Re: [AFMUG] How frequently have you had a price increase?
We're in a JAB area as well. Haven't done a single price increase since we started in 2006, only increased speeds. Our pricing is pretty close to JAB's, but we don't have any of their hidden fees and equipment rental fee garbage. Whatever we're doing seems to work, we get floods of their customers coming our way. On Tue, Oct 7, 2014 at 12:09 PM, Craig Schmaderer via Af af@afmug.com wrote: We don’t do any contracts, and I have only done one price increase in 12 years. About 4 years ago we increased all plans by 3 dollars. We just did the increase and I think about .5% of people called to complain. 20% didn’t notice the change but most of them caught it the next month. Oh, we did send out 1 email to all customers before we did it. We lost 1 customer out of 600 when we did it. My advice is if you are going to do it, I think that most people won’t say anything if it’s around 1-3 bucks, so do 3, I think 4 would still be ok, but I think 5 bucks is where some people will get a little more bitchy. *Craig R. Schmaderer* *CEO | Skywave Wireless, Inc.* *Ph: 402-372-1975 402-372-1975 | Fax: 402-372-1058 402-372-1058* *Direct: 402-372-1052 402-372-1052* *From:* Af [mailto:af-boun...@afmug.com] *On Behalf Of *Paul McCall via Af *Sent:* Saturday, October 04, 2014 3:00 PM *To:* 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
We've had good results with introducing new speed tiers, but asking customers to sign new contracts for a free upgrade. For example, if you have a 5M/1M plan and you introduce a a new 7M/1M for the same price, or 10M/2M (double the speed!) for just $5 more, you will get a lot of upgraders as well as a lot of goodwill and better retention from those who stay at the same price but get more speed. Where you have the market more locked up you may not be as concerned with the retention as we are. Randy On 10/4/2014 2:30 PM, Travis Johnson via Af wrote: I think most customers are OK with a small increase (like $45 to $49). If you break into the $50 range, you may get some resistance. You could always do up to 100Mbit for $49, since the speeds are up to anyway. ;) Travis On 10/4/2014 2:00 PM, Paul McCall via Af wrote: 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com http://www.pdmnet.com/ pa...@pdmnet.net mailto:pa...@pdmnet.net -- signature http://www.infowest.com/Randy Cosby InfoWest, Inc 435-674-0165 x 2010 infowest.com http://www.infowest.com/ This e-mail message contains information from InfoWest, Inc and is for the sole use of the intended recipient(s) and may contain privileged, proprietary or confidential information. Unauthorized use, distribution, review or disclosure is prohibited. If you are not the intended recipient, please contactrco...@infowest.com by reply email and destroy the original message, all attachments and copies.
Re: [AFMUG] How frequently have you had a price increase?
Well, I would not say non-competitve but close when the local cable provider isnt the greatest at customer service and they are marketing them selves out of sales because word of mouth moves very fast even though the metro is only 60k and the county as whole is 90k population. The Cable provider says 50mbs but you may only get 3Mbs or at best 12mbs depending on where you are. Also, Fiber is not growing from trees like other places so we have to set our prices to keep head above water on overhead. So, for us it just basically boils down to who is going to offer the best customer service and so far we are winning steady and slow. On 10/5/2014 2:23 PM, Travis Johnson via Af wrote: Wow... you are in a very noncompetitve market. My surrounding area has CableOne (even into the small communities of 500 people) and they are doing 50Mbps x 10Mbps for $35/month for the first 6 months, then it goes up to $50/month. Most people claim to get 30-40Mbps any time they run a speed test. Travis On 10/4/2014 9:32 PM, David Milholen via Af wrote: We had no choice after deploying the 450 and offering up a handful of capacity for a competitive rate which basically put us at capacity in less than 6 months with out the numbers we wanted to see. So, since we had not raised rates in 10yrs we had no choice but to regroup and look at how we compare to our local cable. Really we have the upper hand because of what we do as a wireless industry. The whole hybrid solution is the key. Basically WIsps offer fiber to the home via fixed connections from a fiber carrier. Cable isnt even close due to the party line affect. Cambium gives us a scheduler that enables a VC per sub so we can imitate carrier class connections for a much lower price than what a carrier would serve while still making money doing it. So we can market a wonderful new buzz word called hybrid until it dies we will roll with it but so far the response has been very positive for the new price plans we now offer. Our 5x5 plan is a 5Mbs/5Mbs Down/Up for $75.00 monthly. We limit our basic which is 3x1 @ $50.00 to only one video stream @ 768k per one device per account. On 10/4/2014 7:27 PM, That One Guy via Af wrote: 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
Re: [AFMUG] How frequently have you had a price increase?
