Travis,

I don't make untrue statements.  Please don't say that.

I said we charge a $150 install fee and $30 a month, bringing the
total cash flow to $150 + $30 +30 = $210.  The Client side gear is
$184 Quantity 1 and that leaves a small fee for my install guy who is
an employee. I'm maybe 3 months to profit if you figure his costs, but
who cares about a month here and there.  We are talking an employees
time and that is his job.  It is a cost of doing business and I do not
apportion it to each install.

The bottom line is that I get ALL of my cash money returned on the
customer's second monthly payment then after that it is profit.  If we
make that 4 months we are still WAY better than a Telco ROI, but you
have to be an accountant to get that picky.  We are quite profitable
as a WISP and we can now even afford a 30 mbps fibre.  The old over
priced T1 days are LONG gone.

Lonnie

On 2/20/07, Travis Johnson <[EMAIL PROTECTED]> wrote:
Lonnie,

This is not a true statement.... if your CPE is costing you $150 (which
seems a little low after antenna, pigtails, misc. hardware like zip
ties, weatherproof, mounts, etc.) you are breaking even on the
equipment. Then you still have the truck roll, insurance, gas, employee,
etc. which could be $50 to $100 per install... so really you are out 3-4
months or longer... which means for a quickly growing company you are in
trouble because you aren't profitable for 3-4 months. :(

Travis
Microserv

Lonnie Nunweiler wrote:
> We own the CPE gear so we consider it an investment.  We charge a flat
> $150 install fee and $30 a month.  We pay for the gear in 2 months and
> we are straight profit after that.  If the Telcos had their ROI that
> good they would be dancing.
>
> Lonnie
>
> On 2/20/07, Travis Johnson <[EMAIL PROTECTED]> wrote:
>> Equipment leasing? Every install for us is a break-even (after truck
>> roll, installing a firewall/router/AP for free, etc.) and we start
>> making money on every customer on their first monthly payment. :)
>>
>> Just a thought.
>>
>> Travis
>> Microserv
>>
>> Matt Liotta wrote:
>> > Most service providers never make it much past break even because of
>> > the high fixed costs in this business. Fill up one T1 with customers
>> > and the second one is the same price as the first. You have to be able
>> > to support large volumes just to change cost ratios. Then you have
>> > things like CALEA that come along at change the cost equation. I've
>> > heard from a number of people who's business plans can't support
>> > CALEA. I am rambling a bit, but my point is that fresh capital could
>> > be just the thing a break even business needs. How else do you punch
>> > through to the next level?
>> >
>> > -Matt
>> >
>> > Lonnie Nunweiler wrote:
>> >> If you broke even but had a partner who did not help very much, then
>> >> my feeling is you should just stay on the course you have and the
>> >> profit will happen.  If you bring in new money and new people my
>> >> feeling is you stand a chance you'll just end up with more of the
>> >> same.  Trying to meet too many expectations is not a good thing and
>> >> ruins your focus.
>> >>
>> >> Lonnie
>> >>
>> >> On 2/20/07, Rick Smith <[EMAIL PROTECTED]> wrote:
>> >>> yep, rural NJ.  Northern.  ALL hills, ALL trees.
>> >>>
>> >>> Doin ok so far, about break even on 300k over 4 yrs, but need a
>> >>> payoff, and
>> >>> now I'm lookin at some private investors who are interested.
>> >>>
>> >>> I need to get a feel on realistic projections.
>> >>>
>> >>>
>> >>> -----Original Message-----
>> >>> From: [EMAIL PROTECTED]
>> [mailto:[EMAIL PROTECTED] On
>> >>> Behalf Of Joe Laura
>> >>> Sent: Tuesday, February 20, 2007 1:10 AM
>> >>> To: WISPA General List
>> >>> Subject: Re: [WISPA] For those in business just about a year...
>> >>>
>> >>> I wish we would have had funding. Just hard work, 7 days a week, 14
>> >>> hour
>> >>> days until things started rolling. Eventually made ends meet and
>> then
>> >>> actually started seeing some profits at some point. Advertising is a
>> >>> mystery. Its like certain wireless gear. It might work in some areas
>> >>> but not
>> >>> others. Are you in a rural area?
>> >>> Superior Wireless
>> >>> New Orleans,La.
>> >>> www.superior1.com
>> >>> ----- Original Message -----
>> >>> From: "Rick Smith" <[EMAIL PROTECTED]>
>> >>> To: "'WISPA General List'" <wireless@wispa.org>; "'Principal WISPA
>> >>> Member
>> >>> List'" <[EMAIL PROTECTED]>
>> >>> Sent: Monday, February 19, 2007 11:51 PM
>> >>> Subject: [WISPA] For those in business just about a year...
>> >>>
>> >>>
>> >>> > Couple questions for you:
>> >>> >
>> >>> > 1) How did you get funding ?
>> >>> >
>> >>> > 2) How many customers are you up to so far ?
>> >>> >
>> >>> > 3) How many installations per month / week / day ?
>> >>> >
>> >>> > 4) How did they find you ?  Advertising methods...
>> >>> >
>> >>> >
>> >>> > I'm in the middle of rebuilding my company from the disaster it's
>> >>> been in
>> >>> > because of a deadbeat partner, and these questions (and more) came
>> >>> up at a
>> >>> > meeting of the minds tonight.  I figured no better place to get
>> >>> the answer
>> >>> > than existing WISPs.
>> >>> >
>> >>> > Offlist, if need be.  This will be private for me only, just for
>> >>> > information.
>> >>> >
>> >>> > thanks
>> >>> >
>> >>> > R
>> >>> >
>> >>> >
>> >>> > --
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>> >>
>> >>
>> >
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>
>
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Lonnie Nunweiler
Valemount Networks Corporation
http://www.star-os.com/
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