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OrionOps

join:2013-03-26
Kanata, ON
Reviews:
·TekSavvy DSL

Startup Fees Suggestion

I just signed up for TekSavvy, and while I can't say anything about service yet, other than the girl on the phone getting my order wrong. I have noticed one thing.

The startup costs are a little high. I was lucky that I had the spare money to order the service, about $200.

I know one of TSI's selling points is no contracts, but what about those people that want to switch but can't afford it?

Could TSI offer a contract to people who cant afford it right away?
I know there is a modem rent-to-own option being added soon, but what about the rest of the fees?

On average, the startup fee minus the package price is about $144 with the $20 discount for buying a model from them, with a DOCSIS 3.0 modem.

Now if you go with the modem rent-to-own, you pay about $20 more overall for the price, which is fine, you spread it out over 6 payments, so a 17.5% markup. Why not do the same thing with the activation cost? Mark it up by about the same, and you pay an extra $9 a month for 6 months, so $54, extra cost of $9.

People would pay $54 plus the cost of the first month of service, in my case, $40, so about $94 total in the first month. That cuts the total initial cost of switching almost right in half.

From there for the next 6 months, you pay an extra $24 a month. Alot more manageable, TSI makes a bit of money, and the customer doesn't have to shell out of as much.

I know there's more going on behind the scenes for the fees to be necessary, but doing something like this would bring in more customers.


Gord

@teksavvy.com
TSI would lose money on that option, just keeping track of it and chasing people who cancel and then refuse charges to the credit card.

If people want to switch and can't afford the startup fees then woulld TSI really want them anyway?

InvalidError

join:2008-02-03
kudos:5
reply to OrionOps
The problem with offering stuff on credit is debt collection.

If your finances are so tight you cannot afford $200 up-front, it makes financing scarier and I'm guessing TSI would prefer to keep that risk as low as possible.