Similar to your example of perceived value, we extract a capital fee up front when putting on a new customer. My accountant described it like joining a health club, you get to use the equipment but don't get to take it home. The fee is the real cost of installing. Easy ones are 150 bucks. Others vary according to difficulty. So they buy in to the whole thing from the get go.
Our rates are 45.00. If you pay on time, from email billing, you take off 2.50 and its 42.50. I think I have a very loyal bunch of customers. I didn't know what to expect when the two year contracts started expiring, but MOST have stayed with us. Best Regards, Mike At 09:47 PM 10/12/2009, you wrote: >Mike, > >Since I began working, even as a teenager, I worked 60-80 hours a week >giving customers the best I could. I'm now 49 and still work at least >that many hours. At least now, I own my company and do it for myself. >In fact, before I owned my own company my reputation was "Mr.Service". >Heck, I've watched the sun rise from a customers computers! People >have always told me I have a great work ethic. I have always thought - >give'em great service and they'll stick. It's not true! Given the >opportunity, for less than $5/month they WILL switch without even an >apology! >So, dont get me wrong, I still give great service but have realized I >have previously given too much. All I did was take a lot of time away >from my family to help customers that only appreciate it at the time. >Again, I'm not saying dont give great service - what I am saying is >dont give away the store. Maybe you can afford it but every move you >make should be profitable, otherwise you will end up out of business >or in a poor mental state from work burnout. Have you ever looked at >the competition knowing you give better service yet they are still >winning? In fact, I've seen more people respect the competition >because they are higher priced or charge for everything. It is truly a >mindset. I believe there is a balance that must constantly be >maintained. Which is why I asked the question, billable or not? >Again, your business model may be different but using you scenario >below is difficult to achieve in mine. Perhaps your monthly rates are >higher, installation higher, or your bottom line is not as important >to you? Somebody always has to pay the piper. Most people understand >capitolism and the need to be profitable so you can pay the bills. >What good is it to go out of business just so they can go back to dial >up? >Furthermore, I have found another interesting outcome by giving work >away - other customers either come to expect it or get jealous. >What is really expected by the customers who give you their hard >earned money is a good product for what they pay. They also deserve an >efficiently run company with proper business practices to get the most >bang for their bucks. And on that note, isnt there always something to >do to improve the network? Why give so much time to one customer when >you can work on the network and improve it for all? I realzie you said >minor things but it all adds up. What they should expect is exactly >what you put in the contract and/or TOS. In my case, it's the >bandwidth I promised them and working equipment to get it there. All >else is not part of the contract and therefore should be billable. > >-RickG > >On Mon, Oct 12, 2009 at 9:48 PM, Mike <m...@aweiowa.com> wrote: > > When I was a young man, a writer, I was idealistic and ready to > > conquer the world. In short order I grew up and lost my > > idealism. Since starting this business I have regained some of > that idealism. > > > > My experience is the opposite. I usually take care of those > > customers who need minor help with things THEY consider part of MY > > network. I would not have gone overhead unless there was no way to > > trench. Direct burial cable is cheap. A trench can be made with a > > power edger with a new blade. An aerial should be tied to a > > supporting rope or wire. > > > > Most of my customers knew they couldn't get Internet except slow > > dialup before we came along. Is it loyalty? A new company has been > > selling in my county off of their cellular towers. I have only lost > > 2 customers to them. > > > > Never underestimate the power of good customer service. > > > > Mike > > > > At 07:58 PM 10/12/2009, you wrote: > >>I used to think that but I have found no matter how much you give > >>away, there is no loyalty! The monthly rate is all most care about. > >> > >>On Mon, Oct 12, 2009 at 11:40 AM, Mike <m...@aweiowa.com> wrote: > >> > If it is a good customer, I'd either do it for nothing, or for > >> > materials. You may just retain that customer for the next two years > >> > because of your good will. > >> > > >> > If he is prepared for $50 and its easy and doesn't take you long, > >> > you can say give me $20.00 for the cable and the custom ends, and > >> > we'll call it even. > >> > > >> > Either way, you'll make a friend/keep a customer; and they do talk. > >> > > >> > Our hourly billing is $60. Usually to make network settings, get > >> > virus protection on a machine ... > >> > > >> > > >> > At 09:52 AM 10/12/2009, you wrote: > >> >>Here's the scenario: Customer has an aerial ethernet run from his > >> >>garage to his home. A tree branch fell and cut the line. I told him > >> >>we'll replace it for a $50 fee. Does this sound fair? > >> >>Also, does anyone have a fee schedule they use for billable calls? > >> >>Thanks! > >> >>-RickG > >> >> > >> >> > >> >>------------------------------------------------------------------ > >> -------------- > >> >>WISPA Wants You! 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