| Help is on the way I am sure we will send some helpful industry clowns up north to help the poor Canadian ISP's with their PR issue. |
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| Covering cost vs profit I don't see how an item's or a service's actual cost reflects the market price though. With other goods and services thanks to cheap labor overseas they cost very little to make. Yet companies charge a significant sum for them.
Why is that? The answer is profit and shareholders. You can't really fault companies for wanting to make a profit and shareholders for wanting a decent return. It's not always about what's the consumer wants. If the price is too high for something I simply don't buy it. I'm sure if enough people did that the price of a product or service would adjust to where people would be comfortable buying it. |
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 MarkAWBarry WhitePremium
join:2001-08-27
Canada
kudos:16 | financially necessary quote:
You'll recall that when Time Warner Cable tried to impose low caps and high per gigabyte overages on users here in the States, they proclaimed that such a move was simply financially necessary -- and that flat-rate broadband pricing wasn't sustainable.
»www.youtube.com/watch?v=SEIls-iZtx0 |
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| reply to WernerSchutz
Re: Help is on the way this type of price gouging is pure BS as all of us techie guys know and knew already.think hard before you answer.remember how much it cost for computer hardware years ago.i do remember the costs.
how about spending $500 bucks for a measly 8 megs of RAM.How about spending $800 for a 16 gig SCSI drive.i could go on and on but i am sure there are intelligent people on this forum who already know that UBB is a piece of krap.
and if it tries to come to the USA then we will see some crazy protests........................and then whoever offers the standard pay a monthly flat rate bill will come on top while the greedsters go the route of the dinosaur.
this law in canada has screwed me as an artist.i have not only a band website but i also run a holocaust site here.
»www.bigmeathammer.com/aushwitz.htm
this site is a memorial to all those jews who came from the carpathian mountain region.my full length 5 1/2 documentary is there for download.6 DVD images from my master 3/4" video tapes.
that will be a huge download but available to the world for free by me.
now wonder how many interested canadians might want to learn of their family routes and now find that to do this they must download
6 x DVD = over 24 gigs.
if the world goes to a UBB then you can kiss projects like mine goodbye.and of course steam games,online video,innovations,etc. |
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| reply to fifty nine
Re: Covering cost vs profit said by fifty nine:I don't see how an item's or a service's actual cost reflects the market price though. With other goods and services thanks to cheap labor overseas they cost very little to make. Yet companies charge a significant sum for them.
Why is that? The answer is profit and shareholders. You can't really fault companies for wanting to make a profit and shareholders for wanting a decent return. It's not always about what's the consumer wants. If the price is too high for something I simply don't buy it. I'm sure if enough people did that the price of a product or service would adjust to where people would be comfortable buying it.
It is NEVER about what the consumer wants when monopoly or collusion conditions exist and governments do not enforce competition conditions in order to benefit customers, as they should. |
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| It *IS* financially necessary Bigger profits with minimal expense... After all ISP's are businesses, and the primary duty of a business is to bring profits for the shareholders. |
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 VanPremium
join:2009-07-08
New Orleans, LA | We have seen how these companies are trying to change who is defined as an "abuser"
People now using their phone a decent amount are being pegged as an "abuser" if you watch a few movies, email often, etc....
We were originally told that those teethering 24/7 and/or uploading 24/7 were using up ALL THE SPACE!
Then suddenly, grandma watching several Netflix movies one week was the TRUE ABUSER!
What a joke |
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 TechieZeroTools Are Using MePremium
join:2002-01-25
Gibsonton, FL
 ·Verizon FiOS
| reply to WernerSchutz
Re: Covering cost vs profit It is ALWAYS about that even in a "monopoly" situation.
Companies want more accounts not less as there is a chance to do more cross-selling.
