Bottom End of the market is as always one of two basic strategies:

1. Keep the capital costs low and minimising the time burden to be able to produce the necessary volumes, 'or'

2. Find those customers with niche requirements or willing to pay for quality.

What is doubtless becoming popular is hosted solutions and with three-four users and a DSL line you are away. Interestingly from our experience the market seems to support 10 USD - 50 USD per month, per user.

With a ratio of 1:7 you can typically support 800+ users on the same server for under 4000 USD investment (or 5 USD per customer for the hardware).

Of course, if you are using well designed software this should take you a few minutes to set up each IPPBX, the trunk settings for the service provider should be simple click and drop and the phones will auto-configure when the customer attaches them to their network. This allows you to concentrate on more sales.

As previous writers mention, it is the handsets that can inflict most damage. There are however now good handsets available for 90 USD if you shop around.

For onsite installations, outlay cost is going to go up. As always, the customer must feel reassured that what they are buying they will be able to use now and in the future. Vanilla Asterisk cannot achieve this. Again the software interface needs to be simple enough to reassure the customer of this. If you achieve this you are less into a price war. It is also worth looking at purpose built hardware for 16 users and under. If it looks like an purpose built appliance you will again have a lot easier job selling the solution.

For niche customers be sure the Interface you use is able to handle the many permutations the more niche customers may require.

(of course there is a plug here and you may wish to look at www.bicomsystems.com where we provide complete turn-key solutions, software and hardware appliance that work with Asterisk)

Steve {at] bicomsystems [dot} com


----- Original Message ----- From: "Curt Shaffer" <[EMAIL PROTECTED]> To: "'Commercial and Business-Oriented Asterisk Discussion'" <[email protected]>
Sent: Tuesday, July 04, 2006 12:50 PM
Subject: RE: [asterisk-biz] RE: Bottom end of the market for an Asterisk PBX ?


I would have to agree here as well. Just because you can install * on a good
cheap system does not mean that you want to. I really think if Asterisk is
going to be a competitor in the VoIP market we really need to make sure it
shines. We can not just be "throwing" together a system that will get the
job done. We need to plan these installs, give good quality phones and
provide redundancy if possible. When was the last time the company's
POTS/PRI lines went down? When they pick up the phone they expect, and
rightfully so, for it to work. I all too often hear people getting by with
just the essentials and I would bet that there are a lot of unhappy
customers out there with it. I know of a few personally where the company
now has a bad taste in their mouth about VoIP because some "Asterisk Guru"
came in and saved them thousands on their phone system. What they were left
with was choppy quality because of lack of QoS and horrible echo. And IP
termination, which was supposed to save them money, was sub par and down a
lot. Lack of needed configuration and bad choice of providers? Probaby, but
they ditched the system and dubbed VoIP as a technology that is not ready
for prime time. This really gets me going....arg!

From what I have seen and been selling is features. Even to small
businesses. Yes you will get a system that is a little cheaper than Avaya,
Cisco or 3Com, although this is getting not to be the case with items such
as Avaya's new phone that acts like a small PBX. Yes you MAY be able to save some money on long distance with LCR. But, this IVR will allow you to field
phone calls via the phone system and provide customers with valuable
information without a person spending time on the phone with them. This find me follow me will make sure someone can always reach you. This conferencing
will save you on expensive bridges and hosted solutions. This XML app on
your phone will allow your employees to log into your time card app. This
system will integrate your voicemail and email into the same inbox. This is
all about convergence! Anyone can beat the cost of a traditional PBX these
days, yes even Cisco with their new Call Manager Express! You need to make
the customer feel, and you won't be lying, that they need a full system and
to invest in this. Show them the real money savings! Even a high end
Asterisk system is cheaper then most of the others.  I'll get off my soap
box for now. I just hate when people make probably the least important
things about Asterisk the most important and vis a vis.

Someone mentioned a model like hosting. I think if your customers are really concerned about pricing of the system, despite your good sales tactics, then this may be the best idea. At that point you can provide the redundancy they need and maintain everything on your end. The only problem I see here is you
want to make absolutely sure that you are not the cause of failure. This
would mean clustering, this would mean battery backup with generator back up
on that. This would be a reliable high speed connection for both you and
them, think about what the phone company does to make sure you have dial
tone even when the power is out! What about E911! You don't want to be
responsible for a person dying(like happened near here in Maryland,USA). But it could be done. I do believe with the architecture that should be built on this model, it would take some time to get your return on investment but if this is where most of your clients would like to be then it may be worth it.


Just my 2 cents.

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of C F
Sent: Monday, July 03, 2006 11:34 PM
To: Commercial and Business-Oriented Asterisk Discussion
Subject: Re: [asterisk-biz] RE: Bottom end of the market for an Asterisk PBX
?

Yeah sure think again. There is no way that you can sell a system with
5 phones for $1500.00 just the phones (at around $160 per phone for a
decent business phone) will cost you $800.00.
You think ppl buy these things like they buy bread? think again.

On 7/3/06, Nikolai Manek <[EMAIL PROTECTED]> wrote:
Hi,

You want to charge $5000 for a small biz Asterisk server? Yes, you
definitely need to rethink your strategy. I would rather think that $1500
is
the absolute maximum. For very small companies (5-15) you can put a
Asterisk
on a Linksys router with Linux. I think there are some projects you can
Google up who are doing it. And then your customers will figure out very
quick that they can get your PBX for a couple hundred bucks including
service from someone. Why don't you set up some Astersik servers yourself
and offer hosted Asterisk? This way you can charge a monthly fee, your
customers don't have the headache of running their own server and you will
make over time your $5000 without overcharging people (which is IMHO not
the
way to do business). You might want to google around and see what other
people are charging. But my educated guess would be that a small business
is
very much willing to pay let's say $20 per seat per month and have their
service hosted with you. On top you are selling the minutes at approx. 55%
margin in the UK for international calls and probably 70% for domestic
calls. Then you can make money and your customers are very happy too. You
can bill the service with our new Asterisk billing solution (it's free)
(www.remwave.com) which will be released by the end of the week or any
other
billing platform. I am also thinking that a hosted solution is better for
your business bottom line since it will enable you to have a consistent
revenue stream.

Best

Nikolai Manek
http://www.remwave.com


On 7/3/06 6:30 PM, "[EMAIL PROTECTED]"
<[EMAIL PROTECTED]> wrote:

> Bottom end of the market for an Asterisk PBX ?

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