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#14783 by scottlindner
Wed Aug 05, 2009 8:15 am
Groundhound wrote:True, I think I understand it. You feel you paid too much for your ooma, which included an additional component you didn't need, purchased from a retailer that was not offering the lowest price. But you bought it anyway.

That's what I am getting out of it. Is this buyer's remorse? From Wikipedia:
Buyer's remorse, when evidence exists that it is justified, is a classical example of cognitive dissonance. One will either seek to discount the new evidence, or truly regret and try to renounce the purchase.
It seems to fit.
#14785 by Vtec525
Wed Aug 05, 2009 8:22 am
Groundhound wrote:
Vtec525 wrote:It really is not that hard to understand...

True, I think I understand it. You feel you paid too much for your ooma, which included an additional component you didn't need, purchased from a retailer that was not offering the lowest price. But you bought it anyway.


Yes and No.

At the time of my purchase, Walmart had it cheapest. So I bought it at the lowest price.

I did get an additional component which I did not need and paid for. That is my concern.

Wouldn't it make sense to sell the hub for less and get more customers?

Forget about me, what's done is done... Im already an oomaer.

In order for the company to last, they need subscribers. The cheaper the initial cost, the more they will get.

Look up magicjacks revenue. It is 100 million. What is oomas? The reason is magicjack is pennies.

But yes, I did buy ooma and will test it out. We all make investments. I am hoping I don't buy another hub in few years.

In any case, the point I am making is if people have choices and price is lower, they are more inclined to try something....

if that is too difficult to comprehend, then forget this whole thread.. i won't go back and forth to make my point. It is very easy to grasp.

Why sell an item no one needs, only to have them throw it on ebay. Get a huge database of users and your company will thrive.

Why has oomas subscriber database grown since it dropped its price from $400 something to $200?
Now how much will it grow if the hub only is needed and costs like $150?
#14786 by murphy
Wed Aug 05, 2009 8:31 am
Vtec525 wrote:
Groundhound wrote:Why sell an item no one needs, only to have them throw it on ebay.


Anyone that wants to use the instant second line or add an independent second phone number needs the scout. I have two scouts because I have both situations.
#14787 by scottlindner
Wed Aug 05, 2009 8:32 am
Vtec525 wrote:Wouldn't it make sense to sell the hub for less and get more customers?


So you're thinking more along the lines of using the Hub as a loss leader for Premier subscriptons, right? That might work if Ooma had really deep pockets. They don't at the moment, but in the future that might change.

Magic Jack charges a subscription fee, Ooma does not. Ooma needs to produce revenue from somewhere. I do like the idea of finding new ways to offer the hardware without the steep up front cost to attract more users. The trouble is, Ooma still needs to produce revenue and operate in the black soon or it will loose the venture capital it is currently existing on.

I think the lease to own option is the best approach to achieve this goal. If you hand out the hardware at a loss, and people do not opt for Premier, where does that leave Ooma and the people with the hardware?

Scott
#14788 by Vtec525
Wed Aug 05, 2009 8:41 am
murphy wrote:
Vtec525 wrote:
Groundhound wrote:Why sell an item no one needs, only to have them throw it on ebay.


Anyone that wants to use the instant second line or add an independent second phone number needs the scout. I have two scouts because I have both situations.


Murphy, I never said DON'T sell it. I said make it OPTIONAL. Did you read the initial post?

EXAMPLE:
INDIVIDUAL HUB: $169.99
INDIVIDUAL SCOUT: $69.99
BUNDLE: $229.99 ($10 discounted for both)

So people can buy however they see fit for their needs.
#14789 by Vtec525
Wed Aug 05, 2009 8:44 am
scottlindner wrote:
Vtec525 wrote:Wouldn't it make sense to sell the hub for less and get more customers?


So you're thinking more along the lines of using the Hub as a loss leader for Premier subscriptons, right? That might work if Ooma had really deep pockets. They don't at the moment, but in the future that might change.

Magic Jack charges a subscription fee, Ooma does not. Ooma needs to produce revenue from somewhere. I do like the idea of finding new ways to offer the hardware without the steep up front cost to attract more users. The trouble is, Ooma still needs to produce revenue and operate in the black soon or it will loose the venture capital it is currently existing on.

I think the lease to own option is the best approach to achieve this goal. If you hand out the hardware at a loss, and people do not opt for Premier, where does that leave Ooma and the people with the hardware?

Scott


Scott,

I don't understand where you are going with this....

Ooma PACKAGES the scout as a BUNDLE with the hub. All I said is remove the scout from the package and MINUS it from the cost, and that will reduce the up front cost. I didn't say offer the BUNDLE for less and take a loss..

I want ooma to stick around. IF people pay LESS up front, they are more inclined to buy the premier which is optional.

