We were in a similar position when we started our WISP in 2002, and we
went exclusively with Waverider CPE ($500+ at that time) and we found
that the market would not bear more than $200 setup (we now only charge
$149). It was/is also our thinking that a contract to lock them into
service wouldn't make sense either. If they don't want to pay the last 8
months of service because they cannot afford it, because they don't like
the service, or whatever, then I wouldn't help grow the business by
suing them, so a contract wouldn't make sense. We do have them sign a
"limited liability" agreement, where they agree to, among other things,
return the CPE or pay us $995.00 when they disconnect. They also agree
not to break any laws or intentionally cause any problems with the
service, etc etc.
I also don't think people want a LOT of complicated options when they
sign up for service. I think you will be better off offering a $200
setup and $49/mo (we started at $59 residential, and dropped to $39)
for service.
After the 15 or 20 customers are online that pay for the upstream
broadband (depending on what you are paying), you can have the CPE pay
for itself 4 months if you don't outsource the installations. Then, 8
Customers will buy 1 CPE/month, and 64 will buy 8/mo and so on.
The numbers don't always exactly work that way, since employees want to
be paid, the van will need gas, tires and oil, email servers will need
service/repair/upgrades, and some customers will need a $100 worth of
masts, cables, guy wires, etc to get them installed.
What you may want to consider is giving a free/discounted installation
if the customer will pre-pay 12 months service. We offer a 10% discount
on the service/installation if they pre-pay 12 months.
What we learned: We wished we had implemented lower cost 802.11b
AP/CPE's alongside the Waverider gear sooner. We waited over a year
before we did that, and figured out that we didn't have to wait 12 to 18
months for a customer to be cash flow positive. Now, its less than 5
months. Less than 1 if I don't outsource the installation ($125 to
contractor), and I put it in myself, and collect the $150 setup + 1st
month service and put in a $120 CPE.
Pete Davis
NoDial.net
Joshua M. Andrews wrote:
I'm about to get my first WISP up and running but the major factor
that's holding me back is the initial cost of the CPE's. I've decided
to go with WaveWireless (formerly WaveRider) 900Mhz but the lowest
prices are around $350 or so. I've been thinking of pitching the
service by saying the following:
Option 1: 1 Year Contract and install is $295.95.
Option 2: 2 Year Contract and install is $195.95.
Option 3: 3 Year Contract and install is $99.95.
Option 4: 4 Year Contract and install is FREE.
Anybody else have any suggestions to help offset the initial cost per
customer in this regard? Thanks in advance.
Sincerely,
Joshua M. Andrews
Support Corps of America
www.SupportCorps.us <http://www.SupportCorps.us>
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