768k for video stream? I thought that would only do the lowest quality Netflix and that's talking 5 years ago — Sent from Mailbox On Sat, Oct 4, 2014 at 11:32 PM, David Milholen via Af af@afmug.com wrote: We had no choice after deploying the 450 and offering up a handful of capacity for a competitive rate which basically put us at capacity in less than 6 months with out the numbers we wanted to see. So, since we had not raised rates in 10yrs we had no choice but to regroup and look at how we compare to our local cable. Really we have the upper hand because of what we do as a wireless industry. The whole hybrid solution is the key. Basically WIsps offer fiber to the home via fixed connections from a fiber carrier. Cable isnt even close due to the party line affect. Cambium gives us a scheduler that enables a VC per sub so we can imitate carrier class connections for a much lower price than what a carrier would serve while still making money doing it. So we can market a wonderful new buzz word called hybrid until it dies we will roll with it but so far the response has been very positive for the new price plans we now offer. Our 5x5 plan is a 5Mbs/5Mbs Down/Up for $75.00 monthly. We limit our basic which is 3x1 @ $50.00 to only one video stream @ 768k per one device per account. On 10/4/2014 7:27 PM, That One Guy via Af wrote: 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
Re: [AFMUG] How frequently have you had a price increase?
We have Jab in our area too but our prices are $10.00 less than that with no fine print. ;) It is working very well for us so far. On Sat, Oct 4, 2014 at 2:31 PM, Ken Hohhof via Af af@afmug.com wrote: 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 af@afmug.com *Sent:* Saturday, October 04, 2014 3:00 PM *To:* 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
Wow... you are in a very noncompetitve market. My surrounding area has CableOne (even into the small communities of 500 people) and they are doing 50Mbps x 10Mbps for $35/month for the first 6 months, then it goes up to $50/month. Most people claim to get 30-40Mbps any time they run a speed test. Travis On 10/4/2014 9:32 PM, David Milholen via Af wrote: We had no choice after deploying the 450 and offering up a handful of capacity for a competitive rate which basically put us at capacity in less than 6 months with out the numbers we wanted to see. So, since we had not raised rates in 10yrs we had no choice but to regroup and look at how we compare to our local cable. Really we have the upper hand because of what we do as a wireless industry. The whole hybrid solution is the key. Basically WIsps offer fiber to the home via fixed connections from a fiber carrier. Cable isnt even close due to the party line affect. Cambium gives us a scheduler that enables a VC per sub so we can imitate carrier class connections for a much lower price than what a carrier would serve while still making money doing it. So we can market a wonderful new buzz word called hybrid until it dies we will roll with it but so far the response has been very positive for the new price plans we now offer. Our 5x5 plan is a 5Mbs/5Mbs Down/Up for $75.00 monthly. We limit our basic which is 3x1 @ $50.00 to only one video stream @ 768k per one device per account. On 10/4/2014 7:27 PM, That One Guy via Af wrote: 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
Re: [AFMUG] How frequently have you had a price increase?
