Chris,
I only have 50 clients now…and a few
of them are already using routers. So…I
think I am going to just package a router into the initial setup and bite the
cost of deploying 40 routers to my existing clients. I think I will be able to buy them in bulk
for about $15.00 each (with all the features as well).
It would help TREMENDOUSLY…not to
mention cutting down on the wireless chatter!!
Sully
-----Original Message-----
From:
[EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Chris Chance
Sent: Thursday, August 14, 2003
8:39 AM
To: '[EMAIL PROTECTED]'
Subject: RE: [smartBridges] OT:
Pricing Plans??
I would love to put routers at all my clients but
tahts 150 clients on wireless not including the businesses so that's 39.95x150
current customers = 6000.00$ + cost to get someone to go to all the clients and
install it, + cost of a short cat5 from router to pc, it's a wonderful idea and
would be a great help in management and ip allocation and making sure theres
really no user's computer interfention however for this to be cost effective t
would have to be lower that 39.95 I know it's a lot to say and ask for a lil
box for less than 30 bucks that does dhcp and nat and god forbid pppoe.
Chris
-----Original Message-----
From: John Gantt [mailto:[EMAIL PROTECTED]]
Sent: Thursday, August 14, 2003
11:21 AM
To: [EMAIL PROTECTED]
Couple of questions about your competition and costs,
if you don't
mind...
Any competition w/high speed access? DSL? Cable?
What are your monthly recurring
costs on the connection you are using?
Target market?
-My competition is another wisp @ $59.99 (1 Mbps), dsl
@ $34.95 (768K)
and cable @ $59.99/unbundled,
$39/bundled (not advertised, but ranging
from 300K to 2500K on dslreports.
-I charge $40 flat for any number
of PCs at one location for advertised
768K up and down - trying to
squeeze in between cable and DSL
-Another neighborhood wisp charges
$45
My target: 400 homes in one subdivision. Single AP,
Omni on my home,
aPPO, 4 months of uptime without a
reboot! (knocking hard on the wooden
desk!).
My T-1 cost is $500. I figure I could get 50 customers
on an AP, so that
is $2000, or $1500 gross profit.
I am able to run specials each
month, and I have offered $25 for a 12
month period as one promo. I figure
at 25 cust x $25, I break even, then
the remaining 25 x $40 would be
profit. Therefore $25 is my "wholesale"
price. Be conservative with your
calculations; never hurts to get more
than you expect.
Since I do not have any additional charges from my
provider for
bandwidth usage, I don't need to
meter that. With the 768K limit on my
customers, I am comfortable with
potential throughput for everyone at
peak periods. Since there is only
one connection to the AP, the number
of PCs doesn't impact the number of
768K connections, it is all going
through one 768K pipe.
Now, in your situation, what does it take for you to
break even? How
many customers can you comfortably
support? Divide your breakeven by the
number of customers you want and
figure your costs, then mark it up as
much as competition will allow
without being greedy ;)
-To have value, the proposed $39.95 plan should have a
proportional
speed associated with it when you
compare it to your $69.95 plan. Your
256 vs. 1.4 might be better at 512
vs. 1.4, especially since you are
throttling them back from what they
are currently able to get. Get more
for the throughput upcharge rather
than the connect speed; your customer
satisfaction would be better served
if they are getting a perceived
monthly value and the ability
download that throughput faster. If they
balk at the proposed change, give
them continuous service at the current
rate for another six months, or
even 12 months, then revisit the issue
at that time. Better to keep the
customer than to lose the $40 income.
Contracts: my competition requires them (except cable)
and I don't get
that commitment. If they like the
service and see the value, they will
stay. The hardware is mine, so I
would just yank it out. I do require a
30 day termination notice, but I am
very flexible; would rather them
have a good feeling about the
transaction rather than out there
badmouthing the company.
I don't provide any additional hardware without
charging for it. Even if
it is at cost, you don't want too
much capital in inventory. Antenna and
radio is a lot to begin with.
Charge them the network configuration time
at a reasonable rate for your
profit.
Bottom line is manage your gross profit numbers and
your expenses. Add
customers at a rate you are
comfortable with, keeping your expenses at a
reasonable percentage of gross
profit each month. What is your target
net profit percentage? 20-25%
should be acceptable in my opinion. Based
on my figures with 50 customers and
$2k in monthly rev, I can spend $500
in expenses each month and still
make a 50% profit. Not too shabby for a
part-time business.
Long-winded, OT, but just the text, plain
text... ;)
John
-----Original Message-----
From:
[EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED]]
On Behalf Of The Wirefree
Network
Sent: Thursday, August 14, 2003
2:06 AM
To: [EMAIL PROTECTED]
Subject: [smartBridges] OT: Pricing
Plans??
Being that I am a pure sB WISP...and I ONLY am a
member of this one
list...I figured I would throw this
question out to y'all.
*********************************
Currently, I have 2 plans
1. $39.95 for 1 PC, 1 Gig
throughput per month, and up to 1.5 Meg both
ways (no real way of limiting the
number of PCs)
2. $69.95 for many PC's, 2 Gig throughput per month,
and up to 1.5 Meg
both ways
Now I would like to implement the following:
1. $39.95 for many PC's, 1 Gig
throughput per month, and up to 256k both
ways.
2. $69.95 for many PC's, 2 Gig throughput per month,
and up to 1.4 Meg
both ways.
This new plan solves 2 problems
1. It is pretty much impossible for
me to know how many computers
someone has installed on their
internal network anyway...so, might as
well open it up. At the same
time, it will hopefully push clients to
purchase the $69.95 plan for the
higher speeds and monthly throughput.
2. Using the bandwidth queues, will make it impossible
for my clients to
take my whole T-1 leaving me unable
to manage the network.
New problems created:
1. How do I convince my clients to
accept my NEW policy? I don't have
contracts at all.so technically I
can just make a policy change.
However, I would rather them
welcome it.
2. Would you provide a preconfigured router to all
clients?? By
preconfigured, I mean statically
assigned my network IP, setup for
internal DHCP for the client, and
such?? Might make installs a bit
quicker and solves the IP problem
that I currently have---this way I
only have to use 1 IP per
client?? If I do this, I have to find a VERY
cheap source for routers with
decent functionality. May even set them
up for PPPoE.hmmm???
Any ideas??
Sully
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