Is it a comparable service? What do you give versus what they give?

On Tue, Oct 13, 2009 at 2:13 PM, Mike <[email protected]> wrote:
> Rick:
>
> The competition that came at me is 39.00.  Mine, if you pay promptly
> is 42.50.  They intentionally came in under me.  Like I've said, only
> 2 have jumped ship.
>
> At 11:08 AM 10/13/2009, you wrote:
>>But, do the ones who have a choice for cheaper service and out of
>>contract stay with you?
>>-RickG
>>
>>On Mon, Oct 12, 2009 at 11:28 PM, Mike <[email protected]> wrote:
>> > Similar to your example of perceived value, we extract a capital fee
>> > up front when putting on a new customer.  My accountant described it
>> > like joining a health club, you get to use the equipment but don't
>> > get to take it home.  The fee is the real cost of installing.  Easy
>> > ones are 150 bucks.  Others vary according to difficulty.  So they
>> > buy in to the whole thing from the get go.
>> >
>> > Our rates are 45.00.  If you pay on time, from email billing, you
>> > take off 2.50 and its 42.50.
>> >
>> > I think I have a very loyal bunch of customers.  I didn't know what
>> > to expect when the two year contracts started expiring, but MOST have
>> > stayed with us.
>> >
>> > Best Regards,
>> >
>> > Mike
>> >
>> > At 09:47 PM 10/12/2009, you wrote:
>> >>Mike,
>> >>
>> >>Since I began working, even as a teenager, I worked 60-80 hours a week
>> >>giving customers the best I could. I'm now 49 and still work at least
>> >>that many hours. At least now, I own my company and do it for myself.
>> >>In fact, before I owned my own company my reputation was "Mr.Service".
>> >>Heck, I've watched the sun rise from a customers computers! People
>> >>have always told me I have a great work ethic. I have always thought -
>> >>give'em great service and they'll stick. It's not true! Given the
>> >>opportunity, for less than $5/month they WILL switch without even an
>> >>apology!
>> >>So, dont get me wrong, I still give great service but have realized I
>> >>have previously given too much. All I did was take a lot of time away
>> >>from my family to help customers that only appreciate it at the time.
>> >>Again, I'm not saying dont give great service - what I am saying is
>> >>dont give away the store. Maybe you can afford it but every move you
>> >>make should be profitable, otherwise you will end up out of business
>> >>or in a poor mental state from work burnout. Have you ever looked at
>> >>the competition knowing you give better service yet they are still
>> >>winning? In fact, I've seen more people respect the competition
>> >>because they are higher priced or charge for everything. It is truly a
>> >>mindset. I believe there is a balance that must constantly be
>> >>maintained. Which is why I asked the question, billable or not?
>> >>Again, your business model may be different but using you scenario
>> >>below is difficult to achieve in mine. Perhaps your monthly rates are
>> >>higher, installation higher, or your bottom line is not as important
>> >>to you? Somebody always has to pay the piper. Most people understand
>> >>capitolism and the need to be profitable so you can pay the bills.
>> >>What good is it to go out of business just so they can go back to dial
>> >>up?
>> >>Furthermore, I have found another interesting outcome by giving work
>> >>away - other customers either come to expect it or get jealous.
>> >>What is really expected by the customers who give you their hard
>> >>earned money is a good product for what they pay. They also deserve an
>> >>efficiently run company with proper business practices to get the most
>> >>bang for their bucks. And on that note, isnt there always something to
>> >>do to improve the network? Why give so much time to one customer when
>> >>you can work on the network and improve it for all? I realzie you said
>> >>minor things but it all adds up. What they should expect is exactly
>> >>what you put in the contract and/or TOS. In my case, it's the
>> >>bandwidth I promised them and working equipment to get it there. All
>> >>else is not part of the contract and therefore should be billable.
>> >>
>> >>-RickG
>> >>
>> >>On Mon, Oct 12, 2009 at 9:48 PM, Mike <[email protected]> wrote:
>> >> > When I was a young man, a writer, I was idealistic and ready to
>> >> > conquer the world.  In short order I grew up and lost my
>> >> > idealism.  Since starting this business I have regained some of
>> >> that idealism.
>> >> >
>> >> > My experience is the opposite.  I usually take care of those
>> >> > customers who need minor help with things THEY consider part of MY
>> >> > network.  I would not have gone overhead unless  there was no way to
>> >> > trench.  Direct burial cable is cheap.  A trench can be made with a
>> >> > power edger with a new blade.  An aerial should be tied to a
>> >> > supporting rope or wire.
>> >> >
>> >> > Most of my customers knew they couldn't get Internet except slow
>> >> > dialup before we came along.  Is it loyalty?  A new company has been
>> >> > selling in my county off of their cellular towers.  I have only lost
>> >> > 2 customers to them.
>> >> >
>> >> > Never underestimate the power of good customer service.
>> >> >
>> >> > Mike
>> >> >
>> >> > At 07:58 PM 10/12/2009, you wrote:
>> >> >>I used to think that but I have found no matter how much you give
>> >> >>away, there is no loyalty! The monthly rate is all most care about.
>> >> >>
>> >> >>On Mon, Oct 12, 2009 at 11:40 AM, Mike <[email protected]> wrote:
>> >> >> > If it is a good customer, I'd either do it for nothing, or for
>> >> >> > materials.  You may just retain that customer for the next two years
>> >> >> > because of your good will.
>> >> >> >
>> >> >> > If he is prepared for $50  and its easy and doesn't take you long,
>> >> >> > you can say give me $20.00 for the cable and the custom ends, and
>> >> >> > we'll call it even.
>> >> >> >
>> >> >> > Either way, you'll make a friend/keep a customer; and they do talk.
>> >> >> >
>> >> >> > Our hourly billing is $60.  Usually to make network settings, get
>> >> >> > virus protection on a machine ...
>> >> >> >
>> >> >> >
>> >> >> > At 09:52 AM 10/12/2009, you wrote:
>> >> >> >>Here's the scenario: Customer has an aerial ethernet run from his
>> >> >> >>garage to his home. A tree branch fell and cut the line. I told him
>> >> >> >>we'll replace it for a $50 fee. Does this sound fair?
>> >> >> >>Also, does anyone have a fee schedule they use for billable calls?
>> >> >> >>Thanks!
>> >> >> >>-RickG
>> >> >> >>
>> >> >> >>
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