To me the explanation for G*'s slow start is not simply a pricing issue. Before you say, "Oh he's in the gouge 'em till they scream camp" let me say adamantly that I agree with Maurice and others that it is vitally important that we fill the minutes, and fill them fast. But on the other hand, just to consider this for a moment, let's say AirTouch/Vod is paying $0.45 a minute to G*, what do you think is their lowest pricing point? They want to make a tidy profit and I would be surprised to see them come below $1.00 anytime soon for domestic calls. Is this a reasonable assumption????
Okay, so if $1.00 is the lowest for any number of minutes, then do you think that overnight all the G* holdouts will sign up because the price is lower?? The holdouts aren't looking at G* pricing and saying "Ah $1.69, too much." Rather, they are saying, "Globalstar? What's that?"
No, I suggest that everyone here is missing the key point: Our potential G* customers are NOT the typical cell phone users (like myself) who will switch plans in a heartbeat because of a better pricing plan. Rather, we are talking about individuals who are trying to understand what satellite coverage is, how it works and how it would work in conjunction with their existing cellular plan, which in most cases suits them just fine. No, it is definitely NOT even primarily a pricing dilemma; it is a matter of persuading these potential customers that they NEED (NEED!) satellite service. Educate them. They won't buy until they know who and what G* is.
And that brings me to my final point: Since this is a fragmented group, spread across various industries and lifestyles and geographies, I would suggest that REACHING them with the message is a monumental task. Everyone seems to think that this is picked up by osmosis. You blanket the airwaves, you stuff inserts into bills (although that's not a bad idea)...this is not a mass consumer item!
So how do we reach these 40 million? Well they have phones, right? Call them!! Talk to them. Have they even heard of Globalstar? Explain how they can KEEP their cellular plan and ADD a satellite plan. Does anyone else feel that telemarketing would be effective??
Of course price is always part of the transaction, and I'm all for reducing the retail per minute charge to around $1 and eliminating the monthly access fees, long distance charges, etc. but quibbling over whether to price the plan at $1.69 a minute or $1.25 is not in my estimation the primary obstacle for selling handsets. The challenge is SELLING these people on the service!!
My father told me today about a friend of his who went jet skiing out at the river last weekend. Boat ran into him, nearly killed him. I am trying to learn how the emergency communications were handled, but this is the perfect example (and we're hearing the stories everyday) of how Globalstar is an absolute necessity for many recreational activities. having a globalstar phone IS saving lives and this will be a huge selling point for women the world over.
Cheers and Good Fortunes to us all!
Charlie R. |
