Matthew N. Larson

Why Selling Cheap VoIP Means Cheap and Short-Term Profit

In the VoIP Industry, cheap doesn't always sell. It may even spell disaster, despite all your marketing efforts. The key is always to factor in all costs, and price a good VoIP product fairly.

Ask many who’ve tried to venture into this sales formula and they’ll tell you the same thing. Cheap doesn’t always translate into profits – it almost always doesn’t. What ends up happening in this scenario is that the eager entrepreneur ends up wasting his investments and time trying to get customers who only would end up leaving him.

Why Would They Leave Him?

First of all, in the VoIP industry, there are certain overheads that you can’t just ignore. The main one is the cost of acquiring customers. This is the killer cost that VoIP industry entrants need to really focus on. The market base for VoIPs is still so big. But, you will need to convince these traditional phone users to switch to digital.

You can do this through promotions, advertisement, and the usual information dissemination. There is still a lot of misconceptions about VoIP services. Correcting these misconceptions can lure potential clients from the comforts/convenience of traditional telephony to going digital.

Now, doing this type of information dissemination will cost a bundle. One way that entrepreneurs try to keep the cost of their products low is by buying into cheap VoIP services. They package the service nicely, and then spend a lot on acquiring customers. The product stays cheap and they earn.

But, while all this sounds good, the entrepreneur just ends up wasting his investments in acquiring the customer. With a cheap VoIP product, the customer experiences the hassles of that cheap product – that’s static, poor connection, low audio quality and the rest. In this situation, the customer is unlikely to stay on as one. With a fast customer turnover rate, the entrepreneur will need to spend more and more on acquiring new ones. This just doesn’t add up to sustained profitability.

Still a Bad Idea: the Alternative Way of Keeping the Price Low

Of course, there is an alternative way of keeping the price low; albeit, not really. This is practiced by a major VoIP company, which really harps on how low their deal is. But, when you do sign up, you’ll see a bunch of “hidden fees” on your bill. The “low low price” is just a nice sound byte for their advertising.

While this may get them clients for now, pretty soon the practice may only turn off customers. After all, in these times, the buyer will not only look at what’s on your price tag. The discerning customer will look at the value for money, and the company’s integrity.

Pricing Your VoIP Services

In the end, what remains important in selling VoIP services is that you have a good product to sell, and that you price it correctly and fairly. Your VoIP services need not be the lowest among the pack. But, it has to stand out when it comes to quality. If you get this message to your market and your service delivers, then you will have gained the type of customers that is the envy of the rest of the VoIP industry – loyal, and knows the value of quality services.

Article Tags: Cheap Voip

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