Re: [WISPA] Business strategy for an uncertain future...
George Rogato wrote: If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. I'm just glad I am 90% residential because I can see businesses going under all the time. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/
Re: [WISPA] Business strategy for an uncertain future...
My bank and others in my area have stated that business with them has only gotten better in the financial sector blowout. They weren't affiliated with any mega organization. Completely self contained. - Mike Hammett Intelligent Computing Solutions http://www.ics-il.com -- From: rea...@muddyfrogwater.us Sent: Thursday, January 01, 2009 10:32 PM To: WISPA General List wireless@wispa.org Subject: [WISPA] Business strategy for an uncertain future... As I mentioned in my last post, I am now not willing to finance anything substantial for any period of time beyond a few months. While I'm no economics professor, nor claim any great knowledge, it appears that the people who do make those claims are as befuddled as things can get. Each has scenarios and predictions that vary wildly... But every one of them acknowledges we've got a problem... or two or three... All we have to go on, is the last great depression, and it's origins are not the same as what happened now, but the effects are somewhat similar. In less than a year, the Treasury, Congress, and agencies have spent, assumed liability for, or gauranteed nearly 10 trillion dollars of additional liabilities. If this were your business, it would be the same as having spent, borrowed, or assuemd liability for debts 3 times your annual revenues in just 90 days, while you were running in the red, and already owed 3 times your annual revenues. The implications of this are obvious... Math doesn't lie. This money has to come from somewhere to cover these liabilities. In under 90 days, the federal treasury has floated a trillion dollars in bonds. One TRILLION dollars was taken out of circulation and turned into federal paper. Pundits say that they expect the new administration to likewise use anywhere from 1 to 5 more TRILLION dollars of debt to fund its spending and 'bailout' plans. Every dollar now spent is a dollar removed from economic circulation or investment. Would this matter too much? Maybe not if we had a sound financial sector. But we do not. I haunt a number of small business, business credit, and financial news forums around the country, and they all agree... Institutional credit is drying up faster than the remains of an August afternoon snowball fight in Yuma, AZ.People with excellent personal and spotless business credit are seeing their credit cards, credit lines, etc, reduced, cancelled, even closed without warning. If you have a flaw in anyhthing, it's just a matter of time before the reviewers get to you and cut you off completely. If your business relies on using short term credit in the form of a card to provide cash flow between purchase and install / income, you could find yourself suddenly without it, without warning, as your credit provider cuts you off... perhaps simply because they do not have any capital. And this is happening whether the institution is international or a local credit union. Nobody is immune. Now, let's get into the possible futures... If the Obama economic policies continue the Clinton and Bush ones, of extended borrowing and spending to keep things moving, ie, no signficant change ( this has remained mostly unchanged since around 98), we'll eventually see the influx of cash to buy federal paper dry up, as people lose faith in the federal treasury like they did with Bear Stearns. Further, the continued consumption of all available investment cash by the federal government will deepen/worsen/prolong the business downturn, as financing anything becomes all but impossible.This scenario is likely to see an extended period of deflation followed by... unknown... Likely a massive deflation as the inevitable adjustments are allowed to arrive or inflation spike. A hugely unlikely possibility would be for Congress to decide to act as any responsible party would... Balance its books, stop spending on anything but the absolute necessities, and then to try to spur industrial growth with tax holidays and total restructuring of the tax and regulatory system... Expect a huge flurry of business failures, followed by a lot of restructuring and the disapperance of most that do not produce things of value.Investors again will start investing in those things likely to succeed and we'll see a long period of rocky rebuilding and success/failure cycles. This is the shortest path, with the most up front pain, but the best outcome long term. Another unlikely scenario would be Printing money. Giving up on the idea of trying to prime the economy with debt, we print currency, hoping to head off deflation, but not so bad we spark 'currency collapse inflation'. The problem is, nobody has a clue where that point is. Nobody. If the last scenario follows the first... It's a nightmare nobody wants, but is the most likely. It's the path of least
Re: [WISPA] Business strategy for an uncertain future...
