Most ISPs use "forward pricing" for their bandwidth cost anyway, what will
your bandwidth cost be in a couple years on your planned growth trajectory?
Use that in your business model, even if it pinches your profit margin in
the short term. Focus on growing your business, once you reach a certain
size you will be able to negotiate the bandwidth price you want.
You have a lot more control over your own business than how a competitor
gets their bandwidth. Focusing on that one issue will just be a
distraction.
Look at Walmart. People once assumed no one could compete with them because
they have the lowest costs, but even Walmart is having problems, it turns
out other retailers are better at some things people value. Like selection,
service, ambience, location, etc.
-----Original Message-----
From: Glen Waldrop
Sent: Monday, March 07, 2016 8:18 AM
To: [email protected]
Subject: Re: [AFMUG] Startups undercutting pricing
I agree for the most part, but when someone else is playing dirty pool
minding your own business is a good way to get in real trouble.
This isn't terribly different than the previous string of emails about the
competitor intentionally interfering with a preexisting WISP.
-----Original Message-----
From: Adam Moffett
Sent: Monday, March 07, 2016 8:08 AM
To: [email protected]
Subject: Re: [AFMUG] Startups undercutting pricing
+1
My advice would be to focus on your business and not what others do. Every
minute you worry and fret about
a competitor is time you aren't growing your own business.
If they are starting off with a connection that could be shut off at some
point, just be ready to take on their
customers.
