Cricket cell phone business, is this good buy?

[rjousuf]

I don't know where exactly to put this thread, so I am putting it here, hopefully some one can answer this. I am currently looking to buy a cricket cell phone business store that is located in metro phoenix Arizona. I have experience of running various successful businesses, smoke shop, salon, fast food etc. the specs of the sales are below. People with experience in cell phone stores etc, can verify if these figures are somewhat accurate, like if gross income and cash flow etc match the numbers of cricket franchise store. Also is the asking price fair price or high? Thanks again for your help.

Asking Price: $255,000
Gross Income: $660,000
Cash Flow: $144,000
FF&E: $35,000.00 included in price
Inventory: $8,000.00 included in price
Real Estate: monthly rent $1500 long lease
Year Established: 2009
Employees: 2pt $9 hourly

[vangogh]

I don't have any experience running a cell phone business, so I'm not sure if the idea of buying one is good or bad. It sounds like you have the experience needed. The gross income looks nice, but how much is the profit. That's what I'd be concerned with. Assuming the price is within the usual multiples asked for a business I would think the price is a good one.

[store0522]

Did you never get into this business? Im trying to buy a similar store in Texas that does $600,000 a year and I need to know if its worth a shot. Please advise. Thanks.

[videogamesrock]

Employees steal constantly. So you need to do daily audits. Also the profit margin on a cricket phone is about $36. So you have to have high volume to break even. Check their profit numbers.

[videogamesrock]

There will always be high revenue because you take bill payments and the phones are expensive.