Financial Projections

The CAN-De Fund provides nine key benefits to dealers and customers. The CAN-De Fund would not be offered to potential customers who appear irresponsible in any way. Dealers and their associates would complete CAN-De Fund training to understand how to distribute funds only to creditworthy customers who have a low potential of becoming charge-backs.

Dealer can pay the entire amount of creditworthy customers' deposits from the CAN-De fund; returned deposits would be credited back to the fund.
Customers who are not offered the full deposit payment through the CAN-De Fund could be offered the option of making payments either on their bill or at the store locations to reimburse the CAN-De Fund.
Dealers can advertise free activations and take initial payments from the CAN-De Fund; after carrier reimbursement, dealers can deposit the money back into the fund.
Co-op dollars can be deposited to the CAN-De Fund and used for marketing and advertising.
Customers could instantly be refunded for rebates through the CAN-De Fund; after the carrier processed the rebate, it would be re-deposited into the fund.
Customers attempting to trade carriers, even if still on contract, can be offered an incentive or price reduction from a CAN-De Fund dealer. This benefits the dealer as a customer loyalty investment.
Dealers may utilize the CAN-De Fund to subsidize changes within the location, such as mergers with carriers resulting in seamless service; carrier reimbursements would be credited back to the fund.
Phones may be discounted during the November/December holidays (which currently comprises approximately 40% of the annual business); limited special CAN-De Fund promotions can increase sales during these time periods, increasing the customer base, boosting dealer income and creating a "virtuous" cycle.
The CAN-De Fund can supplement customers would prefer to post-date a check to pay their bill, hence avoiding the customer's interruption in service. The post-dated check would then be credited back to the CAN-De Fund. This special offer would be based on the customer's payment history and at the dealer's discretion.

The CAN-De Fund is a shared reserve that will be created from a small percentage of cellular phone activation commissions. The Fund can be used by the dealer/owner to solve the above customers' issues by:

Paying part or all of the customer's deposit then returning the money after a year to the Fund;
Offering to guarantee payment via the Fund of all or a portion of the early termination fee to consumers deemed financially capable of continuing the service agreement; the consumer agrees to reimburse the dealer if the service agreement is terminated during the commission charge-back period; in return for a guarantee to pay, the early termination fee of the service agreement is cancelled after the commission charge-back period.
Proposing an incentive or price reduction from the Fund to customers attempting to trade carriers, even if still on contract
Offering an instant rebate rather than waiting weeks for a mail-in rebate to arrive; after the carrier processed the rebate, it would be re-deposited into the Fund.

After explaining to these customers how they would be helped via the CAN-De Fund, their loyalty would repay dealers with years of continuous service and word of mouth advertising.

The CAN-De Fund can also provide temporary funds for marketing or advertising costs and commission charge-back benefits. The monies would be returned to the CAN-De Fund when the carrier reimburses the indirect dealer.

The concept of this program is designed to increase overall number of activations while minimizing potential loss, to enhance customer satisfaction and create customer loyalty.

Product Benefits