Looking to Start a SIM Card Business

LSaver2018 on 31/07/2022 - 12:34
Last edited 31/07/2022 - 13:08 by 1 other user

Hi Community

I am keen to understand the business model of selling SIM cards of Optus/Telstra/boost etc. and wondering if any advice can be provided openly on this community form or via DM.

What sort of profit margin can one anticipate, how much capital investament would be required (guesstimate) to sell SIM cards and mobile connections via an e-commerce setup instead of a physical shop. Happy to undergo a training course or something similar to understand the ins and outs of this setup to workout whether it is for me or not. I am not interested in becoming a business like vaya/boost/libara etc, just interested in selling their SIM cards/connections/renewals at a cheaper rate.

If this topic is not suitable to be discussed openly or belongs to a different thread then please take necessary action to delete or move it as appropriate.

Thank you

• 

  Mechz on 31/07/2022 - 12:45

  Just DM Andrew Penn and I am sure he can give you the rundown.

  • 

    dK69 on 31/07/2022 - 12:56

    +1

    I starting searching for Andrew Penn on Ozbargain then I realised that he is the CEO of Telstra ;), thanks for the good laugh though.

    • 

      Saver2018 on 31/07/2022 - 13:02

      I did exactly the same. I just want to start my own business as a side hustle like AudiTech, lucky mobile etc, but don't know how to begin, hence looking for some ideas and suggestions

      • 

        Neoika on 31/07/2022 - 13:06

        +2

        Just copy what they do. Actually, they may sell them as a loss leader (in order to attract customers to buy other profitable things).

        • 

          Saver2018 on 31/07/2022 - 13:27

          @Neoika: where do they get these simcards from? directly from Telcos?

• 

  Muzeeb on 31/07/2022 - 12:55

  Is this actually a business model in 2022?

  • 

    bloom on 31/07/2022 - 13:41

    +1

    Didn’t even provide MS paint, what is this.. dragons den?

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  Jimothy Wongingtons on 31/07/2022 - 12:56

  +3

  If you’re not already well connected in telco industry what makes you think you can undercut everyone else?

  • 

    Saver2018 on 31/07/2022 - 13:30

    I don't want to undercut anyone, just want to be another reseller of simcards as a side hustle. Where do these resellers buy simcards from, telcos directly? I am sure they are not going to woolworths/coles/OW etc to buy them in bulk on promotional days ;)

    • 

      StrayfireX on 31/07/2022 - 14:41

      +2

      Usually they are dealer shops that also have a presence online.

      So a phone repair/case shop that might also sell some SIMs might approach a company like Boost and ask to sell their SIMs, buy in bulk and sell some at the shop and the bulk of it online.

      It's really about quantity and bulk orders.

• 

  7ekn00 on 31/07/2022 - 14:11

  +3

  It's like any other business, buy wholesale, add overheads and profit, sell retail ;)

  Nobody here can help without doing the leg work for you …

  That is:
  - contact the suppliers (ie the companies SIMs you wish to sell) and ask them what they will charge you (this may be different to what it costs others)
  - decide how many you want/can afford to buy from each supplier
  - order and pay for stock and delivery (will probably require ABN and/or Invoice Purchase Numbers, account creation / verification, etc)
  - decide at what price you want to sell including all overheads and profit (nobody here will know your overheads nor goals for profit)
  - advertise them for sale at the price you decided detailing delivery details, wait times, tracking etc etc like a proper retail business
  - fill orders as they come in, deal with returns, lost items, item tracking, etc etc
  - see if time spent doing all this is worth it for what was made, ie. total income from all sales - (all overheads + time invested + stock costs)

• 

  Italkdigital on 31/07/2022 - 16:20

  Buy them cheap when they are heavily discounted at places like Coles, Woolworths etc

  Otherwise I doubt you have the buying power or right connections to get them discounted at all, even enough to make a easonable profit, also the hardest part is getting your product out there, why would someone buy of you when they can just pick up one from Coles while doing one's shopping or online with free postage

  but you could try companies that are ressellers or use the big 3x telcos in the background as there service and offer cashbacks/bonuses etc,.. like oh sorry brain fog umm what were there names?