Business is a commercial activity in which people work together to sell a product or a service. According to a survey, starting a business in Pakistan is not that difficult. Smartphones Business in Pakistan has gained much fame in the past few decades. As the technology evolves, the tech geeks love to purchase the new technology. Furthermore, the smartphone industries are spending millions of dollars on the research and development of new and innovative smartphones. In Pakistan, the smartphone industry is quite saturated. You can find all kinds of smartphones in the market, they may include China mobiles, Imported mobiles, and Cheap mobiles. In addition to this, we can observe that the number of smartphone retailers is increasing day by day. There are many reasons for the increase in the number of smartphone retailers. In the coming section, we will discuss all regarding the smartphone business in Pakistan.
According to the survey, there are over 161.183 million mobile phone users in Pakistan. This means that almost half of the population has mobile phones.
There are three categories in Smartphone Business. These three categories include retailing, Wholesaling, and repair. We will discuss each of these categories in detail.
Retail is the process of selling goods or services to others through single or multiple channels to earn the profit. Usually, retail stores deal directly with customers. The customers may be literate or illiterate, similarly, the customers may be rich or poor. Moreover, the customers are the general public, there is a lesser chance that those customers are associated with smartphone business. The profit percentage in the retail business is a little higher as compared to whole selling. Furthermore, people are also doing smartphone retailing online. They are running their pages on social media websites and running their businesses online.
This is the second category of the smartphone business in Pakistan. The prime purpose of the wholesale business is to supply the goods to the shops. They provide certain percentages to the shops and in return, the shop owners purchase the goods from them. Wholesaling has low-profit ratios, however, they have the sale in millions of rupees. Ultimately, they earn a huge amount of profits. Some wholesalers also sell their goods on retail and they are capable of giving good discounts as well.
Smartphone Repair & Maintenance
This is the third category of the smartphone business in Pakistan. It mainly deals with repair & Maintenance. Although you might need to acquire a skill before starting this business. The profit ratio is quite high under this category, but a person won’t be able to do this business until he has a skill. To lean a skill you might need to work at some mobile repairing shops. Within a period of 6 to 8 months, you can easily learn this skill. To start this business, you might require some of the equipment and you can also start this setup at your home.
Mobile Shop Business ideas
Well, there are many business ideas that you can generate for the smartphone business. A mobile shop is one of them. It is not that difficult to set up a mobile phone retail store. In addition to this, you can also sell smartphones online through social media websites. Under this heading, we will tell you guys that how can you set up a smartphone retail store.
How to set up a mobile shop in Pakistan
To set up a mobile shop business you need to take care a lot of things. If you already have an experince in this field than you can set up easily. However, if you are a fresh businessman, it is recommended to spend atleast 6 months in any mobile shop to know about the business. This experience will be a kick start for your business, meanwhile you can also find the perfect location for your business.
To select the location is one of the most sensitive and crucial tasks. You might need to visit different places for the selection of a shop. You have two options for the shop, the first is that you can purchase a shop if you have enough capital. The second option is that you can take a shop on rent. The rent will affect your gross profit. It is, however, recommended that if you have enough capital you can purchase a shop. It will remain your asset and you can also do certain experiments in your business. Furthermore, your gross profit will also not be affected if you own a shop. If we talk about the location, try to find a shop in a mobile market, like Hafeez center in Lahore and Serena mobile market in Karachi.
Business is like a tea the more you add investment more it will be sweeter. Well, you might require an initial investment for 8-10 lack rupees. You can purchase the smartphones and accessories for 6 lacks. The rest of the money can be spent on renovation, furniture, and rent. However, if you are planning to set up a large retail store, you might require up to 3 million PKR investment. In addition to this, you also need to purchase a point of sale system. This POS system will help you to keep a check on your cash flow, sale, and purchase. You might also need to get a license from the relevant authorities.
