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miscposter

@charter.com
reply to 15444104

Re: Think again... garbage in garbage out.

If you are on the internet lite plan, and getting the $5 increase, has anyone told you that also comes with an increase in speed from 3Mbps to 15Mbps? Above you stated the lower tier price for 30.00 from at&t... why not get 15Mbps for the same cost?


moneyman12

@charter.com
I think anon anon math may be off, but he's on the right track. All the math you guys are doing is as if the charged price is pure profit. There is a cost to providing internet. Say the break even point is $25. so every $30 customer is making charter $5 and every $50 customer in making charter $25. If you take into account profit margins, then I can see charters logic in letting some customers walk.


Rampage522

join:2001-10-18
Birmingham, AL
kudos:1
Right...it's possible that at some price points it doesn't make sense for Charter to provide services. So customers walking is an assumed or accepted risk. You have to figure that they looked at numbers and determined this was the best decision going forward for their business.

The alternative is that they DIDN'T put a lot of thought into it, and they'll have to consider changing their stance if the numbers start hurting too much.

It's not all about greedy corporations, folks. Sometimes businesses make decisions to stay afloat for the long term. Other times, they just make ill-informed decisions. They are NOT intentionally going out of their way to lose money.

Also, and this is just as important, every customer has a pain point with a company. When that is reached, the customer has every right to walk and that's completely valid. Mercedes Benz sells their cars for a price on which they can make a profit and continue keeping their doors open. I cannot afford to pay what they want, so I choose a (MUCH) cheaper alternative. Mercedes isn't inherently evil for not choosing to provide me with an affordable car, maybe I'm just not their target market.

Pasta

join:2002-09-30
Hubertus, WI
Well said.


NormanS
I gave her time to steal my mind away
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:12
Reviews:
·SONIC.NET
·Pacific Bell - SBC
reply to moneyman12
said by moneyman12 :

I think anon anon math may be off, but he's on the right track. All the math you guys are doing is as if the charged price is pure profit. There is a cost to providing internet. Say the break even point is $25. so every $30 customer is making charter $5 and every $50 customer in making charter $25.

This assumes that the underlying philosophy of U.S. business is cost-based pricing; but I see more evidence that the underlying business philosophy is a monopolistic: "Charge what the traffic will bear".

Back when I first was hooked on anime (Japanese animation), I was mystified by the fact that VHS tapes with English dubbed voice overs were ~$5 cheaper than the same show with English subtitles. Surely the only difference in production costs were the extra cost of the English voice actors, so the dubs should cost more, not less.

And assuming a "break even point" of $25 must mean that my current ISP will be going belly-up this year; they seem to think that they can turn a profit on an Internet charge of just $19.98 per month. Yet they are deploying FTTP in Sebastopol, California, and will start further deployment in San Francisco "RSN".
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum