[9289] in Commercialization & Privatization of the Internet
Re: an Internet buying coop?
daemon@ATHENA.MIT.EDU (Karl Denninger)
Mon Dec 27 22:39:24 1993
From: karl@mcs.com (Karl Denninger)
To: rmholt@u.washington.edu (Rose Marie Holt)
Date: Mon, 27 Dec 1993 21:38:30 -0600 (CST)
Cc: karl@mcs.com, stpeters@dawn.crd.ge.com, com-priv@psi.com
In-Reply-To: <Pine.3.89.9312271726.I13194-0100000@stein1.u.washington.edu> from "Rose Marie Holt" at Dec 27, 93 05:44:04 pm
>
> I'd be interested in knowing if you have any intention of alerting your
> customers to the cost savings they are eligible for.
If you mean do I do traffic analysis for every customer and switch them
automatically, the answer is no. We don't even meter the unlimited
accounts, as the processing and accounting work required to do that exceeds
the value to us (we have no real use for the information; I am more interested
in line loading which is not tied to any particular user's pattern of usage.)
If you mean do time-sensitive subscribers know what they're using, you bet.
Displayed on every sign-in.
If you mean do I let people know of their choices, they're about 1/4" apart
on the subscription forms, and the full description of both services, how
billing works, etc is included on the forms.
We also allow people to convert on a fairly liberal basis between plans.
The <choice> to do that is the customer's, as it should be.
> On Sun, 26 Dec 1993, Karl Denninger wrote:
>
> >
> > Didn't happen. And yet I send out bills regularly for time in excess of
> > that which would be charged for an un-metered account. 'Tis funny like
> > that. I would assume that the people on the metered access are watching the
> > bills over some period of time and convert when it no longer makes sense.
> >
> > If I make a poor buying decision the result is that I'll lose in the glaring
> > light of free competition, and go down in flames. Trust me, I don't pay out
>
> And if you help your customers make good buying decisions, they'll stay
> in business and not take their business to the guy who showed them how
> they could save money. The good parastie lets his host live a relatively
> healthy life
>
> RM Holt, not in the Business
Parasite? Host? Do I detect a hostile tone?
I give my customers a choice, and the responsibility that comes with that
choice. I also give them the tools, should they choose to use them, to make
intelligent decisions, and make it reasonably easy for them to implement
their decisions.
That's far more than many other business folks in the same line of biz give
their customers. In fact, the metered accounts are one of the reasons we
have as many subscribers as we do -- and so are the unmetered ones.
The risk assumed by the customer is different in each case. For the metered
account, the customer assumes the risk of using a massive amount of time
(and getting charged for it). For the unmetered account the customer
assumes the right of not using a massive amount of time, but getting
charged for more then they used (effectively).
Different usage patterns lead to different decisions on the customer's part.
Perhaps taking the hit one month IS worth it for them, or perhaps the
customer prefers to know in advance how much this is going to cost,
regardless of their usage. Different people have different risk tolerances
and different budget processes, and MCSNet respects and honors those
differences.
This is better, from my customer's point of view, than being forced into
assuming one risk or the other -- which is what an inflexible "this is how
it is" rate plan ends up working out.
--
Karl Denninger (karl@MCS.COM) | MCSNet - First Interactive Internet and
Modem: [+1 312 248-0900] | Clarinet feed in Chicago. Send email to
Voice/FAX: [+1 312 248-8649] | "info@mcs.com" for more information.
