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Money For Nothing

January 21, 2004

A recent study modeled five wi-fi hotspots, three that charged a fee, and two that offered it for free.  Profits (in the form of increased food and coffee sales) for the free hotspots were 533% higher than those for the pay hotspots.

I wonder if this also took into account overhead reduced by not requiring access control software, sales of service, etc.?

How long are people going to continue to be surprised by the idea that you can sometimes make more money by giving something away than you can by squeezing the juice out of every penny as it goes by?

I was recently back off in the wilds of middle america, where any sort of public access wi-fi couldn’t be found for love nor money… I couldn’t help but think that if I managed any kind of business where I wanted to get customers to hang out and purchase consumables, one of the first things I’d do would be to drag in a broadband connection and a wireless router, and drop a bunch of “how to use our free Wi-Fi” service flyers on the counter…

(link via Wi-Fi Networking News)



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