Author Topic: Bargain Culture  (Read 1701 times)

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Offline TimG

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Re: Bargain Culture
« Reply #60 on: December 10, 2017, 01:06:12 am »
The recurring revenue will come from cloud services associated with their device, as with other network-enabled security cameras.  The low price will help build a customer base of which at least some portion will want to subscribe to the optional cloud services.
I did not get that impression from the article. It seemed like they were giving away all of the important features and it is not clear what was left for people to buy. In theory, this would address my point. The question is are the services that people would pay for?

And once Wyze has established a customer base for their security camera and cloud-based services, that would be a good starting point to expand into other smart-home services. "Know what would work great with your Wyze security cameras? Wyze smoke and CO2 detectors! Works with your existing Wyze account! Get alerts on your smart-phone if something is wrong in your home."
Lots of companies doing this already. Who is in a better position to take advantage: ADT which already offers all of the above features and adds Wyze cameras to its line up or Wyze developing completely new services which do not appear to be part of their sale pitch today.

Can Anker continue to make money doing what they're going?   ... I dunno, can Kershaw?  Anker and Kershaw are essentially doing the same thing here. Kershaw takes a higher margin, but Kershaw needs a higher margin to stay in business. Anker, for all I know, might be one college kid who checks his email a few times a day while he's studying for his classes.
Anker appears to have fairly wide product line. That gives them bigger potential volumes and avenues for repeat customers. Kershaw has high margin which is the typical business model for service/support driven sales. If Wyze succeeds selling a lot of cameras (they should) and then expand rapidly into wide range of remote monitoring products then it would be a compelling business model.

That said, i did look more carefully into the s/w that they offer and it is underwhelming compared to what comes for free with more expensive cameras. For example, you have to have a mobile phone - there is no option to control via a PC or Laptop. This alone would mean I would not touch them.