Bulb

[Deleted User]

masonic wrote: »

The specific comment being questioned was that "they were struggling and likely to go bust". Despite the reported loss, this is unlikely to be the case, especially as they have raised almost three times that figure in new capital.

Eventually they will need to hike their prices, but for the moment they are cheap, and somewhat better capitalised than other cheap providers.

You mean they have borrowed a load of money on tick and high interest rates..ok if that makes you feel confident you stick with them..Me..I m off with their £60 in my pocket., very generous of them for a few months supply ..People are making thousands in referral fee s out of these suckers .
I say a fool and his money are soon parted. Its not going to work dishing out free money IMHO
watch this space to see who go s bust in 2019

masonic

Houbara wrote: »

You mean they have borrowed a load of money on tick and high interest rates..

You fundamentally misunderstand how equity investment works. The company that has made an investment has bought a stake in the company in anticipation of future returns.

ok if that makes you feel confident you stick with them..

I'm not with them, but I will be in a few days. In any case, my previous supplier went bust, which is why I'm moving now.

Me..I m off with their £60 in my pocket., very generous of them for a few months supply ..People are making thousands in referral fee s out of these suckers .

I'm one for putting some of that money in my pocket too, though they also happened to be the cheapest option for me. I'll decide whether or not to stay based on their prices in the future.

I'd question whether anyone is making "thousands" from the referral scheme, especially after tax.

I say a fool and his money are soon parted. Its not going to work dishing out free money IMHO
watch this space to see who go s bust in 2019

It may or may not work. But many companies employ the same strategy. Whether or not it works, Bulb has more than enough capital to last it through 2019 and beyond.

Thomas_Edison

For sure the referral scheme costs them a lot. But do you know how much it costs for every switch through a pcw?

Say for example it cost £70 for a pcw switch, a referral programme of 50/50 generates a huge amount of buzz and goodwill for only an extra £30.

Again in their latest wholesale update they mentioned prices have been going down not up.

apt

But Bulb has been offering 2x £100 in referrals and that is an expensive way of adding new customers.

Thomas_Edison

Agreed, (I actually got an email this week about it 😂)

Doesn't seem like something a struggling company would do though.

If they were having money problems there'd be signs like failing to pay their RO obligations or hiking payments over the winter like out fox the market.

masonic

apt wrote: »

But Bulb has been offering 2x £100 in referrals and that is an expensive way of adding new customers.

It does seem expensive. Although after having a £50 referral payout for a year, customers have a week or two of double referral. Those who aren't members of money saving forums probably won't know to wait for this and so the customers won by this are likely those obtained by some extra effort on the part of the referrer.