No... People think they need Internet access, as much as they need electricity. I can tell you, in our county, the foreclosure rate is out the roof. When people are fighting to keep their homes, they learn that they can always check their Email at work, and they'd rather spend their money at home on Food, and keeping their house. Some people I know are choosing to go without electricity as well. Customers that get the Verizon bundles (voice/data under one low catch price bill) are exploring their options. The calls I get are... What term commmitment do we have for our Broadband?. We like you and your service, and don't want to change, but we need to cut back, and our service will be almost free, if we take the Verizon Bundle.. Truth is I don't worry to much, because I know that all they received was a flyer, and they won't qualify for the DSL service. 95% of the people that gave 30 days notice came back crawling within a few weeks, to cancel their cancellation and reinstate their service. (Which I make them re-sign a 1 yr agreement, to do so, without me raising their rate). But my point is I'm not loosing customer volume, we are growing. Every month, we have more than the month before. But its not guaranteed for that to occur. I want the mechanisms in place that will help guarantee that. That means owning infrastructure eventually without payments. It means building customer awareness that WISPs are here to stay, so Lending opportunities will continue to be available and rise for WISPs. I'm 100% in agreeance with Travis's leasing model. But our industry is nowhere near where it needs to be, that Leasing approval is as easy as it needs to be, for us to count on it being there when we need it down the road, and now. Everyday, I turn away low ARPU customers. I tell them, I have the abilty to serve them, but I can't, because I'm not a bank, and I need to reserve my cash for the High ARPU deployments. I tell them, if they'd like to be the bank, this x is the upfront cost for isntallation.. If they got money they install, if they don't, they go without. This is NOT the way to expand broadband throughout America. It is the way for me to fund my company growth. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: George Rogato wi...@oregonfast.net To: WISPA General List wireless@wispa.org Sent: Friday, January 02, 2009 12:05 AM Subject: Re: [WISPA] Business strategy for an uncertain future... If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/ -- No virus found in this incoming message. Checked by AVG. Version: 7.5.552 / Virus Database: 270.10.1/1870 - Release Date: 12/31/2008 8:44 AM 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/
Re: [WISPA] Business strategy for an uncertain future...
Just curious what financing vehicles besides leasing wisps are using? Interest rates on credit lines (if you can get them) are quite reasonable right now. Any other options that are working for you? Randy Tom DeReggi wrote: No... People think they need Internet access, as much as they need electricity. I can tell you, in our county, the foreclosure rate is out the roof. When people are fighting to keep their homes, they learn that they can always check their Email at work, and they'd rather spend their money at home on Food, and keeping their house. Some people I know are choosing to go without electricity as well. Customers that get the Verizon bundles (voice/data under one low catch price bill) are exploring their options. The calls I get are... What term commmitment do we have for our Broadband?. We like you and your service, and don't want to change, but we need to cut back, and our service will be almost free, if we take the Verizon Bundle.. Truth is I don't worry to much, because I know that all they received was a flyer, and they won't qualify for the DSL service. 95% of the people that gave 30 days notice came back crawling within a few weeks, to cancel their cancellation and reinstate their service. (Which I make them re-sign a 1 yr agreement, to do so, without me raising their rate). But my point is I'm not loosing customer volume, we are growing. Every month, we have more than the month before. But its not guaranteed for that to occur. I want the mechanisms in place that will help guarantee that. That means owning infrastructure eventually without payments. It means building customer awareness that WISPs are here to stay, so Lending opportunities will continue to be available and rise for WISPs. I'm 100% in agreeance with Travis's leasing model. But our industry is nowhere near where it needs to be, that Leasing approval is as easy as it needs to be, for us to count on it being there when we need it down the road, and now. Everyday, I turn away low ARPU customers. I tell them, I have the abilty to serve them, but I can't, because I'm not a bank, and I need to reserve my cash for the High ARPU deployments. I tell them, if they'd like to be the bank, this x is the upfront cost for isntallation.. If they got money they install, if they don't, they go without. This is NOT the way to expand broadband throughout America. It is the way for me to fund my company growth. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: George Rogato wi...@oregonfast.net To: WISPA General List wireless@wispa.org Sent: Friday, January 02, 2009 12:05 AM Subject: Re: [WISPA] Business strategy for an uncertain future... If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/ -- No virus found in this incoming message. Checked by AVG. Version: 7.5.552 / Virus Database: 270.10.1/1870 - Release Date: 12/31/2008 8:44 AM 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/ -- Randy Cosby Vice President InfoWest, Inc work: 435-773-6071 email: rco...@infowest.com http://www.linkedin.com/in/randycosby WISPA Wants You! Join today! http://signup.wispa.org
Re: [WISPA] Business strategy for an uncertain future...