Agreed.Dreamlike. ___ Mangled by my iPhone. ___ Tyler Treat Corn Belt Technologies, Inc. tyler.tr...@cornbelttech.commailto:tyler.tr...@cornbelttech.com ___ On Oct 5, 2014, at 2:23 PM, Travis Johnson via Af af@afmug.commailto:af@afmug.com wrote: Wow... you are in a very noncompetitve market. My surrounding area has CableOne (even into the small communities of 500 people) and they are doing 50Mbps x 10Mbps for $35/month for the first 6 months, then it goes up to $50/month. Most people claim to get 30-40Mbps any time they run a speed test. Travis On 10/4/2014 9:32 PM, David Milholen via Af wrote: We had no choice after deploying the 450 and offering up a handful of capacity for a competitive rate which basically put us at capacity in less than 6 months with out the numbers we wanted to see. So, since we had not raised rates in 10yrs we had no choice but to regroup and look at how we compare to our local cable. Really we have the upper hand because of what we do as a wireless industry. The whole hybrid solution is the key. Basically WIsps offer fiber to the home via fixed connections from a fiber carrier. Cable isnt even close due to the party line affect. Cambium gives us a scheduler that enables a VC per sub so we can imitate carrier class connections for a much lower price than what a carrier would serve while still making money doing it. So we can market a wonderful new buzz word called hybrid until it dies we will roll with it but so far the response has been very positive for the new price plans we now offer. Our 5x5 plan is a 5Mbs/5Mbs Down/Up for $75.00 monthly. We limit our basic which is 3x1 @ $50.00 to only one video stream @ 768k per one device per account. On 10/4/2014 7:27 PM, That One Guy via Af wrote: 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.commailto: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.commailto: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.commailto: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
[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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.comhttp://www.pdmnet.com/ pa...@pdmnet.netmailto:pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
First, change the names of your rate plans. Make the current lowest plan the “economy” plan. Then next month, tell people that so few are on the economy plan that you are going to eliminate it and move them up one notch. From: Paul McCall via Af Sent: Saturday, October 04, 2014 2:00 PM To: 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
I think most customers are OK with a small increase (like $45 to $49). If you break into the $50 range, you may get some resistance. You could always do up to 100Mbit for $49, since the speeds are up to anyway. ;) Travis On 10/4/2014 2:00 PM, Paul McCall via Af wrote: 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com http://www.pdmnet.com/ pa...@pdmnet.net mailto:pa...@pdmnet.net
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 Sent: Saturday, October 04, 2014 3:00 PM To: 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
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 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 Afmailto:af@afmug.com Sent: Saturday, October 04, 2014 3:00 PM To: af@afmug.commailto: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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.comhttp://www.pdmnet.com/ pa...@pdmnet.netmailto:pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
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 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 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 Sent: Saturday, October 04, 2014 3:00 PM To: 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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
We are overhauling ☺ some 450, mostly ePMP. Definitely, will give them a little more of something… either sustained or burst speed. Maybe free month to try a higher plan as well. Paul From: Af [mailto:af-boun...@afmug.com] On Behalf Of Jon Langeler via Af Sent: Saturday, October 04, 2014 5:02 PM To: af@afmug.com Subject: Re: [AFMUG] How frequently have you had a price increase? 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.commailto: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.commailto: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 Afmailto:af@afmug.com Sent: Saturday, October 04, 2014 3:00 PM To: af@afmug.commailto: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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.comhttp://www.pdmnet.com/ pa...@pdmnet.netmailto:pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800 office 772-473-0352 cell www.pdmnet.com http://www.pdmnet.com/ pa...@pdmnet.net mailto:pa...@pdmnet.net --
Re: [AFMUG] How frequently have you had a price increase?
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.commailto: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.commailto: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.commailto: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 Afmailto:af@afmug.com Sent: Saturday, October 04, 2014 3:00 PM To: af@afmug.commailto: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. PDMNet / Florida Broadband 658 Old Dixie Highway Vero Beach, FL 32962 772-564-6800tel:772-564-6800 office 772-473-0352tel:772-473-0352 cell www.pdmnet.comhttp://www.pdmnet.com/ pa...@pdmnet.netmailto:pa...@pdmnet.net
Re: [AFMUG] How frequently have you had a price increase?
We had no choice after deploying the 450 and offering up a handful of capacity for a competitive rate which basically put us at capacity in less than 6 months with out the numbers we wanted to see. So, since we had not raised rates in 10yrs we had no choice but to regroup and look at how we compare to our local cable. Really we have the upper hand because of what we do as a wireless industry. The whole hybrid solution is the key. Basically WIsps offer fiber to the home via fixed connections from a fiber carrier. Cable isnt even close due to the party line affect. Cambium gives us a scheduler that enables a VC per sub so we can imitate carrier class connections for a much lower price than what a carrier would serve while still making money doing it. So we can market a wonderful new buzz word called hybrid until it dies we will roll with it but so far the response has been very positive for the new price plans we now offer. Our 5x5 plan is a 5Mbs/5Mbs Down/Up for $75.00 monthly. We limit our basic which is 3x1 @ $50.00 to only one video stream @ 768k per one device per account. On 10/4/2014 7:27 PM, That One Guy via Af wrote: 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
