[Cialug] Freese Notis has VOIP aka Iowatalk.com

[Mr. Arthur]

On Fri, 29 Apr 2005, Dave J. Hala Jr. wrote:

> On Fri, 2005-04-29 at 15:18, Mr. Arthur wrote:
>> On Thu, 21 Apr 2005, Jon Clemons wrote:
>>
>>> I would say their pricing point seems 
>>> a bit high considering this.

>> Well pricing in most cases depends 
>> on how to create a sustainable business.

>> In capitalism, you are welcome to compete 
>> at a lower price and see if you stay in 
>> business or go out of business at that 
>> lower price point.

>> No vender is doing a favor for their 
>> customers by pricing low and then in 
>> the meantime running into a crunch. 
>
> I always price low. It keeps me in 
> business. I maintain my margin by 
> reducing my overhead. I hate to use 
> the phrase "think outside the box", 
> but after doing the "corporate thing" 
> and now doing the "dave thing", I 
> think that sometimes businesses get 
> in the habit doing things a certain 
> way, and rather than finding a differant 
> solution, they just say they can't do 
> it, or "that model is not sustainable"

Well, I admire that you can do
the "dave thing" and we have
thought outside the box for the
VOIP thing.

Many small players that utilize 
low overhead to achieve their 
pricing points depend on larger 
organizations willing to 
capitalize substantial systems.

Your business is doing that, ours
is doing that in some ways.  The
type of business you are in makes
all the difference in the world
as well.

Software has much much lower overhead 
than that of telecommunications.  The 
margins are higher in your business 
of specialized applications.  So as a 
small shop, you do sacrifice margins 
in return for your current price point.

You may even be leaving more money 
on the table than you should for 
your own personal well being.  Like 
skipping benefits of health care or 
creating a capital reserve for the 
future growth or let us hope not, 
but tougher times of the business.

But you are getting that price point 
by utilizing Dell or like equipment 
made in facilities that cost millions 
of dollars, using bandwidth feeds 
that cost tens of thousands to many 
millions more of dollars just getting
to your neighborhood etc.  So through
sacrifice and leveraging other peoples
money, (nothing wrong with that of
course in its own right), you achieve 
your position with those costs 
in part taken care of by others.

If you think you can do it at a 
lower price, just do it.  A whine 
about price pales in comparison 
to someone participating within 
that business seems like a so
very incredible statement to make.

Perhaps you can say the same
of gasoline prices as well, or
the cost of property taxes...

You get the idea I believe
that some of what you say
is a bit, respectfully, naive.

My guess is that you would have 
to give up capabilities to that 
end of achieving your
much lower overhead.

But you are welcome to prove 
me wrong by doing it instead 
of whining about it.  At the
lower price you think is the
right one in the marketplace.

You are quite smart Dave. So 
I think you can do that much.

In the interim, some companies 
out there may want a company 
like Freese-Notis with ready 
facilities like IowaTalk.com 
proves at this point to do it.

>> Welcome to capitalism at its best.

>> Freese-Notis has been in business longer 
>> than most of these players for Internet
>> or VOIP by a great deal.  The original
>> business was founded in 1973, it is an

>> Iowa Corporation (not a fly by night LLC
>> in some far away state) and has done
>> Internet services since 1994.  Provides
>> DSL, T-1's, T-3's etc.  Voice over the
>> Internet protocol was launched in 2004
>> to paying customers.  The brand of our
>> VOIP reflects that we are an established
>> Iowa company.

>> That was before domain names even cost
>> money or Network Solutions had much to
>> say about it.  Maybe someone out there
>> really generous will buy a TLD and do
>> free registrations without lots of the
>> pre-qualifications for money again.
>
>
>
>>
>>> Long distance interstate calls will be billed at 4.9 cents per minute.
>>> Intrastate calls can vary depending upon where you call, in some cases 10
>>> cents per minute or more depending on local tariff charges.
>>
>> When the LATA's officially fall, the
>> sustainable business price will likely go
>> down as well for VOIP from Freese-Notis.
>>
>> It is really that simple.
>>
>>> ----- Original Message ----- From: "Nathan C. Smith" <smith@ipmvs.com>
>>> To: <cialug@cialug.org>
>>> Sent: Thursday, April 21, 2005 3:18 PM
>>> Subject: [Cialug] Freese Notis has VOIP
>>>
>>>
>>>>
>>>> I just got off the phone with Tony at Freese and they are getting into VOIP
>>>> in a big way.
>>>>
>>>> 'http://www.iowatalk.com/'
>>>>
>>>> They are also terminating 515 numbers at this time.
>>>> It would seem that they have already nailed the price point too.
>>>>
>>>> -Nate
>>>>
>>>> Nathan Smith  McKee, Voorhees & Sease, P.L.C.  515.288.3667
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>>>
>>>
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