Problems using My Ooma? Ideas on how we can make it better? You’ve come to the right place.
#54696 by sfhub
Mon May 03, 2010 7:32 pm
tommies wrote:However, it's needed to reminder this tax/fee ooma is bound to do by law. As some one had said earlier, don't blame the merchant for the tax(es).

There's a difference between taxes and fees. Ooma is not required to collect fees. Fees aren't specific to the customer or the transaction. They are used to offset the "cost of doing business" that resulted from government regulation. Taxes on the other hand are related to the customer and transaction and are collected on behalf of the government. Taxes collected go entirely to the government. Fees do not. Ooma actually has not started collecting any taxes yet, even on monthly customers.

The law doesn't say Ooma cannot pick up the tab for taxes (or fees) as part of their business model, which is exactly what they were doing early on. When your local furniture store runs the "no tax" sale, we all know the tax is still there, the merchant just decided to pay for it on their end to make the price more appealing. When Ooma was picking up the taxes on their end, they also priced the Ooma at a higher price point.

Many people factored in the zero fees into their decision to purchase Ooma and it wouldn't be good practice to go back and change the terms. Ooma basically made the calculation that the average customer would cost N dollars tax per year for the number of years the product would last and they included that in the purchase price. Customer's basically have already pre-paid those taxes by virtue of the higher pricing. Ooma will make money on some folks and lose money on others but they should balance out. If Ooma miscalculated the costs of taxes, then they shouldn't hide behind the "taxes are out of our control" excuse (and they've never implied they would do this) and retroactively tax their old customers, which is what is basically being suggested in your first sentence. That would be like those customers who paid higher pricing (which implicitly included some amount for taxes) coming back after enjoying 6 months of Free service and demanding Ooma refund the price difference because the customer had also "miscalculated" how much they would be willing to pay up front and because gasoline is higher than they budgeted for.

The merchant made a calculated guess that they could price a product higher and absorb future fees to make the overall value proposition more appealing. So yes, you can blame the merchant if they later come back and decide they miscalculated and need to change the terms.
#54712 by FloridaJohn
Tue May 04, 2010 6:09 am
DTMF wrote: Your local grocery store doesn't absorb the sales tax on your groceries.

There are no taxes collected on groceries.
#54713 by southsound
Tue May 04, 2010 6:18 am
FloridaJohn wrote:There are no taxes collected on groceries.

Not true.

Center on Budget and Policy Priorities wrote:■ Thirty-one states and the District of Columbia exempt most food purchased for consumption at home from the state sales tax. South Carolina is the state that most recently eliminated its sales tax on food (effective November 1, 2007).

■ Seven states tax groceries at lower rates than other goods; they are Arkansas, Illinois, Missouri, Tennessee, Utah, Virginia, and West Virginia.

■ Five states — Hawaii, Idaho, Kansas, Oklahoma, and South Dakota— tax groceries fully but offer credits or rebates offsetting some of the taxes paid on food by some portions of the population. These credits or rebates usually are set at a flat amount per family member. The amounts and eligibility rules vary, but may be too narrow and/or insufficient to give eligible households full relief from sales taxes paid on food purchases.

■ Two states continue to apply their sales tax fully to food purchased for home consumption without providing any offsetting relief for low- and moderate-income families. They are Alabama and Mississippi.

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#54812 by quebert
Wed May 05, 2010 10:00 am
Even with these made up $$$ figures the OP is spewing Ooma is still cheaper after a year, and that's with Premier. And last time I checked Vontage didn't give away routers. Factor in the router + monthly bill + taxes and Vontage costs more in the long run no matter how you look at it.

I had Ooma basic for almost a year now and it's cost me... $220 bucks. I recently signed up for Premier because I want more features, but it'll still end up being cheaper than any plan Vontage offers. OP I suggest you get Magic Jack if you don't want to pay much, the quality won't be that good and the features are't great but if Ooma is too expensive for you, you really don't have any other options.
#54818 by allo
Wed May 05, 2010 10:34 am
FloridaJohn wrote:
DTMF wrote: Your local grocery store doesn't absorb the sales tax on your groceries.

There are no taxes collected on groceries.


Absolutely not true! NOT TRUE for Florida!
No taxes in Florida on just UNPREPARED food items!
Soft drinks and Deli cooked food items are TAXED in Fl.

Taxable Food Products

Soft Drinks

Soft drinks, which are taxable, include but are not limited to, any nonalcoholic beverage, any preparation or beverage commonly referred to as a "soft drink," or any noncarbonated drink made from milk derivatives, or tea (when tea is sold in a liquid form).

Some examples of "soft drinks" are:

* milkshakes; malts; soda water; gingerale; colas; lemonade; limeade; orangeade; orange drinks; fruit drinks; fruit punch; root beer; tonic; beverage powders; fizzies; iced tea drinks in bottles or cans; and cocktail mixes.

Candy and Similar Products

Candy and any similar product regarded as candy or confection, based on its normal use, as indicated on the label or advertising thereof, is taxable.

