I would say these discussions are kind of meaning less because these definitions are different from one accountant to another. But if the question is rephrased how to "does you guys define your COGS." Because even if people are WISPs there are so many different approaches to being a WISP on these list that you would never get a agreed COGS or ARPU for the "wisp" industry. You have guys here that only target businesses then other guys that only do residential. Third guy that is doing it on the side and have a "real" job. Then you have the company with 5k+ customers. Another company that is doing computer sales/repair and networking work and offers webhosting and online backups etc etc etc.
http://en.wikipedia.org/wiki/Cost_of_goods_sold Is the "Wikipedia" definition of COGS. For hardware we sell we include in COGS shipping costs to get items here and any other import/shipping related costs plus of course the item. For WISP customer I would in COGS include truck roll cost, cost of radio and other hardware, labor for installation. Possibly factor in cost of AP and backhaul costs as well internet usage fees but there it gets tricky so would probably not include that there but charge that to different account. / Eje -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of RickG Sent: Tuesday, January 06, 2009 1:44 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee <[email protected]> wrote: > Matt, > You would generally count just the one "unique" customer. > > That said, every ARPU calculation I have seen seems to be slightly > different which in itself reflects the different definitions of > customers and revenue. One example is treatment of MDU (Multiple > Dwelling Unit) Apartments which is sometimes dealt with as a single > customer (the apartment owner / HOA) and sometimes at the more granular > tenant level. > > It's probably more important to pick a methodology that's justifiable - > a good test would be if you send your customer 1 or many invoices / get > 1 payment? - and apply it consistently. > > Shiraz > > -----Original Message----- > From: [email protected] [mailto:[email protected]] On > Behalf Of Matt Liotta > Sent: Monday, January 05, 2009 12:15 PM > To: WISPA General List > Subject: Re: [WISPA] what should ARPU mean? > > What if one customer signs two different contracts? at two different > locations? > > Is there ever a point where a single customer should for the purposes > of ARPU be considered at a less granular level? > > -Matt > > On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: > >> My assumption has always been adding up all your gross revenues from >> the >> customers and dividing by the number of customers. I had never heard >> of >> anything different. What are you hearing? >> >> Travis >> Microserv >> >> Matt Liotta wrote: >>> We (the WISP industry) like to talk about ARPU a lot, but different >>> organizations define ARPU differently. So, my question is what do you >>> think the definition of ARPU should be? >>> >>> -Matt >>> >>> >>> > ------------------------------------------------------------------------ > -------- >>> 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! 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