When you live in a community such as Leisure World Seal Beach, there is an opportunity to take advantage of the buying power of a large number of residences, and enter into what is called a contracted BULK services agreement.
In a conventional Bulk Services Agreement, property management enters into an agreement where one provider (Spectrum or Frontier are two examples) is the contracted provider of heavily discounted services (in this case Basic CableTV and Internet). In exchange for being the sole contracted provider of Bulk Rate Services, the provider agrees to provide incredibly low, haggle-free prices, for multiple years! One key point in all bulk agreements is that every unit must participate in the bulk agreement. Another key point is that there be one payor for the bulk services (in this case that would be the Mutual). The residents would pay the Mutual, and the Mutual would pay the monthly bill. This is not a good alternative for Mutuals or residents.
The above poses a problem for Leisure World Seal Beach. The conventional bulk agreement might limit choice of providers, and place a significant burden on the Mutuals to process monthly payments. But Bulk Pricing is truly the best alternative for the LWSB community since it has many fixed-income residents; the lowest price is critical.
In 2007 SuperWire Telecom created a solution. SuperWire enters into an agreement with each Mutual to be the Bulk Services Provider. SuperWire actually fulfills the requirement of the vendor (Spectrum or Frontier for example) and negotiates a rate with the vendor, and SuperWire pays for every unit in each participating mutual. Of course this is a bold concept, because SuperWire does not require a minimum number of residents to subscribe to the Bulk Rate Services. In exchange for SuperWire’s paying for every unit, and giving flexibility to the residents, the only requirement from SuperWire is that they be identified as the only provider of Bulk Rate Services.
SuperWire’s agreements with Frontier (Internet) and Spectrum (Cable) will save the residents of Leisure World Seal Beach almost $20 million over the next 5 years, with no risk or commitments form mutuals or residents!
Thanks to SuperWire, the residents of participating mutuals receive multiple benefits:
- Great pricing for CableTV and Internet
- No hardware costs (one cable box from Spectrum and one wifi router from Frontier)
- Choice: You are not required to use SuperWire’s services.
- However if you do select Frontier Internet or Spectrum Cable, you now have GREAT prices for the next 5 years.
- No libility for the mutuals!