Wow... you are in a very "noncompetitve" market. My surrounding area has
CableOne (even into the small communities of 500 people) and they are
doing 50Mbps x 10Mbps for $35/month for the first 6 months, then it goes
up to $50/month. Most people claim to get 30-40Mbps any time they run a
speed test.
Travis
On 10/4/2014 9:32 PM, David Milholen via Af wrote:
We had no choice after deploying the 450 and offering up a handful of
capacity for a competitive rate which basically put us at capacity in
less than 6 months with out the numbers we wanted to see. So, since we
had not raised rates in 10yrs we had no choice but to regroup and look
at how we compare to our local cable. Really we have the upper hand
because of what we do as a wireless
industry. The whole hybrid solution is the key. Basically WIsps offer
fiber to the home via fixed connections from a fiber carrier. Cable
isnt even close due to the party line affect. Cambium gives us a
scheduler that enables a VC per sub so we can imitate carrier class
connections for a much lower price than what a carrier would serve
while still making money doing it.
So we can market a wonderful new buzz word called hybrid until it
dies we will roll with it but so far the response has been very
positive for the new price plans we now offer. Our 5x5 plan is a
5Mbs/5Mbs Down/Up for $75.00 monthly. We limit our basic which is 3x1
@ $50.00 to only one video stream @ 768k per one device per account.
On 10/4/2014 7:27 PM, That One Guy via Af wrote:
i rarely have good to say about the way my boss runs things, but he
is a magician at the rate plan changes. we have never directly raise
prices, for the most part we have always either kept them the same
price or lowered the cost to stay where you are at. usually any rate
plan changes come with the option to get more for less, knowing full
well that they ultimately will move up a tier in the future because
they want more. since we quit directly selling the speed and moved to
consumption based pricing it gives a lot more leverage to make global
changes with a limited demand increase on the infrastructure. It
costs us alot less to offer more consumption than to offer more
speed, and everything is moving to consumption based anyway, whether
you like it or not. our absolute lowest tier is marketed as an email
only plan with a 5gb cap to throttled speed. but we actually moved it
to 10gb because there were too many hitting 6gb that would have
needed to move up a tier just to get an extra gb, easier to raise it
for free, and we still get about a 50% take rate to the next tier
anyway. things like that are how we are able to raise prices without
actually raising prices. Because of it, even though we went through a
negative customer growth (i like that buzz word) our profits
increased, and now that we are on a positive customer growth trend,
that profit increases quickly which is why we just dropped over 100k
buying up the available 320 market at the time (yeah, we were one of
the ones that helped cause that). I wish I could provide the specific
details of the two major rate changes in the last five years, because
they were both pretty ingenious, ultimately getting customers to
thank you for raising their prices, just by giving them ownership of
the decision.
On Sat, Oct 4, 2014 at 5:12 PM, David Milholen via Af <[email protected]
<mailto:[email protected]>> wrote:
This is what we have done..
On 10/4/2014 4:02 PM, Jon Langeler via Af wrote:
Yeah I wouldn't raise prices on a 900SM customer. Get ready to
overhaul the network with faster options before charging more.
But definitely charge more as opposed to going cheaper. Markets
may vary...
Jon
On Oct 4, 2014, at 4:54 PM, Paul McCall via Af <[email protected]
<mailto:[email protected]>> wrote:
Very good input from all of you!
*From:*Af [mailto:[email protected]] *On Behalf Of *Ken
Hohhof via Af
*Sent:* Saturday, October 04, 2014 4:32 PM
*To:* [email protected] <mailto:[email protected]>
*Subject:* Re: [AFMUG] How frequently have you had a price
increase?
Everyone seems to expect our prices will go down, it’s the
Internet after all, everything is supposed to get cheaper until
it’s free, right? We haven’t raised prices in 10 years, and we
are feeling some pressure to lower prices about 10%, I guess
that’s from competition though and it sounds like you don’t
have too much of that problem.
JAB has people here expecting $40/$50/$60 for 5M/10M/15M speed.
They do have an equipment fee and a support plan in the fine
print though.
One school of thought is you gotta have added fees, otherwise
you just look more expensive in a comparison. (And people do
compare prices, even if the other guys can’t get them service.)
Another school of thought is, if you do a price increase, make
it big enough you don’t have another one in a year. Although
that never seems to stop the cable companies. Another school
of thought is to make it look like you are giving them
something for the price increase, that’s the game the cablecos
play, more content. Not sure what you could give away though,
if you are already at 5M and unlimited usage. I guess as long
as you are saying “up to”, you could raise the number.
*From:*Paul McCall via Af <mailto:[email protected]>
*Sent:*Saturday, October 04, 2014 3:00 PM
*To:*[email protected] <mailto:[email protected]>
*Subject:*[AFMUG] How frequently have you had a price increase?
We are thinking of raising our prices on our residential basic
plan. Some of our customers have been on the same priced plan
for 7 years (or more). Around $ 45 / month for “up to
5Mbit/1Mbit”. Probably 25% of those customers, we are the only
“good” source for Internet. The rest have varying levels of DSL
or cable options.
Thinking of bumping those customers to $ 49. Maybe a little
more, haven’t decided.
How do you handle price changes and/or on your customers on
“rolling contracts” ?
Paul
Paul McCall, Pres.
PDMNet / Florida Broadband
658 Old Dixie Highway
Vero Beach, FL 32962
772-564-6800 <tel:772-564-6800> office
772-473-0352 <tel:772-473-0352> cell
www.pdmnet.com <http://www.pdmnet.com/>
[email protected] <mailto:[email protected]>
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All parts should go together without forcing. You must remember that
the parts you are reassembling were disassembled by you. Therefore,
if you can't get them together again, there must be a reason. By all
means, do not use a hammer. -- IBM maintenance manual, 1925
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