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]
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