1800 subs, 18 employes and profitable Sent from my Motorola Startac...
On Jan 5, 2010, at 7:15 PM, "Josh Luthman" <[email protected]> wrote: > 200 subs, 2 owners, 3 employees and profitable... > > Super amazing fortunate we are. > > Josh Luthman > Office: 937-552-2340 > Direct: 937-552-2343 > 1100 Wayne St > Suite 1337 > Troy, OH 45373 > > "The secret to creativity is knowing how to hide your sources." > --- Albert Einstein > > > On Tue, Jan 5, 2010 at 7:06 PM, Matt Jenkins <[email protected] > >wrote: > >> Our company has almost 800 customers at the moment and 4 employees >> and >> is profitable! >> >> Charles Wu wrote: >>>> Once you get to say 1000+ customers, things like having the staff >>>> for >>>> service calls and time to repair for customers are often more >>>> important >>>> than the brand of radio or the original cost of the radio. We do >>>> spend >>>> more on payroll than radios, despite deploying lots of expensive >>>> gear. >>>> Keeping CPE prices down is appreciated and important, but less >>>> tangible >>>> ongoing management, troubleshooting, and repair costs must also be >>>> considered. The reduction in support costs isn't an expection, >>>> it's a >>>> reality and requirement in many situations. >>> >>> When you're working as a startup, labor costs are essentially zero >>> (and >> if you're asian like myself, you can call on your >> kids/relatives/grandparents to work nights and weekends -- the >> classic >> Chinese restaurant business model =) >>> >>> However, when working with employees (and I don't care how smart / >> hard-working / strong willed you are, there's still only 24 hours >> in a day) >> -- labor costs become a bigger factor as the organization scales >>> >>> So this brings up a more interesting debate -- e.g., one-man band / >> mom-and-pop vs. organizational strategy >>> >>> As an organization, trying to run a WISP with 700 residential >>> customers >> is a complete waste of time, however, as a one-man-band -- an 700 >> customer >> WISP can be highly profitable >>> >>> The problem here is that there's a nasty chasm between what the >>> one-man >> band can handle and what an organization needs to support itself >> (e.g., it >> doesn't scale linearly) >>> >>> The picture looks more like this >>> >>> 700 customers -- one-man band (or equivalent) -- highly profitable >>> >>> Then -- they start hiring employees to grow and scale the business >>> >>> Unfortunately, there's a minimum amount of overhead required, and >>> what >> was once a profitable business is now bleeding red ink and needs to >> reach >> 2,000 customers before things get good again >>> >>> Which creates an interesting question -- if you're such a WISP, do >>> you >> just stop and sit tight at 700 customers? Or do you "go-for-broke" >> by trying >> to grow? >>> >>> -Charles >>> >>> >>> -----Original Message----- >>> From: [email protected] [mailto:wireless- >>> [email protected]] On >> Behalf Of jp >>> Sent: Tuesday, January 05, 2010 10:36 AM >>> To: WISPA General List >>> Subject: Re: [WISPA] Wimax gear >>> >>> On Mon, Jan 04, 2010 at 05:28:49PM -0600, Wallace Walcher wrote: >>>> Having built my WISP from scratch with my own resources and >>>> currently >> being >>>> debt free in my operations, I often wonder who the people are who >>>> so >> quickly >>>> classify Mikrotik and Ubiquity gear as trash. I am making a very >>>> good >>>> living deploying such "trash". >>> >>> I'm not ashamed of calling their bluff when they say something is >>> "carrier class", and it's not even released yet and then has >>> firmware >>> their either sets the timing wrong to the point of destroying the >>> link >>> or doesn't do vlans, and the firmware isn't pulled offline because >>> it's >>> the best stuff available. >>> >>> I've got a couple UBNT M links up and like them, and believe it >>> has a >>> future. I just can't put my whole business on the line while they >>> refine >>> a product. It is wise and irrestible to try the stuff though. >>> >>> I've got a downtown network of UBNT 802.11 gear, and the nanos and >>> bullets just can't handle the interference as I'd like. It was >>> intended >>> to be an upgrade from the breezecom