Web Africa's new ADSL pricing revealed

WebAfrica CEO - Matt Tagg say's
"Web Africa is also placing a stronger focus on one-account packages – which combine ADSL access and data bundle prices. According to Tagg their one-account ADSL offerings are now of the most competitively priced in the market.

While the latest Web Africa pricing is not as aggressive as some of the other offerings in market, Tagg says that their aim is not to compete on price alone, but also ensure that they provide their subscribers with excellent quality of service and the high support levels they have become known for."

So I send a mail (see Below) on this pricing issue to them on the 16th of February, still no reply they even send out a second mail on it" So this is the Service we are paying for?? The ticket on this mail was closed, even took it up with my BSM, the feedback after 3 days - awaiting feedback... WOW that is service to pay for...

Simon was asking me to send a mail on this but I declined it as I thought the reductions will only bring a decline of revenue (and due to the current service levels I wouldn't mind my customers moving directly to another ISP, or dealing direct with WA) , but now after pulling it apart, it seems your Resellers will soon be paying you to resell your products...

Not sure how other resellers feel about this, but I will definitely not try and stop a customer to move to another more affordable ISP and from my experience the past few weeks, more service orientated ISP.

Please get back to me if I do not quite understand this! As most of this is based on the Mail you send and the current pricing that is posted on https://www.webafrica.co.za/adsl/standard/ , that Simon Elrick confirmed as the new cost structure for the public

So to sum it up not only will resellers be taking quite a cut on their revenue, but soon WA also want a Reseller to pay R3.00 to WA for a top up, that the Reseller has to do the Support (taking the call from the customer) and Work (loading the top up).

Can this be correct, or is it just another case of something falling through the cracks?

Regard’s

Ernest Dunhin


Ps. I feel very compelled to post this on mybroadband.co.za, I would like to see the responses from other Resellers, as well as at the Public’s view on this exploitation of resellers.


Non Reseller accounts:

Data (GB) Actual saving per GB
1 -11
3 -16.58333333
5 -9.666666667
10 -4.454545455

Thus your reductions is not on par across the board, and it seems you are now penalising customers
who has high bandwidth usage, as they are not getting the same of better benefit on these Price
reductions.


Reseller Margin against WA Price to Public
Data (GB) Movement
1 -1
3 -5
5 -8.333333333
10 5.454545455

Thus your reductions on Reseller Accounts, is actually going to cost your resellers,
a decline on revenue of R1.00 per 1GB Package, R5.00 per 3GB Package, and R8.33 per 5GB package,
only on the 10GB Accounts will experience an increase on mark-up of R5.45 per account.
And as far as distribution of packages go, i.e. more 1GB/3GB/5GB accounts than 10GB accounts, it will hurt the resellers.
The nicest surprise that WA is giving it's resellers is that on any top up, the resellers
(if they keep in line with WebAfrica structure i.e. top up @ the same price as 1GB of Data) will need to pay in
R3.00 per GB that is Topped up.
 
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Is the WA bashing still going on. You'll send a much stronger signal by just moving to Afrihost, MyIsp or something.
 
Na-iem said:
I think you misunderstand. I'm not asking what the new pricing for data only packages is going to be.
Click to expand...
I was joking, as in I dont think any of us are going to get ANY response

Even if I'm still hoping for a response that makes sense.. LOL I guess I really am that much of an idiot.

Funny though, My wife was telling me she saw somebody on Facebook post today about how WA had dropped prices. She laughed and pointed him to check out MyBB first. He was shocked that it was actually this bad. At first he thought it was just a step in the right direction with price reductions, but never realised the full extent because it was never ALL mentioned in the WA email. He ended with saying.. Thank goodness I moved to Afrihost a month ago..

I hadn't told her to say anything, She just listened and hear about how frustrated I was talking to other IT friends...

Mom's and Pops are not going to be fooled for long, I seriously hope Matt can salvage this, instead of letting a board of marketers run his company into the ground
 
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Na-iem said:
I think you misunderstand. I'm not asking what the new pricing for data only packages is going to be.
I want to know how changing a price from R70 to R59 has less risk of introducing errors than changing the price from R70 to, say, R39. See my post here: http://mybroadband.co.za/vb/showthr...ing-revealed&p=3622956&viewfull=1#post3622956
Click to expand...

