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#14845 by scottlindner
Wed Aug 05, 2009 12:13 pm
Vtec525 wrote:Sell the HUB seperately at a REDUCED cost to draw more customers.


You can by the hub for $50 less RETAIL. Ooma cannot control what resellers are selling it for, but they can establish retail prices and they have per your formula already. Ooma charges $200 for the Hub, $70 for the Scout, and $250 for the Hub + Scout - $20 combo discount. That is what you have been asking for and they are providing it already.

The upcoming TELO will not require you do buy anything more than the bare minimum. Which is already per your formula.

What more can Ooma do besides simply reducing prices?

You say you want separation of product for choices, but I really think you want an MJ price model. Ooma could do that, but they'd be forced to start charging service fees. That isn't their market, but maybe someday it will be.

I find it interesting you think I am the brick wall in this conversation when you aren't reading the information people have been providing.

Hub Retail = $200
Scout Retail = $70
Hub + Scout = $250 less $20 combo discount

Not happy? What would make you happy? 20% cheaper? 40% cheaper? 80%? FREE?

Do you mandate all companies provide you this amount of options, such as your automotive companies? I bet they love you when you walk onto the sales floor. Vtec525, "I want options'... Sales person, "Here's our chinese menu", Vtec525, "I want more options and at far lower prices than you have listed", Sales person, "We have more options than any other car company and our prices are already competitive with the region", Vtec525, "I still want more options and can you throw in a the car for 80% off the scrap value of the car?"

Do you ask that Microsoft do the same with Windows? Stand in line, the EU is ahead of you.

Scott


Vtec525 wrote:"Like always, which one of these is better will depend on contexts, as each has pros and cons. But taking the cost factor into account, Magic Jack seems to be the best bet, since the hardware is quite cheap and it offers free calls to all phones, landline or mobile, for free. But if you don't want to remain attached to your computer, better look in ooma's direction. Still though, even with some more features, the high price will be somewhat deterring. "


I agree and wonder why you didn't buy Magic Jack since you're convinced it is right for you, and Ooma is flawed to failure. I am curious, did you buy an Ooma so you could gain access to post on this forum. Do you work for Magic Jack?
#14851 by Vtec525
Wed Aug 05, 2009 12:29 pm
Scott,

You don't get it do you?

You won't be employed for long at ooma if their price scheme is so much up front.

You mentioned only Costco has it for $200. Who else has the hub alone? I just went to their site and its listed for $229. So please send me a link to where I can buy it alone.

What do you mean ooma cannot control what stores sell it for?

I am not asking for a PRICE reduction.. I am saying to split the thing apart... Do you understand?? It really isn't so difficult that we need 4 pages of this... LOL

Whatever ooma sells the product to the stores, is what the stores resell it for. I worked for a videophone company before, so i know how it works.

The more you mass produce, the cheaper you can get it for.

I know it costs $$ to make the ooma hub and scout, so theres only so low you can go...

Stores sell it for a bit higher than what they get it for from ooma to make profit. If ooma sells it seperately at lower costs, stores won't add $100 on top of it. AT&T won't sell the iphone for $999 without Apples knowing. Its a contract thing...

My suggestion was to DIVIDE and CONQUER.. Plain and simple.

The scout does not grow on trees. It costs $$ to make. So sell the hub SEPERATELY (minus $69) and your sales will improve.

Dude it really ain't that hard to comprehend... Im with you Scott. We on the same sides. No need to get so stressed. I am trying to SELL more oomas..

You keep saying you can buy the hub alone, well send me the link. I want to buy one.

niknak, you got it for $219 on amazon. Yes, it is FAR cheaper than landlines. But in the same ballpark as other VOIP services for $10/mo with 2yr plan.

You will only lose out if your hub breaks and you need another..

Don't worry, I am on your side too. Just throwing it all out there.
#14852 by scottlindner
Wed Aug 05, 2009 12:31 pm
niknak wrote:I bought ooma hub & scout combo on amazon for 219$ in February - it has already paid for itself with savings by dropping verizon landline!


I snagged my combo off Amazon for $199. I think I got lucky with my timing. It went up $10 shortly after. Of course, this is Ooma's pricing causing this and it has nothing to do with Amazon at all. ;)

I haven't saved yet, but will very soon.

You'll be lucky to find the same level of cost savings from POTS to VOIP if you are already a VOIP customer. If cost is the only consideration you'll always be drawn to MJ. That is, if you can deal with the pathetic call quality of MJ. My brother has Magic Jack and I will not call because I get these "Boing-POW!"s while talking to him. It really sucks. How many people on the forum have dumped MJ for Ooma already? How many have dumped Ooma for MJ? Would be a good stat to know.

I personally love Porsche's, but opted for a Chrysler instead. Maybe I should call Porsche and tell them to sell me a stripped down Porsche at the price of the cheapest Chrysler on the lot? I'd be lucky if I got a pair of Porsche driving gloves.

Scott
#14853 by scottlindner
Wed Aug 05, 2009 12:35 pm
Vtec525 wrote:What do you mean ooma cannot control what stores sell it for?


Basic economics. I buy something with the intent to sell it. What I bought it for has nothing to do with my ability to sell it. If this weren't true, eBay and Craiglist would not exist. People buy stuff all of the time for a lower price than it can be sold for because the people they bought it from do not have the skill or expertise to sell it for a higher price. How does this relate to Ooma? Ooma is not the seller, and they don't want to be. That's why most manufacturers establish a Retail price. Ooma's retail prices already match your formula and have product options just as you wish. The reason you can't find the prices you want has to do with the resellers ability to sell.

