funchords
Hello
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join:2001-03-11
Washington, DC
 ·Verizon Online DSL
 ·Skype
| An HSI account is $40 a month profit...
A good friend of mine who has studied this more than I have reports that Internet profits are about $40 per account.
I thought that was high, but then that figure that was also in a PALI Equity Research piece by Richard Greenfield on May 21st "Content Owners Must Follow..." (sorry, no link, free subscription required).
So $200 after four months is a pretty darn good rebate. That said, wouldn't it be better to cut the price by $20 or so and you can retain your customers because you're giving them a better deal?
PS: I still think it's funny that people see value in having a wireline phone.
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Robb Topolski -= funchords.com =- District of Columbia -- KJ7RL |
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baineschile
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join:2008-05-10
Sterling Heights, MI
 ·Comcast
·magicjack.com
 ·Verizon Wireless B..
| said by funchords  :A good friend of mine who has studied this more than I have reports that Internet profits are about $40 per account. Grandma Baineschils has ATT which she pays $25/month for (in conjunction with POTS as well, of course), and a few friends have the "economy" comcast internet, which is about the same price.
Personally, I pay 42.95 for Comcast, so I dont know how their profit ratios are that high.
I can see that type of profit on a commercial of business unit, but thats because they charge them huge amounts, and only add a few smaller added services (hosting, tech support, etc) |
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JSRoman
Premium
join:2005-03-10
Callahan, FL
| reply to funchords
Cutting the price of an item/service makes it extremely hard to raise the price of that item/service in the future.
Once folks get a taste of free or reduced pricing they come to expect it. Look at Gm car sales, cash rebate vs no cash rebate, the current battle over metered billing, pay news sites like WSJ. Murdock is on record as saying he won't make it free since he thinks if he does he would never be able to charge for it in the future.
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»www.seabee.navy.mil |
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funchords
Hello
Premium,MVM
join:2001-03-11
Washington, DC
·Verizon Online DSL
·Skype
| reply to baineschile
said by baineschile :Personally, I pay 42.95 for Comcast, so I dont know how their profit ratios are that high. I'm sure it's an average. With Comcast, that $42.95 rate means that you don't rent your modem -- and, correct me if I'm wrong, means you have a reduced tier unless you also subscribe to TV or phone.
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Robb Topolski -= funchords.com =- District of Columbia -- KJ7RL |
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BB User
@charter.com
| reply to funchords
said by funchords :A good friend of mine who has studied this more than I have reports that Internet profits are about $40 per account. That's a useless stat without a baseline price and timeframe. |
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funchords
Hello
Premium,MVM
join:2001-03-11
Washington, DC
·Verizon Online DSL
·Skype
| said by BB User :said by funchords :A good friend of mine who has studied this more than I have reports that Internet profits are about $40 per account. That's a useless stat without a baseline price and timeframe. Which is, probably, why I followed it with the next paragraph.
Sheeesh, tough room this morning.
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Robb Topolski -= funchords.com =- District of Columbia -- KJ7RL |
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sonicmerlin
join:2009-05-24
Cleveland, OH
| Why do people quote individual sentences while ignoring the rest of the paragraph, including the citation? It boggles my mind the kind of tunnel vision some people have.
As for the $40/month/per in profit, I certainly don't doubt it. It's obviously the main reason carriers are absolutely terrified of Rep. Eric Massa's bill, which would force them to justify their prices to the FCC by revealing all their internet cost statistics.
Watching them reveal the kind of price gouging that goes on around here would be such a nice day. |
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