About Device Pitstop
Liquid Capital: $100,000
Net Worth Requirement: $500,000
Franchise Fees: $20,000
Training and Support: Available
Home Office: Plymouth, MN
CEO: Ronald Olson
Investement Range $146,250 - $218,250
About Device Pitstop Franchise
It is a retail and repair store that buys, sells, trades and repairs laptops, tablets, and smartphones of all varieties—from Apple products to Windows and Android. We provide quality refurbished and factory recertified laptops and other personal devices at high-value retail prices. Additionally, the service and repair aspect of the business model comprises approximately 30% of average store sales.
Refurbished retail inventory is acquired on an ongoing basis from our customers selling their gently-used or no longer needed electronics to Device Pitstop for CASH On-the-Spot. We also utilize a network of brokers who acquire product off-lease from various companies or outsource overstock items from clearance houses. Our refurbished inventory is typically sold between 25% and 50% below current or original retail pricing. Plus, Device Pitstop offers all of the common accessories you would expect to see for laptops, desktop computers, tablets, smartphones and more.
At every Device Pitstop store, customers will find a clean, open layout, a great product selection and a friendly, professional staff that provides excellent customer service.
So Why Electronics?
The electronics industry is growing exponentially. As tablet, smartphone and laptop sales continue to outpace desktops, it’s easy to see that mobile computing is the future. Mobility gives business travelers, students and casual users the freedom to experience their digital life wherever and whenever they see fit.
And Device Pitstop operates in a unique, low-competition space within the electronics industry. While retailers selling new devices are cutting margins to the bare minimum just to compete, Device Pitstop offers used and recertified devices at a great price with naturally high profit margins. Customers appreciate the high value that Device Pitstop provides as well as the environmentally friendly aspect of the business.
Customers also count on Device Pitstop for the hardware, accessories and service know-how to keep them connected to their digital world. This provides one-stop shopping for customers and higher sales numbers for store owners.
Who is Our Target Customer?
Our core customer group is comprised equally of men and women ages 25 to 55, living within a 10-mile radius of our stores. The lives they lead are busy and integrally connected with technology, helping them to balance a busy work schedule and an often busier personal life.
Married couples with growing children are, by extension, a primary customer group as well because most preteen children have phones, tablets and laptops of their own. Parents looking for a cost-effective solution to a device need for their children will turn to Device Pitstop and our selection of refurbished laptops, tablets and smartphones. From a repair standpoint, we help our customers stay connected and active when they break a phone or laptop screen, or when a computer crashes.
Our Generation Z customers include kids between the ages of 5 and 19. They are the first group to truly grow up with technology at their fingertips. Younger kids in this group rely on devices for entertainment and education, while tweens and teens do the same with the addition of maintaining social media accounts and essentially a personal brand for the world to see. This up-and-coming group looks to us to provide them with affordable devices that will help them to complete school work, be entertained, develop their online presence and learn skills for their future. And when they find a store they love, they share the news with their friends and social media followers.
Our Millennial customers are men and women ages 25 to 35. They live a very active lifestyle and are constantly on the go. They are defined as confident, tolerant and networked. They are beyond comfortable with technology and are generally very socially aware. Most importantly, they are mobile, and their devices must keep up with their lives. Any downtime on a smartphone or laptop will have a negative impact on both their work productivity as well as their personal social scene, and must be avoided or minimized.
This group is also attracted to Device Pitstop, because they are young to the workforce, and are often not quite as financially secure as they would like to be. Thus, they are interested in the value of our refurbished inventory, as well as the cost effective repair services Device Pitstop offers.
It’s no secret that the reason customers visit Device Pitstop stores is because of the exceptional products and services within. Whether buying, selling or repairing their gently used computers, tablets, smartphones, game consoles and other devices, customers know that Device Pitstop’s focus is on quality.
Our inventory comes from two main sources: our customers, people and businesses that have devices they no longer need, and a network of suppliers and brokers that acquire product off-lease from various companies or outsource overstock items from clearance houses and manufacturers. Both of these sources bring gently used products to Device Pitstop stores, and our buyers evaluate each item to make sure that it’s either in great, working condition or able to be repaired by our technicians.
Customers are presented with an offer of cash on-the-spot or a percentage more in store credit for the items the store wishes to purchase. Our point-of-sale software features a sophisticated buy matrix, which helps buyers make offers that are consistent and fit the margins of Device Pitstop’s successful business model.
We’ll work with you to develop a plan that can be used as the financial and operational guide for your store during the critical start-up phase of your business.
The #1 goal of a business plan is to get the right people excited about your business. A solid and professional, well-designed business plan can help you to raise the funds necessary for you to finance the business, attract more customers and boost sales. We’ll work with you to develop a plan that can be used as the financial and operational guide for your store during the critical start-up phase of your business. You need to be at your best when you present your new business to a lender and we’ll give you the tools to impress any audience.
- Step One - Review the market
- We’ll help you to develop an introductory section: a description of where your business stands today, how you intend to put your sales and marketing plans in place, and what this will mean to your business during the next 12 months.
- Step Two - Your target customer overview
- This overview will examine who your prospective customers are, what they want and what motivates them to buy.
