Didn't forget those. Man do I know about those costs... I don't sign the checks anymore as I've delegated that, but I know they're there.
Just didn't say them. We have about a $10-$12k cost per month for growth (dedicated installers, trucks, fuel, sales commissions, marketing, new equipment, expansion sites, etc). If we stopped growing, I could literally pocket 63% this money today (estimated tax payments). But we are growing, so it costs...but I've "sectioned" those costs away as "growth" costs. Everything else...every other expense...monthly & annual...from "building rent" to "replacing the microwave in the kitchen when it goes bad" gets packaged into the "cost to deliver bandwidth" category. ----- Original Message ----- From: "Marlon K. Schafer" <o...@odessaoffice.com> To: "WISPA General List" <wireless@wispa.org> Sent: Friday, April 30, 2010 9:48 AM Subject: Re: [WISPA] Overage thresholds and penalties > You forgot some things in your number crunching Matt. > > Insurance. > > Electricity. > > Labor. > > Head end hardware. > > etc. etc. etc. > > You have to run the calcs on how much you can give your customer based on > the ENTIRE cost per customer. Not just the cost per gig. > > Out here each customer costs us about $10 in office overhead, $10 in > infrastructure and $10 in upstream/server costs. I keep about $5 per sub, > maybe a bit more these days, we've about doubled since I ran those > numbers. > > So you can REALLY only "afford" to give the customer $5 to $10 more than > the > average user or else you are actually loosing money, overall, on the sub. > > That make sense? > marlon > > ----- Original Message ----- > From: "Mark Nash - Lists" <markl...@uwol.net> > To: "WISPA General List" <wireless@wispa.org> > Sent: Friday, April 30, 2010 9:24 AM > Subject: Re: [WISPA] Overage thresholds and penalties > > >> We use Powercode to shape bandwidth and to track bandwidth usage, and >> when >> the customer goes over the limit, they are throttled down very hard, like >> 64k. Powercode has a Customer Portal feature that lets them login and >> check >> their usage any time they want. Also, they can set up daily emails from >> their Portal so that they can get an email each day about their monthly >> usage. We have about 20 customers that do this. >> >> Took us a while to get the Powercode system to work, and it's still not >> 100%, but I would say that putting in these usage thresholds and tracking >> has helped us identify who our heavy users are and to deal with them >> appropriately. Doing this has generated about $500/mo in additional >> revenue >> as customers move up to higher speed packages with higher monthly limits. >> >> Business clients, at this time, are handled differently. We don't >> currently >> have bandwidth limits on them. May in the future. Generally, though... >> abusers are home users. >> >> Keep in mind that our niche is rural, not competing "in town" very much. >> We >> have higher bandwidth packages with higher usage thresholds. >> >> I asked for a refresher about how we determined what our thresholds >> should >> be from our network engineer this morning. This is his response. In >> looking at it, figure that we are actually paying $45 per megabit, not >> $200. >> The $200 per megabit figure comes in with the cost of doing business >> (personnel, backhauls, maintenance, etc, and is an estimate of actual >> cost >> on what it takes to DELIVER bandwidth to a customer, not just PAY for >> bandwidth ourselves). >> >> Justin's response: >> ************** >> If you remember, the way I did it was this. I asked you to come up with >> a raw figure, in dollars/month, that our bandwidth costs us - i.e. the >> price point at which you could sell bandwidth wholesale and guarantee >> that we would still make a profit, even if it was fully saturated 24 >> hours a day (excluding factors such as backhaul saturation). You gave me >> a figure of about $200 per megabit. >> >> I fully doubled that to $400 per megabit, and started from there. I took >> the amount of maximum theoretical bandwidth a 1.5Mb customer could >> consume in a given month, if they were somehow able to use it for 24 >> hours straight. I did the same for our base rate of 1Mbp/s @ $400. I >> then compared the "difference" in value, and chose a MB figure that was >> at about 50% of what our actual "cost" would be as the maximum amount of >> bandwidth allowed. >> >> Example. A "$400/m" 1Mbps customer "resold" could theoretically consume >> 10.8GB/day or about 330GB/month >> A $49/m 1.5Mbps customer could theoretically consume 16.2GB/day or >> 494GB/month >> >> I then determined what the equivalent maximum amount of bandwidth we >> would be reselling a normal customer to if they were paying only $49 per >> month, which is a lot easier - you just take our profit figure of $400/m >> and divide it by $49 to get roughly 4, so 1/4th of 1.5Mbps which is just >> about 384kbps. Then I determined what is the maximum amount of bandwidth >> a 384kbps customer could consume. You get about 1.44Gb per day, or >> about 44GB/month. >> >> I knocked off a further 10% to give us a nice round ceiling, producing a >> final figure of 40GB/month for a 1.5Mbps customer as the maximum >> bandwidth they could be allowed to consume before they started hitting >> the falling point of the curve for bandwidth cost. Because I initially >> doubled our $200 cost to say that bandwidth, per megabit, costs us >> $400/m, we're comfortably padded. >> ************** >> >> ----- Original Message ----- >> From: "Paul Gerstenberger" <pa...@hrec.coop> >> To: "WISPA General List" <wireless@wispa.org> >> Sent: Friday, April 30, 2010 8:06 AM >> Subject: [WISPA] Overage thresholds and penalties >> >> >>> We have about 15% of our existing subscribers running PPPoE through >>> Mikrotik now, using the User Manager package. I'm astounded by the usage >>> I'm seeing from some accounts. We do cite "acceptable use" in our terms >>> of >>> service, but we've rarely enforced it. I'm curious what approach other >>> WISPs take: how you determine your own acceptable use thresholds and >>> what >>> penalties or deterrents are used. >>> >>> -Paul >>> >>> >>> -------------------------------------------------------------------------------- >>> 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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