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Re: Launch Pricing Discussion
OK, I'll wax poetic...
I assume that 'free equipment' only means no activation fee (since you had indicated earlier that you were not planning to 'sell' the equipment or 'unlock' it for customers who terminate). That would be, IIRC, a $30 incentive per account if you stick with standard pricing.
The second option would be 1st 3 months for $10--a $7/mo (rounding up) discount off the prepay price, or $21 total; a $15/mo discount for monthly customers, or $45 total.
The third option (a BOGO for any term option) is a discount of $25 or $100, depending on the plan purchased.
Here's my thinking:
If you want to bring customers in on a 'hey, we're new on the scene and want you to try us out' kind of promotion, make the initial investment (risk) low. However, to appeal to the discount shopper, you should also consider cutting into your service pricing for a limited time. I don't know what kind of target amount you were willing to subsidize new customers at launch, but for the sake of discussion, I'll suggest $55 (without considering any of the factors that you MUST consider, such as how much is affordable for you...
).
No-Prepay Option
- Free Activation
- Buy one month, get one month FREE.
Prepay Option
- Free Activation
- First 6-month term for $75.
- Early termination policy is standard policy (but the customer still gets one free month of service): Cancel after 1 or 2 months, get $50 back (pay full price for 1st month, 2nd month is free); any time after 2 months, $25 times (# months active - one free month) is deducted from the $75 paid at signup.
(If you want to float shipping for your first customers, I'm sure they wouldn't complain, either.)
The thinking in the offers I've listed is to offer a low barrier to entry ('try us risk free') plus a 'grand opening' incentive on the service cost. You won't 'WOW' the most miserly customers out there with these plans (you'd probably have to do the BOGO on the 6 month plan to 'wow' them), but that doesn't seem to be your target market, anyway...
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