Phone Swap is a retail store specializing in the buying, selling, and trading of new and used cell phones. There are several potential revenue streams for this company.
First, consumers who have lost, had stolen or damaged their cell phones can purchase an economical new or refurbished cell phone at Phone Swap. Consumers who desire to enter the cell phone market have a large choice of economical options. Consumers who desire to upgrade their cell phones without being required to extend their service contracts will be served.
A secondary revenue stream is from major phone carriers. We will aggressively pursue service agreements with the major carriers. Many consumers feel frustrated by the policies of major carriers. The majority of carriers require a two-year commitment contract with hefty penalties for early exit. Cell phones typically have a one-year warranty. If a consumer breaks, looses or damages their phone after the warranty period, they are forced to purchase an additional phone or change carriers incurring exit penalties. Phone Swap provides an economical solution for both the carrier and the consumer. We can fix or replace the damaged phone at a lower cost than purchasing a phone at a traditional retail store lessening the possibility that a customer will cancel carrier contracts.
A third revenue stream is the sale of cell phone accessories. Cell phone accessories have an attractive mark-up value for retailers. Their perceived value with customers is high while actual costs are very low. Phone Swap will offer an array of accessories to our customers. We will offer both tangible goods and intangible goods like phone chargers and ring tones.
A final revenue stream is the business of recycled cell phones. Consumers often have several discarded phones that present problems with disposal. Consumers can bring the phone to Phone Swap and receive a discount on an upgraded phone. Phone Swap will then either refurbish the phone and offer it for retail sale or sell the phone back to the major carriers. Completely outdated phones or phones beyond repair can be sold to recyclers. The recycling of cell phones helps protect the environment. The concern is cell phones in landfills introduce unwanted toxins such as lead and beryllium into the soil. Phone Swap will help curb this important environmental issue.
We will initially open retail stores in a prominent mall in Minneapolis and Phoenix. Phone Swap will participate in online auction sites to generate additional revenue. We will participate in affiliate partner programs with other major cell phone providers like Inphonic and Phone Scoop. These popular, national programs increase our revenue streams and visibility.
The management of Phone Swap is seeking investment to launch this exciting concept. Phone Swap anticipates needing one million dollars to effectively launch the Phone Swap concept. This consists of $350,000 in seed financing and $600,000 round two expansion financing.
Phone Swap anticipates opening new stores at an aggressive rate. We will open two stores at start-up and six stores at the six month mark. Phone Swap also anticipates a strong online presence.