• To anyone looking to acquire commercial radio programming software:

    Please do not make requests for copies of radio programming software which is sold (or was sold) by the manufacturer for any monetary value. All requests will be deleted and a forum infraction issued. Making a request such as this is attempting to engage in software piracy and this forum cannot be involved or associated with this activity. The same goes for any private transaction via Private Message. Even if you attempt to engage in this activity in PM's we will still enforce the forum rules. Your PM's are not private and the administration has the right to read them if there's a hint to criminal activity.

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How to become a dealer?

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ASAD

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164
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Bucks County, PA
I'm considering getting in the business of commercial radios and potentially ham radios too. I'd love to get some insight on this, as to how much money should I have, and where to begin. Feel free to advise me of a good location. I'm thinking of Texas.


Thanks,
Asad
 
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KC9VZV

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Mar 13, 2009
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287
I'm considering getting in the business of commercial radios and potentially ham radios too. I'd love to get some insight on this, as to how much money should I have, and where to begin. Feel free to advise me of a good location. I'm thinking of Texas.


Thanks,
Asad

Well, in terms of location, I would expect that the Chicago Area wouldn't be an awful place simply because there is literally no ham radio dealers in northern IL (I don't even know if there is any in IL). From my understanding, there used to be one or two, but they both closed. I know I would come if you opened a ham radio/commercial radio store in the Chicago area.
Just my two cents... :)

Dan
 

svfd17

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Wirelessly posted (Mozilla/5.0 (Linux; U; Android 4.0.4; en-us; C5170 Build/IML77) AppleWebKit/534.30 (KHTML, like Gecko) Version/4.0 Mobile Safari/534.30)

I am interested in doing the same thing though mainly Kenwood and icom
 

jim202

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Location
New Orleans region
I'm considering getting in the business of commercial radios and potentially ham radios too. I'd love to get some insight on this, as to how much money should I have, and where to begin. Feel free to advise me of a good location. I'm thinking of Texas.


Thanks,
Asad


Well your about 20 or 30 years too late. Back then you could make a good living running a radio service shop. You could sell radios and make a living at it. Almost didn't matter what the brand was. Since then it has been a down hill slide. Many of the radio shops I use to know have either closed up or changed their line of work.

Want to know what has happened? Well blame a bunch of the changes on the cell phone. It all really started back around the late 90's. Cell phones started to become the big thing. You could carry a telephone in your pocket and make a call from just about anyplace around a city. The demand for the business two way radio started to fall off. Why go out and pay for a radio for say $1200 when your cell phone will work just about anyplace. Your radio only works when your close enough to hear another radio.

Then you figure you don't have to pay the high rent of having the base station on a high tower each month. Your cell phone can be had for say $60 a month. You don't have to pay a repair bill on the order of $100 an hour to repair your radio plus parts. If your cell phone breaks, you go get a new one for less. Plus it will probably be a brand new one, not just a repaired two way radio that might break again next week. Instead of only being able to use the radio over say a 20 mile range, the cell phone will work just about any place in the county except way out in the boonies.

Many of the people who I use to know that ran the radio shops are now making more money renting PA systems for events or putting in surveillance TV systems to watch stores and warehouses. Maybe even getting into the installation of network cabling for computer connections. The hay days of the radio service work are long gone. Unless your a huge radio service company, your not going to make much of a living at it anymore.

I use to run my own part time radio service shop. Made good money doing it. It brought in more than my full time job that I got paid well at. But for the most part, those days are gone.

You asked about ham radio sales. Again, there isn't that much sales where you can compete against some of the larger names like Ham Radio Outlet and a few others. They will sell to just about anyone and do it over the phone and internet. The way they make it work is volume.

I work close with public safety agencies and travel frequently around the country. These agencies are finding it hard to get good service these days. The service shops are bringing in the younger kids and not paying them much. The kids get little or no training and the shops expect them to do a good job. The company I work for has hired some new blood and is expecting the new kids to learn by being taken under my wing or one of the other older people.

There is just some things that they can only learn by being out in the field and doing it them selves. Even with me being there, I can't get that new kid to get the feel of just how tight to turn the screwdriver without him doing it. I have the hardest time trying to get these kids to learn that your drill will last longer and cut into the metal better if you don't run the speed of the drill up to max. By the time you see the smoke coming off the drill bit, they have just destroyed that bit. Trying to trouble shoot a problem is a skill that these new kids just have to learn on their own. You try to show them it is faster to split the problem in the middle. Then decide do you look to the left or to the right of the split point you picked.

I may have strayed off your main question, but you need to know how the stability of the radio sales and service got to where it is today. Your going to do as you please, but at least I have tried to paint a clear picture for you of what you can expect.
 

GRC

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Nov 27, 2003
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Location
Canada
i will second Jim on that. I'm currently owning a radio rental company and i'm not living by this job but making a considerable second incomes, even if i'm only 30 of age and started this 5 years ago. Times have changed and keep in mind that you can't beat cell phone company. I'm focusing in a market where cell phone is not the proper tool for communication ex: snow plow companies, towing, construction site, sports events, municipal events, etc. In the last 5 years i built my customers around mouth to mouth, contacts and family. I can say i have over 25 steady clients and 12 seasonal clients but i had to invest a considerable amount of time AND money. Licensing, shelter, land rental on mountain top, radios, parts, spare parts and much more costs a lot. I have around 180 mobiles and 75 portables in my fleet and it's a constant expense. 4 repeaters, infrastructure and stuff, that requires time to built and maintain, as long with money. I decided to go on rental because money generated by theses radios will pay back for the investment i did and offers me the possibilities to expand but after reflection, i don't want to go bigger then i'm now. Start small and go bigger if you see the potential in your area. I'm living in a 45 000 souls town and no radio dealer locally based so it's a plus for me, but only on small clients. Bigger clients don't want to change their radio guy when they're used to the same guy for the last 27 years, consider this also. You can start by renting some used radios you bought here and there but keep in mind they must be OPERATIONAL and in good shape, if you want to keep a customer's trust and respect, otherwise you'll always be called because it's broken or not working properly. My rules is if it broke more then twice it get replaced by another radio and then scrapped for parts.