- Step Three - Your business goals
- In detail, we’ll assist you in establishing your store’s goals for the first three years of operation. It’s important to put your goals down on paper, and we’ll discuss the elements of your business that are possible to track so you can gauge your progress. Together, we’ll develop goals that are achievable, time-bound and measurable.
- Step Four - Marketing strategies & tactics
- This section is the heart of your plan. It details what your marketing message is, what you plan to do to market your business, how you plan to achieve your marketing goals and the tactics you’ll use to meet them.
- Step Five - Your budget
- The last section of your plan will break down the projected expenses of your store. Your budgeted plan will include estimated gross margins and key expenses such as marketing, rent, payroll, utilities and other categories.
- Step Six - Your resources
- Determine who on your team will handle different areas of your store including running the store, marketing the business and handling the accounting. Keep in mind that your plan is flexible, so if your business changes we can help you to make adjustments based on your needs.
Securing the right site and negotiating a competitive lease may significantly impact the sales and profitability of your store. NTY Franchise Company provides extensive knowledge and assistance with finding a great location for your store as well as help negotiating your lease. After you have secured financing for your business, your first major step is to go through the real estate process.
NTY Franchise Company has adopted a standardized real estate process that features a clearly defined, all-in-one strategy for site selection, lease negotiation and legal review. In order to accomplish this, we have teamed up with real estate experts, Colliers International. By outsourcing the real estate services, our franchisees receive many benefits such as money and time savings and a faster store-opening process.
Colliers International is a leading global commercial real estate services organization defined by their spirit of enterprise. With more than 16,300 professionals in 502 offices worldwide, they are dedicated to creating strategic partnerships with NTY Franchise Company and our franchisees, providing customized services that transform real estate into a competitive advantage.
- Phase One - Franchise Location Evaluation and Broker Assistance
- Understanding various aspects of site selection and identifying the perfect location for your store.
- Within a suburban power strip center - 1,200 to 1,500 square feet
- Phase Two - Site Selection and Letter of Intent (LOI)
- Negotiating and submitting proposals and assistance with preparing an LOI.
- Phase Three - Lease Agreement (LA) and Space Preparation
- Reviewing your lease agreement to make sure it matches your LOI and understanding when the landlord will turn the space over to you.
NTY Franchise Company has teamed up with proven vendors that offer the best pricing and service available for your store buildout. F.C. Dadson and Specialty Store Services help to streamline the process of getting your store ready to open. To ensure a uniform image throughout the brand, we will assist you in following our quality standards for fixtures and key supplies for your store. You will be provided with easy-to-follow prototypical drawings and a list of specifications such as interior and exterior materials, décor, fixtures, supplies, equipment and signs.
As you develop your store, we make it easy for you to meet our specifications as well as the Americans With Disabilities Act and other applicable federal, state and local laws, ordinances, building code and permit requirements and lease requirements and restrictions. We’ll discuss your plans before you begin construction, and we’ll also help you to review any revisions if needed during the buildout. All of the construction materials, fixtures, equipment, furniture, décor and signs for your store are high in quality and easily accessible.
What Makes F.C. Dadson and Specialty Store Services Different?
- One-stop store supply shopping
- A streamlined process for ordering fixtures, equipment, supplies, graphics and other décor pieces.
- Store in-a-box-coordinated delivery
- Your fixtures and store supplies ship on one trailer, saving you time and multiple shipping charges. It helps to get your store open faster.
- Retail construction
- Experienced in construction management, they can help to bridge the gap between franchisor, franchisee, landlord and your general contractor and make sure that your store gets built out to our specifications while keeping costs down.
- Dedicated project managers
- Their project managers take on many of the day-to-day details, freeing up your time so you can focus on promoting and building your business.
- Retail expertise
- Combined, they have more than 70 years of experience developing, manufacturing and shipping fixtures and supplies to thousands of retailers across the country.
- Franchisor/franchisee relationship
- They familiarize themselves with every aspect of our business and our Franchise Disclosure Document to serve your best interest during buildout.
We conduct two separate, comprehensive training programs that provide our new owners with both pre-opening and post-opening classes ranging from business planning, financial management and real-estate selection to store operations, merchandising, inventory management and POS system training as well as a full week of in-store training. Check out the break down of each of our training programs below.
In this five-day training program, we’ll cover all of the tools available to you and the assistance that we provide for opening your store. Business Training includes:
- Real estate/site selection
- What should go into a lease and what criteria to use to get the best possible site.
- Business planning
- Comprehensive business planning preparation and a review of financing options.
- New store development
- All-encompassing how-to on your store buildout, fixture detailing, signage, flooring options, etc. MARKETING An introduction to all of the marketing options for your store, from print to digital to social media and more.
- Personnel management
- How to recruit, hire, train and develop the best employees for your business.
- Implementation of QuickBooks accounting software into your personal computer to help manage your daily business expenses.
- Operations & Store Training
- This six-day program delves into everything you need to know about the day-to-day operation of your store. Operations & Store Training includes:
- Grand opening advertising, local store marketing, print advertising, multi-media advertising, your store website and social media.
