Metro PCS. I like the way this company manages its business. Their marketing is clear, concise, and to the point. The marketing, "strategist", business development, management, operations, and accounting are awesome. This company really knows what it is doing.
Metro PCS has some real thinkers and innovators on its team. The way this company operates is amazing. The executives are very methodical and strategic in their thinking. Their model mimics SouthWest Airlines. They asses their location carefully, focus their target market efforts based one cost, affordability, economic appeal, and demographics. This is actually based on what I like to call a "Socioeconomic survey". It focuses on the core group of people based on age, economic status, lifestyle, trends, usability, radius of work and travel, and access ability based on subgroups throughout various areas of each city that it plants its local stores in the middle of. The company looks for the best location and the cheapest price possible while forecasting ahead as much as 5 - 10 years out. I believe this company has figured out how to quickly channel or capture their ROI for each and every store it operates starting to the first month they are opened to the end of their twelve month trial period to see just how quickly and efficiently they could recoup their initial investment.
What Metro PCS has figured out is how to secure a very lucrative investment for both short-term and long-term gain in terms of major market share in the cell phone industry throughout each major metropolis and profits on a grand economic scale. Metro PCS has a very simple but profound strategy, like a virus planting its seed (DNA) in a host it finds a key location in a low-to-moderate income community and branches out in exponential growth to several locations throughout the location within just a 12-month period. Their model creates a win-win situation for the consumer with no strings attached, unlike Sprint, Verizon, AT&T, etc.
Overhead and administrative Cost in terms of product and onsite staff is significantly cheaper than all the other cell phone carriers in that a new customer only has to complete a simple one page form in most cases with their basic contact information, birth date, name, phone number, purchase their phone, select that plan they would like to purchase, and the activation fee and they are set to go. Cost are itemized and explained to the customer up front and they know exactly what they are paying for right then and each month there after. And what's so great about the service it that there are no hidden fees and the customer is not locked in to a 12 to 24 month contract that they can't get out of and a monthly bill that never stays the same and minutes that are "gone with the wind".
Customer receives a text each month about a week out before their next bill is do and that's it. No paper, phone calls, unauthorized charges, increased volatility in monthly payments, etc. If the customer fails to pay the next month's bill by the due date, when they wake up the next morning their phone is cut off. But that's ok because the customer is not cut off and treated like a bandit but they have 30 days to make their payment before their phone is officially deactivated and the number recycled. If this happens, the customer just has to call Metro PCS by dialing 611 on their cell phone (I recommend using a land line if this happens because after reconnecting your phone it will need to be reactivated to finish the process by turning it off and being called back by a representative from a land line while they ask for a code from your cell phone) or going to their nearest Metro PCS dealer in their area to make payment from last month plus the reconnection fee which should be right at $15.
Overhead and operating cost are so low because the stores in most locations, especially the upper middle-income locations are closed by 6pm sharp. Lights out, door locked, cleaned, and all employees gone home. Each store location is typically about 1200sq ft of space if that. The French and Japanese are very good at this. They structure their business to change and move in unison with changing market trends and any sudden changes in the economy by effectively using every ounce of space and material resources to its full potential. This is what I call wise maximization of an investment both in terms of real estate and large profit margins. Staffing of each store is also kept to a minimum with no more than 2 to three employees working on any given shift. Also, Metro PCS has great customer service, quick to address any issues or concerns and the staff is very knowledgeable and easy to understand. I give this company, which just had a billion dollar IPO last year, an A++. The stock first opened up around $21 a share and more than double to around $44 before it leveled back out to around $21 share. The stock is currently trading between $20 and $21 a share.
This is a strong company with a sound portfolio and only had great things to look forward to, especially as the economy stagnates in this reset mode, consumers, especially families, are looking at more wise and creative ways to save money and not get locked into any financial obligations that they are not able to handle. Metro PCS is a smart go both now and in the future, because as their list of product options grow, their coverage area also continues to grow and a very steady pace in the right metropolitan locations. Hint: Sacramento, CA, Los Angeles, CA, Atlanta, GA, and Dallas, TX just to name a few.
This is not a get rich quick stock pick, but for those who get in on this companies stock early, while it's at an "all time low", will be rewarded with what seems like an over night success. Get it, hold it, and watch what happens. Don't just take my word for it, you do some research. Look for more stock and consumer insight from Mr. Savage.
