WA response to pricing reductions

wamatt said:
You guys we understand you want more flexibility and interesting options etc, that is not where we going. So to make up for it we going to give you lots bandwidth cheaply. Then it doesn't matter if it's served up in a simple package.
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Ok so where is this cheaper bandwidth? 3 is not lots.
Even if it's an all in one your price does not compare to afrihost or gconnect even.
 
wamatt said:
Mainstream want's simplicity. That is what we are aiming to give them.
.
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Matt so you are confirming that WA is rather focusing on mainstream (Also please confirm what WA's idea is of what/who mainstream is. Is it the user with 1 account?) and not on the resellers/mybb users anymore with (Users with more than 1 account, with some technical background), throwing away the market who got you here?

I really think logically it makes more sense to have 1000 resellers with 50 accounts each (50000 accounts) than 50000 customers.. how many service agents do you need per 100 accounts given the two different scenarios above.. or should the question be how many service agents can your system support concurrently?

MyBB is not just end-users..Majority is more technically inclined that normal end-users, also with more than just 1 ADSL Account. if you were under the impression that normal end-users spend majority of their time on technical forums, I could see how you think WA is going on the correct direction..
 
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drukkie said:
Ok so where is this cheaper bandwidth? 3 is not lots.
Even if it's an all in one your price does not compare to afrihost or gconnect even.
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Agree and speaking for myself, I want a "cheap" price per gig, nothing more, nothing less. If I use x gigs I'm in for Y amount. Don't want to use Afrihost again but that is the model I want. Only bandwith at a low price and I will be loyal to them till somebody else is cheaper. My 2cents
 
Edunhin said:
Matt so you are confirming that WA is rather focusing on mainstream (Also please confirm what WA's idea is of what/who mainstream is. Is it the user with 1 account?) and not on the resellers/mybb users anymore with (Users with more than 1 account, with some technical background), throwing away the market who got you here?

I really think logically it makes more sense to have 1000 resellers with 50 accounts each (50000 accounts) than 50000 customers.. how many service agents do you need per 100 accounts given the two different scenarios above.. or should the question be how many service agents can your system support concurrently?

MyBB is not just end-users..Majority is more technically inclined that normal end-users, also with more than just 1 ADSL Account. if you were under the impression that normal end-users spend majority of their time on technical forums, I could see how you think WA is going on the correct direction..
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Bit confused buy this post but I'll take a stab at it. First off have you read my response?

http://mybroadband.co.za/vb/showthread.php?218419-WA-response-to-pricing-reductions

We see mainstream and power users as separate, our packages will geared towards mainstream, but we will continue to support the power user through deals, and by no means are going to "throw away" that marketshare. Yes there is a bit of churn here and there to low cost providers, but its not actually very significant and churn levels are normal. We also had clients coming back as well.

Eventually we will not really have the need for specials because our mainstream will satisfy the power user.

"Resellers" is a separate discussion altogether and for that, please head over to our forums. I'm not suggesting everyone here is only an end user, but the vast majority are. Secondly it's just not the appropriate place to have those discussions. Many resellers do not like discussing their business in the open, and we respect that.
 
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lol this guy is full of ****, just out to make money. I cancelled with them and have been happy with afrihost. If they matched the price I would most likley go back. But they offer excuse after excuse. Either they can match R 29 p/gb or beat it. I will continue to promote afrihost cause they are the cheapest, and their 2 for 1 offer OWN.
 
wamatt said:
So let me summarise, I think what you saying is you want variable rate. IE choose your own package, pay-per-gb.

The main reason for not going that route is:

1) That model is flawed economically. To re-iterate the point again, ISP's that choose to sell gig's are not going to be around in the future. Because of the simple fact, how are you going to pay rent, salaries etc, when your revenue dropped 80% because bandwidth dropped (per GB) 80% over 3 years?

2) Mainstream want's simplicity. That is what we are aiming to give them.

You guys we understand you want more flexibility and interesting options etc, that is not where we going. So to make up for it we going to give you lots bandwidth cheaply. Then it doesn't matter if it's served up in a simple package.
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So what your saying is that afrihost will be gone soon? Dream on buddy
 
Barfish88 said:
Either they can match R 29 p/gb or beat it..
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I don't mind if they can't match it, just to come in to the same region of pricing would be good. i.e. R40/GB (End users) R35.00 (resellers). I have been a customer of WA since 2005/09/30 and their support have always been top notch, well that is until the started to go mainstream..
 
wamatt said:
1) That model is flawed economically. To re-iterate the point again, ISP's that choose to sell gig's are not going to be around in the future. Because of the simple fact, how are you going to pay rent, salaries etc, when your revenue dropped 80% because bandwidth dropped (per GB) 80% over 3 years?
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I didn't read his post that way. I read it like this:

I go to the WA site, sign up for a 4Meg DSL Complete with 9GB per month. Because I am taking 9GB, I get the GB price of R40 per GB so my monthly cost would be R500 + 9 x R40 (assuming the 4 Meg line cost R500). If I chose a 4Meg DSL Complete with 5GB it could be something like R500 + 5 x R45 per month. It's not about selling GB's but rather about having a more flexible option.