- Customer service
- An overview of the keys to great customer service, steps to learn customer cues and more.
- Merchandising & store standards
- Learn how to merchandise your store to maximize profits. Plus, learn about the company store standards.
- Product knowledge
- How to buy and sell your product.
- Loss prevention
- Learn how to detect internal and external theft and how to utilize tools to prevent theft.
- Inventory management
- An in-depth look at seasonal buying and selling as well as clearance procedures to maximize profitability.
This will includes hands-on experience at our corporate store, where you’ll see all of the information you learned during the previous two programs in action. Store Training includes: Introduction to the POS system, merchandising, customer service sorting/buying, inventory management, store opening/closing procedures, back-of-office administration, sales planning, personnel management, loss prevention and POS administration.
This six-day program includes hands-on experience at our corporate store, where you’ll see all of the information you learned during the previous two programs in action. Store Training includes:
- Day One - Introduction
- Store tour and introduction to the POS system, merchandising, customer service and product classification.
- Day Two - Admin
- Store opening/closing procedures, back-of-office administration, sales planning, personnel management and POS administration.
- Day Three - Inventory
- Reviewing your lease agreement to make sure it matches your LOI and understanding when the landlord will turn the space over to you. Sorting/buying, merchandising, inventory management, POS troubleshooting and loss prevention.
- Day Four - Marketing
- Local store marketing, social media and handling customer complaints.
- Day Five - Overview
- An all-encompassing overview of the previous four days and putting what you’ve learned into action.
- Day Six - Q & A
- Questions and answers session and final training certification.
For Business Training: We suggest you and your partner(s) to attend Business Training in the first available class after you have signed your Franchise Agreement.
For Operations & Store Training: It is ideal for you to receive training on the operational aspect of the business as close to your “Open to Buy” period as possible. So as soon as you’ve completed Business Training, submitted your signed lease to us and ordered your fixture package for your store, you are ready to attend Operations & Store Training.
Point of sale system
The unique software that runs our point-of-sale (POS) system was specifically designed to meet the ever-changing needs of the resale business. With touch screen capabilities and a built-in buy matrix, the system will assist in the buying and selling of your inventory along with tracking numerous aspects of your store including daily sales summaries, inventory buys, and detailed customer transactions. The proprietary software is the property of our third-party supplier and you will buy your software license and hardware from them.
Key Point-of-Sale Software Features
- POS basics
- Typical sales transactions
- Discount and various coupon capabilities and payment options screens
- Detailed administrative functions
- Product buy matrix
- Easy-to-learn touch screen system automation to effectively buy the right inventory at the right price
- Department, category, brand-specific matrix with suggested costs and retails
- Employee accountability
- Track individual employees’ activities including sales, buys and returns and review inventory sell rate performance by employee
- Can objectively measure and manage employee productivity
- Leads to improved buyer training of best- and worst-selling items
- Integrated, secure credit card processing
- Chip and pin capabilities
- Streamline customer transactions
- Easy daily credit card transactions reconciliation
- Online reporting capability
- Can monitor stores performance remotely
- Various executive summary reports on store performance with comparisons to other stores
- Ability to drill down further in a report to help analyze the business metrics
- Quickbooks integration
- Easy and time-saving integration of daily sales activities into QuickBooks
- More accurate and detailed daily reporting of key point-of-sale transactions
- Improves month-end reporting analysis of your financials
- Tech support
- Automatic data backups
- Software updates are timely and readily available
- Remote access software to communicate and train
- Full Windows compatibility
- Built on a strong and capable database system
- Full features including bar code readers and scanners
Marketing is a very important piece in making a store a success, and we are here to help you in many different ways. We offer comprehensive marketing training as well as ongoing marketing support to all franchisees.
Marketing is made up of many areas including electronic media, print media, social media, digital media and local store marketing. During your training, we will cover all of these areas in-depth as well as marketing budgets and how to best allocate them. The following is a brief breakdown of the different areas of marketing:
This includes TV, cable, radio, Pandora, Hulu and others. We have a recommended media buyer that will help to get you up and running as well as plan long-term goals.
We know the ins and outs of different forms of print media and how to best utilize them in our stores. We also create many items in-house for store and work with proven vendors that make getting your print materials easy.
This is an ever-changing area and we offer a lot of support to franchisees. This includes assistance in setting up your social media, training, providing content as well as ongoing updates to be sure you stay current.
This includes devicepitstop.com, a comprehensive, mobile-responsive website that presents customers with easily accessible information about the brand as well as individual stores. It’s a place to learn about Device Pitstop’s unique buy, sell, trade and repair concept and, ultimately, draw customers to your store. NTY Franchise Company works with a top search engine optimization (SEO)/digital company that helps to support the main brand website as well as provides a great option for you to promote your local store website with SEO.
Local Store Marketing
Local area marketing is a key part in promoting a local business. We have great ideas that have worked for other stores and tips for getting a strong start in your market. Our goal is to provide you with the best training and tools you will need to be a success in your market!
Ready to learn more? - Contact Us
This web page does not constitute a franchise offering or an offer to sell a franchise. A franchise offering can be made by the franchise only in a state if first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if provided with an appropriate franchise disclosure document.