Inflation in home networks.
There is no need to describe the phenomenon of home networks, rather low entry threshold, high profitability and demand for Internet access services brought success and prosperity to this business. However, weak knowledge in the economic intricacies of many networks led to an intersnom phenomenon in the network. This phenomenon is called hidden inflation.
A bit of theory:
So how is the money depreciation in the home network? When depositing money into the home network by the client, the administration opens the user's personal account. As long as the user has money in the account, as long as he has the Internet, we have a simple money formula - a service.
It looks logical and correct. There is money giving service.
')
Now we will look from the point of view of network owners. They have 2 main tasks - to get the maximum profit and get the maximum number of users.
As a rule, the second of the tasks is taken as a basis, so that the first task would be carried out indirectly.
What is being done for this?
Firstly, you need to connect new users, secondly, to squeeze money from existing ones as much as possible.
We analyze each separately.
To attract new users are used all sorts of marketing things. The most common are bonus accruals to the client’s account when connecting. Since each new user costs a certain amount of money, in the theoretical part there is no difficulty here:
cost of a new client = advertising money + bonus to the account.
However, in practice, competitive struggle sometimes goes too far, providers are forced to increasingly raise bonus money and reduce the user's connection threshold to the network.
All this leads to the fact that a large amount of virtual money appears in the network, which is not provided with real services or money. Usually they are written off as a short-term loss in profit, usually expecting more profit from the user in the long run, which is the main mistake.
For raising ARPU (English Average revenue [ˈrevɪnju:] per user, average revenue per user) - an indicator used by telecommunication companies and meaning average revenue (usually per month) per subscriber from connected users use all the same practice bonus accruals. These are loyalty bonuses, bonuses for a large balance on the account, bonuses for reconnecting to a more expensive package, etc.
As with any state, the owner of a home network, roughly speaking, starts making bonuses with bonuses (non-controlling the issue of money), which are provided only with future profits, with all the problems arising from this.
Thus, we get a vicious system, on the one hand, the administration keeps prices at a certain level, moreover, cheapening occurs over time (for one and the same money, more and more services are offered), on the other hand, the company's internal cash flow will swell due to bonuses. So we get inflation.
This type of inflation has a hidden appearance. This was used in Soviet times, when money is there, but there is nothing to buy for them. Accumulated bonuses lying on users' accounts are not provided with real payments or services, the flow of real money is reduced, because users pay for the service with bonuses.
The flow of new bonuses with new customers, not only does not improve the situation, but also degrades it.
There is nowhere to spend bonuses, bonuses clog users' accounts, users do not carry money. And so in a circle, spinning inflation in a spiral.
The increase in new connections and stimulation of consumption by connected users leads sooner or later to the problem of the normal provision of the main service, leading it to marginal utility. Day after day, the entire system begins to feel uncomfortable working on the network (brakes, lags), which leads to the subsequent flight of users to less loaded providers, which in turn offer more bonuses (race marketable stocks)
So the owner is digging a local financial crisis.
As a rule, the administrative economy begins here.
The owner is simply forced to resort to manual flow control.
He divides the user's account into two accounts:
- the real one who pays for the main service
- Bonus, which pay for all additional services and options.
Such severe restrictions lead to the fact that an ordinary user begins to get lost in the conditions of work with the network, for him the tricks of the markeoids cease to work.
As a result, the user either pays real money for the main service and does not work with bonus accounts, thereby increasing them in his account, or goes to the provider where the conditions are more understandable and transparent to him.
Actually from here a conclusion, dear owners of home networks - do not chop the branch on which you sit. Learn to survive not at the expense of emissions, but at the expense of providing high quality and transparent working conditions with the network. It's time to get out of the stone age built by marketers.
Promotions that eat up future profits are evil.
A bit of theory:
́ (. Inflatio — ) — , . .
- , , .So how is the money depreciation in the home network? When depositing money into the home network by the client, the administration opens the user's personal account. As long as the user has money in the account, as long as he has the Internet, we have a simple money formula - a service.
It looks logical and correct. There is money giving service.
')
Now we will look from the point of view of network owners. They have 2 main tasks - to get the maximum profit and get the maximum number of users.
As a rule, the second of the tasks is taken as a basis, so that the first task would be carried out indirectly.
What is being done for this?
Firstly, you need to connect new users, secondly, to squeeze money from existing ones as much as possible.
We analyze each separately.
To attract new users are used all sorts of marketing things. The most common are bonus accruals to the client’s account when connecting. Since each new user costs a certain amount of money, in the theoretical part there is no difficulty here:
cost of a new client = advertising money + bonus to the account.
However, in practice, competitive struggle sometimes goes too far, providers are forced to increasingly raise bonus money and reduce the user's connection threshold to the network.
All this leads to the fact that a large amount of virtual money appears in the network, which is not provided with real services or money. Usually they are written off as a short-term loss in profit, usually expecting more profit from the user in the long run, which is the main mistake.
For raising ARPU (English Average revenue [ˈrevɪnju:] per user, average revenue per user) - an indicator used by telecommunication companies and meaning average revenue (usually per month) per subscriber from connected users use all the same practice bonus accruals. These are loyalty bonuses, bonuses for a large balance on the account, bonuses for reconnecting to a more expensive package, etc.
As with any state, the owner of a home network, roughly speaking, starts making bonuses with bonuses (non-controlling the issue of money), which are provided only with future profits, with all the problems arising from this.
Thus, we get a vicious system, on the one hand, the administration keeps prices at a certain level, moreover, cheapening occurs over time (for one and the same money, more and more services are offered), on the other hand, the company's internal cash flow will swell due to bonuses. So we get inflation.
This type of inflation has a hidden appearance. This was used in Soviet times, when money is there, but there is nothing to buy for them. Accumulated bonuses lying on users' accounts are not provided with real payments or services, the flow of real money is reduced, because users pay for the service with bonuses.
The flow of new bonuses with new customers, not only does not improve the situation, but also degrades it.
There is nowhere to spend bonuses, bonuses clog users' accounts, users do not carry money. And so in a circle, spinning inflation in a spiral.
The increase in new connections and stimulation of consumption by connected users leads sooner or later to the problem of the normal provision of the main service, leading it to marginal utility. Day after day, the entire system begins to feel uncomfortable working on the network (brakes, lags), which leads to the subsequent flight of users to less loaded providers, which in turn offer more bonuses (race marketable stocks)
So the owner is digging a local financial crisis.
As a rule, the administrative economy begins here.
The owner is simply forced to resort to manual flow control.
He divides the user's account into two accounts:
- the real one who pays for the main service
- Bonus, which pay for all additional services and options.
Such severe restrictions lead to the fact that an ordinary user begins to get lost in the conditions of work with the network, for him the tricks of the markeoids cease to work.
As a result, the user either pays real money for the main service and does not work with bonus accounts, thereby increasing them in his account, or goes to the provider where the conditions are more understandable and transparent to him.
Actually from here a conclusion, dear owners of home networks - do not chop the branch on which you sit. Learn to survive not at the expense of emissions, but at the expense of providing high quality and transparent working conditions with the network. It's time to get out of the stone age built by marketers.
Promotions that eat up future profits are evil.
Source: https://habr.com/ru/post/45379/
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