dslreports logo
 
    All Forums Hot Topics Gallery
spc
uniqs
45

moneyman12
@charter.com

moneyman12 to miscposter

Anon

to miscposter

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

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

1 recommendation

Rampage522

Member

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

Pasta

Member

Well said.

NormanS
I gave her time to steal my mind away
MVM
join:2001-02-14
San Jose, CA
TP-Link TD-8616
Asus RT-AC66U B1
Netgear FR114P

NormanS to moneyman12

MVM

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".