Reviews:
 ·Verizon FiOS
| reply to fAcEtIOUs
Re: Capacity Problem said by fAcEtIOUs:.... They should raise DSL rates and stop the intro pkgs for DSL .... but that would play against the current meme of "robust competition" and "falling prices" for broadband access. They don't want to disrupt that meme until they get their mergers passed and can be sure network neutrality won't be legislated.
What you suggest they do is exactly what is supposed to happen in a free market: increased demand + limited supply = higher prices.
It's very telling, to me, that verizon is not doing that. |
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| If you have too much demand for something then your prices are too low.
If you do not have enough demand for something then your prices are too high.
That is true of every service and every product on the market regardless of whether it is a 3 cent piece of candy or a $200,000 sports car. |
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 kamm
join:2001-02-14
Brooklyn, NY | said by Skippy25:If you have too much demand for something then your prices are too low. If you do not have enough demand for something then your prices are too high. That is true of every service and every product on the market regardless of whether it is a 3 cent piece of candy or a $200,000 sports car. What a laughable idea, seriously - you haven't heard about something that selling like hotcake because it is reasonably priced?
Your recipe suggests not to invest more but curb up the prices - what a clueless idea...
This kind of outdated "profit-only" idiocy - in which your idea is originated - had been proven flase and stupid: if you charge less but have much bigger market penetration then you'll make more money and and lot less effected by churning rate (which will be also lower).
Of course, you have to make sure you don't offer more than you can serve - it's a gradual work, you have to be able to keep up with the pace... |
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1 edit | Did you not read the article? They're at capacity and can't increase market penetration. That's the problem and the poster is correct...they're at capacity because the product was 'too cheap' economically speaking. It's not rocket science, it's supply and demand. Verizon dropped the price and demand outstripped supply. Now Verizon is stuck in this market until they either raise prices or can provide increased supply. And both Verizon and consumers are screwed. Verizon is denying itself that additional revenue and new customers can't get Verizon service at any price. |
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