As for selling the Hub and Scout separately... they already do. You have all of the options you want just as you have asked for.
#14854 by niknak
Wed Aug 05, 2009 12:39 pm
...niknak, you got it for $219 on amazon. Yes, it is FAR cheaper than landlines. But in the same ballpark as other VOIP services for $10/mo with 2yr plan.

You will only lose out if your hub breaks and you need another..

Don't worry, I am on your side too. Just throwing it all out there...


I'm with you too, only trying to explain that the price you pay for ooma has a built in expectation of what it costs to connect a call in the USA and they have averaged it out so that they make some money on the up front cost, but make most money on premier services.

As far as the scout is concerned - if you don't need it, sell it on ebay

As far as electronics equipment breaking, I must be very lucky - I still have tube-type stereo equipment from the 1970's that still works just fine, still have a rotary dial phone in the kitchen, DSL router was still going after 7 years when it was replaced by FIOS...I don't expect to have a problem with ooma, go figure!

PS - Scott does not work for ooma (yet!) :)
#14862 by scottlindner
Wed Aug 05, 2009 2:03 pm
I think I have this figured out. I think it's Ooma's current limited distribution that's is causing what is troubling you. They are currently producing as fast as they can, and I recall a month ago an announcement stating they were working new retail agreements. That might solve the issue you are experiencing.

Scott
#14892 by oomg
Wed Aug 05, 2009 11:38 pm
Vtec525 wrote:Scott,
You mentioned only Costco has it for $200. Who else has the hub alone? I just went to their site and its listed for $229. So please send me a link to where I can buy it alone.

You keep saying you can buy the hub alone, well send me the link. I want to buy one.


There are 100 select Costco stores across the U.S. that are currently offering the Hub alone at just under $200.
See the following for additional info:
https://www.ooma.com/buy/referral.php
viewtopic.php?f=9&t=2154

And... if you refer the purchaser, you can get either a $50 international calling credit or 6 months of Premier service as a bonus. The calling credit may have some limitations, so assuming for the sake of this discussion, you opted for the 6 months of Premier as your bonus, and only 20 of your 25 friends were to purchase, you would receive 10 years of Premier service. Of course, I know of nothing that prevents you from throwing some portion of your referral bonus back to one or more of your friends. So, why not try your theory. Offer each of your friends $25 to buy the Costco (in store) deal. You get $50 in Premier credit and, in effect, they have purchased for $175.

Costco.com has the Hub and Scout (I think it's called the ooma core) for just under $230 which also includes a 6 month Premier trial and $50 in international calling service. Hmmm... sounds like a pretty decent deal, and as we know, the Scout can be sold, leaving your friend with the Hub, 6 months of Premier (or 4 additional months which is worth about $34), and a $50 international calling credit; all for approximately $200, or around $31 more than what you are suggesting as the Hub price.

Vtec525 wrote:What do you mean ooma cannot control what stores sell it for?

I know... hard to believe, but it's called price-fixing. Aside from federal laws prohibiting price-fixing, under California law price-fixing is per se illegal, even if it is used to set a lower price. Psst.. ooma is located in California, but even if they were located in another state, they would still be subject to the law.

Vtec525 wrote:I am not asking for a PRICE reduction.. I am saying to split the thing apart... Do you understand?? It really isn't so difficult that we need 4 pages of this... LOL

The scout does not grow on trees. It costs $$ to make. So sell the hub SEPERATELY (minus $69) and your sales will improve.

Since you mentioned trees, I'm going to go out on a limb here. I'll lay odds that it costs more than double the cost of a Scout to produce the Hub. Oh yeah, don't forget, when ooma sells one of these things (the Hub), they need to realize enough profit to cover their cost of operation for several years down the road. (This cost is not factored into the cost of a Scout) Also, don't forget, increasing unit sales does not necessarily lead to greater revenue to greater profit. If you lose a little bit on each one, you are not going to make it up with volume.

The problem as I see it is that you seem to believe that keeping the Scout at $69, and reducing the Hub, is the correct approach. Apparently ooma does not agree with you. However, going out on that limb one more time, I am fairly certain they have done an economic analysis of various pricing structures.

Vtec525 wrote:The more you mass produce, the cheaper you can get it for.

That may be true to a certain point. There is an entire science involving production planning and minimizing cost per unit. At some point, cost per unit may actually start to rise again.

Vtec525 wrote:I know it costs $$ to make the ooma hub and scout, so theres only so low you can go...

Whatever ooma sells the product to the stores, is what the stores resell it for. I worked for a videophone company before, so i know how it works.

Stores sell it for a bit higher than what they get it for from ooma to make profit. If ooma sells it seperately at lower costs, stores won't add $100 on top of it. AT&T won't sell the iphone for $999 without Apples knowing. Its a contract thing...


I have rearranged excerpts from the original post. Now, I can't believe that these three statements are in the same post from the same person. Aside from that, most manufacturers, distributors, and/or wholesalers try to avoid undercutting their retailers. Tends to hinder (if not sever) those relationships. By setting a higher MSRP, the retailer can adjust his price to fit within his marketing strategy. If ooma were to set a low MSRP, some of the retailers probably would not even carry the product.
#15155 by oomg
Fri Aug 07, 2009 1:46 pm
lilolme2121 wrote:I bought my Ooma from Fry's Electronics. It was refurbished and I paid $139.00


Did that include the Scout? Either way, sounds like a bargain to me.

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