That's an interesting way of calculating the ROI. You could also take out fixed costs from your calculations and only add in those (variable) costs that relate directly to the new sub. If you aren't adding staff or getting a bigger office, you wouldn't need to factor those costs into the calculation.
Jeff -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Marlon K. Schafer Sent: Thursday, November 29, 2007 9:47 PM To: WISPA General List Subject: Re: [WISPA] What basic ROI do you target? For AP's it's ok if I pay them off in 3 to 4 years. I try to do 4 year loans for all hardware. For CPE this gets more complicated. Everyone wants to count gross income from that customer to pay off the gear. That's really not right though as every customer has a cost to them. We use NET revenue to figure out payback times. I ran about a 20% margin last year, it'll be higher than that this year but I don't have the numbers yet so I'll stick with the easy number. At an average of $37.5 per sub we figure it out at $8ish per sub per month. We loose $50 to $100 per installation. It's a bit better than that right now as the hardware has come down a bit but we're holding the installation costs up. So I'm in the 7 to 13 month time frame to go cash flow positive on each customer. Our growth rates are running over 25% per year so this time lag can be a real issue. In fact, it's probably THE hardest thing for us to manage. laters, marlon ----- Original Message ----- From: "Patrick Leary" <[EMAIL PROTECTED]> To: "WISPA General List" <[email protected]> Sent: Thursday, November 29, 2007 4:35 PM Subject: [WISPA] What basic ROI do you target? I am curious about how divergent the responses may be. In your answer, include just the cost of the truck roll and CPE measured against any set-up and service initiation fees charged with the monthly subscription fee. Years ago, it was not uncommon for WISPs to say they need a 24-month basic return per subscriber. These days I suspect most will say under 9 months. Patrick Leary AVP, Market Development Alvarion, Inc. o: 650.314.2628 c: 760.580.0080 [EMAIL PROTECTED] **************************************************************************** ******** This footnote confirms that this email message has been scanned by PineApp Mail-SeCure for the presence of malicious code, vandals & computer viruses(84). **************************************************************************** ******** **************************************************************************** ******** This footnote confirms that this email message has been scanned by PineApp Mail-SeCure for the presence of malicious code, vandals & computer viruses. **************************************************************************** ******** ---------------------------------------------------------------------------- ---- WISPA Wants You! Join today! http://signup.wispa.org/ ---------------------------------------------------------------------------- ---- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ ---------------------------------------------------------------------------- ---- WISPA Wants You! Join today! http://signup.wispa.org/ ---------------------------------------------------------------------------- ---- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
