A Message From Our Founder And CEO Steve Masted (text version)
View the info-graphic version of this post here.
Ever been asked what you do for a living? I get asked this question on a regular basis. I struggle to find the best way to describe “Phone Wholesaler.” This is a unique industry with a very specific buyer base. Even though the majority of people have a cell phone, the resale of used cell phones is not run by billion dollar companies, but by thousands of smaller companies like Macalegin Electronics. If you want to read about how our company began, feel free to read our story on the website here.
The beauty of this industry is the materialistic consumerism of the average person living within the United States. We have been trained to believe that we need a new cell phone every 12 months, in some cases, even sooner. The incentives and monthly lease programs on cell phones have conditioned people to think their $1000 iPhone X is a piece of garbage in 365 days, and that they must have the newest iPhone the day it is released. This is what keeps us in business, and what keeps us up at night.
The sheer volume of phones that are available to purchase after an iPhone release is in the tens of millions with original values in the hundreds of millions. It’s like having so many fish in your net that it rips. The fish are there but you can’t get them in the boat. What do you do with millions of phones, and how do you place a value on that massive volume hitting the market all at once? I compare the release of the new iPhone to playing the stock market. There is a risk and there is a reward.
I’ve seen an iPhone model drop in value by 50 dollars in 1 day. Imagine working off a 10% margin and having 5000 of those devices in stock. I’ve seen it happen all too many times in the 13 years I’ve been in this industry. Experience, calculated risk, and good fortune have saved us from being in that position. The release date for the new iPhones is less than a month away.
One thing is for sure: Millions will be sold and millions of used devices will hit the market. As the season rapidly approaches embrace the potential, but guard yourself against the risk. If we can be of any assistance to you please feel free to reach out to us.
We are always looking to add new customers. We also love hearing stories about how people started their business. Feel free to share your story in our comments section.