!

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    Cricket has started selling phones, refills and SIM cards in Target, Best Buy and Walmart. I think they also sell Cricket SIM cards at GameStop stores.

    Cricket stores near me have closed since January.
    A stand alone Cricket store would be useful for the customer who needs their hand held activating service and maintaining their account.
    But your do it yourself customer or your average HoFo'er wouldn't really need to go to a dedicated Cricket store for much. Maybe buy a sale phone from a Cricket promotion or something like that.

    Your friend would need a steady stream of customers to keep the lights on and an income.

    Sent from my Dainty Little Moto E

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    My understanding is that Boost exclusive dealers are going to be forced to sell "Boost branded" accessories at higher prices so that stores can be more unified. My friends stores are slow also, one of his stores is slow thanks to Boost opening up 3 other stores within a mile of him in 3 different directions, but Metro stores have been slow and closing down left and right in my area. Cricket is a LOT different since AT&T took them over, but the industry is not the same as it used to be. Companies seem to be wanting people to do everything away from a store. The more a customer does online, the less they'll have to pay a dealer.

    I would say check how much in fees the other Cricket stores are charging. If he can charge less than the other stores in the area, he may be able to take away some of their customers. Unless Cricket has a horrible signal in your area, he could probably get a number of customers to switch by telling them about Cricket's larger network and the ability to use any unlocked GSM phone that are compatible with AT&T's network. But the way things look now, I wouldn't trust being in the phone industry long term.

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    Quote Originally Posted by SnowyWhite View Post
    Cricket has started selling phones, refills and SIM cards in Target, Best Buy and Walmart. I think they also sell Cricket SIM cards at GameStop stores.
    The GameStop stores that sell Cricket will now have a "Dedicate Cricket Consultant" to sell Cricket products. Also, people can trade in games and use the money to buy phones at GameStop. If they don't charge the $25 fees that stores charge in my area, I can see them and Best Buy putting a number of stores out of business.

    http://cricketwireless.mediaroom.com...il-Distributor

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    I guess there is just too much distribution. I don't know how they intend to sell $25 or $30 cases on inexpensive free phones. My friend said they are forcing them to buy a 10 month supply of accessories, none of which can be sold because of the cost and the phone going end of life. $8 or $9 for a case versus the same case for $1.50 or $2.00. Most of the stores around him give the cases away for free. I asked him to do Verizon stores with me in the newer suburbs/construction years ago. Better business.

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    I think the cases with a kickstand had an msrp of $50. Granted, it cost the dealer a lot less than that to give some wiggle room, but it's still more expensive to sell those accessories than the ones stores sell now. But your right about a person getting a free phone and then paying that much for a case. I'm guessing a lot of stores will force people into bundle packages to get the free phone. Once they started doing free phones and trying to run prepaid stores like postpaid stores, and forcing you to own multiple stores to make a profit just so they can have "serious investors", they screwed up the game forever.

    For some, they rather do prepaid than a postpaid store. Prepaid can be a lot less stressful and give you more freedom and flexibility. You can be closed on Sundays if you want, if a major storm is about to hit, you can close early or not be open at all. You also tend to have to deal with less suits trying to tell you how to run your business. Postpaid will always pay more, but the things you don't have to deal with owning a prepaid store makes it worth it for some people.

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    Holy ##%/? $50!

    It's like Idiocracy.

    Five below / Dollar Stores have them for $4.

    Now I get why he wants to jump ship. What else are they getting wrong?
    Last edited by MoreSpeed; 06-02-2016 at 11:32 AM.

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    Not to take a total dump on Boost, but there were stories about dealers not being paid all of their commissions a while ago. I know my friend bought a store from someone on the cheap because the guys said he was having too much stress arguing about commissions he wasn't getting. I'm not sure about how Cricket treats dealers now, but they did the same thing years ago before they got bought out by AT&T. I'm not sure what deal Cricket offered your friend, but I hope they deliver. 15 stores means he has a lot of people depending on him making the right decision and getting paid properly.

