that's extreme, Mike... But it's possible. I certainly hope not. But, if we're to use the only analogous event in American history as a yardstick... 50% of all mortgages defaulted in the Depression. Deflation cut prices by up to 75% in some markets / areas. Some "commodities" went up in price, as there was nobody producing them anymore.
So far, there's less available credit now than there was a year after the Depression started. Economic output has not fallen nearly as much. As I said, nobody has any ability to fully predict, as every "expert" contradicts every other expert on many things. ++++++++++++++++++++++++++++++++ <insert witty tagline here> ----- Original Message ----- From: "Mike Hammett" <wispawirel...@ics-il.net> To: "WISPA General List" <wireless@wispa.org> Sent: Friday, January 02, 2009 7:28 AM Subject: Re: [WISPA] Congress may help smaller ISPs grow > If what Mark is saying is correct, it doesn't matter how successful you > are right now or how wildly your sales increase if deflation cuts > everything but longer term debts down to just 10%. Net Profit being up > 10.3% makes no difference if everything (but longer term debt) is slashed > to 10% > > I have no idea if he is correct or not, but if what he is saying is > correct... that deflation is coming... what he described will happen. > > > ----- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > > > From: Travis Johnson > Sent: Thursday, January 01, 2009 10:47 PM > To: WISPA General List > Subject: Re: [WISPA] Congress may help smaller ISPs grow > > > We have been charging the same for internet service for almost 5 years.... > and just two days ago, we got double the new sign-ups on a single day of > what we can do for installs. Business is booming in our area and our > industry. Just looking at our 2008 financials, our gross revenues are up > 15.2% and our Net Profit is up 10.3%. > > And I'll take the bet on being able to lease or finance equipment in 6 > months. How much shall we throw on the table? I have lease companies > calling me daily wanting to give me money... seriously... I get 3-4 calls > PER WEEK from all different leasing companies. They all have money and > want "credit worthy" companies to use it, because that's how they make > money. > > So again, how much shall we bet on this? :) > > Travis > Microserv > > rea...@muddyfrogwater.us wrote: > ++++++++++++++++++++++++++++++++ > <insert witty tagline here> > > ----- Original Message ----- > From: "Travis Johnson" <t...@ida.net> > To: "WISPA General List" <wireless@wispa.org> > Sent: Thursday, January 01, 2009 7:24 PM > Subject: Re: [WISPA] Congress may help smaller ISPs grow > > > You can not grow in large scales without financing... and I don't > understand why people are against it. Our last equipment lease was under > 10% interest, no personal guarantees, no money up front. We were able to > purchase a large quantity of CPE units (thus saving us about 20% off the > single unit price). So, in the end, it actually saves money and the "cost" > of installing a new customer is $0 to you, because the $99 installation > fee pays for the time, materials, etc. > > Example: > single CPE = $190 each > 460 CPE = $155 each > > 36 month lease on $71,300 = $2,300 per month x 36 months = $82,800 / 460 > units = $180 each > > But in 36 months, you might be able to charge no more than 10 dollars / > month per customer. That's the magic of deflation - which is already > occurring. > > And it costs you $5 per month for 36 months for the equipment on that > customer... that's pretty cheap even if you only charge $29 per month. :) > > Whatever happens in the future... It will NOT be the same as today. > Inflation or deflation will happen. No way around it. Congress has > already taken on more debt than can be serviced. Neither scenario will > let you survive being in debt. > > Besides, don't expect to be able to lease equipment at any rate or terms > within 6 months. > > > Travis > Microserv > > > > > -------------------------------------------------------------------------------- > 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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