2) Mainstream want's simplicity. That is what we are aiming to give them.
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Yes and no, people like Dell do well because they give people options. It's just basically providing more options. e.g. Pick one of the standard packages or customise your package.
 
Edunhin said:
I don't mind if they can't match it, just to come in to the same region of pricing would be good. i.e. R40/GB (End users) R35.00 (resellers). I have been a customer of WA since 2005/09/30 and their support have always been top notch, well that is until the started to go mainstream..
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Just try dealing with Mweb.
 
Abe said:
Just try dealing with Mweb.
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Should we then compare WA to MWEB, is that our only choices? MWEB has always been for Home users that is why they still get away with R89/GB, I don't think the current WA customer compares to the current MWEB customer, but hey it does seem that WA want the MWEB customer and that is not who I would like to be. so if the future of WA support is the same as MWEB then I don't think any of us will be here very long.
 
Edunhin said:
Should we then compare WA to MWEB, is that our only choices? MWEB has always been for Home users that is why they still get away with R89/GB, I don't think the current WA customer compares to the current MWEB customer, but hey it does seem that WA want the MWEB customer and that is not who I would like to be. so if the future of WA support is the same as MWEB then I don't think any of us will be here very long.
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I was talking about the quality of the support. We recently had a friend who signed up for Mweb ADSL Complete package (They already had an Mweb email address). There was a problem with the line for 4 weeks. My wife spoke to the accounts people saying that the line is down and asking how they can charge for the line when it is not working. Mweb said that if it's a telkom problem then they still charge the client. My wife explained that the line was going through them as well. Accounts said "sorry, thats the way it works". Still have to take the battle further.
 
People must be braindead to join mweb, nobody in their right mind will pay that kind of money out of their free will, and if they do then they deserve it. R 89 eishhh
 
Abe said:
We recently had a friend who signed up for Mweb ADSL Complete package
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Your not a very good friend ..lol you should have warned him about that..lol. I had a customer who signed up of MWEB Online backup, they only informed me about it after +- 4months of the system not working, yet they payed MWEB.. The end of it was that MWEB used the same code as Pastel IRON Tree thus with Pastel on the Pc, it didn't' want to work, long story short is that they had to 1st remove Pastel (Something wrong about that), then load MWEB online backup, and then got it to work. Guess what?? The customer still had to pay for that 4 months...
 
wamatt said:
1) That model is flawed economically. To re-iterate the point again, ISP's that choose to sell gig's are not going to be around in the future. Because of the simple fact, how are you going to pay rent, salaries etc, when your revenue dropped 80% because bandwidth dropped (per GB) 80% over 3 years?
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I apologize beforehand, but did I graduate from a different marketing degree than you did?

If pricing drops and your subscriber base and usage remains constant, then of course you're going to suffer a loss. But normally if your price drops and the volume of use increases (meaning, you sell more of the product) then you're more than likely to still remain profitable. Case & point, Mcdonalds.

edit: this is true for any thing, the cheaper a product, the more of it people will buy. convenience also plays a roll, so your current subscriber base MAY surprise you even if you do drop pricing 80%
 
I feel bad because I told them to do it <duck>.

The problem is that they had an mweb dial up account with an email address and didn't want to change the email address. Cheapest option was to change to a Mweb complete ADSL account at R169 per month or something like that. Older person so 1GB is plenty. Other option was to keep the Mweb account for the email address and to sign up somewhere else and that would cost a lot more per month.
 
Wag said:
People must be braindead to join mweb, nobody in their right mind will pay that kind of money out of their free will, and if they do then they deserve it. R 89 eishhh
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They're paying for all the value-added-services and phenomenal support :rolleyes:
 
Abe said:
I think we all missed the part where he said pricing to drop by 80% over 3 years. That looks really exciting.
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He was talking about the past 3 years, not the 3 years to come. (Someone mentioned they were stagnant for the last 3 years)
 
Abe said:
I didn't read his post that way. I read it like this:

I go to the WA site, sign up for a 4Meg DSL Complete with 9GB per month. Because I am taking 9GB, I get the GB price of R40 per GB so my monthly cost would be R500 + 9 x R40 (assuming the 4 Meg line cost R500). If I chose a 4Meg DSL Complete with 5GB it could be something like R500 + 5 x R45 per month. It's not about selling GB's but rather about having a more flexible option.



Yes and no, people like Dell do well because they give people options. It's just basically providing more options. e.g. Pick one of the standard packages or customise your package.
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Thanks that exactly what a meant
 
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