How to Open a Telephone Card Business

Regulations ensure telephone cards don't cheat your customers out of their time.

Selling telephone cards is a wonderful addition to your existing retail business. Travelers use telephone cards to avoid paying hotel rates on a phone call. People who make frequent international calls are also your customer base. Advance planning and research is required to make sure your cards meet the needs of your customers. Following Federal Trade Commission (FTC) regulations ensures your customers are happy and your refund rate is low. Purchase your telephone card inventory from wholesale distributors.

Instructions

1. Write a detailed budget to figure out how much money you can spend on your initial telephone card order. This budget assists you in selecting a card from the wholesaler to distribute in your retail location. Different telephone card brands with different calling minutes have different purchase costs.

2. Contact wholesale telephone card companies to select a telephone card for distribution. Third-party telecommunications companies provide telephone card minutes. Cheaper telephone cards bring additional connection fees, thus cheating customers out of minutes available for the call. Before you purchase a particular telephone card, ask the wholesaler for the contact information of other merchants who retail the card. Contact merchants and inquire about returns on particular telephone cards and reasons customers have given for the returns.

3. Calculate potential income from potential telephone card sales. Subtract your cost per card from your customers' price per card. Use this number to determine how many card sales cover the cost of your order and how many sales yield a profit.

4. Place your order. Complete an online order form or contact the customer service department for the company. Multiple payment options including check, credit card, cash on delivery and electronic funds transfer are offered. A service charge may be assessed to the total amount of your order, depending on your chosen payment method. Inquire with the company about which payment methods require a service charge. Delivery time ranges from two to 10 business days. The company ships your merchandise as soon as your payment clears.

5. Design a dedicated space for your telephone cards. Set up a booth or table that prominently displays the cards within your established retail location. Display a chart with the price of each telephone card and the amount of calling time each one offers. Create buzz among your customers before you receive your cards. Prominently place signs for your upcoming product.

6. Record your card sales. Note the more popular telephone card brands among your customers. Tailor your future card orders to their preferences.

Tips & Warnings

• Remember to keep your business license information up to date.

• Keep detailed records to pay proper business taxes on sales.

References

• Phone Card Hotline: How to Order Prepaid Calling Cards Online For Maximum Discounts
• Federal Trade Commission: Facts for Consumers: Buying Time: The Facts About Pre-Paid Phone Cards: Selling Cards
• Daily Biz Solutions: 7 Success Tips For Selling Calling Cards and Phone Cards in Your Retail Store