We have been charging the same for internet service for almost 5
years.... and just two days ago, we got double the new sign-ups on a
single day of what we can do for installs. Business is booming in our
area and our industry. Just looking at our 2008 financials, our gross
revenues are up 15.2% and our Net Profit is up 10.3%.
And I'll take the bet on being able to lease or finance equipment in 6
months. How much shall we throw on the table? I have lease companies
calling me daily wanting to give me money... seriously... I get 3-4
calls PER WEEK from all different leasing companies. They all have
money and want "credit worthy" companies to use it, because that's how
they make money.
So again, how much shall we bet on this? :)
Travis
Microserv
rea...@muddyfrogwater.us wrote:
++++++++++++++++++++++++++++++++
<insert witty tagline here>
----- Original Message -----
From: "Travis Johnson" <t...@ida.net>
To: "WISPA General List" <wireless@wispa.org>
Sent: Thursday, January 01, 2009 7:24 PM
Subject: Re: [WISPA] Congress may help smaller ISPs grow
You can not grow in large scales without financing... and I don't
understand why people are against it. Our last equipment lease was under
10% interest, no personal guarantees, no money up front. We were able to
purchase a large quantity of CPE units (thus saving us about 20% off the
single unit price). So, in the end, it actually saves money and the "cost"
of installing a new customer is $0 to you, because the $99 installation
fee pays for the time, materials, etc.
Example:
single CPE = $190 each
460 CPE = $155 each
36 month lease on $71,300 = $2,300 per month x 36 months = $82,800 / 460
units = $180 each
But in 36 months, you might be able to charge no more than 10 dollars /
month per customer. That's the magic of deflation - which is already
occurring.
And it costs you $5 per month for 36 months for the equipment on that
customer... that's pretty cheap even if you only charge $29 per month. :)
Whatever happens in the future... It will NOT be the same as today.
Inflation or deflation will happen. No way around it. Congress has
already taken on more debt than can be serviced. Neither scenario will
let you survive being in debt.
Besides, don't expect to be able to lease equipment at any rate or terms
within 6 months.
Travis
Microserv
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