Have you ever wondered what the difference is between AT&T, Verizon, T-Mobile, Sprint, etc. stores at your local mall? I have traveled the country and understand that some markets are not that saturated with perhaps only 1 cell phone store per carrier (or less) in each mall, but for the most part there are usually at least 2, I have seen as many as 8, of the same carrier in the same mall!

Why would any operator do such a thing? Why does a kiosk, cart or online store have different offers? What is the difference between this AT&T store and that one, between this Verizon store and that one, etc.?

I will help answer what is the difference between a corporate owned cell phone store and a licensed cell phone store.

Difference #1 – There are two types of retail stores. One is the actual company store, which is owned and operated by the transportation company and employees. The second is an authorized retailer or distributor that is a separate business entity from the actual carrier. At the same time, the authorized retailer (reseller) is approved by the carrier itself to sell its services and products.

Difference #2 – Phone #1 costs $100 at this store versus $50 at this store. Corporate-owned stores for the most part are consistent across the board with pricing and phone plans. At the same time, authorized retailers can change prices within the limits of their agreement with the carrier and the company’s P&L as it makes sense. You can often find better deals at authorized retail stores, but the same can be said for carrier-owned stores.

Difference #3 – No secondary contract vs. secondary contract? What is a secondary contract? A secondary contract is a contract that is used by most authorized retailers to help determine and secure the discount that has been passed on to the customer. Example: A phone that retails for $100 is likely to cost the retailer $50 to $200 more than the retail price. Believe it or not, it’s true. On average, it could cost the retailer $100 more than the retail price. This is where the secondary contract comes in. If the consumer cancels their service with the carrier before the minimum days needed (consolidation period) for the company to get its commission from the carrier, they would lose not only the carrier’s commission, but also the cost of the phone. Should this scare the consumer away from buying from an authorized retailer? In my opinion, NO. The only reason it should scare the consumer is if you plan to cancel your service and not return the phone within the given grace period.

Are corporate stores better trained than authorized retailers? In my experience, it depends on the actual store and the employees. I’ve seen it go both ways.

In theory, both carrier-operated stores and authorized retailers coexist and should respect each other. In practice, I’ve seen it friendly and downright fierce between the two. So if you happen to be buying from and visiting corporate and authorized dealers, make sure you go with your gut and buy from whoever you feel most comfortable with.

Key thought when buying: Buy from the seller that best rates you. That is, it asks you the right questions to help you adjust to the right plan and phone. If they don’t ask you the basic questions… keep shopping!

I hope this article helps you.