There is always the option for private lender. One way to find one is to ask your accountant / financial advisor. They likely will have a large number of wealthy clients, and advise on how they invest their money. At minimum inside knowledge of the ROI they are getting. This information will of course be confidential, however, it does inable them to share your business opportunity with one of their clients, if they think they might know of a match, looking for a better ROI. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: Randy Cosby dco...@infowest.com To: WISPA General List wireless@wispa.org Sent: Friday, January 02, 2009 12:25 PM Subject: Re: [WISPA] Business strategy for an uncertain future... Just curious what financing vehicles besides leasing wisps are using? Interest rates on credit lines (if you can get them) are quite reasonable right now. Any other options that are working for you? Randy Tom DeReggi wrote: No... People think they need Internet access, as much as they need electricity. I can tell you, in our county, the foreclosure rate is out the roof. When people are fighting to keep their homes, they learn that they can always check their Email at work, and they'd rather spend their money at home on Food, and keeping their house. Some people I know are choosing to go without electricity as well. Customers that get the Verizon bundles (voice/data under one low catch price bill) are exploring their options. The calls I get are... What term commmitment do we have for our Broadband?. We like you and your service, and don't want to change, but we need to cut back, and our service will be almost free, if we take the Verizon Bundle.. Truth is I don't worry to much, because I know that all they received was a flyer, and they won't qualify for the DSL service. 95% of the people that gave 30 days notice came back crawling within a few weeks, to cancel their cancellation and reinstate their service. (Which I make them re-sign a 1 yr agreement, to do so, without me raising their rate). But my point is I'm not loosing customer volume, we are growing. Every month, we have more than the month before. But its not guaranteed for that to occur. I want the mechanisms in place that will help guarantee that. That means owning infrastructure eventually without payments. It means building customer awareness that WISPs are here to stay, so Lending opportunities will continue to be available and rise for WISPs. I'm 100% in agreeance with Travis's leasing model. But our industry is nowhere near where it needs to be, that Leasing approval is as easy as it needs to be, for us to count on it being there when we need it down the road, and now. Everyday, I turn away low ARPU customers. I tell them, I have the abilty to serve them, but I can't, because I'm not a bank, and I need to reserve my cash for the High ARPU deployments. I tell them, if they'd like to be the bank, this x is the upfront cost for isntallation.. If they got money they install, if they don't, they go without. This is NOT the way to expand broadband throughout America. It is the way for me to fund my company growth. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: George Rogato wi...@oregonfast.net To: WISPA General List wireless@wispa.org Sent: Friday, January 02, 2009 12:05 AM Subject: Re: [WISPA] Business strategy for an uncertain future... If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/ -- No virus found in this incoming message. Checked by AVG. Version: 7.5.552 / Virus Database: 270.10.1/1870 - Release
Re: [WISPA] Business strategy for an uncertain future...
There is a local auto parts store in town here that has a sign on the front door that states We are NOT participating in this recession. I thought about how it would apply to a WISP and it shows the customer that our business is here for the long haul and not going anywhere which in turn is going to draw more customers. For example our local telco here is changing their name for the 3rd time in the past 3 years. Doesn't really make people wanna go jump on their services... I've noticed lately that people are more drawn by your level of customer service on the phone and service calls that you make than they are about your prices. Sometimes I'll go out on a service call that I know I could walk them through over the phone but it really says something to them about your service when you show up at the door in person. Kurt Fankhauser WAVELINC P.O. Box 126 Bucyrus, OH 44820 419-562-6405 www.wavelinc.com -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of George Rogato Sent: Friday, January 02, 2009 12:06 AM To: WISPA General List Subject: Re: [WISPA] Business strategy for an uncertain future... If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/
Re: [WISPA] Business strategy for an uncertain future...
Tom DeReggi wrote: Customers that get the Verizon bundles (voice/data under one low catch price bill) are exploring their options. The calls I get are... What term commmitment do we have for our Broadband?. We like you and your service, and don't want to change, but we need to cut back, and our service will be almost free, if we take the Verizon Bundle.. You may want to consider lowering a subs monthly who is considering leaving for a short period of time 6 months etc to retain the sub. Seeing the equipment is being paid for or is paid for, why lose the customer over 10.00? Your milage may vary. 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/
Re: [WISPA] Business strategy for an uncertain future...
