| Collection
Strategies: Go Where the
Cell Phones Roam
By James
Mosieur
Last
months article, The
Opportunity by The Numbers,
revealed the great potential
in cell phone recycling – more
than $1 billion dollars worth
of cell phones are retired
annually. The problem is not
seeing the opportunity but
figuring out how to round up
the millions of cell phones
in the desk drawers, closets
and warehouses of America.
Many
industry and environmental
groups estimate that only 5%
of consumers recycle their
old cell phones, even though
70% see the need for a cell
phone recycling solution. So
we can conclude that most would
use a cell phone recycling
service if they had the opportunity – you
can provide the opportunity.
This
month we’ll explore
the best way to provide consumers
with a recycling solution and
make a profit – go to
the source. By far the best
place to try to collect the
most cell phones is from the
retailers themselves. After
all, almost every wireless
user goes into a retail store
at least once a year for one
reason or another.
There are
a couple of ways you can get
started in this business very
quickly.
The
Environmental Approach
Beginning
in 2006 the State of California
will require
all wireless retailers to
provide a no-cost way for their
customers to recycle their
old cell phones. In fact, The
Cell Phone Recycling Act
of 2004 makes it illegal for
a wireless retailer to sell
a cell phone if they don’t
provide a way for their customers
to recycle their old cell phones.
Providing
retailers in California with
a comprehensive cell phone
recycling program not only
enables the retailer to comply
with the new law, it also helps
them bring a needed value add
service to their customers.
Remember 70% of wireless users
see the need for
a cell phone recycling solution.
Helping
retailers comply with the California
law is a lot easier than you
may think. It requires that
the retailer make available
to consumers information about
how to recycle. Two ways they
can accomplish this are to
have signs or hand outs in
their stores which inform customers
that cell phones can be recycled
at their location or, also
include information in advertising
and direct sales pitches. Downloads
of all these items can be easily
obtained from CellForcash.com’s
cell phone recycling portal
TotalTrak.net. We can help
you help the retailer.
TIP -
You provide the service free
to the retailer as long as
they recycle at least 50 cell
phones each month. Not difficult
for a typical retail store.
The average retail store does
100 activations or upgrades
and 90% are existing wireless
users changing carriers so
those customers have cell phones
to recycle. If the retailer
makes the free recycling service
part of their sales pitch they
should easily be able to collect
50 cell phones for recycling
every month.
Appeal
to Their Greed
Show them the money. This
works best with independent
retailers.
As an experiment,
one of our associates and
I went around to independent
wireless stores in a large
metro area and offered cash
for the boxes of cell phones
they were gathering in the
back room and under the counters.
By the way, there is such
a box in every cell phone
store in the country.
We
tried two scenarios.
For
the first five stores, we
calculated the value of the
retailers used cell phones
based on our price list and
wrote a P.O. on the spot
with a check to follow. Then,
for the next five stores
we tried just estimating
the value and offering cash
on the spot, of course our
offer was a lot less, just
to be safe. As you can imagine,
the cash offer generated a
lot more excitement and was
a much easier transaction.
When
we calculated the value of
the cell phones we bought for
cash we found out we paid at
least one third less than we
would have if we would have
calculated with a price list.
In one instance we paid the
store owner a crisp $100 bill
for $600 worth of cell phones.
Granted this is a risky move,
and is certainly not recommended
for the newbie, but taking
a chance now and then can mean
a big payoff.
The point of
this month’s
article is to get creative…look
for opportunities…bring
value to wireless store owners.
Don’t be afraid to ask
for their old cell phones;
remember you are bringing them
a service they need.
Besides, you
never know...they just may
hand you a box of hundred dollar
bills.
Next
month – Collection
Strategies: Phone Home.
James
Mosieur is CEO of RMS
Communications Group, Inc.
RMS operates several cell
phone recycling websites like www.CellForCash.com.
He has been in the electronics
recycling business since 1985.
James writes and speaks on
cell phone recycling and related
subjects particularly as they
relate to the individual consumer.
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