Thats an easy one to answer. The risk is that dropping the price too low could result in very big losses over a very short time. That would be an error on their part. Drop it by R10 per month until you get to the right price would be far safer.

I personally feel that they missed the mark with their pricing. They were short of where they should have come in. No hard feelings or animosity necessary as some here have been dishing out. I am sure they will correct the pricing given some time, especially with the aggressive attack on the market that IS is busy with.
 
Abe said:
Thats an easy one to answer. The risk is that dropping the price too low could result in very big losses over a very short time. That would be an error on their part. Drop it by R10 per month until you get to the right price would be far safer.

I personally feel that they missed the mark with their pricing. They were short of where they should have come in. No hard feelings or animosity necessary as some here have been dishing out. I am sure they will correct the pricing given some time, especially with the aggressive attack on the market that IS is busy with.
Click to expand...

No, you misunderstand. The potential "errors" referred to (by Krayon) are of an operational nature, not of a financial one. Please see the post I linked to for details.

~~Na-iem
 
Na-iem said:
No, you misunderstand. The potential "errors" referred to (by Krayon) are of an operational nature, not of a financial one. Please see the post I linked to for details.
Click to expand...

I see the part you quoted now. Why did you think he was referring to price? When I read his post at the time I thought he was referring to the Steam and other services they were adding. Will have to wait and see what WA say.
 
waroop said:
Hi Na-iem, thanks for the question. We are going to collate all the queries in this thread and create a response thread most likely. Its dreadfully inefficient trying to respond to everyones queries due to the volume of posts and length of the thread.
Click to expand...

Dear WA Representatives

It has now been 3 working days, and still you have given us no information on when this response thread is going to be created.

If you have changed your mind about creating this thread, it would be really nice if you would actually say so.

If, however, you still intend to proceed with the response thread, it would be really nice if you would give us an e.t.a. on it.

~~Na-iem
 
I have asked a WA representative if and when they will respond these concerns, and has he indicated that Marketing is dealing with it and they will revise pricing before August 2010.. WoW 6 months from now..
 
Why wait for something that is clearly not going to appeal to the MyBB crowd? Just move your business elsewhere. You will be foolish to still hang on to WA when there are way better offers per Gb wise out there.
 
Already moved over to Afrihost at home. Just had to top up 5 gigs at R69.00 at work for WA. Guess I'm calling in the boss tomorrow and telling him that I am moving the works accounts to Afrihost as well
 
It seems to me that WA are no longer concerned about communicating with their (potential) customers.

I can understand if, from a business point of view, WA can only drop their prices after mid year. However, to first claim that they're going to start a response thread and then to completely ignore requests for an e.t.a. indicates a complete lack of regard for their (potential) customers. Note: I am not asking for their responses, I am simply asking when they think their will start responding to the concerns raised (and specifically to the question I posed earlier in this thread). I think I've made that abundantly clear in my previous posts.

~~Na-iem
 
Na-iem said:
It seems to me that WA are no longer concerned about communicating with their (potential) customers.

I can understand if, from a business point of view, WA can only drop their prices after mid year. However, to first claim that they're going to start a response thread and then to completely ignore requests for an e.t.a. indicates a complete lack of regard for their (potential) customers. Note: I am not asking for their responses, I am simply asking when they think their will start responding to the concerns raised (and specifically to the question I posed earlier in this thread). I think I've made that abundantly clear in my previous posts.

~~Na-iem
Click to expand...

Given today's news from Afrihost, I think Web Africa have far more serious problems to contend with than a response thread. No response is going bridge the massive divide that has now opened up, other than a new announcement from Web Africa slashing their prices.
 
For anyone still following this thread, pls check out the one in my signature (no spam re: pricing pls, we had enough "debate" over this). Mission here is to save people some money who uses WA's DSL Complete packages
 
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