Some common examples of candy are:

* candy apples; candy-coated grain-based bars (e.g., breakfast bars, granola bars, cereal bars); candy-coated pretzels or potato chips; chewing gum and breath mints (except those alleged by the manufacturer to have aspirin, laxative, or anti-acidity qualities); chocolate or carob (plain or mixed with other products); chocolate or carob-coated pretzels or potato chips; cotton candy; glazed or sugar-coated fruits, nuts, peanuts, popcorn, or other products; fruit drops, fruit flavored sticks, fruit roll-ups, and similar fruit snacks; halvah; jelly beans; licorice; lollipops; marshmallow candy; marzipan; and preparations of fruits, nuts, or other ingredients in combination with chocolate, carob, sugar, honey, or other natural or artificial sweeteners.

Candy and similar products do not include:

* items advertised and normally sold for use in cooking and baking, such as chocolate morsels, glazed fruits, candied fruits, and marshmallow or marshmallow bits; items primarily intended for decorating baked goods; chocolate, carob, or candy-coated cookies or similar bakery products; or dried fruit.

Food Products Taxable When Sold Under Various Conditions

Food products are taxable as follows:

* When the food products are sold as meals for consumption on or off the seller's premises;
* When the food products are furnished, prepared, or served for consumption at tables, chairs, or counters or from trays, glasses, dishes, or other tableware, whether provided by the seller or by a person with whom the seller contracts to furnish, prepare, or serve food products to others;
* When the food products are ordinarily sold for immediate consumption on the seller's premises or at a nearby location, such as at a parking facility, provided primarily for the use of patrons in consuming the products purchased at the location, even though such products are sold on a "take out" or "to go" order and are actually packaged or wrapped and taken from the seller's premises;
* Sandwiches sold ready for immediate consumption on or off the seller's premises; (A frozen sandwich, or one with a partially frozen filling, would be considered as sold ready for immediate consumption if the seller provides food-heating facilities for the customer's use, or if the sandwich is heated by the seller for the customer.)
* When the food products are sold ready for immediate consumption within a place, the entrance to which is subject to an admission charge;
* When the food products are sold for immediate consumption, either on or off the premises. This does not apply to food prepared off the premises and sold in the original sealed container, or the slicing of products into smaller portions;
* When the food products are sold through a vending machine, pushcart, motor vehicle, or any other form of vehicle;
* Bakery products sold by bakeries, pastry shops, or like establishments which have eating facilities, except when sold for consumption off the seller's premises;
* When food products are served, prepared, or sold in or by restaurants, lunch counters, cafeterias, hotels, taverns, or other like places of business;
* Food sold as hot prepared food products.
#54829 by lbmofo
Wed May 05, 2010 1:45 pm
Looks like I missed the party.

Break-even Term in Months:

ooma hardware cost/[old service total bill/mo - ( ooma premier fee/mo if any + rrf/mo if any)]
#54901 by FloridaJohn
Thu May 06, 2010 2:22 pm
allo wrote:
FloridaJohn wrote:
DTMF wrote: Your local grocery store doesn't absorb the sales tax on your groceries.

There are no taxes collected on groceries.

Absolutely not true! NOT TRUE for Florida!
No taxes in Florida on just UNPREPARED food items!
Soft drinks and Deli cooked food items are TAXED in Fl.


Well, what I call "groceries" is unprepared food. You know, the stuff you buy at a "grocery" store. If I am buying prepared food, then I am going to what I like to call a "restaurant". ;)


Yes, I realize that there is taxable items sold in grocery stores. They also sell lawn furniture in the grocery store, but I don't buy that there, either.
#55184 by hteinlin
Mon May 10, 2010 11:34 am
For new users:

Vonage Basic 500
Vonage V-Portal $9.99
Monthly $17.99 + $4 = $21.99/mo
1 Year contract = $21.99x12+$9.99 = $273.87
2 Years of service = $21.99x24+$9.99 = $537.75
3 Years of service = $21.99x36+$9.99 = $801.63

Ooma Core
Core $180 (Can still be found new ~$180 at TD/Fry's)
Monthly Premiere $10
1 Year service = $10x12+$180 = $300.00
2 Years of service = $10x24+$180 = $420.00
3 Years of service = $10x36+$180 = $540.00

Ooma Telo
Hardware $191.54 (Amazon.com)
Monthly Premiere $10 + $4 (tax)
1 Year of service = $14x12+$191.54 = $359.54
2 Years of service = $14x24+$191.54 = $527.54
3 Years of service = $14x36+$191.54 = $695.54

So 1 year 2 months is break even for Ooma Core. And 2 years is break even for Ooma Telo beyond that Ooma saves you money... I don't know what is the big deal about in this thread?
#55188 by burnside
Mon May 10, 2010 11:48 am
Exactly hteinlin. Let's not forget that with Premiere you get a second line. I had that with Vonage (unlimited minutes) and here are more costs:

VONAGE
1 year plan = $290
Second line + taxes = $7/month = $84/year
Vportal = $10
--------------
Total for Vonage = $384 for first year, $374 every year after

OOMA
Telo at Amazon = $190
Premiere + taxes = $13.50/month = $162/year
--------------
Total for Ooma = $352 for first year, $162 every year after

There you go. Vonage had voicemail to text for free which was nice, gotta give them that. They did not have blacklists, have to pay for virtual numbers, or call screening. If you have neither Vonage or Ooma right now, you buy Ooma hands down (this coming from a 4 year Vonage subscriber). If you already have Vonage and have their basic 500 minute service, then you got to weigh out more pros and cons, but I think Ooma beats them out here too except for the free voicemail transcription service. If you have anything higher than the Vonage basic service, then for sure you should switch to Ooma.

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