cowsgonemadd
join:2007-02-24
Ware Shoals, SC | reply to cowsgonemadd
Re: How much do you charge your customers?
Higher than the other providers?
How would that make sense? Curious I thought I would price it 5-10 bucks or so cheaper than them.
My local telco wants 40 bucks for dsl with like 384kbps. Plus 200-230 install fee. |
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superdog
I Need A Drink
Premium,MVM
join:2001-07-13
Lebanon, PA
| said by cowsgonemadd  :Higher than the other providers? How would that make sense? You really are not higher than the others. Go back and re-read what he said. 
If the local telco is at $40 a month, and You are at $50, but then you run a special for the first 60 people to sign up that they all get service for $35, you are now cheaper. This is called a sales gimmick, as it creates a perception of value because it creates an "early bird gets the worm" sort of deal. Not everyone associates low price with value and/or service. There are quite a few people that would pay an extra few bucks to get service from a local provider, as the service level is generally much high than a large CO and they are supporting the local guy. It is all a game, and the one who plays it the best wins!. 
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LLigetfa
join:2006-05-15
Fort Frances, ON
| He also said "assuming you are "near" an area where DSL or cable is available". You can charge more because the competition is out of reach but since the customer knows they are out of reach, they may get the perception you have them over a barrel and would resent it. That is where you make concessions. If you price yourself too cheap, you won't have the resource to support the users and to grow the business so it would be a never ending hand-to-mouth existence.
Don't try to compete on price with the big boys because they have deeper pockets and can play the game better than you.
Don't underestimate incentives. Everyone loves a bargain. Refer-a-friend deals where you give a free month of service to someone that brings in a new customer, not only stops them from bad-mouthing you, it brings you new customers and keeps existing customers happy. |
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