TELECOM 247

Ahmad Ibrahim wrote in message
news:3f8afd5f$0$379$afc38c87@news.easynet.co.uk...


One of the factors you might not be considering is the amount of
non-redeemed time - in other words, cards you sell and never end up serving.
I am not sure about the purchased calling card market but the promotional
caling card market is based almost entirely on the basis that actual
demption is typically low.

I realise that if someone has purchased a card, they are more likely to use
it, than if it has been given to them, but you are still going to get the
cards that are lost / junked / pin forgotten / washing machine killed it /
dog ate it / left behind in phone box and other such delights.

Obviously redemption will be higher if the cards are valid until expired -
as opposed to 3 months (for example) from date of first use.

1 second billing but 30 second minimum charge would not seem unreasonable,
this would ensure that someone who spends 45 seconds faffing about entering
their card number pin and destination number on your 0800 inbound only to
make a 3 second call Get the dinner on luv, Im on my way home is not
going to make you out-of-pocket.

If your card is being used for overseas calls, dont bank on the card being
used 4 times before it is empty - especially on the Ł5 denomination. So
suggest you think carefully before opting for this approach.

I hope you havent forgotten to take into account the payphone surcharge?
you mention 0800 access and depending on your target group(s), you might
find a significant number of calls are placed from payphones. If for
example, the target was Mr and Mrs Average who are using this card becasue
it is cheaper than dialling from home, then no problem, most calls are
likely to be from a non-payphone phone. conversely, if you are marketing
these to, for example, students in residence, asylum seekers, then the
chances are that MOST calls will be from one payphone or another. With you
being clonked for 10p a minute premium, you had better make sure you have
taken account of this somewhere along the line.

If your minute rates are indeed the lowest by far, then why is that?
Anyone can sell anything if they price it way under market rate. They might
not make any money in the process, but the turnover figures will look great.
Do you really think you will get VASTLY more custom by gross under pricing
instead of just ensuring you are more competative than all the rest - after
all if Im buying pens at 20p, Id rather sell 2,000 of them at 49p, than
50,000 at 21p.

Mark