ThePhoneApp
Onestopplaceto
buy/sellwholesale
cellphones
ThePhoneApp
• ThePhoneAppisanultraconvenientapplicationthatoffersIndependentCellphone
storesunprecedentedaccesstopurchasemobilephonesandaccessories,frommajor
wholesalesuppliersoftheseitems.Thebenefitandreachofthisappistogiveinstant
accesstobuyersandincreasedmarginopportunitiesforsuppliers.
• ThePhoneAppwillbeaneasytousecommunitytransactionplatformthatwillmanage
orderrequests,orderfulfillment,shippingandpaymentprocessing.
Why?
• It gives a service that does not exist (which is needed).
Currently the supply chain for small independent dealers consists of mainly online stores who are not focused on this particular
industry, or small jobbers who can provide small quantities at high prices. On the other end of this supply chain are large distributors
who don’t have the access or reach to supply this segment of the marketplace. Large and midsize wholesale dealers are not
equipped to identify and supply this segment of the market because of the reach that is necessary to meet the demands.
• Offers mobile phone distributors increased access to sales at much higher margins.
Gone will be the days of low margin bulk sales. The reach the app offers will be make available to distributors smaller orders at much higher
margins per transaction than the traditional distribution model.
• Offer buyers access to buying opportunities that they never had before.
Buyers will be able to request offers for their needs at pricing levels that are currently unavailable to them.
• It will thrive on a people’s unending desire for ease
Buyer requests equipment on the app. Will receive bids from interested Distributors. Picks the bid he likes, Distributor ships, Distributor gets paid.
It’s that easy!
Buyers
• RepairShops
• Independentcelldealers
• Mid-sizephonedistributors
AllinAll
approximately50K
independentdealers
throughouttheU.S.
Sellers
• Cellphonewholesalers
• Liquidators
• Carriers
Approximately100-150
majordistributors
throughouttheU.S.
MajorDistributor
DistributorA
WebSeller
LocalDealer
Buysat$80
Sellsat$105
(30%Margin)
Buysat$105
Sellsat$125
(19%Margin)
Buysat$125
Sellsat$150
(20%Margin)
Buysat$150
Sellsat$200
ToConsumer
(33%Margin)
Thewayitisnow:
(SimplisticView-Mostofthetimetherearemorelevelsandlessmargin)
MajorDistributor
LocalDealer
Buysat$80
Sellsat$128.25
(60%Margin)
Buysat
$141.75
Sellsat$200
ToConsumer
(41%Margin)
TheFuture:
ThePhoneApp
Wemake$13.50
HowdoestheAppwork?
AnExampleofasmallCellPhone
Storeneeding5iPhone6S‘s
TheAppFlow
TheAppFlow(continued)
ReviewonTheAppside
• Wereceived3%ofthetotaltransactionpriceonthebuyer's
sidetocoverthecostofusingmerchantservices.
• Wereceived5%fromthebuyeroftheCostofGoods
(ShippingNotincluded).Thisisforatotalof$23.75
• Wereceived5%fromtheselleroftheCostofGoods
(ShippingNotIncluded).Thisisforatotalof$23.75
• TotalRevenuefromsale$47.50
SomeDetails
• AppwillbebuilttoworkonbothiOSandAndroid
• ResponsiveWebappwillmirrorthephoneapps
• AlldatawillbefullyredundantandPCIcompliant
• OnlyTaxingissueswillbeattheFederallevelastocomply
with1099distributionfortheSellersattheendoftheyear.
• Userswillnottrytogo“offplatform”astheBuyerwillalways
wantthatcompetitivebid.
AVeryConservativeProjection
• Thefollowingprojectionassumesthefollowing:
• Startwith100Localdealers(Buyers)throughouttheU.S.andgrowthemto600ina
24-monthperiod.
