Depends on your plan. If you ever want to sell your business or be bought out by your partner(s), then there is less value with leasing CPE. But there are many other ways of looking at it, too.
Mark Nash UnwiredOnline.Net 350 Holly Street Junction City, OR 97448 http://www.uwol.net 541-998-5555 541-998-5599 fax ----- Original Message ----- From: "Marlon K. Schafer" <[EMAIL PROTECTED]> To: "WISPA General List" <wireless@wispa.org> Sent: Friday, November 30, 2007 10:19 AM Subject: Re: [WISPA] What basic ROI do you target? > Wow, I sure wish I could average more than $37 per sub! > marlon > > ----- Original Message ----- > From: "Anthony Will" <[EMAIL PROTECTED]> > To: "WISPA General List" <wireless@wispa.org> > Sent: Friday, November 30, 2007 10:02 AM > Subject: Re: [WISPA] What basic ROI do you target? > > > > On another list I answered 6 - 9 months with $100 install fee and we > > retain ownership. In reality we lease to own all equipment on 36 month > > leases. On average $12 per month per radio goes to this lease. This is > > for our $40 or $200 plan it does not mater. 92% of our plans are sold at > > the $49.95 per month rate. So for ruff numbers per month, here it is per > > customer averaged over a 12 month cycle. (Hope this helps someone looking > > to get into the business)(P.S. I hope I don't scare you off) > > > > -------- Hard numbers = will not change with volume > > Installation cost $75 (contractor) + $10 in misu. hardware = $15 to the > > good (we charge $100 installation) > > Customer Radio = $12 > > Sales / marketing = $3.50 > > -------- Soft numbers = will go down with volume > > Tower rental on average per customer = $2 > > Billing and administrative costs = $7 > > Bandwidth = $7.50 > > Support = $7 > > Infrastructure = $4 > > Misu. (vehicle, office rent, utilities, etc.) = $5.50 > > > > Total per month = $48.95 > > Total profit in first year per customer = $12 + $15 (made at install) = > > $27 > > > > These numbers are supporting a growth rate of about 18 customers per > > month. ..........Why am I doing this again?????? So can anyone guess how > > many customers we have right now? (hint more then 100 less then 1000) > > > > So from these numbers we are profitable on day one ... granted it is only > > $16 but better then a stick in the eye. > > Anthony Will > > Broadband Corp. > > http://www.broadband-mn.com > > > > > > > > Travis Johnson wrote: > >> Hi, > >> > >> We lease all of our CPE, therefore our ROI is 0 months. The installation > >> fee ($99) covers the truck roll for the installation, so starting from > >> day one I am making profit on that customer. We have been doing it this > >> way for over 4 years now. > >> > >> Travis > >> Microserv > >> > >> Patrick Leary wrote: > >>> I am curious about how divergent the responses may be. In your answer, > >>> include just the cost of the truck roll and CPE measured against any > >>> set-up and service initiation fees charged with the monthly subscription > >>> fee. > >>> > >>> Years ago, it was not uncommon for WISPs to say they need a 24-month > >>> basic return per subscriber. These days I suspect most will say under 9 > >>> months. > >>> Patrick Leary > >>> AVP, Market Development > >>> Alvarion, Inc. > >>> o: 650.314.2628 > >>> c: 760.580.0080 > >>> [EMAIL PROTECTED] > >>> > >>> > >>> > >>> > >>> **************************************************************************** ******** > >>> This footnote confirms that this email message has been scanned by > >>> PineApp Mail-SeCure for the presence of malicious code, vandals & > >>> computer viruses(84). > >>> **************************************************************************** ******** > >>> > >>> > >>> > >>> > >>> > >>> > >>> **************************************************************************** ******** > >>> This footnote confirms that this email message has been scanned by > >>> PineApp Mail-SeCure for the presence of malicious code, vandals & > >>> computer viruses. > >>> **************************************************************************** ******** > >>> > >>> > >>> > >>> > >>> > >>> ------------------------------------------------------------------------ -------- > >>> > >>> WISPA Wants You! Join today! > >>> http://signup.wispa.org/ > >>> ------------------------------------------------------------------------ -------- > >>> > >>> WISPA Wireless List: wireless@wispa.org > >>> > >>> Subscribe/Unsubscribe: > >>> http://lists.wispa.org/mailman/listinfo/wireless > >>> > >>> Archives: http://lists.wispa.org/pipermail/wireless/ > >>> > >>> > >>> > >> > >> > >> ------------------------------------------------------------------------- ------- > >> > >> WISPA Wants You! Join today! > >> http://signup.wispa.org/ > >> ------------------------------------------------------------------------- ------- > >> > >> > >> WISPA Wireless List: wireless@wispa.org > >> > >> Subscribe/Unsubscribe: > >> http://lists.wispa.org/mailman/listinfo/wireless > >> > >> Archives: http://lists.wispa.org/pipermail/wireless/ > >> > > > > > > -------------------------------------------------------------------------- ------ > > WISPA Wants You! 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