Calling all dealers to stand up to T-Mobile
Since March of 2004 T-Mobile has systematically reduced our gross profit and is not providing a profitable business model to sell their products.
Post paid activations are down 25% nationwide.
Prepaid activations are up 346% nationwide.
T-Mobile sold more post paid activations in 2004 compared to 2005.
In 2004 $39.99 plan was 56% of our business. Now family plans are 52% of our business and the $39.99 is only 18%. The change in what we sell is a negative 8.2% Gross Profit.
Only 20% of all credit applications qualify for a plan.
32% are smart access and 48% are deposit customers.
Corporate stores sell 4 upgrades to every 1 new activation.
IT IS TIME FOR THE ENTIRE INDIRECT CHANNEL TO STAND UP FOR THEMSELVES AND TELL T...
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Post paid activations are down 25% nationwide.
Prepaid activations are up 346% nationwide.
T-Mobile sold more post paid activations in 2004 compared to 2005.
In 2004 $39.99 plan was 56% of our business. Now family plans are 52% of our business and the $39.99 is only 18%. The change in what we sell is a negative 8.2% Gross Profit.
Only 20% of all credit applications qualify for a plan.
32% are smart access and 48% are deposit customers.
Corporate stores sell 4 upgrades to every 1 new activation.
IT IS TIME FOR THE ENTIRE INDIRECT CHANNEL TO STAND UP FOR THEMSELVES AND TELL T...
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I used to own a chain of indirects and sold them in Feb 2005 for that reason.
Now the reason why T-Mobile is trying to cut off the life line to indirects is becuase there are a lot of indirects do more bad than good.
This is the reason why they took away the upgrade commission from indirects.....becuase there were so many indirects doing fradulent upgrades on accounts that didn't ask to be upgraded.
This is the same reason with prepaids... Back then they had a guarantee commission and people were preacivating all the prepaid kits, then selling the phones, and simcards seperate on ebay or where ever. Or they were just buying a prepaid kit and sim for 20 bucks under what they get for commission... There was a dealer in Missouri doin...
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Now the reason why T-Mobile is trying to cut off the life line to indirects is becuase there are a lot of indirects do more bad than good.
This is the reason why they took away the upgrade commission from indirects.....becuase there were so many indirects doing fradulent upgrades on accounts that didn't ask to be upgraded.
This is the same reason with prepaids... Back then they had a guarantee commission and people were preacivating all the prepaid kits, then selling the phones, and simcards seperate on ebay or where ever. Or they were just buying a prepaid kit and sim for 20 bucks under what they get for commission... There was a dealer in Missouri doin...
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I agree. Bad Dealers are a substantial problem.
TMO should not put up with bad dealers. Bad dealers should be eliminated, not the gross profit of activating TMO customers.
All dealers must stand up for themselves against TMO or nothing will change, and TMO must eliminate the bad dealers and stop protecting them.
TMO should not put up with bad dealers. Bad dealers should be eliminated, not the gross profit of activating TMO customers.
All dealers must stand up for themselves against TMO or nothing will change, and TMO must eliminate the bad dealers and stop protecting them.
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This isn't exactly what you're talking about, but I just upgraded through one of these guys (actually it was a kiosk in the mall literally 50 yards from the real T-Mobile-owned kiosk) because they offered me a 6101 for half of what T-Mobile was offering at the time ($70 as compared to $150 as a my "official" upgrade price through T-Mobile directly). My question is, is there any disadvantage to my doing this at all, in terms of these independents being shady businesses?
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You should not have a problem. Most dealers are very good and at times can offer better deals than TMO.
The dealer is forced to reduce their price so they can make enough activations to meet their minimums for commissions.
As long as you received a new phone out of the box you will be fine.
You could also go to walmart or target and buy a new prepay phone and just put your sim chip in the new phone. That way you will get a brand new phone very cheap, and not increase your contract commitment. Just throw away the prepay sim card and use yours.
The dealer is forced to reduce their price so they can make enough activations to meet their minimums for commissions.
As long as you received a new phone out of the box you will be fine.
You could also go to walmart or target and buy a new prepay phone and just put your sim chip in the new phone. That way you will get a brand new phone very cheap, and not increase your contract commitment. Just throw away the prepay sim card and use yours.
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Wow, people activate more family plans because more people are using T-mobile, it works for many families , and to let you know T-mobile would love to keep the average @ 50.00 PER CUSTOMER that’s why they offer 1000 min for $49.99 you would not get compensated on $39.99 when you are doing add a line, that is crazy family plan with five phones will generate a total of 100.00 for a family of 5 in a year that’s 1200.00 so as you all know T-mobile will spend average of $400.00 per customer to get a customer , so if you activate 5 lines you just got those customers for a price of $2000.00 would you spend $2000.00 to make $1200.00 for that reason alone T-mobile is forced to go for the 2 yr contracts so they can make some money after the 18th ...
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You know, I know this will be an unpopulat statement on here but, Why exactly does T-Mobile even need most indirect agents or dealers? The answer is, they really dont. I think the business model has changed guys over the years, as they should. T-Mobile has no legal obligation to do jack **** to help out dealers. In fact, If iwas a major fortine 1000 company, I would not even want dealers, I would want all factory stores to be the majority. See: APPLE Computer.
Its the same thing w/ car dealers. Everyone hates them from teh customers to the Manufacturers. But because of an accane corrupted lay that has been in place since the 40's which was bribed to fruition was passed, the Manufacturers have no choice. I know this: Corporate cell phone s...
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Its the same thing w/ car dealers. Everyone hates them from teh customers to the Manufacturers. But because of an accane corrupted lay that has been in place since the 40's which was bribed to fruition was passed, the Manufacturers have no choice. I know this: Corporate cell phone s...
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Thanks for your opinion.
So I guess you are telling everyone that TMO is our savior.
As you stated our job is new activations. Do you know TMO had 30% less activations in 2005 compared to 2004. They increased prepay by 347%. in 2004 TMO fixed term contracts were 87% in 2005 it was 65%.
You may not be able to see your new activation business is shrinking, the business you get is from 8% to 12% less in gross margin and your national retail competitors are dictating loss gross margin pricing.
YOu say you are one of us and then you "you guys".
Who are you, TMO, or indirect.
If you want TMO to put you our business that is your choice.
Run your own numbers and see how healthy you are compared to 04 and 03. If your TMO busi...
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So I guess you are telling everyone that TMO is our savior.
As you stated our job is new activations. Do you know TMO had 30% less activations in 2005 compared to 2004. They increased prepay by 347%. in 2004 TMO fixed term contracts were 87% in 2005 it was 65%.
You may not be able to see your new activation business is shrinking, the business you get is from 8% to 12% less in gross margin and your national retail competitors are dictating loss gross margin pricing.
YOu say you are one of us and then you "you guys".
Who are you, TMO, or indirect.
If you want TMO to put you our business that is your choice.
Run your own numbers and see how healthy you are compared to 04 and 03. If your TMO busi...
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