It really is very easy to understand what im saying....
#14793 by Aveamantium
Wed Aug 05, 2009 9:01 am
Don't take this the wrong way (I'm just curious), but if MagicJack is so superior to ooma in your mind, what made you go out an purchase an ooma. To me the two products cater to two entirely different demographics. One (MagicJack) seems to be for making cheap calls through your computer and the other (ooma) seems to be a complete phone service replacement service. From what I've read Magicjack has no customer support (so to speak) and you can't port your number in to it. Ooma gives you this and a whole lot more. Again, I'm not saying that one is better than the other but I don't think you can make a comparison between the two!

Now if you do want to compare prices, I think it would be more appropriate to look at other VoIP services that typically charge $20 to $25 per month for "unliminted" calling. Just my $0.02...
Last edited by Aveamantium on Wed Aug 05, 2009 9:02 am, edited 1 time in total.
#14794 by Groundhound
Wed Aug 05, 2009 9:02 am
You cited MagicJack as a comparison, and while both MagicJack and ooma are unique marketing strategies, they are very different from each other. Ooma pays for the “free” service from the up-front revenue, and sells Premier to a percentage of that base of pre-paid customers. To make this work, ooma must maximize up-front revenue while minimizing customer acquisition costs – both points very different from MJ. Ooma can't survive if they set about reducing that up-front revenue to acquire more “free” users and, as a result, less Premier users. Scouts are useful for both “free” and Premier customers, but much more so to Premier. If they don't sell all the equipment needed to provide the full Premier feature set up front, it becomes that much harder to sell Premier.
#14798 by oomg
Wed Aug 05, 2009 9:16 am
Vtec525 wrote:Murphy, I never said DON'T sell it. I said make it OPTIONAL. Did you read the initial post?

EXAMPLE:
INDIVIDUAL HUB: $169.99
INDIVIDUAL SCOUT: $69.99
BUNDLE: $229.99 ($10 discounted for both)

So people can buy however they see fit for their needs.


Actually, the value of the individual scout has been established by the market for the most part. About $25-35 (plus shipping). So, it seems to me that assuming a $229 bundle price works, the pricing should be $189-199 for Hub only, and $29-39 for the Scout. BTW, the current Costco in store special offers the Hub only for $199.

Regarding a cost comparison against MagicJack, I posted a similar analysis in another post, but then learned that MJ is, in fact, offering a 5 year plan at $60 for the full five-year period. So, consider the following:

There definitely is a cost to running a computer 24/7, assuming one want's the convenience of 24/7 telephone service. Granted there is debate over just how much cost must be factored in, but there seems to be no denying that there is an added cost.
See, http://www.dslreports.com/faq/2404

Assuming for the sake of discussion only that one wanted 24/7 phone service for a single line at a single location, ooma can be obtained for about $40 per year amortized over 5 years (plus tax for current Costco special for Hub only) or $20 per year over ten years (plus some nominal amount for the electricity to run the box). MJ over five years would cost $80 (excluding shipping) plus the cost of electricity to run the computer. Over ten years it would cost $140 plus juice (assuming the MJ service price does not change).

Assuming further for the sake of this discussion only, that it cost only $7.50 per month (or $0.25 per day) to leave the computer on continuiously (as opposed to say... 8 hours per day), the total cost of the single line MJ system would be $80 plus additional electricity cost of $450 or $530 over the five year period which comes out to $106 per year.

O.K. you say... what about the electricity cost for the ooma Hub? I have assumed it is negligible, but even if one were to reduce the marginal cost for electricity to $0.10 per day to run the PC as opposed to the ooma Hub, the MJ would still cost $80 plus additional electricity costs of $36 per year or $260.00 over the five years or $52 per year.
That would put the break even at approximately 3.5 years.

Worried about the ooma equipment? An 3 year exended warranty is available for $69 (let's say $2/mo). Since the unit comes with a one year warranty, the cost should be amortized over 48 months or about $1.50 per month, and thus, meaning that the total cost of the ooma Hub only option would be less than $42 per per year. That would mean a break even of just over five years. Then again, there is no garantee that the MJ would last five years.

But wait... there is more. The ooma system is a huge improvement over the MJ.
#14799 by scottlindner
Wed Aug 05, 2009 9:19 am
Vtec525 wrote:
scottlindner wrote:Ooma PACKAGES the scout as a BUNDLE with the hub. All I said is remove the scout from the package and MINUS it from the cost, and that will reduce the up front cost. I didn't say offer the BUNDLE for less and take a loss..


The Costco bundle currently available at some brick and mortar stores is Hub only.

The new TELO will not include any Scouts or additional handsets.

Is there something less to sell that we're not getting?

Scott

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