Well, I think the question is... how many subs will be successful in getting lower prices and actual delivery of the service? . If I gave in to every customer that blindly believed the random mailer they received in the mail, I'd discount prematurely. What I'm trying to do is when they call, to learn more about their situation. I fully agree, it wouldn't be wise to lose or risk losing a customer over $10. But I'm finding customers aren't considering changing over $10 either. It will be more like a situation like, I'm charging $150, and Verizon is charging $19 with the bundle. I'd never go anywhere near $19, it would de-value our services and the market. I'm big on service, and I often remind them, bandwidth is cheap, but labor isn't. I always give them my time when asked, so not interested in promising my time at a value of nothing. If some one comes to me, threatening to switch, saying so and so only charges then I refuse to lower price. Because its clear they don;t understand our value, and its more approriate to instead educate them about our value. But if they come to me trying to find a way to keep my service, and communicate that economic times require cut backs, I can come up with all kinds of suggestions to make a deal that will work for us both. But I refuse to be taken down to the level of a commodity provider. At minimum they need to recognize our value. The reason I'm willing to negotiate, is I recognize their value as a loyal customer. One of the best peices of advice that someone recently gave me was that I need to spend more of my time in areas where I'm valued most. Its absolutely amazing to realize that, its easier to earn a $1000/mon customer, than it is to earn a $30/mon customer. If they want $19.95, I'd rather take the radio CPE back, and one less radio to finance to serve a $1000/mon sub. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: George Rogato wi...@oregonfast.net To: WISPA General List wireless@wispa.org Sent: Friday, January 02, 2009 3:39 PM Subject: Re: [WISPA] Business strategy for an uncertain future... Tom DeReggi wrote: Customers that get the Verizon bundles (voice/data under one low catch price bill) are exploring their options. The calls I get are... What term commmitment do we have for our Broadband?. We like you and your service, and don't want to change, but we need to cut back, and our service will be almost free, if we take the Verizon Bundle.. You may want to consider lowering a subs monthly who is considering leaving for a short period of time 6 months etc to retain the sub. Seeing the equipment is being paid for or is paid for, why lose the customer over 10.00? Your milage may vary. 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/ -- No virus found in this incoming message. Checked by AVG. Version: 7.5.552 / Virus Database: 270.10.2/1871 - Release Date: 1/1/2009 5:01 PM 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] Business strategy for an uncertain future...
As I mentioned in my last post, I am now not willing to finance anything substantial for any period of time beyond a few months. While I'm no economics professor, nor claim any great knowledge, it appears that the people who do make those claims are as befuddled as things can get. Each has scenarios and predictions that vary wildly... But every one of them acknowledges we've got a problem... or two or three... All we have to go on, is the last great depression, and it's origins are not the same as what happened now, but the effects are somewhat similar. In less than a year, the Treasury, Congress, and agencies have spent, assumed liability for, or gauranteed nearly 10 trillion dollars of additional liabilities. If this were your business, it would be the same as having spent, borrowed, or assuemd liability for debts 3 times your annual revenues in just 90 days, while you were running in the red, and already owed 3 times your annual revenues. The implications of this are obvious... Math doesn't lie. This money has to come from somewhere to cover these liabilities. In under 90 days, the federal treasury has floated a trillion dollars in bonds. One TRILLION dollars was taken out of circulation and turned into federal paper. Pundits say that they expect the new administration to likewise use anywhere from 1 to 5 more TRILLION dollars of debt to fund its spending and 'bailout' plans. Every dollar now spent is a dollar removed from economic circulation or investment. Would this matter too much? Maybe not if we had a sound financial sector. But we do not. I haunt a number of small business, business credit, and financial news forums around the country, and they all agree... Institutional credit is drying up faster than the remains of an August afternoon snowball fight in Yuma, AZ.People with excellent personal and spotless business credit are seeing their credit cards, credit lines, etc, reduced, cancelled, even closed without warning. If you have a flaw in anyhthing, it's just a matter of time before the reviewers get to you and cut you off completely. If your business relies on using short term credit in the form of a card to provide cash flow between purchase and install / income, you could find yourself suddenly without it, without warning, as your credit provider cuts you off... perhaps simply because they do not have any capital. And this is happening whether the institution is international or a local credit union. Nobody is immune. Now, let's get into the possible futures... If the Obama economic policies continue the Clinton and Bush ones, of extended borrowing and spending to keep things moving, ie, no signficant change ( this has remained mostly unchanged since around 98), we'll eventually see the influx of cash to buy federal paper dry up, as people lose faith in the federal treasury like they did with Bear Stearns. Further, the continued consumption of all available