FH gear which was slow but >>> reliable. >>> The UBNT is faster, but less reliable in the presence of local >>> interference. Now, if someone has an interference problem, we >>> immediately swap them over to Alvarion 5.4 gear. It is more >>> expensive, >>> but we know we'll never have a service call after it's put in >>> unless it >>> gets hit by lightning or the customer wants to upgrade. We would >>> have >>> been wise to upgrade straight from the old stuff to 5.4. I'd still >>> recommend the UBNT CPE for truly rural use. >>> >>> Then MT is always making something wonky. A couple years ago, you >>> could >>> crash the MT with a SNMP query. Now, if you put an N card in and >>> upgrade >>> the firmware in your 433ah to 4.4, you might lose the ethernet >>> ports. I >>> stay 1-4 months behind on their firmware because it's a mystery >>> what you >>> might get. Changelogs show less than half of what they change. I >>> do like >>> them for basic routing and also use their gear for a few links. I >>> think >>> it's a step up from UBNT for ptp 802.11 based links. I also like MT >>> because it's pretty low power use, which has practical value for >>> solar >>> sites or sites needing long battery backup. We don't have the time >>> to >>> tinker to use it for everything. We tried 900 with SR9 then XR9 >>> and the >>> reliability wasn't there compared to what we were accustomed to with >>> Trango and Alvarion. >>> >>> Once you get to say 1000+ customers, things like having the staff >>> for >>> service calls and time to repair for customers are often more >>> important >>> than the brand of radio or the original cost of the radio. We do >>> spend >>> more on payroll than radios, despite deploying lots of expensive >>> gear. >>> Keeping CPE prices down is appreciated and important, but less >>> tangible >>> ongoing management, troubleshooting, and repair costs must also be >>> considered. The reduction in support costs isn't an expection, >>> it's a >>> reality and requirement in many situations. >>> >>> A minor glitch that affects a few customers outside of town is not >>> a big >>> deal, but if the glitch requires half a day on the road or requires >>> aircraft, boats, snowcats, or sleds, it could cost hundreds of >>> dollars >>> and mess up a lot of customers. >>> >>> I'd fear for my welfare if everything was built on UBNT and MT >>> though. >>> >>> We use Alvarion 900, 2.4 (not going forward), 5.4, 5.8, Trango >>> (lots of >>> 900 installed, but not going forward), MT, UBNT, and now Solectek >>> and >>> Radwin. >>> >>> My WISP is pretty low debt 100% privately owned and financed, and we >>> often choose higher end equipment. You do get what you pay for, >>> but of >>> course there are diminshing returns the higher end you go. >>> >>> >>>> My perception is they are either people who are not spending >>>> their own >> money >>>> - they are working for the investor, or possibly borrowing or >>>> leasing >> the >>>> equipment, or they are a vendor promoting their own high margin >>>> goods. >>>> Those that are WISPs seem to have the perception that it is >>>> better to >>>> install higher cost equipment, no matter what the cost, if it will >> provide >>>> them an expected reduction in support costs. >>>> >>>> What I have found in my area is that people who deploy such >>>> equipment >> have a >>>> very hard go of it, mainly because the replacement costs during the >> storm >>>> season eat their lunch. My operational plan is different than >>>> some - I >>>> focus on residential customers on the outskirts of town that do >>>> not have >>>> access to Cable and DSL. Those focusing on business accounts in >>>> cities >>>> would understandably have a different perspective. But I feel very >>>> fortunate to have a sub $200 total CPE cost (sometimes sub $100) >>>> with >> the >>>> Mikrotik-type solution. >>>> >>>> >>>> >> --- >> --- >> --- >> --- >> -------------------------------------------------------------------- >>>> 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/ -------------------------------------------------------------------------------- WISPA Wants You! 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