Charles,

I fully second your post.
Well said.

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband


----- Original Message ----- From: "Charles Wu" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>; "'WISPA General List'" <wireless@wispa.org>
Sent: Monday, December 12, 2005 9:25 PM
Subject: RE: [WISPA] INSURANCE NOW canopy prices


<snip>
You would think it would work that way, but Volume Buying ends up eating
the organization and the organization becomes caught up in being a
volume club.
</snip>

We all know that there's more to a WISP than just putting up an AP and
getting a T1 line

Having run both a WISP and a distribution company, I can personally attest
to the fact that there's more to distribution (which is what your proposing)
than breaking up a 500 pack amongst WISP

Have you considered all the risks / implications that the buying group
faces? For starters, there's the question of payment -- given that the
buying group has no / limited credit, chances are that any vendor will
require cash up front for the purchase

So, for example, say Motorola Canopy is the product WISPA chooses
Then WISPA / Buying Group needs to come up w/ $100k to purchase that 500
pack (at say, $200 / unit for simplicity's sake)
Then, WISPA / Buying Group needs to come up w/ a warehouse to store stuff
Then, WISPA / Buying Group needs to come up w/ a shipper/logistics guy to
repackage / ship stuff

On top of that, chances are, 50% of the WISPs who committed to purchasing
the packs will renege and/or delay their deliveries due to unforseen things
that always happen in deployments (e.g.,  lightning, customers don't sign
on, interference from competitor, DSL coming to town)

So now, WISPA / Buying Group needs to hire a sales guy to sell excess units

Now, you've added overhead (and you need to add an administrative fee /
margin to compensate)

In the meantime, either

1. Motorola to announce a 50% price reduction in their Canopy line, and all
WISPA members now wanting the new lower price (therefore causing a huge
loss)
2. Trango (or some other company) to come out w/ the new "flavor of the
month" and no one wanting the inventory anymore, sticking WISPA w/ $100k
worth of boat anchors

-Charles


-------------------------------------------
CWLab
Technology Architects
http://www.cwlab.com

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