Pricewar can be bad

[kaspaas]

Just an input from another side:

A pricewar can be a bad thing: It could cause the reduction of prices down to a level where nobody can make money anymore, and in the end all fold because they tried to ride out the storm on credit they can't repay.

Personally I've learnt that often (usually??) it is best to search for the "avarage" priced product. One seldom gets decent additional value from a high priced product, and to market a lower priced product often means short cuts were taken.

I had a good example this week: A client told me my quote for a WiFi access point was too high - he could get it for R200 cheaper. He bought the cheapy unit, and the reach is a mere 10 m in open space and less than 3m through 2 dry walls in the offices.

He now will spend the extra bucs on a decent unit :-)

[bwana]

But as all the offerings are from the same provider (SAIX) how can one be worse than another? If one folds another will take its place.

[tibby.dude]

A client told me my quote for a WiFi access point was too high - he could get it for R200 cheaper.

You should have given him two options

a) he sourced his own with no support from you
b) he gets it from you and you will then support it

A pretty simple rule that works with most as customers who are always looking for ways to cut corners and in this case for a mere R200 are the real ****ty ones you don't want around.

[fergus]

If price wars can be bad I think thats a risk most of us will gladly take :)

[Celemasiko]

Just an input from another side:

A pricewar can be a bad thing: It could cause the reduction of prices down to a level where nobody can make money anymore, and in the end all fold because they tried to ride out the storm on credit they can't repay.

Personally I've learnt that often (usually??) it is best to search for the "avarage" priced product. One seldom gets decent additional value from a high priced product, and to market a lower priced product often means short cuts were taken.

I had a good example this week: A client told me my quote for a WiFi access point was too high - he could get it for R200 cheaper. He bought the cheapy unit, and the reach is a mere 10 m in open space and less than 3m through 2 dry walls in the offices.

He now will spend the extra bucs on a decent unit :-)



I do not believe that a price war will be bad.
As example:
In 2000 I had my first ADSL in Germany 768/128 for a price of 69.95 Euro
In 2001 I had 1500/256 for 49.95 Euro
In 2003 I had 4 Mb/512 for 29.95 Euro
Today you get an ADSL 768/128 for free if you are subscribing a two year contract for a landline. And 6Mb/1024 cost 29.95 Euro.
Besides the free offer (Landline Contract) you get a flatrate 768/128 for as little as 4.95 Euro.

In 2005 the latest is 100 Mb, if you live in one of the major German cities. Prices I don't know yet.

Everything of course uncapped and unshaped.

And the winner is....!!!! The customers!!!

But if we want to reach at least something similar, we have to fight our enemy number one....

[bwana]

If this is about the ADSL ISP price reductions, how/why has it strayed into a new thread of its own...:confused:Sounds like a General ADSL discussion to me ;)

[IceQB]

price wars!!!!!!!!
controlled by telskum?
u can bet nothing good will come of it

[desraid]

'True competition' improves quality and service at the lower cost!
However 'true competition' will not be happening in SA for long time. :(

[jamieb]

This argument all too often used to justify legislation that restricts competition.
How is that South African's know so much about the effects of competition? We haven't a clue. Get it in your heads.

Fierce competition is GOOD for the ECONOMY.

[martin]

If this is about the ADSL ISP price reductions, how/why has it strayed into a new thread of its own...:confused:

To confuse the moderators?

[IceQB]

maybe....
R U confused?

[martin]

maybe....
R U confused?

Not at the moment. Thank you for asking. :)