Pricing again - 21 Jan 2020

Revised pricing calculations and break even points etc in a forthcoming budget doc, but am thinking more at a strategic level about our pricing as follows (language is explained in earlier note here):

• using penetrative pricing (essentially selling at a loss) because

  • we expect cost per unit to go down as we scale up production

  • we need to level up our systems to cope with more installations (one order of magnitude more) - and new clients is a great way to force the issue...

  • hate to sound like a startup but we essentially have a small war chest now, and any income at all is a supplement to that, whether or not the unit metrics are profitable or not - we have bought ourselves time so...

  • anything that results in actual impact is worth it!!

Having said all that, we really need to get a far greater understanding of our COGS both now and at scale. I'm working through a course on this at the Hardware Academy and Sampath is tackling it hard too.

And all of this brings us back to what I wrote about yesterday: if we succeed and sell 100 ODetect systems and 100 button installations, we need to have a system of our own that lets us all sleep at night.