Plus, one really should count the payback on NET per customer revenue not gross. That customer does have a bandwidth cost, tech support cost, billing cost, tower capacity cost etc.

marlon

----- Original Message ----- From: "Travis Johnson" <[EMAIL PROTECTED]>
To: "WISPA General List" <[email protected]>
Sent: Tuesday, February 20, 2007 9:35 AM
Subject: Re: [WISPA] For those in business just about a year...


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'" <[email protected]>; "'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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