Radio equipment is on an accelerated depreciation schedule. I don't capitalize customer equipment; it's a cost for them to "join." Instead, it's taxable for the state, and doesn't appear on my books as equipment. It is NOT an expense for the company.
Unless you count my initial startup costs which were borne in cash by the company, I incur no debt and am profitable. I deduct REAL capital expenditures (tools, APs, computers, routers ...) Mike At 03:52 PM 11/8/2009, you wrote: >What do you mean you dont keep CPE on the books? > >On Sun, Nov 8, 2009 at 4:12 PM, Mike <m...@aweiowa.com> wrote: > > > I made a decision when I founded this company that I wouldn't keep > > CPE on the books. I extract a capital fee on day one for the REAL > > cost of CPE and cabling, mount et al. I maintain ownership. > > > > It's like joining a health club; you pay an initiation fee. When you > > quit, you don't get to take the universal gym home with you. They > > comprehend this ideology and play along. I usually get them to sign > > a 2 year contract by telling them I can't raise their rates for 24 months. > > > > MIke > > > > > > At 02:24 PM 11/8/2009, you wrote: > > >I've always provided the CPE to the end user and retained ownership as > > part > > >of the service. That was mostly due to the high cost of CPE in the past. > > >With the advent of lower CPE cost, I'm considering changing that to where > > >the customer buys their own CPE. I'd like to hear the pros and cons to > > this > > >strategy. > > >-RickG > > > > > > > > > > >----------------------------------------------------------------- > --------------- > > >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! 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/
