Leasing a 921 ???

[Nolzman]

I am currently on the Digital Home Plan (DHP), where I lease the equipment from Dish. I have 508 and a 300, and this cost me $5/mo. It has been a good deal, because the PVR only cost me $49 over a year ago, and I replaced once for free already. I have to return the equipment to Dish, if I upgrade to cancel my service.

I would like to upgrade a 921 when it comes out, but I want to keep my DHP, thereby leasing the 921. I thought I heard Charlie say that the leasing price for the 921 may be around $25/mo. This seems like a pretty good deal considering that it would take fours to pay of the $999 msrp, and I would have replacement warrenty for as long as I keep the service.

Does anyone know about how the pricing will be for us DHP folks? Did anyone else hear Charlie address the leasing price?

[Scott Greczkowski]

Someone asked about this last night and the answer was NO because at $10 or $15 a month its going to take dish a LONG time to recoup their $1000 for the 921. :)

I believe they should lease 811's though. :)

[csschrot]

I thought that people would stay on the DHP plan and just purchase any additional receivers that weren't part of the original contract. So from what I understand of the business rules for $999 you could have a 921 add to your account.

[Mike Richardson]

Someone asked about this last night and the answer was NO because at $10 or $15 a month its going to take dish a LONG time to recoup their $1000 for the 921. :)

The $999 price has gotta include some gravy for DISH. So really their wholesale price might only be $900 or $800. (But I have no clue though so do not quote me on that).

You also gotta remember that when a DHP customer cancels all his stuff is returned. So let's say:

- Customer 1 has the 921 for a year, he pays $20 a month, that's $240. Then Customer 1 cancels his service.
- Customer 2 rents the same receiver for 2 years. That's $480.
- So DISH has earned $720 off this unit already. Now they can sell it for $349 as a refurb and make almost $1100.

[Peluso]

In a rental situation Dish only needs to recoup manufacturing costs... What is that? Maybe $600.00 The point of rental is to promote the service. So at $20 a month with a two year commitment you are looking at $480.00 If the customer keeps the equipment for another year, then you are in the profit territory. I'd be happy to commit to a 24 month programming commitment if I could rent a 921 at $20.00 a month.

[Mike Richardson]

In a rental situation Dish only needs to recoup manufacturing costs... What is that? Maybe $600.00 The point of rental is to promote the service. So at $20 a month with a two year commitment you are looking at $480.00 If the customer keeps the equipment for another year, then you are in the profit territory. I'd be happy to commit to a 24 month programming commitment if I could rent a 921 at $20.00 a month.

Yeah, what I meant by "wholesale price" was the manufacturing cost. I don't have much of an idea how much profit is tacked onto the MSRP. Assuming $600 to manufacture a 921, if it were rented for two years ($480) and then the customer cancels or something and it is sold as a refurb for at least $120.01 then they would make profit. Of course they could probably sell it refurb for more than that.

When you think about it renting out 921s and even 721s doesn't seem that bad for DISH, except for the potential of the boxes being ripped off. If they charged $25 a month for two years to rent the 921 then they break even after the two years. Everything else is pure gravy.

[kstevens]

Charlie did not say no to leasing the 921, he said maybe and that it would be more like 25 dollars a month not 5 or 10.


Ken

[Nolzman]

The reason I started this post was that I am currently leasing a 508. The reason I leased it at then time was first, it was cheap, and secondly, it allows me to upgrade when more advanced equipment comes along (i.e. 921).

Another advantage to leasing is that it does allow to switch services (after the contract) and not have to eat the loss on the equipment purchase.

But I think the main reason, it that I am under the Digital Home Plan. Which gives complete protection from equipment failure. And the PVR's, being mechanical devices (hard drives), are prone to such failure.

[tahoerob]

The reason I started this post was that I am currently leasing a 508. The reason I leased it at then time was first, it was cheap, and secondly, it allows me to upgrade when more advanced equipment comes along (i.e. 921).

Another advantage to leasing is that it does allow to switch services (after the contract) and not have to eat the loss on the equipment purchase.

But I think the main reason, it that I am under the Digital Home Plan. Which gives complete protection from equipment failure. And the PVR's, being mechanical devices (hard drives), are prone to such failure.

At another post I read, an inside Dish source states that the 921 actually costs Dish $1400 to produce. Thus we would be getting it at a discount.

Do not look for a lease anytime soon.

Robert