.Return on investment (ROI)
It is quite difficult to find out the exact return on investments in this business. As the prices of smartphones keep on changing. Well, on average you can generate 10 to 25 percentage of ROI. Some mobile will give you 10% of the profit, whereas, some can give you up to 25 %. The ROI also depends upon the wholesalers. The more you bargain with the wholesaler, the more profit you can generate.
Just like every business, the mobile phone business also requires monthly expenses. If you have a shop on rent, your monthly expenses may be quite high, on the other hand, if you own your shop the monthly expenses will be around 25,000 PKR. These expenses may include electricity bills and salaries for the employers
Best Time to start mobile shop business
There is always the best time for everything. For the smartphone business, there are some seasons in which the sale is quite high, whereas, in some seasons the sale is quite low. The best time to start the mobile phone shop is during the off-season. You will get time to prepare for the season. Generally, from December to February, the daily sale of smartphones is low. On average during the off-season, your sale will be 10-15k per day. During the rest of the year, your sale might be above 25000 PKR per day.
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Payment policy for the suppliers
There are certain payment policies by the suppliers of smartphones. Initially, you might need to purchase the smartphones on cash. You have to pay immediately once your order is received. When you become famous in the market, the supplier’s trust will increase and they will also offer you to purchase your goods on credit.
In finance, the breakeven point is placed when you have generated enough revenue that is equivalent to your investment. In the case of a mobile shop, the breakeven point for minimum investment is 1.5 years. On the other hand, if your investment is high, it may take up to 5 years to reach the breakeven point.
How can you determine the running products for mobile shop
Well, this is one of the most difficult and crucial tasks, You will learn this with experience. In addition to this, you can also do certain market surveys to know about running products. Nowadays the internet is one of the best sources through which you can determine the running products. You can search it from google. On the other hand Smartphones, reviews on YouTube will also be helpful for you. In the coming section, we will discuss some of the famous YouTubers in Pakistan that are creating the content for the reviews on youtube.
Smartphones reviews on YouTube
There are several YouTubers that are making films on mobile reviews. You can get knowledge about smartphones from those review videos. If you are planning to start a mobile shop in Pakistan, you must watch these reviews for your knowledge about smartphones and current trends. In addition to this, you can also read articles on different websites. If you have a good knowledge of smartphones you can satisfy your customers easily. Here are some of the famous YouTubers that make videos on smartphone reviews.
This is a Pakistani based Youtube channel, that has gained much fame in Pakistan. He makes all of the mobile phone reviews videos in Urdu. Moreover, the video quality of this Youtuber is also quite good, You can visit their Youtube channel to check out their videos.
Phonebox is a Pakistani based website that deals with the sale and purchase of the smartphone. They also had their Youtube channel on which they upload reviews about smartphones. Visit their youtube channel by clicking here. Moreover, on their websites, you can find a number of articles on smartphones. This will help you a lot if you are already in the smartphone business.
Zaryab Khan a 22-year-old Pakistani Youtuber is famous for making videos on tech and mobiles. He had uploaded over 3000 videos. The reviews and unboxing videos are awesome. Check out the youtube channel of XeetechCare
This is also a Pakistani based YouTubers that make videos on technology. In addition to mobile reviews, you can also find the unboxing and other tech-related videos. Click here to visit on the channel of VideoWaliSarkar
Smartphones Profit Margin
Well, under the previous heading we have already discussed the profit margin of the smartphone business. However, I am going to give you an overview of it. The profit margin in the smartphone business in 10-25%. It all depends upon the location of the shop and the variety you have. For wholesale, the profit margin is less, however, the sale is quite high in this way you will ultimately gain good profit. On the other hand, in mobile retail shops the margin in 10-25%. Some smartphones give you the margin of 10%, whereas, some phones offer you up to 25%. If you have more variety of smartphones in your shop, there will be more chances that the customer will get attracted. So, we can finally assert that the more you invest, the more will you earn in the mobile phone business.
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