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Thread: Hundreds, maybe even 2000 Metro by Tmobile stores closing?! What are dealers to do? Maybe this?

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    Hundreds, maybe even 2000 Metro by Tmobile stores closing?! What are dealers to do? Maybe this?

    According to at least one online source, Metro by Tmobile is slashing up to possibly 2000 exclusive Metro by Tmobile stores. https://www.fiercewireless.com/opera...stores-reports

    Exclusive means they just lost the right to sell the ONE and ONLY wireless product that they could sell. There are people out there who can help dealers handle this very short noticed emergency by contacting people and organizations that can help. One, NWIDA, (National Wireless Independent Dealers Association ) is reaching out to rush help Metro dealers who are faced with this crisis. A now orphaned Metro dealer could consider reaching out to them for help. https://nwida.org/alternatives-for-metro-dealers

    Metro dealers might also want to look at Verizon prepaid, Att prepaid, Trafone/Total Wireless and even Cricket (who is actually said to be working on /and or launching a non exclusive multi carrier store option for dealers soon. ) .
    They all have dealer programs and offer coverage from non Tmobile /Sprint networks which make them a viable alternative in crowded Boost/Metro markets. DISCLAIMER>

    To any and all MODS. Please let me know via pm if you have any issues with this post . Thanks.

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    Disclaimer, to any and all MODS, if I am making an error, please contact me asap.

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    the thing is all exclusive metro dealers have no compete clauses in their contracts, dealers that i know who have gotten termination letters have been explicitly reminded of the clauses and made clear they will be enforced.

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    Hmmm.. doesn't sound good...

    Quote Originally Posted by robbyrobby View Post
    the thing is all exclusive metro dealers have no compete clauses in their contracts, dealers that i know who have gotten termination letters have been explicitly reminded of the clauses and made clear they will be enforced.
    Doesn't sound very encouraging. But between continuing with SOMETHING, ANYTHING and going out of business in short notice, sounds like a possible class action lawsuit waiting to happen.

    Anyone else want to weigh in ? Any exclusive Metro dealers who got cut ?

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    Quote Originally Posted by Ike D. View Post
    Doesn't sound very encouraging. But between continuing with SOMETHING, ANYTHING and going out of business in short notice, sounds like a possible class action lawsuit waiting to happen.

    Anyone else want to weigh in ? Any exclusive Metro dealers who got cut ?
    2/3's of the exclusive stores i am a partner in were given termination notice, there was a very stern reminder of the no compete clause along with a warning to be careful the lease does not end up in the hands of a competing dealer even if i am not involved. i was also told if i put a different business in it is critical it does not involve the cell phone business in any way including a repair or second hand shop being unacceptable and opening up a lawsuit under non compete clasue.

    all my locations terminated did have leases up for renewal this year(which i was told was the deciding factor being looked at to decide which stores to close) but it was not considered that some of those leases had automatic extension clauses that needed to be turned down six month prior so i am still stuck in the leases of multiple locations and others the lease's do not end until close to the end of this year leaving me many months after termination with rent due wiping out the years positive cash flow.

    i am looking at my options but it does not look good and will likely result in my having to declare bankruptcy and probably close my other locations as well. if i can finance the leases long enough to have all my stores(including the ones not given notice) closed for six months(no compete timeframe) than perhaps i can start over but at this point any exclusive store is out of the question for me. i really regret having gone the exclusive route and should of continued with multi carrier locations like i started out in this business with.

    i was making more money six years with a single multi carrier on buying and selling used phones, repairs, unlocking, flashing, computer servicing than on six exclusive stores combined. the exclusive store route seemed like a better way to build a future and be less involved in the day to day operations and despite the low margins and volume i was happy until i got the notices, i now realize the best way to assure a future to retain as much control and freedom of the business operation which means the non - exclusive route.

    i expect to see in the coming years only a few large dealers with 1000+ stores each will be in the exclusive business or with consolidation meaning less competition the dedicated cell phone store may fade away and big box and online purchase become the norm.

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    Sounds like they are planning on killing off Metro PCS. Does Tmobile even need it anymore?

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    Quote Originally Posted by robbyrobby View Post
    2/3's of the exclusive stores i am a partner in were given termination notice, there was a very stern reminder of the no compete clause along with a warning to be careful the lease does not end up in the hands of a competing dealer even if i am not involved. i was also told if i put a different business in it is critical it does not involve the cell phone business in any way including a repair or second hand shop being unacceptable and opening up a lawsuit under non compete clasue.

    all my locations terminated did have leases up for renewal this year(which i was told was the deciding factor being looked at to decide which stores to close) but it was not considered that some of those leases had automatic extension clauses that needed to be turned down six month prior so i am still stuck in the leases of multiple locations and others the lease's do not end until close to the end of this year leaving me many months after termination with rent due wiping out the years positive cash flow.

    i am looking at my options but it does not look good and will likely result in my having to declare bankruptcy and probably close my other locations as well. if i can finance the leases long enough to have all my stores(including the ones not given notice) closed for six months(no compete timeframe) than perhaps i can start over but at this point any exclusive store is out of the question for me. i really regret having gone the exclusive route and should of continued with multi carrier locations like i started out in this business with.

    i was making more money six years with a single multi carrier on buying and selling used phones, repairs, unlocking, flashing, computer servicing than on six exclusive stores combined. the exclusive store route seemed like a better way to build a future and be less involved in the day to day operations and despite the low margins and volume i was happy until i got the notices, i now realize the best way to assure a future to retain as much control and freedom of the business operation which means the non - exclusive route.