• Startwith12Sellers
• Assumetheaveragetransactionis7.0units
• Assumetheaverageunitis$135.00
• Theaveragebuyerwilldo4transactionsamonth
• Assumemerchantfeesgodown.5%inmonth7
• BringinadvertisingandBuyer’ssubscriptioninmonth13
MonthByMonthGrossRevenue(24Months)
Mth1 Mth2 Mth3 Mth4 Mth5 Mth6 Mth7 Mth8 Mth9 Mth10 Mth11 Mth12 Year1Total
#ofCellPhoneStores 100 125 156 195 244 305 317 329 342 355 369 383 383
#ofTransactions 2,800 3,500 4,375 5,469 6,836 8,545 8,874 9,216 9,570 9,939 10,321 10,719 90,163
GrossSalesTransactions $378,000 $472,500 $590,625 $738,281 $922,852 $1,153,564 $1,197,977 $1,244,099 $1,291,997 $1,341,738 $1,393,395 $1,447,041 $12,172,069
IncomeFromBuyerFees $18,900 $23,625 $29,531 $36,914 $46,143 $57,678 $59,899 $62,205 $64,600 $67,087 $69,670 $72,352 $608,603
IncomeFromSellerFees $18,900 $23,625 $29,531 $36,914 $46,143 $57,678 $59,899 $62,205 $64,600 $67,087 $69,670 $72,352 $608,603
IncomeFromTransactionFees $378 $473 $591 $738 $923 $1,154 $5,990 $6,220 $6,460 $6,709 $6,967 $7,235 $43,837
IncomeFromSubscriptions $- $- $- $- $- $- $- $- $- $- $- $- $-
IncomeFromAdvertising $- $- $- $- $- $- $- $- $- $- $- $- $-
TotalGrossIncome $38,178 $47,723 $59,653 $74,566 $93,208 $116,510 $125,788 $130,630 $135,660 $140,883 $146,307 $151,939 $1,261,044
Mth13 Mth14 Mth15 Mth16 Mth17 Mth18 Mth19 Mth20 Mth21 Mth22 Mth23 Mth24 Year2Total
#ofCellPhoneStores 398 413 429 445 462 480 499 518 538 559 580 600 600
#ofTransactions 11,131 11,560 12,005 12,467 12,947 13,446 13,963 14,501 15,059 15,639 16,241 16,867 165,828
GrossSalesTransactions $1,502,752 $1,560,608 $1,620,692 $1,683,088 $1,747,887 $1,815,181 $1,885,065 $1,957,640 $2,033,009 $2,111,280 $2,192,565 $2,276,978 $22,386,746
IncomeFromBuyerFees $75,138 $78,030 $81,035 $84,154 $87,394 $90,759 $94,253 $97,882 $101,650 $105,564 $109,628 $113,849 $1,119,337
IncomeFromSellerFees $75,138 $78,030 $81,035 $84,154 $87,394 $90,759 $94,253 $97,882 $101,650 $105,564 $109,628 $113,849 $1,119,337
IncomeFromTransactionFees $7,514 $7,803 $8,103 $8,415 $8,739 $9,076 $9,425 $9,788 $10,165 $10,556 $10,963 $11,385 $111,934
IncomeFromSubscriptions $3,976 $4,129 $4,288 $4,453 $4,624 $4,802 $4,987 $5,179 $5,378 $5,585 $5,800 $6,024 $59,224
IncomeFromAdvertising $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000
TotalGrossIncome $166,765 $172,992 $179,460 $186,177 $193,152 $200,396 $207,919 $215,731 $223,844 $232,270 $241,020 $250,106 $2,469,832
SummaryforConservativeProjection
Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
Mth
9
Mth
10
Mth
11
Mth
12
Mth
13
Mth
14
Mth
15
Mth
16
Mth
17
Mth
18
Mth
19
Mth
20
Mth
21
Mth
22
Mth
23
Mth
24
$ -
$ 50,000.00
$ 100,000.00
$ 150,000.00
$ 200,000.00
$ 250,000.00
$ 300,000.00
Total Gross Income
InThe24thMonth Total24Months
#ofCellPhoneStores 600 600
TotalNumberofTransactions 16,867 255,991
TotalGrossSales $2,276,978 $34,558,815
IncomeFromBuyerFees $113,849 $1,727,941
IncomeFromSellerFees $113,849 $1,727,941
IncomeFromTransactionFees $11,385 $155,771
IncomeFromSubscriptions $6,024 $59,224
IncomeFromAdvertising $5,000 $60,000
TotalGrossIncome $250,106 $3,730,876
CapitalNeeds
• Raiseandpromoteawarenesstothestrengthsandavailability
oftheApptothemarketplace.
• Buildrelationshipswithinthemobilephoneindustrysellingthe
benefitsoftheApp.
• NeedtotweakandpolishUIafterprototypepasses.