Andres Link and Richard Swerdlow met three years ago playing basketball in Miami, and began discussing business opportunities. Last month, the University of Florida named the pair’s partnership, Cellular Works, the fastest growing company in the state.
Based in Hollywood, Fla., Cellular Works sells cellular phones, pagers and a host of wireless accessories primarily through its consumer catalog, and also through retail stores, online via the World Wide Web and in the SkyMall airline catalog. In addition, the company is an authorized agent for several carriers.
Revenues totaled $75,000 in 1993. Last year, revenues were $10 million.
Swerdlow, previously a lawyer, said he and Link, formerly a banker and financial analyst in Chile, decided to try their luck at selling cellular products in a major Florida mall. Unfortunately, another mall tenant had exclusive rights to sell cellular phones, so Link and Swerdlow focused solely on accessories. Over time, they developed expertise in accessories, said Swerdlow, and realized some resellers lacked long term support of customers’ products. Cellular Works maintains an inventory of accessories for phone models that are several years old.
The company had found its niche.
Shortly thereafter, the company launched the Cellular Works catalog, becoming the first consumer catalog to market only wireless communications products. Cellular Works offers 24-hour shipping to the customer, a one-year guarantee on every product and third-party fulfillment services for manufacturers and service providers.
In addition to its products, Cellular Works is an authorized dealer for AT&T Wireless Services Inc. in Florida and the New York City area and for Bell Atlantic Nynex Mobile in all of its markets, excluding areas covered by AT&T.
Cellular Works will activate accounts in all of Western Wireless Corp.’s central and western markets, said Swerdlow, Cellular Works’ chief executive officer and general counsel.
The company markets one product and activates service for PageMart Inc., and recently signed deals with SkyTel Corp. and Sony Corp. to retail their services and products in SkyMall, an in-flight catalog in which Cellular Works is the exclusive marketer of wireless products.
Cellular Works sells phones from about a dozen manufacturers, and associated chargers, antennas, batteries and other accessories. The company’s catalog provides charts that list manufacturers and their phone models down the vertical column and the options for batteries, chargers, data interfaces, antennas and other accessories across the top. For each accessory, the cost is listed. For phones, however, customers are required to call in for current pricing.
Swerdlow said about 80 percent of the company’s revenues are generated from the sale of wireless devices and accessories. The remaining portion is attributed to activation commissions.
Link, Cellular Works’ president and chief operating officer, noted the company wants to create a platform where products and services are available from a number of service providers. He said consumers want the ability to choose from a host of carriers and services.
The company also plans to develop business relationships.
