Sounds like he works the same kind of magic with customer prices as he does with your pay. Only difference is that he’s the customer when it comes to your pay......
From: Af [mailto:af-boun...@afmug.com] On Behalf Of That One Guy via Af Sent: Saturday, October 4, 2014 7:27 PM To: af@afmug.com Subject: Re: [AFMUG] How frequently have you had a price increase? i rarely have good to say about the way my boss runs things, but he is a magician at the rate plan changes. we have never directly raise prices, for the most part we have always either kept them the same price or lowered the cost to stay where you are at. usually any rate plan changes come with the option to get more for less, knowing full well that they ultimately will move up a tier in the future because they want more. since we quit directly selling the speed and moved to consumption based pricing it gives a lot more leverage to make global changes with a limited demand increase on the infrastructure. It costs us alot less to offer more consumption than to offer more speed, and everything is moving to consumption based anyway, whether you like it or not. our absolute lowest tier is marketed as an email only plan with a 5gb cap to throttled speed. but we actually moved it to 10gb because there were too many hitting 6gb that would have needed to move up a tier just to get an extra gb, easier to raise it for free, and we still get about a 50% take rate to the next tier anyway. things like that are how we are able to raise prices without actually raising prices. Because of it, even though we went through a negative customer growth (i like that buzz word) our profits increased, and now that we are on a positive customer growth trend, that profit increases quickly which is why we just dropped over 100k buying up the available 320 market at the time (yeah, we were one of the ones that helped cause that). I wish I could provide the specific details of the two major rate changes in the last five years, because they were both pretty ingenious, ultimately getting customers to thank you for raising their prices, just by giving them ownership of the decision. On Sat, Oct 4, 2014 at 5:12 PM, David Milholen via Af <af@afmug.com<mailto:af@afmug.com>> wrote: This is what we have done.. On 10/4/2014 4:02 PM, Jon Langeler via Af wrote: Yeah I wouldn't raise prices on a 900SM customer. Get ready to overhaul the network with faster options before charging more. But definitely charge more as opposed to going cheaper. Markets may vary... Jon On Oct 4, 2014, at 4:54 PM, Paul McCall via Af <af@afmug.com<mailto:af@afmug.com>> wrote: Very good input from all of you! From: Af [mailto:af-boun...@afmug.com] On Behalf Of Ken Hohhof via Af Sent: Saturday, October 04, 2014 4:32 PM To: af@afmug.com<mailto:af@afmug.com> Subject: Re: [AFMUG] How frequently have you had a price increase? Everyone seems to expect our prices will go down, it’s the Internet after all, everything is supposed to get cheaper until it’s free, right? We haven’t raised prices in 10 years, and we are feeling some pressure to lower prices about 10%, I guess that’s from competition though and it sounds like you don’t have too much of that problem. JAB has people here expecting $40/$50/$60 for 5M/10M/15M speed. They do have an equipment fee and a support plan in the fine print though. One school of thought is you gotta have added fees, otherwise you just look more expensive in a comparison. (And people do compare prices, even if the other guys can’t get them service.) Another school of thought is, if you do a price increase, make it big enough you don’t have another one in a year. Although that never seems to stop the cable companies. Another school of thought is to make it look like you are giving them something for the price increase, that’s the game the cablecos play, more content. Not sure what you could give away though, if you are already at 5M and unlimited usage. I guess as long as you are saying “up to”, you could raise the number. From: Paul McCall via Af<mailto:af@afmug.com> Sent: Saturday, October 04, 2014 3:00 PM To: af@afmug.com<mailto:af@afmug.com> Subject: [AFMUG] How frequently have you had a price increase? We are thinking of raising our prices on our residential basic plan. Some of our customers have been on the same priced plan for 7 years (or more). Around $ 45 / month for “up to 5Mbit/1Mbit”. Probably 25% of those customers, we are the only “good” source for Internet. The rest have varying levels of DSL or cable options. Thinking of bumping those customers to $ 49. Maybe a little more, haven’t decided. How do you handle price changes and/or on your customers on “rolling contracts” ? Paul Paul McCall, Pres. 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