investment cash by the federal government will deepen/worsen/prolong the business downturn, as financing anything becomes all but impossible.This scenario is likely to see an extended period of deflation followed by... unknown... Likely a massive deflation as the inevitable adjustments are allowed to arrive or inflation spike. A hugely unlikely possibility would be for Congress to decide to act as any responsible party would... Balance its books, stop spending on anything but the absolute necessities, and then to try to spur industrial growth with tax holidays and total restructuring of the tax and regulatory system... Expect a huge flurry of business failures, followed by a lot of restructuring and the disapperance of most that do not produce things of value.Investors again will start investing in those things likely to succeed and we'll see a long period of rocky rebuilding and success/failure cycles. This is the shortest path, with the most up front pain, but the best outcome long term. Another unlikely scenario would be Printing money. Giving up on the idea of trying to prime the economy with debt, we print currency, hoping to head off deflation, but not so bad we spark 'currency collapse inflation'. The problem is, nobody has a clue where that point is. Nobody. If the last scenario follows the first... It's a nightmare nobody wants, but is the most likely. It's the path of least resistance for politicians, who are addicted to buying votes and spending money, promising to fix stuff, if they just get more. It is their control and attempts to control the economy and busienss that created this crisis in the first place. More of the same is guaranteed to worsen, not improve, things. How do deal with it?Don't be in debt. Don't make long term commitments that involve largish sums of money.Deflation could easily reduce your bills AND your income by 50 to 80%.But your loans, leases, etc, don't change. You will
Re: [WISPA] Business strategy for an uncertain future...
If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/
Re: [WISPA] Business strategy for an uncertain future...
That's pretty much where I am too. I'm working on making sure I can survive even if I have to cut my rates by up to 65%. Part of that is now about changing providers, adding a 2nd, so if one goes away I'm not sunk, and a small price increase, and changing my billing and credit process. I now bill in arrears for services. I'm going to move that closer to bill in real time and going to automated payments. And considerable penalty for not having automated payments. I'm even thinking about adding a second line of unrelated services, so Im not entirely dependent on internet. insert witty tagline here - Original Message - From: George Rogato wi...@oregonfast.net To: WISPA General List wireless@wispa.org Sent: Thursday, January 01, 2009 9:05 PM Subject: Re: [WISPA] Business strategy for an uncertain future... If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/
Re: [WISPA] Business strategy for an uncertain future...
Just think about it. What will people do that can not afford the movies, cool electronics and gadgets or go out eat nice dinners etc do at night or during the day (assuming unemployed). Sit home watch TV and surf internet. They COULD cancel their cabel/sat connection if they have a good high speed connection. So in most if not all household internet will probably be the last luxury to go. Most will probably cancel their home phone line before they cancel their internet connection. Remember the article I posted the link to a couple week ago? 46% of the surveyed women would rather go without sex for 2 weeks then be without internet (only 30% of the men would do the same. Damn perverts anyway don't they know they can get that online ;) ) So as a equipment provider of WISP equipment we feel fairly comfortable. As a small town ISP feel very comfortable. We had 0 customer loss in the last 4 months yet unemployment jumped almost 4 points during the same town (one larger construction company closed their doors that provided auto parts to Detroit which was one of the biggest single employers in the area). Actually gain a few that I know for sure become unemployed some which started through layoff compensation money some online education so they had to get high speed where they before still only had dial up. Just be careful not to let people slide on their payments. Internet service is nothing you can take back so they should pay up front that way when they don't pay you can shut off service and not loose any service fees. Now if they supposed to do a contract over a period of time you might had to take them to court to get the remaining what they would owe you under their contract with you. /Eje Sent via BlackBerry from T-Mobile -Original Message- From: George Rogato wi...@oregonfast.net Date: Thu, 01 Jan 2009 21:05:41 To: WISPA General Listwireless@wispa.org Subject: Re: [WISPA] Business strategy for an uncertain future... If I was in the business of selling something frivilous, I would be worried. This is internet access. People need Internet Access just like they need electricity. You could live with out it but who would want to. Unless you have hit the top of your saturation, then it's doubtful you'll be losing subscribers. And if you offer a competitively priced product, you should, because of the recession, find a lot of new customers looking to change to a lower priced service when their low priced introductory deals run out. Especially if you have a Voip / Intenet Access bundle to offer. So borrow away, it's not going to hurt you. As for us, we don't really borrow, or want to carry much debt. We buy our equipment out of cash flow and are happy to be clear by the third month. Only downside is I don't get the qty discount that Travis pointed out with his large purchases. 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/
