Rick:

The competition that came at me is 39.00.  Mine, if you pay promptly 
is 42.50.  They intentionally came in under me.  Like I've said, only 
2 have jumped ship.

At 11:08 AM 10/13/2009, you wrote:
>But, do the ones who have a choice for cheaper service and out of
>contract stay with you?
>-RickG
>
>On Mon, Oct 12, 2009 at 11:28 PM, Mike <m...@aweiowa.com> wrote:
> > 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
> >> >> >>
> >> >> >>
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