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Thread: Tenative Reseller Pricing

  1. #1
    Join Date
    Feb 2007
    Location
    Irvine CA
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    1,542,128,037

    Default Tenative Reseller Pricing

    Here is the tenative pricing for the reseller offering. This pricing is subject to change prior to full launch.


    Reseller Account


    $24.95 Monthly

    1 Free Residential Account for Personal Use (Usage Included)

    1 Free Telephone Adapter (US Customers Only)

    1 Free Toll-Free Number (Usage Not Included)

    $5 Initial Usage Credit to Use for Resold Accounts



    Phone Numbers/Incoming Usage

    US Phone Numbers - $1 Per Month
    US Incoming Usage – 1 Cent/Min
    Canadian Phone Numbers - $2 Per Month
    Canadian Incoming Usage – 1.5 Cents/Min

    Toll-Free Numbers - $1 Per Month
    Incoming Toll-Free Usage (From US) – 2.5 Cents/Min
    Incoming Toll-Free Usage (From Canada) – 6 Cents/Min


    Outgoing Usage

    Outgoing Usage (to US/Canada) - 1 Cent Per Minute

    Outgoing International Usage: Varies Depending on Country



    Other Fees

    E911 - $1 Per Month

    The FCC (in the US) and CRTC (in Canada) require all residential VoIP users to have E911. If you enable E911 on an account, you will be charged $1 Per Month.

    USF Recovery Fee – Since VOIPo is a US-based provider, we are required by the FCC to contribute to the USF. USF recovery fee will apply to all minute usage charges. This will NOT apply to charges for the reseller account itself, phone numbers, or E911 charges. The FCC changes its formula for USF contributions quarterly. Currently the rate is 8.4%.
    Last edited by VOIPoTim; 01-05-2010 at 09:47 PM.
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  2. #2
    Join Date
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    Default Re: Tenative Reseller Pricing

    Residential Profit Scenario


    So as an example, the average residential user uses about 470 minutes per month, so your costs would look like this if user has average usage:

    Phone Number - $1
    470 Minutes - $4.70
    USF (8.4% x $4.70) = $0.395
    E911 - $1
    ----
    Your Cost: $7.06


    We recommend targeting the mass market rather than competition on price. Vonage is the leader at $24.95 and most people are paying $50ish for a landline, so selling at at $24.95 here is how things look:

    Revenue: $24.95
    Cost: $7.06
    ---
    Profit Per Account: $17.89 Per Month

    In this case, you would only need to sell 2 accounts to be profitable. On top of that, your own service would be free.
    Last edited by VOIPoTim; 12-13-2009 at 07:16 PM.
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  3. #3
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    Default Re: Tenative Reseller Pricing

    Toll-Free Profit Scenario

    Let's say that you sell a toll-free number and the customer forwards the number to a cell phone. Let's say the customers uses 1 hour of calling in a month. Your costs would look like this:

    TF Phone Number - $1
    60 Incoming Toll-Free Minutes - $1.50
    60 Outgoing Minutes (Number Forwarded to Cell Phone) - $0.60
    USF (8.4% x $4.70) = $0.131
    ----
    Your Cost: $3.23


    Kall8 is a market leader for toll-free service. Kall8 charges $2 monthly for the number itself and 6.9 cents per minute.

    Revenue: $2 for Number + $4.14 for Usage = $6.14
    Your Cost: $2.91
    ---
    Profit Per Toll-Free Number With Only 1 Hour of Use: $2.91
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  4. #4
    Join Date
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    438

    Default Re: Tenative Reseller Pricing

    You put "Out Going" Usage on toll free number
    iVoIP Online
    http://www.ivoiponline.net
    877-208-2049

  5. #5
    Join Date
    Jul 2007
    Location
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    Default Re: Tenative Reseller Pricing

    Quote Originally Posted by computergeek7632 View Post
    You put "Out Going" Usage on toll free number
    For a toll free phone number it comes in to our system via Carrier A and forwards out via Carrier B, so we must pay for both parts of the call, thus we pass on these fees.

  6. #6
    Join Date
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    438

    Default Re: Tenative Reseller Pricing

    oh ok lol I get it
    iVoIP Online
    http://www.ivoiponline.net
    877-208-2049

  7. #7

    Default Re: Tenative Reseller Pricing

    I have a question, how are we going to be able to compete with you if your offering unlimited minutes for $15/mo + free adapter when we'll be charged 1 cent per minute plus what ever the adapter rental fee costs?

  8. #8
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    Default Re: Tenative Reseller Pricing

    Quote Originally Posted by GigeWeb View Post
    I have a question, how are we going to be able to compete with you if your offering unlimited minutes for $15/mo + free adapter when we'll be charged 1 cent per minute plus what ever the adapter rental fee costs?
    It's all overselling just like in hosting. The average user on an unlimited plan uses about 470 minutes per month.

    Here is how it would break down:


    So as an example, the average residential user uses about 470 minutes per month, so your costs would look like this if user has average usage:

    Phone Number - $1
    470 Minutes - $4.70
    USF (8.4% x $4.70) = $0.395
    E911 - $1
    ----
    Your Cost: $7.06

    If you matched our pricing of $15, you would be making $7.94 in profit on an average user. If you matched Vonage which has over 2 million customers at $24.95, you'd make $17.89 profit on that single user.

    The usage of your users will be higher or lower, but the industry average is in the 400s. If you target businesses, they'll have higher usage. If you target home users, most use their cell phones mainly and rarely use a landline.

    In telecom, everyone pays per minute. The simple way to explain is is that whatever providers owns the physical equipment that services the phone number gets paid per minute for all calls that go into that number from the provider completing the call.

    In terms of equipment...we don't charge a rental fee for equipment. You can purchase equipment from any vendor you choose or from us for a one-time fee of $40. Generally this is recovered with a setup fee.
    Last edited by VOIPoTim; 01-19-2010 at 04:23 PM.
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  9. #9
    Join Date
    Dec 2009
    Posts
    438

    Default Re: Tenative Reseller Pricing

    Thought it was $45?
    iVoIP Online
    http://www.ivoiponline.net
    877-208-2049

  10. #10

    Default Re: Tenative Reseller Pricing

    What are we exactly selling, your residential services or forwarding services? If residential what is the monthly fee for the hardware that we provide to our user-end?

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