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    My buddy met with the Cricket people. He said they have been overwhelmed with Boost exclusive dealer interest. It appears Cricket has modern software and commission systems just like Att and T-Mobile. So they say. My friend does his commissions on spreadsheets. He worked in IT so he knows about auditing the Sprint people. Sprint just uses crappy software. Watch them try to activate a family plan. It takes forever. Sprint can't afford anything better so it's more work for the sales people. Maybe I'll expand with him if Cricket goes well in the burbs. Cricket appears to be going after millennial working class and young college graduates. Not your traditional prepaid market. It's a larger market then anything Boost is trying for.
    Last edited by MoreSpeed; 06-02-2016 at 06:57 PM. Reason: Periods missing

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    Wow. Didn't know about all of that. I know people who make a good living owning Boost stores, so I'm kinda shocked that this is what's happening. Hopefully this gets addressed soon. Boost took advantage of offering better service years ago when they took a bunch of dealers from Metro and Cricket. It will be sad to see them become a victim of that now.

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    Quote Originally Posted by MoreSpeed View Post
    Is Cricket any better then they were? They were Horrible 4 years ago.
    Cricket was a minor CDMA thing 4 years ago. Not worth considering. Now it is GSM, on the AT&T non-roaming network. A huge difference... they should have changed the name. Hugely better than Sprint (Boost), too: twice as much coverage.

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    People were hoping they would have kept the Aio name. But because Cricket had distribution deals in Walmart stores in different parts of the country, AT&T didn't want to spend the money to change all the merch out and decided to keep the Cricket name.

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    What market are your friends stores located? I am a Boost Dealer as well and can confirm this information is accurate and a bad move on SPG's end.

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    Quote Originally Posted by Kongerup View Post
    What market are your friends stores located? I am a Boost Dealer as well and can confirm this information is accurate and a bad move on SPG's end.
    I don't want to post the market because this guy has a lot of stores. Not too many people have that many. It's just an indication has to how pathetic the management is. I can virtually guarantee, the guys making the plans have no wireless experience (or mentally challenged... nothing new at Sprint). Probably their new VP of experience or whatever. Just make sure your making money and make sure your staff are maximizing every sale. With this accessory cash burn, it's a time to reevaluate your business and your profitability. Is their an opportunity with a competitor? The Metro and Cricket brands are expanding and are no longer being aimed at just low income. Millennials and youth are the new core. Cricket sees 500k net as their new baseline growth. Metro's even higher but no official number. Metro is ruthless to their dealers. They are all Smart. They are not Sprint. You can be successful with Cricket in a middle class areas. If you do phone repair even better. Are you working for your business? Or is your business working for you?

    When it gets slow it's not time to throw in the towel. Your going to have a ton of your competing Boost doors switch to Cricket / Metro / Simply Prepaid in the next few months. When the Metro guys get wind of this, they are going to pursue the best doors. Even if things are so so, it's good even to make contacts with the other companies just to you can reaffirm that you are with the right company. Just like looking at the job listings.

    Take a look at the ad spends from April:

    http://www.fiercewireless.com/specia...obile-industry

    All the prepaid brands (except Boost) are spending almost as much as postpaid. This drives traffic! Boost has no traffic and are working on a scheme to extract cash from dealers. Most dealers are going to cut back on effort when this happens. If they can't comprehend how much damage this is going to do, what else don't they understand?

    Sprint can't comprehend the low family plan attach rates. Are you asking each customer if they can use another phone for only $25 more per month while doubling your data on both phones? Problem is, Family plan customers are being pulled into competitors because of advertising. Nobody knows Boost has Family, so multi-line customers are not even entering the store. Notice most your customers seem to be single without families? This changes with family plan advertising. Suddenly all your customers become families. But Boost would rather scam their dealers then put out money.

    Like I said, it's time to just verify your with the right carrier when they put out mandates. Inventory is one thing and being stocked up is ok, but forced spending on useless fixtures, useless un-sellable dumpster accessories (at 3 times the rent wasted), or ineffective advertising methods (paying $90 per hour for sign spinners 8 hours a week) are all mandates.
    Last edited by MoreSpeed; 06-09-2016 at 04:26 PM.

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