Also;
If the government beats down the ISPs it will IMO set you back as potential competitors will not bother to set up shop or even try. |
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| reply to cowboyro
Re: It *IS* financially necessary agreed! what people don't realize is that businesses are NOT charities.
if there were no profits to be made, there would be no incentive for anyone to create or invent anything
in general, unfortunately, we aren't currently living in some nice utopian society. people won't just work really hard just "for fun".
if we started actually forcing companies to price items and services AT COST, no one would put the effort in just to "break even".
it's a dumb argument to say "oh, it costs x cents so why do they charge so much more?". at what level is fair? who decides? you?
look at the power of 'branding'. why does a can of pepsi cost more than a no name brand of cola? the discrepancy exists, because pepsi has poured a TON of money into advertising and branding and by virtue of its own hard efforts can command a premium.
telcos, innovative and pouring BILLIONS into their networks, should no be forced to deliver goods at 'cost'. there is no economic incentive to start up the business in the first place, if this was the case. |
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| reply to fifty nine
Re: Covering cost vs profit Market economics don't work if you have an addictive product like heroine or if you have a monopoly with regulatory collusion on a product that is rapidly becoming a necessity. You can argue that internet access is a luxury, but with each passing year, in a competitive global economy, immediate access to global information is such a competitive advantage that it really is becoming a necessity. |
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 Camelot OnePremium,MVM
join:2001-11-21
Greenwood, IN
kudos:1 | reply to Van
Re: We have seen how these companies Oh com on now. Anytime a customer chooses to get the same (or better) content for less, they are an abuser. That is just basic economics!  |
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| reply to Racket
Re: Covering cost vs profit So what are you saying? That the internet should be funded by the Gov't and run by Gov't employees (like you?)
Good luck keeping costs under control if that's the case. |
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| reply to MarkAW
Re: financially necessary I really liked the way George handles the "share holder". Thanks for posting... |
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| reply to Racket
Re: Covering cost vs profit Which private corporation is going to sell internet access at cost? |
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| reply to fifty nine
The difference here is that they're getting government sanction raping of customers. There is no competitive for here. Everyone has caps, so there is no choice for the customer other than do without. |
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| reply to fifty nine
This is true but just as the telephone and the telegraph line before it this i more than just "it's too expensive I don't need it". Internet access has become more of a neccesity than anything else. The reason for going to charing per byte has been the same it's inception, they are trying to cover their arses. They realized too late in the game that there are other services out there cheaper than their own they can get through the internet and they don't want to be a dumbpipe. They fear this more than the anything. |
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| reply to fifty nine
Well, of course, economically speaking there certainly should be profit in even a decently competitive market. No one is suggesting that the price = marginal cost of atomistic competition.
But at $2/GB, and their cost at 3 cents a GB, that's a 98.5 percent profit margin. That is wildly obscene. And even that is downplaying it, as the substantial majority of users won't come close to hitting the 25GB/month cap. So these overages are pure profit.
So it's not financial need. And it's not congestion pricing, or they'd only invoke it during times of actual congestion. It's just pure greed, which is fine, that's capitalism, but in this case the regulator's job is to protect the interests of the entire country, not just a few powerful companies. |
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 N3OGHYo Soy Col. "Bat" GuanoPremium
join:2003-11-11
Philly burbs
kudos:1 | reply to Racket
said by Racket :Market economics don't work if you have an addictive product like heroine
I have to agree with you, women of distinguished courage or ability, admired for their brave deeds and noble qualities are indeed addictive. 
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Petty people are disproportionally corrupted by petty power |
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Gami00
join:2010-03-11
Mississauga, ON | reply to jarretautech
Re: It *IS* financially necessary no one is asking to price things at cost..
what people are against, are pricing things at 10000% markup.
then FORCING your competition to price the exact same way.. |
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Reviews:
·AT&T U-Verse
| said by Gami00:no one is asking to price things at cost..
what people are against, are pricing things at 10000% markup.
then FORCING your competition to price the exact same way..
Ever heard about bottled water?
The price of [insert item name here] is the amount someone is willing to pay for it. |
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