I was expecting you to chime in Tom :) Thats exactly what I'm talking
about and agree 100%. I cant figure out how $24.95 or even $29.95
works. But then, what number does? I realize when talking dollars that
everyone's answer will vary because of a number of factors. But on a
percentage basis, does 5% of gross revenue for a bottom line net
profit work? We know it cant be 0%. I've seen companys try 0% or even
less net profit to grab market share but sooner or later they've go to
pay the piper. Ignoring that scenario, isnt profitability what really
dictates your price? Its a balancing act for sure. If your
income(price) is too low and expense(costs) are too high then you cant
acheive the 5%-10% and please your wallet. On the contrary, you cant
take too much profit or you wont be able to put it back into the
business (upgrades, etc) and please the customers. So, I go back to
what Jayson said:
 "Jayson Baker <jay...@spectrasurf.com> wrote:
"$24.95/mo gets you 12Mbps/6Mbps.  $49.95/mo gets you 20Mbps/6Mbps. We
guarantee minimums--not just an "up to" speed."

I want to know how he is doing it and if it is sustainable. If so,
then I want to do it too.
-RickG

On Thu, Mar 25, 2010 at 4:28 PM, Tom DeReggi <wirelessn...@rapiddsl.net> wrote:
> There is only one way to make money at $24.95, and that is to stop answering
> the phone.  Setup a fancy website for self help everything. And customer is
> on their own.
> I'm all for Self-help as an OPTION, but not as a forced requirement.  We all
> know what I'm talking about.... all the things consumers complain about that
> are a repurcussion of $24.95 service.
> Phones answered by reception level skill sets. Billing disputes that are
> solved by disconnecting service on teh 2nd of the month, if the consumer
> didn't pay online regardless of whether there was a valid dispute. The
> customer down for a week, and nobody at teh provider really knew, and if
> they did and were called on it, they point to the clause in the Terms and
> conditions that says "30days". The type of installs, where the Dish gets
> installed right over the front door, because the installer was to lazy to
> get his ladder of the truck, and the 1hr allowed for install didn;t allow a
> more resourceful method to obtain a cosmetic appealing way to get LOS. The
> self-install that generates 50% packet loss, and degrades the network
> performance for all, but so what, its a Best Effort, right?
>
> Personally, I'll never do business that way. The day I have to be a $24.95
> provider, I'll do something else. Some people may think otherwise, and are
> better at that game than I.
>
> Please note... I'm referring to provisioned Fixed Service meant to compete
> against DSL/cable quality. I'm not talking about HotSpot type Wifi, that can
> be done profitably at $15/month, because there are different expectations.
>
> I just keep thinking of the recent Giant Foods experiment. One of our local
> stores became the test bed for self check out registers. Instead of having
> 10 lanes with a person and 2 self check lines, this store actually converted
> like 10 lanes to self-checkout and 2 with a person. Its a night mare.
> Soemtimes for fun, I just watch the people going through the self-check and
> how frustrated they get. Self bagging was OK, but struggling to find the
> label, and getting that darn beeper to recognize the bar codes, and trying
> to watch a 3 year old or three at the same time as jumping back and forth
> between the middle of the line where the scanner is and the back of the lane
> where the grocery cart unscanned groceries sit and the front of the line
> where the finished scanned groceries are put, What a night mare. All it did
> was create these huge lines at the two lanes that actually had a person
> there. 50% of the stores customers ether started shopping at a different
> Giant that still employed people, or started going to Safeway accross the
> street.  Its the best example that I've ever seen that has proven people
> want ease, peice of mind, and service. Or... maybe even the friendly
> relationship to speak to a person, after being cooped up in the house all
> day.  People dont want to troubleshoot their Internet service anymore than
> they want to go to the self-checkout lane with a full cart of groceries.
> And when they want some help, they want one of those special help customer
> service desks like most Giant's have, they dont want to wait in line.
>
> Just my 2 cents.
>
>
> Tom DeReggi
> RapidDSL & Wireless, Inc
> IntAirNet- Fixed Wireless Broadband
>
>
> ----- Original Message -----
> From: "Scott Reed" <scottr...@onlyinternet.net>
> To: "WISPA General List" <wireless@wispa.org>
> Sent: Wednesday, March 24, 2010 3:38 PM
> Subject: Re: [WISPA] how to compete with $15 DSL
>
>
>> Your question has some of the answer in it.  What do you want for ROI
>> (return on investment) timing?  The answer to that helps determine
>> installation charge and how much you have to charge per month.
>>
>> RickG wrote:
>>> Sure but I'm more curious about the business model for making money at
>>> such low prices. UBNT is priced right and certainly helps but it would
>>> still be tough to make a profit at only $24.95/month. I havent seen
>>> one a financial discusion on the list in a very long time. I though
>>> market share models died a long time ago. Are people still out there
>>> losing money in the short term in order to make money on the long
>>> term?
>>>
>>> On Wed, Mar 24, 2010 at 2:39 PM, Mike Hammett <wispawirel...@ics-il.net>
>>> wrote:
>>>
>>>> Mikrotik, StarOS, or UBNT could all deliver those speeds.
>>>>
>>>>
>>>> -----
>>>> Mike Hammett
>>>> Intelligent Computing Solutions
>>>> http://www.ics-il.com
>>>>
>>>>
>>>>
>>>> --------------------------------------------------
>>>> From: "RickG" <rgunder...@gmail.com>
>>>> Sent: Monday, March 22, 2010 8:19 PM
>>>> To: "WISPA General List" <wireless@wispa.org>
>>>> Subject: Re: [WISPA] how to compete with $15 DSL
>>>>
>>>>
>>>>> If so, with what equipment?
