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LNG

Business Model of Carrier shops

The mobile phone industry is divided into several sectors that perform different roles. Manufacturers produce handsets, communications carriers build networks and create service plans, and sales agents sell these products and services through direct contact with customers. Carrier shops with brands like docomo, au and SoftBank are everywhere in Japan. But very few are operated directly by a carrier. Almost all of these shops belong to the networks of sales agents like Bell-Park.

Major Sources of Earnings

1. Sales commissions
We earn a profit by selling handsets at prices below our cost and then offsetting this loss by receiving sales commissions. The amount of each sales commission depends on the category of the sale (new subscribers or replacement handsets) and the type of service plan.
   

2. Renewal commissions
We receive a percentage of the monthly communication charges that customers pay as consistent source of revenue. The size of renewal commissions grows with the number of customers who use handsets we sold for a long time.
     
3. Fees for various tasks
We charge fees for intermediary services such as optical line services, credit cards and electrical contracts, and follow-up services such as service plan alteration and handset repair.
 
4. Other support payments
We receive support payments from carriers for marketing activities at shops and shop staff. These payments vary depending on the performance based on sales and customer satisfaction.
     
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