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.