>>>>>
>>>>> On Mon, Mar 22, 2010 at 1:35 PM, Marco Coelho <coelh...@gmail.com>
>>>>> wrote:
>>>>>
>>>>>> Are you delivering that wireless?
>>>>>>
>>>>>> mc
>>>>>>
>>>>>> On Tue, Mar 16, 2010 at 9:08 PM, Jayson Baker <jay...@spectrasurf.com>
>>>>>> wrote:
>>>>>>
>>>>>>> That's what we did.  $24.95/mo gets you 12Mbps/6Mbps.  $49.95/mo gets
>>>>>>> you
>>>>>>> 20Mbps/6Mbps.
>>>>>>> We guarantee minimums--not just an "up to" speed.  A lot of people
>>>>>>> really
>>>>>>> like that too.
>>>>>>> Our packages: www.peakinter.net
>>>>>>>
>>>>>>> On Mon, Mar 15, 2010 at 11:14 PM, MDK <rea...@muddyfrogwater.us>
>>>>>>> wrote:
>>>>>>>
>>>>>>>
>>>>>>>> One of the things you have to keep in mind, is that you really do
>>>>>>>> have
>>>>>>>> to
>>>>>>>> offer your customers a decent value for their dollars.    35 Bux for
>>>>>>>> a
>>>>>>>> fraction of a meg is darn steep pricing these days.   We offer a
>>>>>>>> 300K
>>>>>>>> for
>>>>>>>> 25
>>>>>>>> and 2 meg for 38.50, which is reasonably competitive.
>>>>>>>>
>>>>>>>> You don't' need to be the cheapest to be "competitive", but you
>>>>>>>> can't
>>>>>>>> be
>>>>>>>> way
>>>>>>>> outside of normal pricing.
>>>>>>>>
>>>>>>>> I'm thinking of throwing up some MIMO gear and offering something
>>>>>>>> like
>>>>>>>> a 7
>>>>>>>> meg service.    Was thinking of making it about 75 / mo.    Not the
>>>>>>>> cheapest.   Not the most expensive, either.     What would 7 meg be
>>>>>>>> in
>>>>>>>> your
>>>>>>>> area?
>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>> ++++++++++++++++++++++++++++++
>>>>>>>> Neofast, Inc, Making internet easy
>>>>>>>> 541-969-8200  509-386-4589
>>>>>>>> ++++++++++++++++++++++++++++++
>>>>>>>>
>>>>>>>> --------------------------------------------------
>>>>>>>> From: "Kurt Fankhauser" <k...@wavelinc.com>
>>>>>>>> Sent: Sunday, March 14, 2010 8:05 AM
>>>>>>>> To: "'WISPA General List'" <wireless@wispa.org>
>>>>>>>> Subject: [WISPA] how to compete with $15 DSL
>>>>>>>>
>>>>>>>>
>>>>>>>>> Local phone company here just expanded their DSL coverage area and
>>>>>>>>> mailed
>>>>>>>>> out fliers to everyone for $15 DSL. I see no mention of it being a
>>>>>>>>> promotional price. One person said as long as you have it they will
>>>>>>>>> not
>>>>>>>>> raise the rate from $15. Think its for 768k service. Anyways we are
>>>>>>>>> getting
>>>>>>>>> about 1 person a day switching from our $35/month/768k wireless
>>>>>>>>> service
>>>>>>>>>
>>>>>>>> to
>>>>>>>>
>>>>>>>>> this DSL. Does anyone have any suggestions as to how to retain
>>>>>>>>> these
>>>>>>>>> customers???? They are not even giving us a chance to offer them a
>>>>>>>>> lower
>>>>>>>>> price as they all already have the DSL turned on and been using it
>>>>>>>>> for a
>>>>>>>>> month before they cancel ours.
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>> Kurt Fankhauser
>>>>>>>>> WAVELINC
>>>>>>>>> P.O. Box 126
>>>>>>>>> Bucyrus, OH 44820
>>>>>>>>> 419-562-6405
>>>>>>>>> www.wavelinc.com
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>> --------------------------------------------------------------------------------
>>>>>>>>
>>>>>>>>> WISPA Wants You! Join today!
>>>>>>>>> http://signup.wispa.org/
>>>>>>>>>
>>>>>>>>>
>>>>>>>> --------------------------------------------------------------------------------
>>>>>>>>
>>>>>>>>> WISPA Wireless List: wireless@wispa.org
>>>>>>>>>
>>>>>>>>> Subscribe/Unsubscribe:
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>>>>>>>>>
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>>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>> --------------------------------------------------------------------------------
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>>>>>>>>
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>>>>>>> --------------------------------------------------------------------------------
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>>>>>>>
>>>>>>
>>>>>> --
>>>>>> Marco C. Coelho
>>>>>> Argon Technologies Inc.
>>>>>> POB 875
>>>>>> Greenville, TX 75403-0875
>>>>>> 903-455-5036
>>>>>>
>>>>>>
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>>>>>>
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>>>
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>>>
>>
>> --
>> Scott Reed
>> Sr. Systems Engineer
>> GAB Midwest
>> 1-800-363-1544 x2241
>> 1-260-827-2241
>> Cell: 260-273-7239
>>
>>
>>
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