Old Number Rings Up Business at Auto Shop

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While leafing through the Yellow Pages last fall, entrepreneur Mark Bright saw an ad for a recently dissolved competitor listing an out-of-service phone number. On a hunch that readers would continue dialing the number for some time, he arranged for the line's outstanding calls to be rerouted to his company. Since then, he says, he's turned many unsuspecting callers into customers, thereby boosting sales.

When a business folds, bargain hunters often pick up whatever's leftover -- inventory, furniture, equipment. But as Mr. Bright discovered, entrepreneurs may be able to scoop up more than just tangibles.

Mr. Bright adopted his former competitor's digits in October, and says his company, Northwest Auto Services in Tacoma, Wash., now receives about 40 calls a day, double the number of calls from before he added the number. As a result, monthly sales for the auto- and small-engine repair shop have increased by an average of $1,400, he says. The largest growth occurred in March 2006, when sales were $3,700 higher than in March 2005, he notes, adding that his initial data show even stronger revenue gains in April.

Mr. Bright says his former rival gave him the line for free, despite his offer to pay for the transfer. The local phone company agreed to reroute the calls to Mr. Bright's shop after they confirmed he had secured permission. The changeover took effect five days later and Mr. Bright began paying the line's $14 monthly fee.

Next, Mr. Bright coached his four employees on how to greet confused callers who reach his shop. The employees explain to callers that the company they had tried to reach is out of business. They refer callers seeking engine parts to a nearby retailer, but also explain the services available at Northwest Auto. Mr. Bright says callers are also asked to provide a name and address so he can send them promotions. Callers looking for engine-repair work are encouraged to schedule an appointment with his shop.

According to Mr. Bright, the value of a business's phone number depends on how long it was in use and how much advertising exposure it received. He says the number he acquired had been active for more than 35 years, and he was willing to pay $2,000 for it, an amount he estimated as its value. "It was like buying something for a quarter at a garage sale and finding out later it's worth a heck of a lot more," he explains. Mr. Bright says he plans to keep the number for as long as callers expect to reach its original owner. He anticipates a new version of the phone book, without the ad, to come out late in 2006 since he's received a new copy every year around that time.

Entrepreneurs seeking to acquire a dissolved competitor's number should act fast. Some phone companies reassign business lines just three months after they've been canceled, while others hold them open for up to one year. Most phone companies require you to obtain permission from a phone line's original owner to make the switch.

Mr. Bright says he's now looking for other phone numbers to absorb for his business. He's been networking with other local business owners to find out if any competitors have recently closed or are on the brink of closing. Recently, he says he learned that the owner of a competitor located less than a mile from his shop is struggling to stay afloat. "I heard that the owner is home sick, and his wife is tired and worn out from running the business," he explains. Mr. Bright says he called the owner's wife, relayed his understanding of the company's status, and expressed interest in purchasing its phone number should it dissolve. "I said, 'If things get bad, give me a call.' " She agreed to consider his offer, and then asked if Mr. Bright was hiring, he says.

Mr. Bright says he's had less success with traditional marketing strategies. For example, in 2005, he says he invested around $1,800 in coupons for voucher books, doorknob flyers and ads on local grocery-store carts that promoted his business, but drew only eight new customers needing small repairs.