    i expect to see in the coming years only a few large dealers with 1000+ stores each will be in the exclusive business or with consolidation meaning less competition the dedicated cell phone store may fade away and big box and online purchase become the norm.
    Have you contacted NWIDA and/or an attorney? I've been told that no-compete clauses are illegal in some states, including California. The fact that Metro is terminating the contract, rather than you, might be a factor too.
    Find and compare prepaid plans at https://prepaidcompare.net

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    Quote Originally Posted by southchatham View Post
    Sounds like they are planning on killing off Metro PCS. Does Tmobile even need it anymore?
    T-Mobile seems to be scaling back Metro but I doubt they will kill it entirely. With the Sprint deal, T-Mobile thinks they are finally one of the big boys and want to focus on postpaid, Verizon style.

    TMO will be geting lots of new MVNO revenue from Dish/Boost to replace the lost Metro dealer revenue. T-Mobile only keeping the best performing Metro dealers makes sense busineswise.

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    Quote Originally Posted by Yeswap View Post
    T-Mobile seems to be scaling back Metro but I doubt they will kill it entirely. With the Sprint deal, T-Mobile thinks they are finally one of the big boys and want to focus on postpaid, Verizon style.

    TMO will be geting lots of new MVNO revenue from Dish/Boost to replace the lost Metro dealer revenue. T-Mobile only keeping the best performing Metro dealers makes sense busineswise.

    i can tell you from experience the math does not add up, metro has been driving sales based on free phone giveaways while having a terrible retention rate. probably half the newly signed up customers do not last 3 months. the big carrier prepaid has become a game of customers constantly switching between metro, cricket and boost for the free phone deals plus people going around to stores literally 'gaming the system' for free phones they have no intention of using themselves.

    i suspect post merger they now plan to pull back from the aggressive free phone promos and realize they will no longer need(or will be able to sustain) as many stores, plus with boost becoming a t-mobile MVNO they no longer have interest in direct competition there.

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    I'm no expert on anything.

    My gut reaction is that if challenged in court, T-Mobile would have a hard time convincing any fair judge that pulling the rug out from under these dealers AND trying to enforce a non-compete in this scenario should be allowed.

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    on top of the store closures guidance is now being provide to direct customers looking for less expensive plans(specially 2GB for $15 month) to regular t-mobile locations. metro had a matching plan but it has been discontinued with the new guidance.

    i see metro dying a slow death as t-mobile chooses to focus on more profitable post paid and 'magenta' branded prepaid where they spend less on subsidies of handsets, marketing, etc.

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    As far as I'm concerned, good move. Been to few non corporate Metro stores and they all tried to scam me by saying a certain deal wasn't available and adding additional or inflated activation fees. Metro needs to crack down on that stuff, they have a crappy image and the scam stores make them look even worse.

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    Quote Originally Posted by gedster314 View Post
    As far as I'm concerned, good move. Been to few non corporate Metro stores and they all tried to scam me by saying a certain deal wasn't available and adding additional or inflated activation fees. Metro needs to crack down on that stuff, they have a crappy image and the scam stores make them look even worse.
    Same here. They always lied to me in the stores. Wouldn’t be surprised if T-Mobile ditched the metro brand completely before long

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    as an operator for several years i am not going to disagree with some of the experiences i see described.

    i constantly had to fight back to keep everything proper and ethical.

    the problem is really coming the corporate side, not necessarily from the top. the corporate reps who go around to the stores have sales and metrics goals that to be honest are totally un-realistic without some shady sales tactics. they will literally walk into a store and say to the sales reps not to 'slam' features or rate plans and than when a customer walks in show by example exactly what they just said not to do. i always thought it was interesting that there seems to be less of this at the corporate owned stores, i believe its because they are more closely supervised by the higher level leadership and T-Mobile is more cautious when they cannot pass the blame onto the independent dealers.

    the conversation gets pretty intense if not enough customers have insurance(which most do not want) or do not go on the higher rate plans(which many do not want as well) a lot of sales reps(and dealer owners) start with really shady stuff to become the 'rock stars' for the corporate reps. The more shady they become the more praise they get.

    another problem is the way the compensation structure is set the business is not sustainable without a majority leaving on certain plans with certain features and accessories as well. this relevant on all carriers but no place is to such an extreme as with metro.

    to be honest i'm glad to be getting away and going back to something where i have more freedom and corporate reps. won't be coming into my stores telling my sales people what to do. it was a constant battle for the last 7 years.

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    Quote Originally Posted by gedster314 View Post
    As far as I'm concerned, good move. Been to few non corporate Metro stores and they all tried to scam me by saying a certain deal wasn't available and adding additional or inflated activation fees. Metro needs to crack down on that stuff, they have a crappy image and the scam stores make them look even worse.
    It's not just Metro - i went to boost on black friday - and lucky for me, the store i went to (that was closest to my house) was out of the devices - so they had to source them from one of their other stores - but when i called the "corporate store" several miles away, they quoted me a VERY different price for those cheap iphones - so obviously i went to the corporate store and saved what I think was a couple hundred bucks on our 4 lines!

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    I would advise dealers who are effected by this to see a lawyer to see what your rights are and to see if Metro PCS violated their terms of the contract. In addition it is beginning to look like T Mobile USA is slowing shutting down their MVNO Metro PCS.

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