Does anybody out there use the Ooma service? We all seem to like saving money on communication, so I figured this was relevant. I currently pay something like $35 a month to Vonage to keep a land line at home. Even though we do use it quite a bit, it still essentially seems like a waste of money.
A friend of mine at work has an Ooma and he says it is great. Basically you pay up front for the Ooma Telo device and then pay Ooma a small monthly fee (somewhere around $4) to cover fees and taxes or something. So lets calculate the break even point if I were to switch from Vonage to Ooma…
- Fixed Cost – The Ooma Telo costs $200 (it is actually less)
- Variables Cost – Monthly Ooma service is $5 (it is actually less)
- Current existing monthly cost for Vonage is $35
- Breakeven Point = Fixed Costs / (Current Monthly Costs – Variable Costs)
- Breakeven Point (Months) = 200 / (35 – 5)
- Result = 6.67 Months
So if I were to buy an Ooma today, I would start saving money during the 7th month of service. That’s not too bad! What do you all think? Does anyone currently use Ooma?