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Mesh business models

 
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Stang
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Joined: 27 Jan 2010
Posts: 18

PostPosted: Thu Jan 28, 2010 7:42 pm    Post subject: Mesh business models Reply with quote

It is so interesting to read everyone's stories on here about their own deployments. One big question that remains, for those of you who deploy mesh networks as part of your business: what is your business model?

Of course, everyone is going to have a different strategy. I am just curious about how you market and price your products and services while still remaining competitive and profitable.

To get things started, here a few specific questions:

- How do you price installation/deployment? Lump sum, by the hour, by the node? Or do you recover the cost of installation and equipment through future monthly, annual, etc. payment from your clients?
- Do clients pay you a lump sum for the year and that includes having you monitor the network and replace nodes as needed? Or do you charge a monthly fee? How much?
- Do you or your clients own the equipment? Who pays for a new router when it dies or gets swiped?
- What else? What works for you?

Obviously there will be some pros and cons to each method. And while you don't want to be giving away trade secrets, some good, general information would be great. It will also help new entrants to the world of mesh avoid undercutting the market and making life more difficult for everyone.

So - let's hear it. The world is big enough that most of us won't be stepping on anyone's toes, right? I'm sure that we can all learn a thing or two from a good discussion.
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im_electronic
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Joined: 25 Sep 2009
Posts: 122

PostPosted: Thu Jan 28, 2010 8:28 pm    Post subject: Reply with quote

I own my equipment and all my installs are temporary (so far), with the projected amount of users/usage for the mesh I figure a low price that users will like, and that will make me a profit over the time of the install.

30 users
$30/mo. cable ISP
11 nodes at $15/ea.
3 routers at $30/ea.
5 month install
$120 in labor/time.
I charge $3/mo access, best effort speeds. (generally 1.5/300)

clients are college students, so no one time where I see all users on at once.
generally 6 users on at once.

2-6gigs of traffic a day
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betulah
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Joined: 15 Oct 2009
Posts: 34
Location: Republic of Texas

PostPosted: Fri Jan 29, 2010 12:32 am    Post subject: Reply with quote

im_electronic wrote:
I own my equipment and all my installs are temporary (so far), with the projected amount of users/usage for the mesh I figure a low price that users will like, and that will make me a profit over the time of the install.

30 users
$30/mo. cable ISP
11 nodes at $15/ea.
3 routers at $30/ea.
5 month install
$120 in labor/time.
I charge $3/mo access, best effort speeds. (generally 1.5/300)

clients are college students, so no one time where I see all users on at once.
generally 6 users on at once.

2-6gigs of traffic a day


im_electronic wrote:

I'm in Los Angeles, CA, if your near I need a job....


No offense but I would need a job too with that business model.
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im_electronic
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Joined: 25 Sep 2009
Posts: 122

PostPosted: Fri Jan 29, 2010 3:56 am    Post subject: Reply with quote

that's just part of what I do. the install was for my fiance and her residents to afford internet access. I profit about $60/month on it.

other times I'de rent the gear out to events. $100/day.
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im_electronic
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Joined: 25 Sep 2009
Posts: 122

PostPosted: Tue Feb 02, 2010 3:37 am    Post subject: Reply with quote

I was hoping to see more answers here too, that's why I posted mine, oh well...
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harry_the_face
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Joined: 24 Aug 2009
Posts: 89

PostPosted: Tue Feb 02, 2010 4:21 am    Post subject: Reply with quote

I knew from previous businesses that the hardest thing about getting a new customer is the change they have to make from one service provider to another. It is amazing how many people will continue to pay twice as much just becuase it is what they know.
So... the only thing I require to sign up is a $50 diposit for the node to ensure i get it back id they cancel. I have seen some that charge customers for the node but I decided against it becuase if a customer thinks that the hardware is proprietary then you don't have to worry that they will get curious and start doing a google search and find out that they can start their own mesh. Plus most people would prefer NOT to purchase an item that is useless (in their mind) if they cancel.

I am offering 2 speed one 512kbps($12.95) and one 1mbps ($21.95). I currently have half on each service. During my test period (about 9 months) I found that most people in my area don't use more then 750 kbps with the ocassional spike to 1.5 mbps. That is how I set my speeds.

I have a one up on my area compotition beucase I am offering a mesh where as the other 2 companies are only offering PtoP so I can offer the customer the ability to roam in the mesh and still have internet. That is important for the students at the two nearby colleges.
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mtlowes
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Joined: 28 Oct 2009
Posts: 283
Location: Lakeshore Ontario Canada

PostPosted: Tue Feb 02, 2010 11:54 am    Post subject: Reply with quote

For Mesh clients ( I run 3 independant mesh networks,I do the following.
1 managed through WifiRush Servers
1 managed through Open-Mesh but transitioning to my own Meshconnect server
1 managed through CoovaOM

Still trying to find the right solution for network and gateway management for the mesh systems.

$25.75 / mth for 2mbps/300k
$150.00 to install - I own the radio and do up to 100ft of cabling

If its a wireless customer ie: direct from laptop.
$29.95/mth, no account setup fees etc (1mbps/300k)

or its a $2.99 per 24hr period for transient clients (800K/200K)

No Caps but I limit some bittorrent sites.
Using Engenious 1650's and 2610's.

If switch a customer from the competition its a 50% discount on Install.
I generally recover my cost of the node on the install but my company asset base increases with each install so its all good.
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