I ask this because most corporate stores don’t seem to be generating a profit these days. These appointments coming in that end up lastIng over an hour can’t possibly be making the store any money. In my store alone the company is paying over 37,000 a month in salary not counting whatever team commission is made. Most stores are top heavy with tenured reps and managers so something has to give in regards to staffing.
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Maybe it's measured by how many people we are turning away daily due to lack of staffing?
Hard to believe but profitability is measured by the sum of the revenue from all active accounts that originated in that store. Totally assinine but true.
Well let's see 35 dollar activation / upgrade fee on the 500~ boxes my store sells cover about half that right there.
Then you figure they are making profit of about 20 bucks a month per customer I keep and let's say I keep 5% of those customer solely because there is a store there. There is your other half.
Now we haven't cover Pull though
TMP
ARD
Or the value of tech support / customer service that the stores offer.
So yeah.... I would say that's how stores are profitable.
When I left the company (after being told lies, empty promises, and no support from the leaders who always said.. "my doors are always open.. just reach out") as a 4 time President cabinet winner.. my customer list made it to my brother who works for the competition.
Verizon just has lost a touch with reality that a good number of SMB and retail customers want a go to person with the power and knowledge to get what they need.
They are also an investment in retention. When someone leaves Verizon 99% of the time they go to a competitor. Having a port out is worse than a disconnect
Real estate cost are shocking for some locations. Older larger stores with corner locations and long term agreements. Smaller next gen stores are cheaper and easier to sell off to 3rd party operators.
Most people want to view sales activity as an indication of profitability but remember it's not phones that make the money. Thats why quality of sale is the hot topic. Accessories are a one time flow of cash. Driving higher plans and protection is recurring revenue. As you point out, there are numerous expenses in retail, many of which you and I don't see. The most important factor though, is maintaining your customer base. If your area is deemed as supporting 30000 customers they would multiply that by the ARPU or ARPA and know how much revenue your store supports. Watch the net activations in peak (granted many of that number could be tabs and hum) and watch your port ratios. If I were in leadership that is what would be looked at and weighed against expenses.