Guess it cmes down to what you are selling and what does it cost you to
First f, you are selling a simle internet conection for a casual user.
If you want you can squeeze them fr every little "bit".
I wonder why you have to charge them more, if you are being billed at
My understanding is the 95 percentile is a snap shot at peak time and
the top 5% lobbed of to come up with your usage. What this means to me
is that on wed evening at 8PM when you hit 9.543megs a second which is
your highest usage, could be sunday morning or friday evening for that
matter, they call that the peak and lob off 5% and bill you there.
So on monday morning when you are going 4.5 or 2.2MBPS or sat evening
when you hit 5 or 6 megs, there is no difference in cost to you. t's all
under the peak.
So why bother unless your true goal is to figure out how hard you can
squeeze you sub. Which is not right or wrong, just your business not any
I have a sub that uploads a 250 meg file twice a day to my server and
does this every day.
If he was your sub how much would you charge them?
Marlon K. Schafer (509) 982-2181 wrote:
OK, so now that we know who our heavy users are I have to come up with a
couple of things.
First, I have to figure out how many kbps a gig of download would be.
Specifically, I've got a couple of customers doing 50 gigs per month.
How many kbps does it take to generate that?
We pay for our internet based on kbps.
Next, what do we do for an overage fee? Currently it's set as $5 for
the first gig, $10 for the second, $20 for the third etc. At 25 gigs
the customer has a $5,000,000 bill. Sure that'll run off the abusers,
but I'd rather find a more reasonable way to bill them.
We have a business customer that legitimately uses 40 to 50 gig per
month. We just moved them from $75 to $350 per month (matched the t-1
price they pay in another town). They don't feel abused and I feel more
comfortable about their usage. We bumped them up to 60 gigs included.
I have another customer that's at 10 gigs now (our included limit is
4). We talked about an appropriate rate of increase. Under our
standard levels, they'd more than double their bill. If we hit them
with a couple of hundred in billing they'd go elsewhere. We would,
however, like to dig a little bit deeper into their back pocket. I
talked with them a bit about our need to recover costs based on their
They said if we hit $100 to $125 they'd not have a problem with that.
On our end we have two problems. One, we pay for internet based on
usage. The more they use the more we pay. Our costs were up 15% last
month. The other, maybe worse issue, is that we have to increase the
capacity to towers that have heavy users on them. Possibly to the point
of a dedicated ap to cover just a customer or three. Now we're really
talking bucks and spectrum issues etc.
My original idea was that if a person went over by a gig or two we'd
ding them a few dollars as a "shot across the bow" kind of thing.
Around 50 of our 400 users are going over the new 4 gig level though.
Some will fix that by getting postini and dropping the spam. Some will
fix that by getting the kids to turn off the file sharing programs. And
some are legitimately using that much data.
In the end, we don't want to run off people if we can help it. Those at
the 30 to 50 gig level will probably leave us for other services, but
that's gonna be ok. They mess things up for everyone around them.
Better that my competitors have customers like that than we do. For all
of the rest, we need to recover our costs, and hopefully make a little
extra money on them.
Soooo, my new idea is, gigs 5 through 10 would be at $5 per month. Gigs
10 through 20 at $10 per gig. Over 20, call for a price and we'll work
something out that works for all of us. We really need it to naturally
hit around $350 at the 50 gig level to match what we did with the first
(509) 982-2181 Equipment sales
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