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Hall
Premium,MVM
join:2000-04-28
Dayton, OH
kudos:1

reply to xsiddalx

Re: and 100% of this survey is stupid

said by xsiddalx:

Tell us why the customer cares about how the business model is developed?
Part of their business plan includes "how much will we charge customers and still make a profit ?". If they designed their model based on each customer using 100% of their plan's ratings, 24/7/365, the network guys would have to build a much larger network. That costs more... The accounting people say "we need to make a min "X" % profit, per customer, per month". The sales/marketing people say "50% of our customers are willing to pay no more than "A" dollars per month. 40% will pay "B" dollars per month. 10% will pay "C" dollars per month." If they run the numbers and can't make the req'd profit, they walk away and not offer the service.
--
This is my .sig. I like it bold.

xsiddalx

join:2005-03-11
Chicago, IL

I completely understand what you are saying, but you didn't answer my question. Why does the customer care about any vendors business plan? I have yet to have a discussion about shopping with anyone that has ever declared "well, that's their business plan, so I'll go with the their higher price, higher restrictions, etc..".

said by Hall:

said by xsiddalx:

Tell us why the customer cares about how the business model is developed?
Part of their business plan includes "how much will we charge customers and still make a profit ?". If they designed their model based on each customer using 100% of their plan's ratings, 24/7/365, the network guys would have to build a much larger network. That costs more... The accounting people say "we need to make a min "X" % profit, per customer, per month". The sales/marketing people say "50% of our customers are willing to pay no more than "A" dollars per month. 40% will pay "B" dollars per month. 10% will pay "C" dollars per month." If they run the numbers and can't make the req'd profit, they walk away and not offer the service.

NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:4
Reviews:
·SONIC.NET
·Pacific Bell - SBC

said by xsiddalx:

I completely understand what you are saying, but you didn't answer my question. Why does the customer care about any vendors business plan? I have yet to have a discussion about shopping with anyone that has ever declared "well, that's their business plan, so I'll go with the their higher price, higher restrictions, etc..".
You don't worry about the business plan. You worry about whether you think the price is fair for the service rendered. If it is, you pay it. If it isn't, you take your business to a competitor offering a lower price, or you do without.

The business plan determines whether they can make a profit, or not. If they can't sell the service at a price the customer will pay, and still make money, they won't offer the service.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum

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