Good luck and hope you will have success :)
 

jaspence

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Messages
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Location
Michigan
Location for dealer

Northern Illinois around Chicago has quite a few hams that use Motorola radios due to their jobs at Motorola plants in that area. Less than two hours north of Chicago is the AES store, so they are closer to gear than most of the rest of the US.
 

rapidcharger

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The land of broken calculators.
So you think you can sell radios?

While I would tend to agree with the doom and gloom forecasts of that industry, not to mention the influx of $30 chinese radios that kinda sorta meet the same needs of most users, what it boils down to is can you sell radios? None of the rest of that matters if you can sell radios. I promise you.

And there's any easy way to tell. Go out there and pound the pavement. Start knocking on doors. Businesses that is, not hams. If you can sell radios, you'll know by the end of the day.

And should you sell some or some accessories, batteries, etc, you can always broker that deal with an existing dealer. Remember this is just an experiment.

As to where to move to, wherever you think there are buyers.

Selling to hams is different. I don't know enough about that although it seems like there's an awful lot of dealers already. I think what I would do in that case is move to some relatively large market where there is no existing ham store. MIAMI comes to mind.
 

MK

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Joined
Dec 24, 2002
Messages
249
If your chosen location is Texas, then listen to the advice above. There are already enough businesses selling radios in this state. You will be competing with the best of them.
 

cabletech

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Joined
Apr 22, 2012
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871
Location
Puget Sound
asad what is your radio background? If you do not have AT LEAST 5-6 years in the field as a service tech then trying to do ANY sells is going to be VERY hard.

You have to know the industry cold before you can just jump in.

I started waaaay to many years ago as a service tech, then got involved with a few groups doing their service and then started doing their buying.

At that point I started doing adveritizing for sells and service.

My sells are not great but it allows me to help smaller companys and groups and I make a few bucks doing it.

I deal with motorsports and small companys, I rent, service and sell, I have over $100,000.00 between on hand radio equipment and then $40,000.00 in service equipment and parts.

Also, all the manufactures will require that either no other dealer within x miles, and or a sells levels of x amount EVERY MONTH before they will give you a full blow dealer ship.

Moto requires over $10,000 a month, Icom has big $$ Kenwood no other dearler within 50 miles.

Vertex is a little easier to work with.

Bottom line, looking at at least $50-60,000 (yes thousands) to start with.

Then if you do not have the service ablity then that will kill you.

Good luck
 

JPSan

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Nov 23, 2006
Messages
441
Location
Tucson, AZ
More things to REALLY consider

Cabletech put out some good things to consider, but other things you need to also carefully look at....

Overhead....store front.....monthly rent / lease expenses......taxes...local? state and federal...... monthly utilities....phone....gas or gasoline....electric....waste disposal....water. Insurance...liability....property....vehicle..... .to start.
Some radio inventory either to demo or for quick sale or quick replacement for a client.
Service equipment....Service monitor ( a MUST have item) ....programming computer and programming software ( most NOT free)...service manuals... professional watt meters ( Bird 43 and the appropriate slugs) bench tools de soldering station for smt or conventional boards ....installation tools....Stock of components ( coax connectors, heliax connectors...etc).....If you have customers who depend on there communications system night and day , you will have to respond quickly. Are you planning on doing this solo? Make 100% sure anyone you hire really know there stuff and trustworthy...I've seen employee's do side deals with clients and take business from you and parts too.

Business will not come to you. In this business...you have to go out and make yourself known, advertise ($$$) a sales rep?.....BIG consideration a PROVEN track record in the field as word of mouth can make or break you.

And if you do land a dealership, as cabletech stated there are sales quota's with some AND the margins, what you will make per sale isn't that great.

Oh, yes a lot of vendors will want payment up front for your purchases till you get established.

SERVICE and ACCESSORIES is where you make your money...

Ham radio or CB sales WILL NOT amount to much, ham's WANT no DEMAND deals and will buy off the 'net to even save $5.00, so don't even think that will help you.

I have been involved in 2 radio shops that friends tried to set up. Friends who have decades of experience in service, installation and sales....One shop barely made it through 2 years and the other hung on for 5 years both had hard times making monthly bills and payroll.....One towards the end, half the time our pay checks would either BOUNCE or we had to go to his families restaurant to cash them! The sheriff came one afternoon and took over the place via court order......... Some of us saw the writing on the wall were prepared for that day.


So if you think you got the brass ring and are 100% certain you know the business go for it.....Trust me there is a lot more to it...AND be totally aware of the unexpected....customers who go 30 - 60 - 90+ past due...and one's who suddenly close up shop and one's who order equipment and suddenly can't afford it and owe you and so on and on and............Good Luck to you.

Seriously...really think it ALL through.....Cheers.

Just speaking from 30+ years of experience in the commercial 2-way field.




 
D

DaveNF2G

Guest
Some people want to become dealerships with dreams of cheap access to expensive radios.

Not gonna happen. As described above, you won't make enough money to even think about buying radios "at cost" for yourself.

To make sales to the kinds of customers that would be profitable, you need more than radio knowledge and experience. You need connections. If you don't know the right people, and if they aren't willing to trust you with their business, then your dealership will go nowhere.
 
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