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Interesting, he was able to subsidize nearly 67% of the $126,710 through the 17 pre-orders he received. Probably could have built the entire project with zero o
by xyst 6y ago
Interesting, he was able to subsidize nearly 67% of the $126,710 through the 17 pre-orders he received. Probably could have built the entire project with zero out of pocket expenses if it was a more dense area (or at least had a higher signup rate than 30%).
Although, now that it is built what’s the process for hooking up new subscribers? Wouldn’t he have to hire more contractors to bore out lines and hook up the fiber to each home? The cost of acquiring a customer would appear to be astronomical.
- iptrans 6y agoAccording to the presentation: - Costs exceeded $126k by far. More like $150k in direct costs plus all the free labor Jared put in. This project has taken literally years of his life and all his spare time lately. - Pre-orders were more than 17. 17 is the number of subscribers already hooked up. - Take rate wasn't 30%, it was 70% along the route. - Customers were, at least partially, pre-installed, so not all will require new construction. Jared also does a lot of the work himself without contractors. He also owns/has access to a chain trencher and a directional bore. - customer acquisition costs do not traditionally factor in the cost of building drops. These are usually accounted for separately. Obviously construction costs time and/or money.